I cannot understand why more people do not incorporate their business. It is not just the tax advantages. To example this I will outline the facts of a case on which I recently advised.
I cannot understand why more people do not incorporate their business. It is not just the tax advantages which I will explain in the second part of this article. I spend some of my time dealing with tax problems and business persons who are experiencing cash flow problems and pressure from HMRC. Incorporation is these circumstances can mean that all is not lost. To example this I will outline the facts of a case on which I recently advised.
The owner of a restaurant telephoned to say that he was in arrears with his VAT payments and HMRC were threatening dire consequences. I established that he owned the freehold and all the fixtures and fittings. He traded through a limited company and was happy to pay HMRC by borrowing from his pension fund but HMRC would not allow him the necessary time.
This all happened shortly after the summer riots and so I advised him that Mr. Cameron had announced there would be help for businesses who had suffered through the riots. This restaurant, as people were not going into the City Centre, had the weekly turnover reduced by seventy five per cent. I referred him to the front page of the HMRC web site which indicated that they would be approachable. I then suggested that he telephone HMRC asking for this special treatment.
To my surprise he telephoned the next day to explain that HMRC would not play ball.
There was no alternative. A new company was incorporated and immediately took over the restaurant trade....
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The Poacher turned Gamekeeper
This information has been honesty written with a view to helping you: I am, like most people, not perfect and I apologise for any in corrections. I cannot be held responsible for any consequences of you using the information unless I have been made aware of the full facts of the matter and have expressed an opinion thereon.