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This month we spotlight Jo Lewis of Light & Lace Photography and re-share our article on being a company director
Clifford Towers, Newsbrief
Dear <<First Name>>,
 
Brexit As the nation digests the reality of an EU exit, the outcome has been increasingly dominated by the performance of Britain's currency and stock market and the impact on businesses.

But let us not forget that the UK will remain a member of the EU for at least another two years. Here at Clifford Towers, we will be monitoring any changes which may affect your accounting and business planning and will provide help and advice to help you navigate  through them to ensure your business is successful and profitable. 

Our featured article on incorporation (in full this time!) is back by popular demand as so many of our newsletter readers found it useful, and our client feature this month is about Jo Lewis from Light & Lace Photography who has an amazing portfolio and works with UK and international clients.
 
Have a question that's been bothering you for a while? Please do reach out and speak to one of our accountants. Call us on 01788 577 613 (Rugby) or 01908  564 701 (Stony Stratford) or just reply to this email to set-up a time to chat.


Article Spotlight: 
I want to be a Company Director - the pros and cons of incorporation




When we meet new clients who have a business idea and want to go into business on their own account we often find that the first thing they want to do is to become a company director! They have usually decided they want to have a company before they have met up with an accountant. Therefore our first meeting will often be a lengthy discussion about business structures; incorporation, sole trade or partnership.

There are no strict rules which dictate that a new business should choose any one of these structures. It very much depends on them, the industry they are in, their personal circumstances as well as business and tax issues.

What are some of the pros and cons of Incorporation?

PROs – for Incorporation
  • It should provide limited liability. This means that the personal liability of directors/shareholders is limited to their investment in the company.
  • There are definite tax advantages to running your business through a limited company.
  • A limited company can allow directors/shareholder to maximise the use of personal allowances and lower tax rates in comparison to those they might suffer in a sole trade.
  • There is scope to pay less National Insurance.
CONs – against Incorporation
  • New businesses often make losses in their earlier years. A sole trader has considerable flexibility dealing with such losses.
  • The administrative and accounting burden is greater for a limited company and thus the annual costs for accountancy, taxation and company secretarial are likely to be higher than the costs of accounting and tax compliance for a sole trader or a partnership.
  • Company cars are an expensive taxable Benefit In Kind whereas running a car through a sole trade or a partnership causes considerably less tax anguish.
  • Similarly private expenditure made by a limited company on behalf of a director or shareholder can lead to taxable Benefits In Kind and also have National Insurance repercussions.
I still think the company life is for me

Each new business is unique. Come and speak to us and we will talk through the pros and cons of a suitable trading structure both from a tax and accountancy point of view and also from a commercial one. In certain markets incorporation is the norm and in others sole trader status is fine.

We have great experience in this area and are happy to discuss the particular requirements you might have. The first meeting is always free and gives us and potential clients a chance to look forward to what may become a fruitful and long term relationship. 

Client Spotlight: Light & Lace Photography

Jo Lewis, of Light & Lace Photography, is a fine art photographer based in Rugby, Warwickshire specialising in weddings, portraits and commercial photography. 

Her work is recognised for its fine art and editorial style and she regularly appears on bridal wedding blogs and has had work published in Bridal magazines.

Jo chose to work with Clifford Towers to help her with her company accounts and self-assessment tax return.

She was thrilled to be nominated in the regional finals for the 2015 Wedding Industry Awards and has just been voted regional finalist for 2016 - good luck Jo!

For further information, visit her website www.lightandlacephotography.co.uk or contact Jo on 07983418890 or by emailing info@lightandlacephotography.co.uk 


Deadline Dates to Remember:

31 July 2016:
Accounts to be filed at Companies House (Private or Limited Company that has a 31 Oct 2015 year-end).

Payment on Account for Self Assessment due (second payment)

01 Aug 2016: 
Corporation Tax payment due (if your business year-end is 31 Oct 2015)
 

       
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Our phone numbers are:
Rugby Office - 01788 577 613
Stony Stratford Office -  01908 564 701
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