Q One of my employees has gone sick and submitted medical certificates. Do I have to pay Statutory Sick Pay and, if so, can I reclaim it?

A SSP is payable if an employee's average weekly earnings are £87* or more.
You can get back any SSP you have paid over and above 13% of your total NIC liability for the same tax month in which you have paid the SSP.
* 2007/2008 tax year

Q My company has a turnover of £2.4m for the year ended 30 June 2006. Do I require an audit?

A No. The audit exemption limits were recently changed and if the company meets the conditions for total exemption in respect of the financial year, it does not require an audit.

The conditions are as follows:
• The company qualifies as a small company in the year in question;
• The turnover in the year does not exceed £5.6m; and
• The balance sheet total does not exceed £2.8m.

(Balance sheet total = total of all assets without deducting liabilities)

However, there are benefits of carrying out an audit on which we would be happy to advise you.

Q What are the criteria for being classed as a small company?

A The criteria need to be satisfied in both the current and preceding year in order to qualify as a small company.

Also, if a company qualified as small in the previous year then it also qualifies in the current financial year.

The criteria are as follows:
Turnover £5.6m
Balance sheet total £2.8m
Average number of employees 50

It should be noted however, that there are certain types of companies not entitled to exemptions as a small company and we can advise as to whether your company falls into one of these categories

A A company qualifying as a small company is entitled to:

• Adopt the Financial Reporting Standard for Small Entities;
• Reduce the accounting disclosure requirements; and
• Deliver abbreviated accounts to Companies House.

Q Are there any benefits in getting my self assessment tax return in early?

A Yes. They are as follows:
• You know exactly what tax to pay and so won't make under or overpayments;
• If you are employed, tax liabilities of up to £2,000 can be collected via your tax code;
• You will get any money owed to you repaid quickly;
• No last minute panics chasing for information; and
• You won't miss tax planning opportunities when planning with foresight.

Q When is the deadline for my Tax Return?

A 31 January in the year following the end of the tax year

Q Who do I make the cheque payable to for my tax?

A HM Revenue and Customs

Q What is the current VAT registration turnover limit?

A £64,000 per annum

Q My business has just started making some sales but their value hasn't yet exceeded the VAT registration turnover limit. What's my VAT registration position?

A A business is not required to register for VAT unless it passes one of two tests. These are:
1) That the value of sales made that attract VAT at the standard rate, reduced rate or zero rate (collectively referred to as "taxable sales") in any rolling 12 month period has exceeded the registration turnover limit (currently £64,000);or

2) That there are reasonable grounds to believe that the value of the taxable sales to be made in the next 30 days alone will exceed the registration turnover limit.

If either of these tests is passed then a business must ordinarily register for VAT.

However, a business can also volunteer to register for VAT before either of these tests is passed e.g. where no taxable sales have yet been made or where such sales have been made but their value has not yet exceeded the limit. Such voluntary registrations can be helpful, particularly where:
- the business' customers are themselves registered (and so they can recover any VAT charged to them);
- significant amounts of VAT are being incurred on initial set up costs; or
- registration would result in more VAT being recovered on expenditure than is payable on sales e.g. where VAT is incurred on costs but income is zero or reduced rated.

Q I think I have paid too much tax - what can I do?
(This could apply to an individual, company, Estate)

A We would be happy to advise in our introductory meeting and may be able to help reduce your future tax liabilities by taking action now.

Q If I pay a dividend before the end of the company's financial year, will it reduce the corporation tax liability?

A No. Dividends are not deductible from company profits when calculating corporation tax. However this does not mean they are not a tax efficient method of remuneration and you should contact us to discuss the best option for you.

Many of the issues listed above are complex and may require further consideration in specific situations. We would be happy to advise on all of the above in greater detail.