Ade Ogun, Business AdviserBSc(Econ), ACCA, Business Link, PWC20 years Small business owner Introduce your self to class What do you hope to get from attendance

Ltd Co. t/o >6.5m, b/s >3.26m, emee>50Shareholders of Ltd demand so & >10%Ltd by Guarantee demand by >10% sharesCharity where Inc> 0.5m in all cases plus If 0.25m

Option for charities with gross inc >25,000 but 500,000 in all cases plus some cases if 250,000

I.E. confirms no evidence that certain things have not been done Compared to true and fair view of audit Records reviewed & compared to a/cs No substantive tests I.E. Reports concerns to Charity Regulator

Applicable to Self Emp, Co. Dir, trustee, foreign income & complex tax affairsBurden on Self Emp. Notify HMRCPaper returns due by 31st October Online returns by 31st January- calculations done 4u & repayments quicker Once return issued, it must be returned.

Self Employed must register

Assess Taxable Income: Self employment, Partnership Profits, Rental & Investment Income Assess Capital Gains on sale of Assets: Homes, shares and chargeable assets>38,000 where first 9,600 of gains exempt. Claim tax allowances and reliefs to reduce taxable income e.g. Personal allowance 6,035

Start with Profits from accounts:Adjust for expenses disallowed by HMRC Claim allowances permitted by HMRC Adjusted Profits subject to tax Calculate tax liabilityAdjust liability for tax already deducted at sourceCalculate National Insurance (Class 4) liability

Mr and Mrs Padmore run a clothing store in Bethnal Green, London. The business is unincorporated and has been a going concern. The financial year end is the 30th November 2008 Accounting Profit 60,250 but can you suggest adjustments required by HMRC?

HINTS:Expenses should only be deductable against profit if wholly and exclusively necessarily incurred in course of business. Wages paid to family members should be at fair market value.

Profit from Accounts60,250Depreciation F & F+ 2,000Depreciation Vehicles+ 1,500 Daughters deemed drawings+ 4,500

Rent and Rates third add back+7,333 Light and Heat+3,017 Personal Holiday+2,150 Car personal use is two thirds+2,800 Disallowable sundry expenses?

Add back Political Donations+ 200Add back Golf Digest+150 Allow H & S fine:As in ordinary course of business

Profit from accounts60,250Add back Depreciation+ 3,500Daughters drawings+ 4,500 Rent, rates, light & heat+ 10,350Disallowable expenses+ 5,300Profit s.t. Allowanes and reliefs83,900

Start with Profits from accounts:60,250Adjust for expenses disallowed + 23,650 Capital (4,080) & P.A. (6035)-10,115 Profit B4 Savings Inc subject to tax73,785 Calculate tax liability23,274Adjust for tax deducted at source- 360Calculate NI liability 3,532

Thank you for your time.