David Baldwin Joins Help Harry Help Others Board

A cancer charity has recognised the efforts of an accountancy firm chief who has led efforts to raise more than £100,000 in its support.

Help Harry Help Others was set up by Harry Moseley while battling an inoperable brain tumour, to fund cancer research and help children and their families affected by all forms of cancer.

Harry’s mother, Georgie, set about making the campaign a registered charity and continued her son’s work after he died aged 11 in 2011.

It has since helped more than 1,000 families across the Midlands and provided more than £1million in funding supporting cancer patients, their families and also its vital research.

David Baldwin,  Co-Founder of BK Plus and former Director of Baldwins has been appointed to the board of trustees for Help Harry Help Others, where he will help support the future direction of the charity.  David first started working with the charity back in 2013 where he made them the official charity partner of Baldwins and raised more than £100,000 in its support from 2013  until 2019 when David finished at Baldwins.

David said: “I am honoured to have been asked to join the board at Help Harry Help Others, a charity which has made a real difference to the lives of hundreds of young people and their families across the Midlands.

“I am looking forward to being able to help shape the future direction of the charity and continue the work that I started all those years ago.”

Georgie Moseley, who is the founder and CEO of Help Harry Help Others, said: “David has been instrumental in helping us to raise funds and providing support to the charity over the years, his experience working with SME businesses and entrepreneurial mind set are qualities that we are excited to embrace within the charity.

“this was just the next step for us to have him as part of the charity, I am delighted that he will be joining the existing board of trustees, Tom Ross, Jonathan Till, Robert Spittle and Joan Smith including myself, where we will be able to continue to make a difference in helping people across the Midlands.”

 

Upcoming Changes To Corporation Tax

Back in Spring 2021, the Chancellor announced in his budget that Corporation Tax will raise for companies with profits over fifty thousand pounds as well as changes to how the higher rate of Corporation Tax works.

From April 2023, companies creating profits of £250,000 or more will see an increase to 25% for Corporation Tax from the current 19%. Whereas, companies with profits between £50,000 to £250,000 will recover marginal relief from the 25% tax margin.

The marginal relief fraction is set at 3/200. The amount of marginal relief for the boundary can be worked out by finding the difference between the company’s profit and £250,000 (upper-profit limit) and multiplying it by the fraction.

Companies with profits under £50,000 will continue to pay Corporation Tax at 19%. The new Corporation Tax groups have adjusted for companies with accounting periods shorter than twelve months.

For more in-depth information on changes to Corporation Tax and how it will affect your business, go to the Government’s page on Corporation Tax.

For help staying on time with your tax returns, or for general advice to help your business be as tax efficient as possible, get in touch with us at hello@bkplus.co.uk

Making The Switch from Sole Trader to Limited Company

Many people start off contracting or freelancing as a sole trader due to the easier and cheaper set up process compared to setting up as a private limited company. Over time when your business develops you might realise you are ready to change from a sole trader to a limited company structure to be more efficient.

A reason to transition to a limited company includes that over time when earnings increase, being a limited company means that you have to pay less tax when your sole trade profits reach around £30,000 a year. The switch also gives you the flexibility to involve others in your business to help it grow – including directors and shareholders.

Other benefits of becoming a limited company include:

  • limited liability
  • greater borrowing power
  • improved reputation
  • credibility

To set up a Limited Company you need a separate bank account in the business name. This is because of tax consequences you may incur.  As a sole trader, all of your profit is taxable to you. Whereas a limited company, you are taxed personally on the money you take in your salary and dividends. Any other money from the account that you take will act as a director’s loan with HMRC rules. You should also be aware that income is processed differently as being a private limited company, personal income will be a combination of a director salary and dividends (profit after Corporation Tax).  Since the tax will be calculated differently, to avoid confusion having a personal and business account separate is useful.

For a sole trader, you have to submit an annual Self Assessment to HMRC so they can calculate what Income Tax and self-employed National Insurance you needed to pay. Whereas being a limited company director, on top of filing an annual Self Assessment tax return, but also a regular payroll (normally monthly) for any salary you choose to take. It should be noted that you may not need to pay Income Tax or National Insurance on the salary, depending on how much you decide to take out. However, you will need to declare any dividends you receive from your limited company as well as all the sources of income you have. As the limited company director, you need to file various tax returns to HMRC and Companies House as well as paying the company’s Corporation Tax Bill.

Other changes that you should be aware of include:

  • business expenses are treated differently (option to claim tax relief)
  • choosing the director
  • transferring assets to your limited company
  • Corporation Tax
  • IR35 (tax legislation to combat tax avoidance from workers)

Once you have made the decision to change to a Private Limited Company, you need to make HMRC aware of who the director is as the tax payments will change. The best way to ease with the change from sole trader to a Private Limited Company is an effective accountancy firm backing you. The key role of an accountant is ensuring the limited company is set up best for you with the use of up-to-date technology. With reminders of important tax deadlines and payments, the help of a professional will help you stay tax efficient.

For more in-depth information on the differences between being a Sole Trader and Limited company, read our Sole Trader Vs Limited Company article here.

For help setting your limited company, or for general advice to help your business be as tax efficient as possible, get in touch with us at hello@bkplus.co.uk