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<h2>FAQ Guide: Understanding Entertainment Expenditure for UK Limited Company Owner/Directors</h2>Navigating the complexities of business expenses, particularly entertainment expenditure, can be challenging for UK limited company owners. This FAQ guide clarifies common questions regarding entertainment expenses, assisting you in making informed decisions and adhering to HMRC guidelines.Defining Entertainment Expenditure Q: What constitutes entertainment expenditure for a UK limited company? A: Entertainment expenditure includes costs related to entertaining clients, potential clients, or employees, such as meals, events, tickets to shows or sports games. These are generally incurred in the pursuit of maintaining or fostering business relationships.Tax Deductibility of Entertainment Expenses Q: Are entertainment expenses tax-deductible? A: The deductibility of entertainment expenses varies:<ul><li>Client Entertainment: Expenses for entertaining clients or potential clients are not tax-deductible.</li><li>Employee Entertainment: If entertainment benefits employees and meets certain criteria, it may be considered tax-deductible. </li></ul>Examples of Deductible and Non-Deductible Expenses Q: Can you provide examples of what is and isn't tax-deductible? Tax-Deductible:<ul><li>Annual staff party or similar events open to all employees, costing less than £150 per head.</li><li>Team building events primarily for employee benefit and not overly extravagant.</li></ul>Non-Tax-Deductible:<ul><li>Meals or events with clients where the primary purpose is business discussion.</li><li>Entertainment events for potential clients without any direct employee benefit. </li></ul>HMRC’s Stance on Entertainment Expenses Q: How does HMRC view entertainment expenses? A: HMRC is stringent with entertainment expenses, only allowing deductions if they are wholly and exclusively for business purposes. Detailed scrutiny is applied to ensure expenses meet the criteria for allowable deductions.Record-Keeping for Entertainment Expenses Q: What records should I keep for entertainment expenses? A: Maintain detailed records, including the date, location, purpose of the entertainment, attendees and their relationship to the business, and receipts outlining the cost.Allowances for Small Gifts Q: Are small gifts to clients allowable? A: Small gifts costing £50 or less per client annually are allowable if they advertise the company and are not food, drink, tobacco, or exchangeable vouchers.Mistaken Claims Q: What if I mistakenly claim for non-deductible entertainment expenses? A: HMRC may require repayment of tax relief claimed on such expenses, potentially with additional penalties or interest. It's vital to seek advice if unsure about the deductibility of specific expenses.Ensuring Compliance Q: How can I ensure compliance with entertainment expenditure rules? A: To ensure compliance, keep accurate records, understand the rules regarding entertainment expenses, and consult a tax professional for advice tailored to your business's specific circumstances.

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<h2>Thinking about starting your own business?</h2>If you're setting up your own business for the first time, you might come across the term micro company — but what does that actually mean?In the UK, a micro company is simply a very small limited company. To qualify, you need to meet at least two of the following: ✅Turnover of £632,000 or less ✅£316,000 or less on the balance sheet ✅10 employees or fewerThe good news is that micro companies benefit from simpler financial reporting. But there are still a few important things you’ll need to do each year, including: ➔ Keeping proper bookkeeping records &nbsp;➔ Running payroll (if you pay yourself a salary) &nbsp;➔ Preparing annual financial statements &nbsp;➔ Filing a corporation tax return with HMRC &nbsp;➔ Submitting a confirmation statement to Companies HouseAt Neame &amp; Co, we help people take the stress out of getting started.We can set up your company, get your bookkeeping systems in place, sort your payroll, and handle your accounts and tax returns — so you can focus on building your business, not worrying about paperwork.If you’re thinking about setting up on your own, or you’ve recently taken the leap, feel free to get in touch.We specialise in supporting micro companies — giving you clear, practical advice from day one.

<figure id="figure-9biyvqub5ma2e6190" class="selected"><img id="9biyvqub5ma2e6190" src="https://cdn.durable.co/blocks/9uwYklLvXRaU0lR4cNnNGPzjOEvxZnZtnftZws6d7hFSy6GdG3EkY3Cqn6vKokBn.png" alt="" title="" class="object-cover bg-gray-100" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/9uwYklLvXRaU0lR4cNnNGPzjOEvxZnZtnftZws6d7hFSy6GdG3EkY3Cqn6vKokBn.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>Starting a Limited Company in 10 Steps</h2>1️⃣ Choose a Company Name Check availability with Companies House.2️⃣ Decide on Your Registered Office Address Must be a UK address — home address or virtual office.3️⃣ Appoint Directors and Shareholders You need at least one director. You can also be the sole shareholder.4️⃣ Register the Company Apply directly with Companies House (£12 fee) or through a formation agent like Rapid Formations (around £55 + VAT).5️⃣ Open a Business Bank Account Free options like Mettle are available.6️⃣ Set Up Accounting Software FreeAgent is free with a Mettle account and covers invoicing, expenses, and tax.7️⃣ Register for Corporation Tax Notify HMRC within 3 months of starting business activity.8️⃣ Consider VAT&nbsp; Register if turnover will exceed £90,000 or if registering voluntarily benefits you. And you may also wish to consider if the VAT Flat Rate Scheme is suitable.&nbsp;9️⃣ Sort Out Payroll (if needed) and dividends&nbsp; Set up PAYE if you’ll pay yourself a salary.🔟 Stay Compliant Keep good records, file your annual accounts, confirmation statement, corporation tax return, and personal tax return if needed.Need help setting up your company?At Neame &amp; Co, we offer a free 30-minute consultation to talk through your plans and help you get started with confidence.Contact us today — we'd be happy to help you build the right foundations for your business!

<h2>FAQ Guide: How to Obtain a UTR Number and a Corporate Tax Number for a UK Limited Company</h2><figure id="figure-wjiua5izxrma2dye8f"><img id="wjiua5izxrma2dye8f" src="https://cdn.durable.co/blocks/12vaHVzjdlCjg7XSVP6gfswK7Kx8NX7C6REre30mWlkrsdDTzlcuhOspL2taQkWO.png" alt="" title="" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/12vaHVzjdlCjg7XSVP6gfswK7Kx8NX7C6REre30mWlkrsdDTzlcuhOspL2taQkWO.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>Introduction Setting up a UK limited company involves several important steps, one of which is registering for tax purposes. This FAQ explains how to obtain both a Unique Taxpayer Reference (UTR) number and a corporate tax number, which are essential for fulfilling your tax obligations with HMRC (Her Majesty’s Revenue and Customs).Understanding UTR Numbers Q: What is a UTR number?A: A Unique Taxpayer Reference (UTR) number is a 10-digit number uniquely assigned to your company by HMRC. It is essential for managing your company’s tax obligations, including filing tax returns and paying taxes.Obtaining a UTR Number Q: How do I obtain a UTR number?A: Register Your Company: When you register your company with Companies House, either online, by post, or through a formation agent, you will need to provide details such as your company name, business address, director information, and share structure.Automatic Trigger: Following your registration, HMRC will be automatically notified of your new company.Receive Your UTR Number: HMRC will send your UTR number by post to your company’s registered address, usually within a few weeks of your registration.After Receiving a UTR Number Q: What should I do once I receive my UTR number?A: Once you receive your UTR number, keep it securely stored as you will need this number for all official communications with HMRC and for your tax filings.Understanding Corporate Tax Numbers Q: What is a corporate tax number?A: A corporate tax number, also known as a Corporation Tax reference number, is an identifier issued by HMRC that is specific to your company’s obligation to pay Corporation Tax.Obtaining a Corporate Tax Number Q: How do I obtain a corporate tax number?A: Register for Corporation Tax: You must register your company for Corporation Tax within the first three months of starting your business operations. This registration is completed online through the HMRC website.Receive Your Tax Number: HMRC will send your Corporation Tax number to your company’s registered address. This number will also be included in all official correspondence from HMRC regarding Corporation Tax.After Obtaining a Corporate Tax Number Q: What are the key things to remember after obtaining my corporate tax number?A: Keep your Corporation Tax number accessible and secure, as you will need it to file your company’s Corporation Tax return. It’s important to adhere to all registration and tax filing deadlines to avoid any penalties.Seeking Professional Advice Q: Should I seek professional advice?A: If you are unsure about any part of the registration or tax process, it’s wise to seek advice from a professional accountant or tax advisor. They can provide detailed guidance and ensure that your company complies with all legal requirements.Conclusion Obtaining a UTR number and a corporate tax number are key steps in setting up your UK limited company. Ensuring you follow these steps correctly will help keep your business compliant with UK tax laws and ready for successful operation.