Ellis & Co Chartered Accountants Chester

Frequently Asked Questions

To help answer your queries we have put together a number of questions the Ellis & Co team are often asked.  If you would like to know more or have a question that has not been answered please contact us on 01244 343504 or by e-mail info@ellis-uk.com.

Q. What are the filing deadlines at Companies House for filing annual financial statements?

A. Nine months after the company's year-end unless it is the company's first year of trading in which case it is 21 months after the date of incorporation.

Q. When is the company's corporation tax liability due?

A. Nine months after the company's year end unless the company's period is more than 12 months, when it has two payment dates, the first 19 months after the 12 months from commencement of the accounting period and the second, nine moths after the date of the company's extended accounting period end date.

Q. Should I trade as a sole trader or limited company?

A. There is no definite answer. This depends on number of circumstances including level of business profits, business risk, protection of personal assets and the sector in which the business operates.

Q. How much is the Nil Rate band for Inheritance Tax and what are the main exemptions?

A. The law allows you to leave an estate worth up to £325,000 (2009/2010) without having to pay any Inheritance Tax upon it. This £325,000 is called the 'Nil Rate Band'. After the first £325,000, or the Nil Rate Band, the remainder of your estate will be charged 40% Inheritance Tax. From 9 October 2007, spouses and civil partners can transfer their Nil Rate Band allowances so that any percentage of the Nil Rate Band that was not used when the first spouse or civil partner died is transferred to the individual's surviving spouse or civil partner for use on their death.

Gifts can be made of up to £250 p.a. to any persons and gifts in consideration of marriage/civil partnership of up to £5,000 by a parent, £2,500 by a grandparent, or £1,000 by any other person. Gifts to charities, whether made during lifetime or on death are also exempt.

Q. When buying a house, how much Stamp Duty will I need to pay?

A. On the transfer of residential property the stamp tax is nil on the value of a property up to £175,000, 1% on property transferred between £175,000 - £250,000, 3% on transfers from £250,00 - £500,000 and 4% on transfers over £500,000. (The £175,000 figure is due to be reduced to £125,000 with effect from 1 January 2010).

Stamp Duty is also payable at a rate of 0.5% on transfers of shares and securities.

Selected Rates

Q. What is the National Minimum Wage?

A. From March 2008 the minimum wage increased to £5.73 per hour for over 22's, £4.77 for 18-21 year olds and £3.53 for 16 and 17 year olds.

Q. How much is the Basic Retirement Pension?

A. The full state pension for 2009/10 is £95.25 per week for a single person and £152.30 for a couple, but your individual circumstances my affect the amount you get.

Q. How much is child benefit?

A. The first eligible child receives £20.00 per week and each subsequent child £13.20.