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 tell us how we can help you contact us.

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

A. Ten months after the company’s year-end unless it is the company’s first year of trading in which case it is 22 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 finite 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 Nil Rate band is now £285,000 and transfers on, or within seven years of death will have a 40% rate of tax. Most transfers between spouses and civil partners are exempt and the first £3,000 of lifetime transfers in any tax year plus any used balance from the previous year. 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 £125,000, 1% on property transferred between £125,000 - £250,000, 3% on transfers from £250,00 - £500,000 and 4% on transfers over £500,000.

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 October 2006 the minimum wage increased to £5.35 p.h. for over 21’s, £4.25 p.h. for 18-21 year olds and £3.00 p.h. for employees aged 16 and 17.

Q. How much is the Basic Retirement Pension?

A. A single person will receive £84.25 and a married couple £134.75

Q. How much is child benefit?

A. The first eligible child receives £17.45 per week and each subsequent child £11.70.