Here are the most frequently asked questions we've received from small business owners in July 2022, with answers from the experts at Orange Genie Accountancy:

What if I filed my P11d late?

A P11d only needs to be filed if you provide benefits to your employees, for example a company car or private medical. The P11d was due to be filed with HMRC by the 6th July 2022, if you have not filed your P11d on time, then HMRC will issue a penalty of £100 per 50 employees for each month or part month your P11d is late. You will also be charged penalties and late payment interest if you are late paying the Class 1A NIC. If you are late filing and paying, or unsure if you need to file a P11d, please contact your accountant.

What is a directors loan account?

A directors loan can be created when you borrow money from your company, or you unintentionally withdraw more than the company can afford to pay you from the reserves. Withdrawing a directors loan can incur you additional taxes to pay such as a benefit in kind, additional corporation tax (S455 charge) and income tax via your self-assessment. If you are thinking of taking a directors loan from the company, you should always contact your accountant first to discuss the implications.