Guidance


We will always meet up with potential new clients on a no fee basis for an initial chat about how we can help you. When commencing a new business, careful consideration needs to be given as to whether it should be incorporated as a new limited company, added to an existing company, or operated as a sole trader or in partnership. This is because since 1 January 2009 the tax consequences of trading as Jersey limited company are dramatically different from those of an unincorporated entity.

10 years ago, the Jersey Tax system was relatively straight forward to operate and understand. Following the changes that have accompanied the introduction of the 0%/10% tax regime in 2009 and the latter changes in 2012 and 2013, matters are no longer either simple or straightforward. PKF BBA have established themselves as a reliable source of accurate and cost effective tax advice to both the individual and corporate tax payer and shareholder.

Particularly complex now, and running to guidance notes of 124 pages are the Distribution Rules under the Jersey tax regime’s changes in 2013. These can have the effect of taxing shareholders on loan repayments they are receiving from capital previously advanced to the company. Please discuss your particular circumstances with us as we can explain ways to assist.

For the smaller Jersey trading company owned by Jersey residents a 31 December year end creates fewer potential tax issues than any other date, although it minimises the tax deferral period.

Consider financing the purchase of plant and equipment by way of finance leases to accelerate the tax relief available rather than using bank loans, overdrafts or hire purchase. Never forget however that the important issue is the absolute %rate you are committing to for the finance, regardless of the tax issues.

Consider computerising your business books and records to provide you with a comphrehensive and up to date information system. We recommend Quickbooks software in most instances and training on these packages can be provided. Online Cloud computing is now becoming very popular and we can advise and train you on multiple formats.

Maintaining even simple accounting records helps us to reduce the time spent preparing your accounts and minimise our charges.

Ensure that all your business expenses are accurately recorded in your records to maximise the tax relief available. It will always be easier to agree a private usage proportion with the Comptroller of Income Tax than to justify round sum estimates of business expenses that have not been recorded.

Consider carefully the date of business cessations as, from 1 January 2009, with a January year end you can be assessed on the last 23 months profits as the final assessment.