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A director of a company has different options when it comes to pay. Each option has different tax benefits. It is very important to be clear on what method you will chose as your accountant will need to know this.

Dividends

A dividend is rewarded to shareholders. An owner of a Limited Company is a shareholder and they will be able to pay themselves in the form of a dividend.An advantage of a dividend is that you do not pay any national insurance on the payment. You will need to pay income which does depend on the level of your earnings.A dividend will need to be paid to all shareholders of the company, this will need to be declared in the minutes of the meeting you will hold with the other directors.Legally a dividend voucher must be created which would show some important information such as the date is was issued, the company details i.e name and number, the shareholders details and the amount the dividend is.

PAYE

Pay As You Earn (real time). PAYE is a HMRC scheme to collect National insurance and income tax for employees of a company, including staff and directors. You will need to register for this scheme, if you`re the owner of a Limited Company you will be classes as an employer and employee.When you pay yourself a monthly salary, you will need to send a PAYE return to HMRC which will show the amount you have paid, including tax and deductions. Again the amount of National Insurance and income tax will depend on the tax code and your tax status.If you need help with your companies accounts please speak to us today. We offer free and impartial advice, our business accountant can help with PAYE registration and can help explain your current tax status and how best to optimise your current situation.If you liked this accounting blog post, you can read more from Your Virtual Office London blog.

The UK economy posted the fastest growth in the G7. It`s predicted that the economy will grow quicker than any other economy in the G7 in 2014. The UK`s GDP will reach 3.1% which is a direct result in capital investment.In comparison Germany is only expected to grow at 1.8%, the item body has forecasted.The GDP rose by 0.8% in the first quarter of 2014, this is the fifth consecutive quarter of growth which equated to the longest growth run since the banking crisis. The same people who have forecasted the growth for the UK have also stated that the interest rates would not rise in 2014, remaining at the record low of 0.5%.Inflation figures post last week did show a large increase to 1.9% in June, which was up from 1.5% in May. It convinced many that the Bank of England would raise rates in order to curb the inflation. However the same people who have predicted the UK`s growth have suggested that inflation rates were over pessimistic, and that they actual inflation on wages was only 0.7% which did exclude bonuses.If inflation is low and the UK has a strong pound, combined with risks from the Eurozone would suggest caution in any interest rate rise.There is also some great news for workers, it is predicted that real incomes will actually grow over inflation over the next two years.If you found this economy blog interesting you can read more informative articles on our business blog. Your Virtual Office London supporting British Businesses.

We provide three different address services. We provide a London office address for trading businesses, a registered office address service and a director`s service address. All three are different from each other and have key features which are important to understand.The first question you need to ask yourself is what type of business are you? Are you a Limited Company, Partnership or sole trader? (There are more legal entities to the ones we listed but these are the main types our customers own).If you are a Limited Company you will be able to choose all three services. The our central London office location is for your company registration, this is the main address that is required legally by Companies House. This address is on public record, the registered office address will be used to send you legal letters and statutory mail such as Tax Returns from HMRC& company documents from Companies House. The advantage to using our registered office address service in London is that it instantly takes your personal address of record; this has obvious benefits and keeps your address private and secure. Another benefit is that it looks very professional; our address situated in London is in a vibrant and affluent business start-up area which will instantly give your company an excellent image to prospective clients.Again if you`re a Limited Company our Directors Service address is similar in terms of function to the registered office address. When you register a limited company through Companies House, you will need to list at least one director. When you list this director Companies House will require you to input contact information such as where the director is located. Our director`s service address allows you to place our prestigious London address instead of your own. Again the same benefits apply to this as per the registered office address; it takes your personal address of public record and makes you look more professional.Our London office address for trading businesses is for Limited Companies, sole traders and even personal customers. This is simple a mail address that allows you to receive your post at our London office address. This has many benefits such as making your business look established, if you`re a personal customer this can help if you are in many locations and need a central point to pick up your post form. Many customers use this address as their main office location, if you are based in another city, having the capital as another option for your customers makes your business operation look more professional, helping them to have trust in your business. For full features please view our London office address package page.If you have any questions about Your Virtual Office London packages, please get in touch with us today. Our team are always happy to take your call, or if you prefer, drop us an email and we aim to respond same day to all emails during working hours.If you liked this blog post, you can read more in our informative business blog.

Forbes Media have been in family hands for over 97 years. However, Forbes has now announced that they have sold the majority stake in the business to a Chinese Company based in Hong Kong.Forbes Media is famous for the Forbes magazine, which published the rich list. Integrated Whale Media are said to the be the group behind the purchase. However the Forbes Family have still said they will have a large stake in the company, just not the majority. Steve Forbes the current chairman will remain in his position.The company was founded by the grandfather, 97 years ago, Forbes said that this should be seen as an opportunity to strengthen the companies mission. Forbes reaches over 75 million people worldwide every month through pring, TV and digital media. The companies headquarters will remain the United States of America but the company is now looking to expand to international markets.If you liked this story, you can read more informative articles on our business news blog. Your Virtual Office London, leaders in virtual office and company formations.

In the UK many companies tend to use a trading name to operate under. The company trading name is different to a Limited Company name. Many businesses prefer to operate under a different name and there are many reasons why they would choose to do this.Firstly a company may have different operations, this means they may be running multiple businesses but under the main Limited Company. In this instance it would make more sense to have different names for each business to help give them a brand and identity.Secondly many businesses have a website address and choose to trade under this name, as the company name may be to long or they chose to go for a more memorable website name.There are issues with trading as names, first of all is the Business Names Act 1985 which states there are legal requirements that a Limited company must adhere too. First of all is that the trading name cant be similar to another company name which could then mislead customers. Secondly sensitive words are not allowed to be used, this are words such as “group”, “frederation” and so on.We would always recommend you do you research first, when you form a limited company check out the competition. If you are planning to use a trading name, run a company search and see if there are any competitors who are using this name.Your Virtual Office London are company formation experts. We have formed many thousands of companies over many decades. If you are unsure of anything you have read please do get in contact with us, we are always happy to help. If you would like more advice on trading names, limited company formation or one of our other services we have a professional team ready to take your call.

Your Virtual Office London provides a free fast track business banking service for all Limited Company formations.A limited company in the UK should have a business bank account to show all the income and expenditure of the account. This makes it a lot easier as opposed to using a personal account, as the transactions are kept separate making it easier for your accounts.A limited company has to complete annual returns and tax returns which are legal requirements from Companies House and HMRC. A dedicated business bank account for your Limited company is the best way to keep a record of all your transactions, making it a lot easier to do your accounting as and when its needed.Your Virtual Office London have teamed up with Barclays to provide all clients with a free fast track business bank account. We have helped over 1000 clients start up with a Barclays bank account which are free and come with excellent benefits such as the following:A few of the Barclay's Business Bank Account Features:

• Free Business baking without charges for upto 12 months.
• A necessary introduction meeting at a Barclays bank of your choice.
• A free debit card, cheque book and safety chip and pin reader for online baking
• Free online banking, mobile apps for your phone, text alerts and paper statements.

I would like to go take your free business bank account up, what next?All Your Virtual Office London clients are able to apply for this offer. If you have a Limited Company and you would like to apply please contact us.Once we receive your details we will inform Barclays of your interest and they will the get in contact with you, its that simple.

UK cities should invest in energy product including increased green energy to help compete with main energy suppliers in the UK.A think tank has suggested that cities could really benefit from renewable energy, helping to drive down costs. Energy UK, which represents energy supplies said customers would welcome more competition. More competition would result in lower prices and a more competitive market.Cities account for two thirds of the worlds total energy consumption. They also contribute over 70% of global C02 pollution emissions.Cities should invest in local power generation technologies such as solar panels and wind farms on a smaller scale. This would completely change the way the energy supply system operates. This would help smaller producers provide customers with energy ending the big power companies` dominance which can lead to higher prices.In Bristol, the local authorities have plans to setup and install a large one gigawatt of solar panels by 2020. Aberdeen is planning to run buses on hydrogen from using the local wind farms spare energy production.Britain has a long way to go, but authorities are starting to understand that they now have a role in green energy production. More competition in the energy market is great for the customers and everyone will see benefits, from cleaner air with less pollution to cheaper energy bills.If you like this business economy news blog, you can read more on our blog page. Your Virtual Office London, leaders in professional services for small businesses.

If you are a shareholder of a Limited Company and you die, the shares will go to whoever inherits them under a will or through intestacy. The deceased person`s shareholder will be administered by the executors of the will or if there is no will left, then through administrators of the estate.The Limited company will need to accept evidence of the probate of the will or letter of administration to establish that the rights of the personal representatives in respect to the shares and ownership. The representatives of the deceases are subject to the Company`s Articles of Association.Some companies have restrictions on the transfer of shares outlined in the articles, which may allow the directors of the company to refuse the registration of the shares.It is essential to make sure you have a plan in place in case one of the shareholders dies, it is essential that this process is correctly documented.

Some normal arrangements are as follows:

1. An agreement that any shares may pass to particular people such as a shareholders partner or children.
2. Pre-emption rights in favour of the existing shareholders
3. A pre-arranged right to buy the deceased shareholders holding with valuation arrangements and a payment schedule.
4. A cross option agreement, a legal contract between the shareholders and the owner of the shares with an insurance policy which will pay a pre-agreed sum which would be used to pay for the deceased shareholders holding. For example the shareholder passes the shares to his partner, the other shareholders then arrange for insurance prior to death to cover the cost of buying the shares back. Upon death, the shareholders then are given the legal right to buy the shares from the partner using the insurance pay-out.

The situation you need to avoid is whereby there is no plan, and a shareholder dies and there are conflicting issues with the will and the companies articles.If you need professional advice on the above issues, Your Virtual Office London can help discuss the option available to you. We are company formation experts, and have been forming companies since 1971.

I'm a director and a minority shareholder what happens if the majority shareholder wants me out?

In this article we discuss what happens if two shareholders are in dispute where one is a minority shareholder. What rights does the minority shareholder have, and what if anything can you do?Sometimes it is necessary to remove a director from a company if a dispute arises. This is where the Company`s Articles of Association would be used, they would be used to confirm the procedure of how disputes are handles. If the Company`s Articles of Association do not provide a solution, the next solution is to understand section 994 of the Companies Act 2006.

This is a very important statute and this states:

A member of a company may apply to the court by petition for an order under this Part on the grounds that(a) The company`s affairs are being or have been conducted in a manner that is unfairly prejudicial to the interests of members generally or of some part of its members (including at least himself), or(b) An actual proposed act or omission of the company (include an act or omission on its behalf) is or would be so prejudicialThe idea behind this is to protect minority shareholder, this means shareholders with less than 50% of the shareholding in a situation where the majority shareholder seeks to act in a manner that is unfair to the minority share holder, such as removing them as a director. This statue gives the minority shareholder some power in the court if they feel they have been unfairly treated. In such circumstances a majority shareholder could try to damage the company which could result in a reduction of the value of the share.The minority shareholder would have to have a good case to show that the majority shareholder was actively trying to damage the business in order to reduce the value of the shares, simply stating the business is being badly run would not be enough. Credible proof would be needed and it could be a lengthy process.If you are in this position and need more advice, Your Virtual Office London provide company support and advice. We are happy to help you, we offer free and impartial advice and have a vast amount of experience behind us. Our team have been forming companies since 1971 and are on hand to help provide you with the knowledge you need in order make sure your company makes the right choice.We provide other professional services too, such as registered office addresses service, directors service address and mail forwarding in London. What ever the need, speak to us today.

China - the world`s second largest economy, second to the United States of America has expanded 7.5% from a year ago, up from 7.4% growth in the previous quarter. This is in direct relation to the governments stimulus that is not having an impact on the positive growth.China has been actively looking at ways to stimulate the economy to help boost growth. China has experience many years of expansion, and growth had slowed in very recent times which can relate to a global decline in demand for its manufactured products.The economic slowdown led to China trying to boost domestic demand to help increase and sustain the expansion, increasing home grown demand can also help balance the growth model.China`s national bank said it would reduce the reserve requirement ratio (RRR) – the amount of reserve money needed for a security reserve. This spare cash would then be made available for small businesses and companies. The bank also said it would encourage other banks to help make more money available to exporters.The Chinese government has also recently announced it would cut taxes on small business to help reduce red tape that can prevent new businesses forming. The government are also speeding up the construction of railway lines across the country. Further to this they are also announcing large domestic infrastructure projects such as new railways, roads and ariports along the Yangtze River.If you found this blog informative, we have many more helpful and intersest posts on our business blog page, Your Virtual Office London business experts.