Everyone is entitled to an inheritance tax (IHT) ‘nil-rate band’ of up to £325,000 (for 2025/26) on death, reduced by any gifts which are not exempt within seven years before death. That’s Not All… In addition, unused nil-rate band of a deceased spouse (or civil partner) is generally available to be transferred to the surviving
IHT-Free: £325,000 or £1m? Read More »
The capital gains tax (CGT) legislation in TCGA 1992, s 253 (relief for loans to traders) provides for capital gains tax (CGT) loss relief where an individual has lent money to a ‘trader’ which has been used for the purposes of the trade but where the debt has become irrecoverable. The trader could be a
Losses On Loans to Traders: Not All Plain Sailing! Read More »
Directors of small companies, especially those with prior experience of self-employment, often overlook the distinction between company funds and personal finances. It can be hard for some directors to resist the temptation to channel all expenses through the business bank account, whether those expenses are company-related and tax-deductible or personal. However, such a practice has
Company Payment of Director’s Personal Expenses: What’s the Tax Position? Read More »
On 16 January 2024, there was a HMRC ‘simplification update’ announcing the mandation of payrolling benefits-in-kind (BIKs) from tax year 2026/27. Example: Payrolling of medical benefit The payroll department is advised that Roger has a medical benefit of £3,000 per year. He is paid monthly, so to account for the income tax and Class 1A
Payrolling Becomes a Reality From 2026 Read More »
In my article in last month’s Tax Insider, I explained why it may now be fiscally attractive for some owner-managed businesses to disincorporate. Here are some further considerations. No ‘Disincorporation Relief’ Unlike with an incorporation (where, for example, TCGA 1992, s 162 allows gains on qualifying business assets to be rolled over into the cost
Disincorporation: Some Practicalities Read More »
VAT incurred on goods or services used for business purposes can normally be recovered as input tax. However, tax on the provision of business entertainment cannot normally be recovered. Business entertainment covers customers and other business contacts, but not staff. Subject to certain restrictions, the recovery of VAT on the provision of staff entertainment is
VAT: Entertaining Overseas Customers Read More »
Although it was originally recorded in use in the 1900s, the expression ‘side hustle’ has been increasingly used in the present century. Various definitions can be found, but generally this will be along the lines of an activity carried out for income to supplement that received from a main source. One of the most popular
Side Hustle Hints! Read More »
Many taxpayers have heard of a ‘seven-year rule’ for inheritance tax (IHT) purposes. It is widely assumed that lifetime gifts escape the IHT net if the donor survives at least seven years after making the gift. Whilst this is generally true, what happens if the donor dies within seven years of making gifts – is
The Oxford English dictionary defines a gift as: ‘something, the possession of which is transferred to another without the expectation or receipt of an equivalent’. The gift of an asset is thus not an arm’s length sale in return for market value proceeds, nor a loan or investment – it is entirely unilateral. For capital
Lifetime Gifts in a Nutshell Read More »
On the face of it, directors are free to vote on their remuneration as the board sees fit. However, directors should be aware that HMRC may challenge excessive salaries and benefits-in-kind on the basis that they are not ‘wholly and exclusively’ paid for the purposes of the trade. Open to Challenge? HMRC is less likely
Tax Deductions for Businesses: Is the Remuneration ‘Excessive’? Read More »
Join 5,000+ businesses comparing today
Get your firm in front of thousands of local business owners searching for your expertise every month.
AVERAGE ROI GROWTH
AVERAGE ROI GROWTH
