The Autumn Budget 2024 and the December 2024 Employer Bulletin states that for paydays on and after 6 April 2025: the National Insurance Contribution (NICs) secondary (employer) threshold reduces from £9,100 to £5,000 per annum; and the rate of secondary NICs on earnings above the secondary threshold increases from 13.8% to 15%. All of this
Claiming the Employment Allowance in 2025/26 Read More »
There are many factors to consider when deciding whether to run a business as a sole trader or via a limited company, but tax has always been a key one. Although there are some tax advantages of being unincorporated (e.g., the ability to carry back losses arising in the first four fiscal years of trade
Time to Disincorporate? Read More »
Businesses often have areas of uncertainty and write to HMRC to clarify the position; mostly, HMRC just refers the business to their published guidance. This policy is mostly unhelpful to businesses as they will have already read HMRC guidance but are still uncertain as to how it applies to their particular circumstances. When a business
Reaching Agreement with HMRC Read More »
As the days start to lengthen and the end of the tax year (5 April) approaches, it is a good time to consider whether any action should be taken to ensure that available tax reliefs and opportunities are maximised. This is a wide subject, but there are some basic steps that can be considered by
It’s That Time Again! Year End Tax Planning Read More »
I t is not uncommon for the self-employed to enlist a family member (e.g., offspring studying at university and earning spending money at weekends) to help in the business occasionally. How much can the parent reasonably pay? To be an allowable business expense in such circumstances, wages payments to the family member must be ‘wholly
‘Pocket Money’ – Is it Allowable? Read More »
With limited companies, business profits belong to that company as a separate legal person and are subject to corporation tax on them; the company’s owner will generally be subject to income tax and National Insurance contributions (NICs) on whatever they withdraw. It is different from a sole trader or partner, who is taxed on their
A Painful (Profits) Extraction? Read More »
Since the start of the Covid pandemic in March 2020, the number of people working from home in the UK has increased. With more employees now home-based, benefits-inkind that are centred on the workplace are less attractive; but there is also the issue of fairness for those who, through their job role or domestic situations,
Benefits Packages: Allowing Employees to Choose Read More »
In the Autumn Budget on 30 October 2024, Rachel Reeves made some significant changes to capital gains tax (CGT). The main purpose of this article is to explain some of the knock-on consequences that were not outlined in the speech, but I will also remind you of the headline changes. I will refer to business
BADR: The Long Goodbye? Read More »
The ‘phoenixism’ anti-avoidance legislation in question at ITTOIA 2005, s 396B (‘Distributions in a winding-up’) is a curious animal in various ways. It complements changes to the transactions in securities (TiS) rules in ITA 2007, which now specifically identify a distribution in a winding-up as a TiS (at ITA 2007, s 684(2)(f)). A Trap for
Phoenixism: Would you Know it? Read More »
When a business exports goods from the UK the sales can be zero-rated, but a business has to fulfil certain criteria for the zerorating to apply. Following Brexit, exports are supplies of goods to any destination or customer outside the UK, except for sales from Northern Ireland which is still within the EU single market
VAT and Direct Exports: A Little-Known Fact Read More »
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