If a business buys and sells second-hand goods, it can use one of the second-hand margin schemes so that VAT is only due on the profit margin, not the full selling price. When using a second-hand scheme, there are a number of points that should be taken into account. What is a Margin Scheme? A
VAT: Calculating the Profit Margin When Selling Second-Hand Goods Read More »
It might be thought that the taxation of interest and dividends should be fairly straightforward, but changing rates and particular rules and exemptions have somewhat muddied the waters. This article briefly looks at the taxation of such savings income, but if this might also fall within the scope of income from employment or from a
Interesting Dividends! Read More »
In property transactions, an option agreement will sometimes be made between an individual property seller and a prospective buyer. You have the Option… An option is broadly a legal agreement for an offer to be kept open for a specified period. For example, an individual might agree to keep an option open for the buyer
Is There Any Option? Read More »
When a married couple runs a business together through a limited company, proper tax planning would dictate that both spouses own shares to receive dividends. Salaries may or may not be paid as well, depending on other income sources, but dividends will inevitably be the main means of profit withdrawal from the company. Dividends Alongside
Spousal Dividends: Tips and Traps Read More »
Being a director does not, in itself, make that individual an employee of the company. A directorship is an office, not necessarily an employment. However, if the company enters into a service contract with the director, the terms of which make the director an employee, that director is taxed under the same rules as any
Waiving Director’s Remuneration: Tax Issues Read More »
The income tax legislation regarding pool cars (ITEPA 2003, s 167(3)) sets out the conditions for a car to be a pool car. These include the following: The car was made available to, and actually used by, more than one employee. The car was not ordinarily used by one of those employees to the exclusion
A ‘Dive’ into Pool Cars Read More »
Pomp and pageantry aside, the King’s Speech on 17 July 2024 marked the opening of the UK Parliamentary session for the UK Labour government. It included four bills to highlight, though only two impact workers and employers. Budget Responsibility Bill The Office for Budget Responsibility (OBR) produces ‘fiscal and economic forecasts’ twice annually, one alongside
When starting a business, few people will give much thought to its end. However, after some years, even a small ‘oneman band’ business may have built up a valuable customer list with a goodwill value. It is therefore important that a business owner should consider how and when they might wish to retire from, sell
Heading for the Exit? Read More »
Individuals (e.g., sole traders or company owners) often lend money to their business to help fund its day-to-day operations. Unfortunately, some businesses ultimately fail. Consequently, the loan may become irrecoverable, resulting in it being written off. Relief is At Hand…Or is It? A crumb of comfort is that the individual may be able to claim
Trusts can be a very useful planning tool for inheritance tax (IHT) purposes, as well as family and business succession planning. Tax is only one factor, as preservation of the family silver is another potential advantage of trusts; but they are not necessarily always suitable. What are Trusts? A trust exists broadly when the legal
Trusts: IHT Issues and Benefits Read More »
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