For directors, remuneration is typically assessed on an annual earnings period basis; all earnings for the tax year are considered, rather than looking at each pay period individually. This approach recognises that directors often have irregular payment patterns and bonuses rather than a set amount per month. The payment date is broadly deemed to be:
When Are Director’s Remuneration and Dividends Deemed to Be Paid? Read More »
HMRC does not like private companies lending money to their owner-managers, and there is a raft of provisions aimed at discouraging such debts – from benefits-in-kind rules to the ‘quasi-distribution’ provisions in CTA 2010, Pt 10, Ch 3, which kicks off with the notorious section 455. If a loan remains outstanding for more than nine
Loans to Shareholders Rules: An Unexpected Twist? Read More »
Whilst we now have a new UK government, employers, payroll and employment law professionals should not forget the last parliamentary session as we wait for developments later this year, all affecting employers, and most impacting payroll. It is made more difficult that there are two employment law jurisdictions (i.e., Great Britain and Northern Ireland). So,
Some Employment Issues for Your Radar! Read More »
When someone buys the trade and assets of a business, they have the option of retaining the VAT number. How is this done, and what are the ‘pros’ and ‘cons’ of doing so? Buying a Business If someone buys the trade and assets of a VAT registered business, it can be treated as ‘transfer of
Buying a Business and Retaining the VAT Number Read More »
Substantial increases in tax charges over the years have removed much of the attraction of company cars; employees will often, instead, use their own car for employment purposes. The tax legislation (in ITEPA 2003, s 336) provides a general rule that a deduction can be claimed for expenses that are incurred ‘wholly, exclusively and necessarily
The distinction between legal and beneficial ownership of land and property (in English law) is important. When a dwelling is (say) transferred from one individual to another, the names shown on the conveyance will be the legal owners. Beneficial Ownership However, they will not necessarily be the beneficial owners. It is beneficial ownership that is
A sole trader looking to expand their business might be weighing up the ‘pros’ and ‘cons’ of a partnership or a limited company. They are very different, with not only very different tax consequences, but functions as well. Partnership A partnership is essentially two or more sole traders coming together for a common venture.
Decisions, Decisions! Partnership Or Limited Company? Read More »
The employment-related securities legislation deals with arrangements involving shares and securities provided by reason of employment where the full value of the employment reward provided to the employee is not included in the salary package and is charged to tax. The basic rule is that should an employee or director be given shares for free
Tax Implications of Awarding Shares to Nonemployees Read More »
Under the loan relationships rules for companies, debits on loan arrangements are not deductible for corporation tax purposes in the following circumstances: Generally, no deduction is given for releasing, impairing, or writing off a receivable from a connected company (CTA 2009, s 354). Two companies are connected if one controls the other or both are
Don’t Write Off Your Chances of Tax Relief! Read More »
Employers complete PAYE form P45 for the leaving employee. In HMRC’s ideal world, a new employee presents their P45; the tax code, previous pay and tax and pay are then brought forward from the previous employment. P45 purpose fulfilled! Unfortunately, this Eldorado world and the real world are not aligned. Frequently, an employee does not
Time to P45 the P45? Read More »
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