Business-to-customer (‘B2C’) sales of goods to the EU can be dealt with in one of two ways, which are at the choice of the supplier. Under the first method, the supplier can zero-rate their supply to their customer, and the customer accounts for VAT at the time of importation. This is simple for the supplier,
VAT: The EU’s Import One-Stop Shop System Read More »
An individual carrying on a trade, profession or vocation (either alone or in partnership) is subject to income tax (and Class 4 National Insurance contributions) on their profits but can prepare accounts to any date they choose, not necessarily to coincide with the tax year ending on 5 April. Until 2022/23, the general rule for
In with the New: Basis Period Rules Read More »
When HM Revenue and Customs (HMRC) opens a tax return enquiry, the natural reaction of most taxpayers is to speculate about the reason why their tax return has been selected. In fact, HMRC does not need an excuse to open a tax return enquiry; a small proportion of tax returns are simply selected at random.
No (HMRC) Tip-Off! Read More »
When considering the tricky matter of remuneration planning, there are two things to consider; the amount of remuneration, and what form it takes. How Much? The amount employees receive should be commensurate with their employment duties for the employer to claim tax relief on the salary. The payments must have been incurred ‘wholly and
Remuneration in 2024/25 Read More »
Despite the reduction in National Insurance contributions (NICs) in Spring Budget 2024, more employees are paying tax at higher rates on their earnings due to the freezing of tax thresholds. Some may find that any pay rise or bonus attracts additional tax and NICs such that the net pay increase is minimal. Benefits Packages
Alternative Ways of Paying Staff Tax-Efficiently Read More »
The UK government supports households with children by paying a childcare amount to the parents or guardians. The Benefit This amount is paid after every four weeks, into the account of the person making the claim for the childcare benefit. It is paid according to the following rates: Child Weekly rate Eldest or only
Childcare Benefit and the Tax Charge Read More »
When HMRC talks of payrolling benefits and expenses (‘payrolling’), it refers to putting the taxable value through the payroll when the employee is paid, thereby avoiding declaring items on form P11D. The benefit is removed from the tax code, but a taxable non-payable value is processed in the payroll. It really could not be easier.
Putting Benefits-In-Kind Through the Payroll From 2026 – Simples! Read More »
In the Chancellor’s recent budget, he announced an increase in the VAT registration threshold on 1 April 2024 from £85,000 per annum to £90,000 per annum. The deregistration threshold has also increased from £83,000 per annum to £88,000 per annum. These thresholds have remained frozen since 1 April 2017 and are among the highest worldwide
On the Increase: VAT Registration and Deregistration Thresholds Read More »
The concept of the limited liability partnership (LLP) was introduced a little more than 20 years ago, and is governed by the Limited Liability Partnerships Act 2000. As is evident from the name, a main attraction is ‘limited liability’; this may be why those trading in an ordinary partnership (or indeed sole traders considering entering
The Same But Different! Changing Partnerships Read More »
A company purchase of its own shares from a shareholder is a popular ‘exit’ strategy when an individual shareholder is retiring, or a dissenting shareholder is departing. Income Vs Capital When a company buys back its own shares from an individual shareholder, amounts above the capital originally subscribed generally constitute a distribution of income
Don’t Forget the ‘Easy’ Rules! Read More »
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