Accounts depreciation is not allowed within tax calculations; it’s too subjective, so instead of that capital allowances generally apply for tax purposes. These allowances have been in place for ‘wear and tear’ to plant and machinery since 1878, with a factory and mills allowance allowing for economic depreciation within a trading business. HMRC provides a
Capital Allowances: What’s New? Read More »
Given this challenging economic environment, many employers are looking to see how they can help employees financially. Pay increases may not be an option, bearing in mind the additional tax and National Insurance contributions (NICs) implications for employers and employees. For some employees, tax-free, non-cash vouchers to assist with rising bills and food prices may
Helping Employees Through the Cost Of Living Crisis Read More »
Under the construction industry scheme (CIS), contractors and deemed contractors must withhold deductions from payments made to subcontractors who do not hold gross payment status (GPS), at either: 20% (the standard rate); or 30% (if the recipient is not registered for CIS or cannot be verified). To obtain GPS and therefore receive payments without any
CIS: More Compliance Needed! Read More »
Share loss relief (SLR) applies to ‘qualifying shares’; shares to which income tax relief under the enterprise investment scheme (EIS) is ‘attributable’ are automatically qualifying shares. Otherwise, the shares must be in a ‘qualifying trading company’ for which a specific regime of requirements applies for this purpose. Restriction for Income Tax Relief Income tax
The ‘Basics’ of Share Loss Relief? you Must Be Kidding! Read More »
I t is quite common for building projects to attract more than one rate of VAT on different elements of the development. For example, a three-story property in London is purchased and consists of a retail unit on the ground floor and four residential apartments on the two floors above, two on each floor. The
Simplified Accounting: Using Composite VAT Rates Read More »
Attractive tax reliefs are available on contributions to a personal pension plan and to the plan itself, but the focus here is on the basic income tax implications when the saver wishes to draw money from that pension. The past 20 years or so have seen the introduction of more flexibility, and since 2015 flexi-access
Making a Withdrawal: Pension Payments Read More »
Businesses are generally obliged to pay at least the national minimum wage (NMW) to their workers. Most UK workers over compulsory school age who ordinarily work in the UK are entitled to be paid the NMW. If an employer should have paid the NMW but fails to do so, HM Revenue and Customs (HMRC) can
Helping Hands: Are you Liable for the NMW? Read More »
When considering making an investment, two of the main issues are a good return and an exit strategy. As well as the performance of the investment itself, how to hold it is another matter. Personal income tax rates and those on subsequent capital gains tax (CGT) on disposal, and potentially inheritance tax (IHT), may make
Trust or Limited Company? Read More »
The strict application of the rule for allowable expenses would require all expense payments to employees to be treated as employment income, leaving the employee to claim relief for the allowable part separately. In addition, an employer is required to notify HMRC of all expenses paid to an employee, even if the employee incurs the
Employee Expenses: Are P11D Returns Finally No More? Read More »
Unincorporated trading businesses are going through their biggest tax change for a generation, with the switch to a tax year basis of assessment replacing the ‘basis period’ system for 2024/25. The tax year 2023/24 is a transition year with special rules. Further change is now on the way. ‘Cash Basis’ To Become the Norm
Unincorporated Traders: More Changes Ahead Read More »
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