Usually, it’s the supplier who issues a VAT invoice; but in some circumstances, the customer prepares the invoice instead and gives the supplier a copy. This system is called ‘self-billing’. Any business can use this procedure, so long as certain conditions are met. Self-billing is an agreement between businesses, which is most commonly found in
The exemption from capital gains tax (CGT) for a dwelling that is the taxpayer’s ‘only or main residence’ is an important one for homeowners. The value of the exemption means that some may be tempted to claim it on properties that may not clearly fall within its parameters. We must therefore look at what is
No-one likes to think about their death, so it is perhaps understandable that many people put off drafting their will, and some die without having made a will. Death and intestacy If an individual dies without making a will, the estate is subject to distribution in accordance with the laws of intestacy, in the Administration
Where There’s a Will! Read More »
Chris Thorpe looks at some considerations when extracting profits out of limited companies. Once a sole trader or partnership has incorporated, the owner or partners can no longer help themselves to the business’s profits at will; such individuals were previously subject to income tax and National Insurance contributions (NICs) based on those profits, irrespective of
Making a Withdrawal! Company Profits Read More »
Jennifer Adams explores where company owners might get useful short-term loans. The cheapest personal bank loan rates are double what they were 18 months ago, though this has stabilised recently. Currently, the best loan interest rate between £7,000 and £25,000 is 5.9%. However, there is a source of finance from which a director or participator
Company Loans for the Owners Read More »
Ken Moody highlights some confusion over what exactly are ‘distributions in specie’ and outlines some important tax implications. I was asked a question recently about a transfer of shares between a 60% subsidiary to its holding company and whether this would be better structured as a dividend in specie or a distribution in specie. I
What’s in a Name? Distributions in Specie Read More »
Moneeza Siddiqui compares the tax implications of a personal and company car when used in an individual’s employment. Given the reliance on and impact of cars, special tax rules are in place to manage the environmental footprint of vehicles. Going Green Policies such as road tax exemption on electric vehicles (EV) and increased business
Personal Car or Company Car? Read More »
Richard Curtis suggests possible alternatives to salary and dividends. Many in business will trade through the medium of a limited company and the directors will generally be remunerated by the payment of dividends or salary. The former are taxed on the recipient and must be paid out of profits subject to corporation tax, while the
Not the Usual Suspects! Read More »
Mark McLaughlin looks at what ‘by reason of employment’ means and a Supreme Court decision highlighting its significance for tax purposes. The UK tax system is full of potential surprises. For example, it sometimes treats certain situations and events as having occurred, which did not necessarily happen in the ‘real’ world. Land of make believe
Because you’re An Employee! Read More »
Notes there are instances where choosing to take a benefit-inkind rather than salary may not produce a reduction in tax or National Insurance contributions for employee or employer. Remuneration comes in many guises, usually as salaries, bonuses or benefits-in-kind, all being subject to tax and National Insurance contributions (NICs) unless the payment or benefit is
Going to the OpRA! Read More »
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