Looks at some inheritance tax points to consider for parents wishing to help adult offspring manage their mortgage debts. These are difficult times for most young people buying their first home, or for recent first-time buyers trying to keep up with their mortgage payments. Some offspring will need help from their parents to get (or […]
IHT: Helping the Kids with Their Mortgages? Read More »
Payments on account (POAs) for the selfemployed or those taxpayers who have significant income from sources other than employment have been compulsory for nearly 30 years. POAs are advance payments towards the final tax bill, made twice a year (in January and July) based on the previous year’s tax liability. The payment dates could not
Business Strategies: Spreading Tax Payments Read More »
As an employee, it is normal to receive and to be taxed on the worker’s salary, wages and bonuses for the work performed in the employment. However, employers may also wish to remunerate the employee by providing benefits-in-kind. These additional benefits are also taxable, but on what value of this benefit does the employee need
How Much is My Benefit-In-Kind Worth? Read More »
When considering the best vehicle through which to operate a business, tax is a major consideration which can affect that decision, but it’s not the only one; practical and legal issues should be considered as well. A limited company is a ‘body corporate’ (i.e., a separate legal person). The company owns the assets, the profits,
New Business: Company Or Partnership? Read More »
Although inheritance tax (IHT) can arise on some lifetime gifts or ‘transfers of value’, the main concern for most is its impact on the estate at death. Gifts made in the seven years before death will also be treated (to some extent) as part of the estate on death, but before that they are likely
Gifts: The Art of Giving Read More »
My long association with the ITEPA 2003, Pt 7 Employment Related Securities (ERS) legislation leads me to conclude that confusion stalks the land. Or put less dramatically, the rules are often confusing and contain some quite major inherent contradictions. Land of Confusion For example, the CGT definition of ‘market value’ was imported (by ITEPA
Employment-Related Securities: Sorting the Wheat from the Chaff Read More »
VAT returns and payments should be submitted to HMRC no later than seven days after the end of the month following the end of the VAT period. If the return and/or payment is late, it can result in the business entering either or both of the penalty regimes for late payments or late returns. If
Late VAT Returns: HMRC Changes Read More »
Many trading companies are struggling in this difficult financial climate. Where a company makes a trading loss, there are several possible ways for that trading loss to be relieved, subject to various conditions and restrictions. Losses carried back For example, if trading losses exceed profits of the same accounting period, the company may claim to
No More Looking Back! Read More »
When businesses purchase assets, they invariably use some form of finance on the pretext that it is better to conserve cash, because once it’s gone – it’s gone! Different methods have different tax implications depending on the type of asset involved, contract entered into, and whether the business calculates its profits on a cash or
Business Strategies: Tax Efficient Methods of Purchasing Assets Read More »
If a trust beneficiary receives a Form R185 from a trustee, it is good news. It means they have been paid some income during the tax year. The R185 shows the net income a beneficiary received from the trust, and the associated tax paid on their behalf by the trustee. The taxation system for trustees
What is A Form R185 and Why Did I Receive One? Read More »
