As well as a mechanism for collecting revenue, the tax system is also used to encourage certain behaviours and discourage others. Once example where this is evident is in the way in which company cars are taxed. To encourage company car drivers and their employers to make environmentally-friendly choices, the taxable amount increases as the
Are Electric Cars Still a Tax-Efficient Benefit? Read More »
Entitlement to the state pension and certain contributory benefits depends on an individual having paid, or been credited with, sufficient National Insurance contributions. To qualify for the full single-tier state pension, an individual needs 35 qualifying years. A reduced state pension is paid where a person has less than 35 qualifying years, but at least
Should I Pay Class 2 NIC Voluntarily? Read More »
The trading allowance enables an individual to earn up to £1,000 from self-employment, the provision of casual services (such as gardening or babysitting) or from hiring out personal equipment without having to pay tax on that income or tell HMRC about it. You may also make use of it if, for example, you sell items
Can You Benefit from the Trading Allowance? Read More »
The VAT default surcharge is being replaced with a new VAT penalty and interest regime. The new rules apply to VAT accounting periods beginning on or after 1 January 2023. Late Filing Penalties The new penalty regime operates on a points-based system. Each VAT return received late, including nil and repayment returns, will receive
VAT Penalties – New Rules Read More »
The dividend allowance is available in addition to the personal allowance. It allows all taxpayers regardless of the rate at which they pay tax to receive dividends up to the level of the dividend allowance free of any personal tax. This is in addition to any dividends sheltered by the personal allowance which are also
Reduction in the Dividend Allowance Read More »
A gain on the sale of an investment property, such as a buy-to-let or second home, will be liable to capital gains tax to the extent that it is sheltered by losses or the annual exempt amount. The annual exempt amount is like a personal allowance for capital gains tax purposes and allows individuals to
Time Sale to Take Advantage of Higher Annual Exempt Amount Read More »
Many landlords purchase their investment properties with the aid of a mortgage. In the current climate of rising interest rates, landlords may be wondering whether any tax relief is available to help them. While tax relief is available for interest and finance costs (but not capital repayments), the nature of the relief depends on the
Mortgage Interest and Tax Relief Read More »
In the ill-fated mini Budget, the then Chancellor increased the residential stamp duty land tax threshold from £125,000 to £250,000 with effect from 23 September 2023. The first time buyer threshold was also increased by £125,000 to £425,000; it now applies where a first-time buyer buys a home costing £625,000 or less. Unlike many of
Take Advantage of the Limited Window to Save SDLT Read More »
It can be a risky business being a director of a UK company these days. It is a common myth that the limited liability status protects directors personally against being sued for action by shareholders, employees, clients, suppliers, regulators, or just about anyone else who believes that they have suffered loss because of something they
Does Limited Liability Work? When a Director Can Be Sued By HMRC for Unpaid Tax Read More »
If economic advisers are to be believed then we are heading into a recession lasting at least a year and every recession brings with it business casualties. Some companies are pre-empting and selling up now. When selling a private limited company you have two possible routes: a sale of the company’s shares, and/or a sale
Tax Efficient Ways of Selling Your Company Read More »
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