Where a business is operated as a family company, it is necessary to extract the profits from the company in order to use them outside the company for personal use, such as to meet living expenses. Extracting profits may trigger further tax and National Insurance liabilities, and when formulating a strategy, it is advisable to
Take Advantage of the Dividend Allowance Read More »
It will not always be apparent when a hobby tips over into a trade and the point at which you need to declare your income to HMRC. There is no statutory definition of a trade beyond that a trade includes a ‘venture in the nature of a trade’. Consequently, in deciding whether a trade exists,
HMRC’s basic premise is that where a company pays a personal bill, there will be tax and National Insurance implications unless the expense is work related, incurred ‘wholly, exclusively and necessarily’ for the job. How the tax is accounted for and whether it is solely the employee who is liable to NI or both the
Personal Bills Paid For By The Company – What’s The Tax And Nic Position? Read More »
Business Property Relief (BPR) is an attractive inheritance tax (IHT) relief potentially providing 100% tax relief in respect of qualifying assets (termed ‘relevant business property‘) relating to both lifetime transfers of business assets or in the death estate, providing, of course, certain provisions apply. Different conditions apply depending on whether the assets are transferred during
Sometimes it is evident that a trade is being undertaken — a plumbing business, a manufacturing business, an accountant or solicitor are all ‘trades’. However, not all trading activities are easily identifiable. If you buy and sell a property in relatively quick succession for example, is that a trade in HMRC’s eyes or investment? Each
Is Your Business An ‘Adventure In The Nature Of Trade’ ? Read More »
The Construction Industry Scheme (CIS) is a tax deduction scheme under which tax is deducted from payments made to subcontractors for construction work unless the subcontractor is registered with HMRC for gross payment status. HMRC recently published guidance on the application of the CIS to property investment companies after it came to their attention that
The Construction Industry Scheme And Property Investment Companies Read More »
If you use an agent to manage a let property, they may incur expenses, such as repairs and cleaning costs, on your behalf and recharge these to you. Where this is the case, will you need to pay VAT on those expenses? Recharge Or Disbursement? Where costs are incurred by the agent and passed
Managed Lets – Is VAT Due On Recharged Expenses Read More »
The summer is a popular time for events and event parking is often limited. If you have a drive or field that you do not use, you could consider renting it out to make some money. This need not give rise to a tax headache. However, it should be remembered that all income from renting
Use The Property Allowance To Make Tax-Free Income From Renting Your Drive Read More »
No-one wants to pay more tax than they need to. Consequently, it is important to keep good records of business expenses so that deductible expenses are not overlooked. General Rule The basic rule is that a deduction is allowed for expenses incurred wholly and exclusively for the purpose of the trade, profession or vocation.
Common Deductible Business Expenses Read More »
Bad debts are a fact of business life and most businesses will suffer a bad debt from time to time. This may be because the customer goes out of business after the work has been done or the goods have been supplied, or runs into financial difficulty resulting in them defaulting on the debt. Unfortunately,
Tax Relief For Bad Debts Read More »
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