If a car is made available to an employee for their private use, an income tax charge arises. Double-cab pick-up trucks, a common alternative to the car, have historically been treated as vans for both VAT and income tax purposes, but this has now changed. Benefit-In-Kind Income Tax Charge The level of income tax on […]
Company Cars: Where are We Now? Read More »
Limited liability partnerships (LLPs), often described as being a ‘hybrid’ combining features of both partnerships and corporations, allow two or more individuals to own and operate a business together while limiting their personal liability. LLP vs Company In a traditional general partnership, profits (or losses) are allocated to the partners in accordance with the agreed
Tax Planning with Limited Liability Partnerships Read More »
When an employer’s car is available for an employee’s personal use, there is an income tax charge on the employee – but that charge depends on what the vehicle is. Class 1A National Insurance contributions (NICs) are payable by the employer on the value of the benefit on these vehicles. 1.Cars Employers cannot claim annual
Wheels – True Perk or Expensive? Read More »
Starting a new tax year brings an opportunity to review savings and investments to make sure you maximise tax reliefs. Here’s a brief overview of some key things to consider. Pensions The government encourages retirement saving, requiring employers to auto-enrol staff in workplace pensions and to make contributions. Payments made by you or your employer
Tax Relief: Getting A Bigger Bang for Your Buck! Read More »
Football supporters of a certain age will be familiar with the name of Bryan Robson, particularly the important part he played between 1981 and 1994 in the success of Manchester United Football Club (MUFC). Some years after he finished playing, Mr Robson became an ‘ambassador’ for MUFC. At first, the agreements to carry out this
Offside! Famous Footballer Falls Foul of IR35 Rules Read More »
Directors of small companies, especially those with prior experience of self-employment, often overlook the distinction between company funds and personal finances. It can be hard for some directors to resist the temptation to channel all expenses through the business bank account, whether those expenses are company-related and tax-deductible or personal. However, such a practice has
Company Payment of Director’s Personal Expenses: What’s the Tax Position? Read More »
Although it was originally recorded in use in the 1900s, the expression ‘side hustle’ has been increasingly used in the present century. Various definitions can be found, but generally this will be along the lines of an activity carried out for income to supplement that received from a main source. One of the most popular
Side Hustle Hints! Read More »
The Autumn Budget 2024 and the December 2024 Employer Bulletin states that for paydays on and after 6 April 2025: the National Insurance Contribution (NICs) secondary (employer) threshold reduces from £9,100 to £5,000 per annum; and the rate of secondary NICs on earnings above the secondary threshold increases from 13.8% to 15%. All of this
Claiming the Employment Allowance in 2025/26 Read More »
There are many factors to consider when deciding whether to run a business as a sole trader or via a limited company, but tax has always been a key one. Although there are some tax advantages of being unincorporated (e.g., the ability to carry back losses arising in the first four fiscal years of trade
Time to Disincorporate? Read More »
With limited companies, business profits belong to that company as a separate legal person and are subject to corporation tax on them; the company’s owner will generally be subject to income tax and National Insurance contributions (NICs) on whatever they withdraw. It is different from a sole trader or partner, who is taxed on their
A Painful (Profits) Extraction? Read More »
