News and Updates
Tax Question of the Week
Q. My client is a limited company. The sole director shareholder travels in a busy city centre. In order to save on travel costs the company is considering purchasing a motorbike. He is concerned that there will be a significant benefit in kind charge. Can you please...
The end of tax motivated incorporation?
The Summer Budget 2015 contained some key measures that were a thinly veiled attack on small business owners. What do you need to be aware of? Dividends. Perhaps the most controversial announcement was the overhaul of tax on dividends. From April 2016 the notional...
It’s P11D time!
HMRC has released its 2014/15 benefits and expenses Form P11D plus updated guidance to go with it. Is there anything new to watch out for? P11D deadline. It’s that time of year when you need to turn your attention to preparing the dreaded Forms P11D . A form is needed...
Personal Companies – Optimal 2015/16 salary
If the director shareholder has no other income and the EA is available, the optimum position will be to take a salary equal to the personal allowance (£883.33 per month) and to withdraw further profits in the form of dividends. Although this approach will result in...
Tax clampdown on goodwill.
Companies have been allowed to claim a tax deduction for the cost of goodwill since 2002. In the autumn Statement it was announced that this will now be restricted but when and how will this take effect? In 2002 HMRC expanded the right of companies to claim tax...
Maximising deductions for furnishings and equipment
If you are a residential landlord and you are in the process of completing a tax return, and have expenses that include a new kitchen and replacing the washing machine in the property. Can these costs be offset against your rental income? Fixtures or furnishings? When...
What’s the new deal on pension payouts?
In April 2015 the rules about pensions are changing to allow anyone aged 55 or over to draw the whole of their pension fund in one lump sum. Until then stop-gap measures will still apply. However there are tax consequences to the new rules. If you choose to take part...
Avoiding late payment penalties
These days HMRC is taking a tougher line where self-assessment payments are paid late. What penalties can you expect if you don't pay on time and is there a way to avoid them if you can't afford to pay? Deadline For most people who haven't submitted their 2013/14...
Auto enrolment and your business
Are there any tax issues you should consider before enrolling in a workplace pension scheme? For large companies pension auto enrolment has been in place for almost a year but it will soon affect almost all companies. In mid-2015 all employers with 30 or less...
Improvements to RTI reporting
HMRC have made changes to the RTI employer payment summaries (EPSs) to reduce the number of discrepancies between their records and employers records. HMRC has blamed most of the discrepancies on inaccurate reporting however it is more likely due to the delay in the...