BUSINESS
Borrowing money tax free from your limited company
Remember that if you borrow up to £10,000 there is no benefit in kind. However the company has to pay 32.5% of the value of the loan to HMRC if the loan is still outstanding...
Transferring stock or work in progress to a limited company
If you incorporate a business stock or work in progress should be valued at the higher of cost or market value. This could trigger a large tax bill on unrealised profits. It...
Employing your children?
Provided your child works for you or your company and they are paid at a commercial rate, this is a tax deductible expense for the business but is likely to be tax free for...
Losses and transfer of trade
Sometimes a loss making sole trader will incorporate in the expectation that the corner has been turned and the business becomes profitable or the protection of limited...
Changing lanes to get the answer they want
The Court of Appeal decided that cars leased by an employer to its employees on arm’s length terms did not constitute a taxable benefit in kind. HMRC had argued that the...
Construction Industry scheme (CIS) – recent change and a future change
Following the abolition of monthly paper returns from 6 April 2016, HMRC have indicated that some leniency will be allowed for the first three months of the current year. From...
How mean can HMRC get?
If an employer reimburses an employees’ costs for travelling to interviews, promotion boards or grievance panels the reimbursement is liable to both income tax and national...
VAT and tax points
Just a reminder a business has 14 days after the supply of goods or services before an invoice must be raised to create an actual tax point, and in the case of continuous...
R and D and pension contributions
If a company qualifies for R & D (research and development) relief remember that it might be more tax efficient to pay a director engaged in such activities contributions...
Free fuel for a company car
Just a reminder that you should really do the calculations to see if the provision of free fuel for private motoring is worthwhile. In virtually all cases unless there is high...
Losses from share dealing
Ordinarily one would expect HMRC to not allow such losses as trading losses, only as capital losses. However a recent first tier tribunal has ruled that in the case of A Ali...
Payrolling benefits
Mentioned before we believe but a reminder that if you have an informal agreement to payroll benefits in kind, you need to reapply before 6 April 2016 to do so for the year...