BUSINESS
Farmers’ losses
There is a restriction which prevents relief for farming losses being claimed against other income if a loss results for tax purposes for more than five years in a row. What...
Second hand schemes and VAT
Although a business might be able to take advantage of a second hand scheme in order to only account for VAT on the ‘margin’; when it comes to looking at what the measure for...
Dividends and personal allowances
Although from 6 April 2016 the first £5,000 of dividend income is taxed at 0% it can affect the rate of tax payable on other income as it is still taxable income. So if you...
SEIS investments
Another reminder! To be eligible to raise funds under SEIS the company’s gross assets must be valued at no more than £200,000, and it must not have more than 25 full-time...
Transfer of a going concern (VAT)
If a business is transferred from one type of legal entity to another the turnover of the old legal entity must be taken into account when determining whether VAT registration...
Salary sacrifice
Salary sacrifice schemes are used to save employers and employees tax and national insurance. An employee gives up some of their salary in exchange for a benefit in kind or...
Investors’ relief (CGT break)
Introduced in the Finance Bill 2016, this allows external investors to subscribe for shares in an unquoted company and provided the company is qualifying and the shares held...
Farmers (and market gardeners) averaging – changes for 2016/17 onwards
For a long time HMRC have recognised that farming profits can be affected by a lot of factors, including the weather and therefore to smooth out the rate of tax payable they...
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...