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Call: 01491 411077
Employers looking to spread some seasonal cheer can do so in a tax-efficient manner by taking advantage of the exemptions for annual parties and functions and trivial benefits. Christmas parties The tax exemption for annual parties and functions will only apply to a Christmas party if the following conditions are met. Some points are worthy…Read More
Under English property law, there are two ways in which property can be owned jointly – as joint tenants and as tenants in common. The way in which the property is held can have tax consequences. It also determines what happens if one of the joint owners dies. Joint tenants Where a property is owned…Read More
A sole trader or partnership business may make a loss for several reasons – not necessarily because it is not doing well. A business can be operationally successful but still report losses due to various strategic, financial or external factors. There are several options available to gain tax relief for a loss. The default position…Read More
Following the pandemic, flexible working hours are on the increase. This shift has provided employees with the legal right to request flexible working from the first day of their employment. However, there is no statutory right for employees to work from home as yet. Homeworking is already the norm for many self-employed. Where existing space…Read More
Many parents who fell within the ambit of the High Income Child Benefit Charge (HICBC) opted not to receive child benefit, rather than to receive it and pay it back in full in the form of the charge. However, changes to the HICBC which came into effect from April this year mean that some parents…Read More
As outlined before the election, the new Government are to go ahead with their proposal to impose VAT on school fees. Legislation was published in draft on 29 July, together with a technical note. From 1 January 2025, education services and vocational training supplied by a private school will be liable to VAT at the…Read More
As ever, the answer to this question depends on what type of professional fees have been incurred. Professional fees are income and corporation tax deductible if incurred ‘wholly and exclusively’ for the purpose of the trade, profession or business. However they must not be capital in nature or losses not connected with/ arising out of…Read More
Anyone who invests in a company is taking a chance, hoping that the directors, as representatives of the company, will use the money to increase the company’s profit. In return for taking this chance, a shareholder receives ‘payback’ usually as a share in the distribution of profits in the form of a dividend, however. payment…Read More
As outlined before the election, the new Government are to go ahead with their proposal to impose VAT on school fees. Legislation was published in draft on 29 July, together with a technical note. From 1 January 2025, education services and vocational training supplied by a private school will be liable to VAT at the…Read More
For many people, there will come a time when it becomes sensible or necessary to sell the family home, either to downsize or because of a move to live with a relative or into care. This may result in funds being released, which may be considerable. Thoughts may turn to whether now is the time…Read More
Although suppliers such as mobile phone providers are VAT registered, a careful look at the invoices issued to customers shows the words ‘this is not a VAT invoice’ – why is that? A valid VAT invoice is a crucial document for reclaiming VAT on purchases. It can be full, simplified or modified, depending on the…Read More
Where an employee of a limited company has private use of a company car a taxable benefit arises, this also includes directors who are also employees of the company. A further benefit arises if the employer meets the cost of fuel for private travel. If the car is an electric vehicles there is no fuel…Read More
The VAT flat rate scheme is a simple VAT scheme for smaller VAT-registered businesses. Rather than pay the difference between the VAT charged to customers and that incurred on business purchases over to HMRC, traders using the flat rate scheme instead pay a fixed percentage of their VAT-inclusive turnover to HMRC. The percentage depends on…Read More
Earlier this year, HMRC wrote to wealthy taxpayers who had not submitted tax returns for 2020/21 and/or 2021/22. A letter was sent where the taxpayer had submitted a return for 2020/21 and 2022/23 but not for 2021/22 or where a return had been submitted for 2019/20 and 2022/23 but not for 2020/21 or 2021/22. Taxpayers…Read More
The fall in the dividend allowance in recent years may mean that you now need to pay tax on your dividend income for the first time. The dividend allowance The dividend allowance was introduced from 6 April 2016. It is available to all taxpayers regardless of the rate at which they pay tax and in…Read More