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 […]
Tax-efficient Christmas parties and gifts Read More »
If you pay tax through PAYE, as will be the case if you are an employee or a pensioner, you may need to complete a self-assessment tax return if you have other sources of income, such as income from property or investments or self-employment. If at least 80% of the tax that you owe is
File your tax return by 30 December to pay what you owe through PAYE Read More »
When starting a business, there are a number of ways in which this can be done. Options include operating as a sole trader, forming a partnership or setting up a limited company. Of these, operating as a sole trader is the simplest. Taxes you must pay If you run an unincorporated business as a
Setting up as a sole trader Read More »
In personal and family companies, the lines between the company’s finances and the director’s finances may become blurred. A director may withdraw money from the company for personal use or may lend money to the company. The company may pay some of the director’s personal bills, and the director may personally meet some company expenses.
Overdrawn director’s loan account – must your company pay tax on the balance? 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
Restarting child benefit claims Read More »
Scammers are becoming increasingly adept at fooling people and a favoured tactic is a letter, a text or an email purporting to be from HMRC, often promising a tax refund in exchange for personal and financial data. During the summer, many taxpayers received a very convincing scam letter which appeared to be from HMRC, seemingly
Realistic scam letters – how to check if a letter purporting to be from HMRC is genuine Read More »
There are various reasons why a person may not have told HMRC about the tax that they owe, ranging from a simple oversight to the deliberate evasion of tax. Regardless of the reason, if you have failed to declare income and gains on which tax is due, it is always better to take action to
Making a voluntary disclosure if you have not told HMRC about tax that you owe 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
Tax implications of building an office for home working 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
Tax planning for trading losses Read More »
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 the trade.
Are professional fees tax deductible? Read More »
