Although the economy is said to be stagnating with little growth on the horizon, many smaller companies are doing well and have healthy bank balances. However, with the interest rate return on cash in a bank account being relatively low, some companies are looking to invest spare cash elsewhere if investing in their own company […]
Can one company lend to another? Tax implications Read More »
Landlords letting furnished holiday accommodation have hitherto enjoyed a range of tax benefits, including the ability to deduct interest and finance costs in full when calculating their taxable profits. However, the favourable regime for furnished holiday lettings comes to an end on 5 April 2025. From that date, landlords letting furnished holiday accommodation will be
There is a stamp duty land tax (SDLT) deadline on the horizon – from 1 April 2025, there are changes to both the residential SDLT threshold and that applying to first-time buyers. Completing a purchase before that date could save the buyer £2,500 in SDLT. For a first-time buyer, the potential savings are more. Residential
Beat the Stamp Duty deadline – 1 April 2025 Read More »
One of the key announcements in the Autumn 2024 Budget was the rise in employer’s National Insurance contributions from 6 April 2025. Since then, the rate of secondary Class 1 National Insurance contributions has increased by 1.2 percentage points, from 13.8% to 15%. In a further blow, the secondary threshold above which employer contributions become
National Insurance for employers to rise Read More »
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 »
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 »
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 »
There are three ways in which former students with student or post-graduate loans can make loan repayments: • from deduction from their wages or salary through the PAYE system; • to HMRC through the Self Assessment system; or • direct to the Student Loans Company (SLC).
Making student loan repayments through Self Assessment Read More »
Class 2 National Insurance contributions are flat-rate contributions which for 2023/24 and earlier tax years are payable by the self-employed where their profits exceed the relevant trigger threshold. For 2023/24 and 2022/23, the liability to pay Class 2 contributions arose where profits exceeded the lower profits threshold (set at £12,570 for 2023/24). For those years,
Class 2 National Insurance refunds made in error – Action to take Read More »
