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Vat Question of the Week: Sale of Trading Premises

VAT l

My client, a small owner-managed company, purchased five-year-old freehold premises to trade from in June 2017. The total cost of the premises and refurbishment was 180K + VAT, which the company reclaimed in full in the 06/17 period, and the company has occupied it since for its engineering business. The business has always been fully taxable.

Tax Question of the Week: Rollover Relief use of Proceeds

Tax l

My clients are a farming company. They recently disposed of a large piece of fixed machinery used in the business for £60,000, and made a capital gain of £10,000. The actual sale proceeds were used to fund salaries and pension contributions in the month of disposal but six months later, after the company obtained further funding, they spent £100,000 on a qualifying replacement asset, a more modern equivalent of the old one. Is it still possible to rollover the gain in these circumstances, given that the sale proceeds of the old asset were not directly used to obtain the new one?

VAT Question of the Week: Hotel Deposits

VAT l

My client frequently has to stay in hotels for business. The hotel takes a deposit at the time of booking with the balance of the cost paid over when the stay takes place. Sometimes my client’s plans, or those of his customer, change and he cancels the booking and the hotel keeps the deposit paid. Some hotels send a VAT invoice covering the amount of the deposit they retain after the cancellation and some say that they cannot issue a VAT invoice because VAT is not applicable to the amount they have retained. Which is correct for VAT purposes?

Tax Question of the Week: Uniforms

Tax l

My client has recently enquired about the possibility of claiming relief for the expenses of cleaning of clothing that she wears in her role in nightclub security, having heard that there are flat rate expenses that employees are able to claim.

August 2018 Tax Insider

Tax l

This months edition includes:

– Landlords welcome tax incentives for long-term tenancies
– Contractors criticise ‘flawed’ IR35 test
– ‘Tax over-40s to pay for elderly care costs’, say MPs
– BCC calls for further delay to digital accounts rollout

Read the full article here.

The Marriage Allowance Explained

Allowances l

Millions of married couples and civil partners in the UK are eligible for the marriage allowance, but take-up has remained subdued since the tax break came into force on 6 April 2015.

Almost half of the UK’s eligible couples failed to claim their slice of £1.3 billion in marriage allowance cash in 2016/17, with many couples either unaware of the tax break or forgetting to claim it.

Capital Gains Tax Planning

Tax l

Whether you’re a buy-to-let landlord, a shareholder, an art dealer or you fall somewhere in between, the chances are you will be familiar with paying capital gains tax (CGT).

CGT is payable when you ‘dispose’ of a certain item and make money from the sale, with the amount you’re liable for depending on your income and the asset in question.

MTD for VAT-registered businesses

VAT l

Obligations from 1 April 2019 onwards.

Although the Making Tax Digital (MTD) regime has suffered several setbacks and delays, MTD for VAT remains on course to take effect from its planned implementation date of 1 April 2019.

Under the scheme, VAT-registered businesses are required to maintain digital records, complete the VAT return from the digital records and send it electronically to HMRC.

Read the full article here.

Furnished holiday lettings

Property l

The pros and cons of letting furnished holiday accommodation.

When furnished holiday property is let on a commercial basis for short periods, the owner can benefit from tax reliefs which wouldn’t otherwise be available to residential landlords, providing certain conditions are met.

However, there are also several disadvantages associated with letting property as holiday accommodation whether or not the furnished holiday letting conditions are met.

Read the full article here.

VQOTW: COMMERCIAL VEHICLES & INPUT TAX

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My client is a landscape gardener and has recently purchased a Nissan Navara double cab vehicle to use for his work. There will be some private use as well as business use. I had thought this might qualify as a commercial vehicle rather than a car, although I am feeling a little uncertain as the vehicle does have…

TQOTW: CLASS 4 NIC CHANGES

Pensions l

I understand that Class 2 NIC is finally being abolished from 6 April 2019. This means that those of my self-employed client with losses or low profits who want to protect their state pension contribution record will have to pay Class 3 contributions which are considerably more expensive. Will there be any alternatives?

HR Expert: Dress Code Requirements

HR l

A client has told me a female employee has failed to wear high heeled shoes or makeup to work several times this week in line with their dress code policy. What should they do about this?”

Warning: Email Scam Targeting Employers

General l

IMPORTANT: We’re aware of a new email scam targeting employers. If you receive an email about P6/P6T forms with an attachment, please forward to phishing@hmrc.gsi.gov.uk.

This email is a scam and the attachment may contain malicious software. Please share this post to warn others.

June 2018 Tax Insider

Tax l

This months edition includes:

– Tenant fees ban set to cost landlords £82.9m
– Businesses call for more government support
– HMRC defers launch of digital accounts for individuals
– Deadline for reporting benefits in kind nears

Download the full PDF here.

Understanding IR35

Tax l

IR35 is the shorthand name for tax rules concerning the provision of personal services through intermediaries.
These rules came into effect on 6 April 2000, but they were signiicantly amended from 6 April 2017 for contracts involving public sector bodies.

Travel and subsistence

Budgets l

Many employees need to travel as part of their job for various reasons, whether it’s acquiring new customers, working with current ones or attending conferences and events.
The system of benefits and taxation surrounding this essential economic activity is classed as ‘travel and subsistence’ in the eyes of the taxman.

Benefit in Kind – Electric cars and claiming home charging tax relief

Businesses, Personal Tax, Tax l

The company provides some employees with Company cars that are hybrids. The employees are also provided with fuel cards that are available for their private use and receive a fuel Benefit in Kind in relation to the car. However, the cars are plugged in and charged at home can the employer offset this cost against the fuel Benefit in Kind?…

Happy New Tax Year!

Accounting, Corporation Tax, Tax/VAT Cases l

Hopefully you should all have now received the tax packs we sent earlier this month and an invitation to complete your checklist online at our website. Remember you also need to complete the tax return supplementary questionnaire online (Click Here). This replaces the paper ones we used to send – reception will send you a paper copy if you prefer.

This year we are trying to get everybody’s tax returns and accounts produced quicker so please complete the forms and send in your books.

HMRC have announced a consultation on Inheritance Tax and are welcoming views. I’ve included a link to a good article in the Telegraph which talks about peoples confusion and fear over the tax (Click Here) and the actual HMRC site if you would like to take part (Click Here).

Personal tax planning

Personal Tax l

Nobody wants the taxman to take more than his fair share, and
planning your finances early on can ensure you adopt the most
tax-efficient strategy for the months and years ahead.
Effective tax planning will help protect your wealth and any assets,
ready to pass on when the time comes, while also providing you
with peace of mind.
Our complex tax system has a variety of reliefs and allowances to
enable you to reduce your tax liabilities with HMRC and help you
navigate your way to a wealthier future, but where do you start?

Download the Full PDF Here

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