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TQOTW: PROFESSIONAL GAMBLING

Tax l

My client’s son is a professional poker player and wins around £4,000 a month from playing poker. This is all he does and has no other earnings. Are the winnings taxable if playing poker is his profession?

HR EXPERT: TIPPING WAITERS

HR l

My client has heard that the law on dealing with tips is going to change. He runs a restaurant and currently passes on only 75% of tips to the employees. Will he be able to carry on doing this?

VQOTW: WHAT DO HMRC MEAN BY TAXABLE TURNOVER FOR MAKING TAX DIGITAL

VAT l

My client works through her own limited company, providing public relations and marketing consultancy to businesses in the UK and all over the world. The business is VAT registered in the UK on a voluntary basis; is she going to be affected by Making Tax Digital?

TQOTW: PENSION CONTRIBUTIONS

Tax l

My client takes most of their funds from the company via dividends. How much can they and/or the company contribute to their pension?

VQOTW: AGRICULTURAL FLAT-RATE SCHEME

VAT l

We have a client who runs a plant nursery and claims that he is exempt from registering for VAT as the business falls under market gardening. I have searched HMRC’s website but can find nothing on this subject. Is he correct?

October 2018 Tax Insider

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This months edition includes:

– Apprenticeships fall 31% in the last academic year
– Chancellor mulls abolishing dividend allowance
– Treasury shelves plan to scrap class 2 NICs
– IPPR leads call to replace inheritance tax system

Read the full article here

Using pension funds in your business

Businesses, Pensions l

As traditional loans fall out of favour with increasing numbers of business owners, you may be looking for an alternative route for financing – and your pension could be the answer.

Data from the British Business Bank shows that in 2017 the number of small businesses seeking traditional bank loans reached a record low of only 1.7%.

Read the full article here.

HR Expert: Contractual Sick Pay

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My client pays contractual sick pay and one of their employees is having elective surgery. Do they still have to pay them?

VAT Question of the Week: Input VAT – Too Late to Claim?

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My client has been approached by a builder, who carried out repair work to the client’s factory some years ago. The builder was late registering for VAT and is now looking to issue VAT only invoices to my client for the supplies in question. I have several concerns: is the supplier liable to account for the VAT if the supplies were made more than 4 years ago? Is my client obliged to pay and if so can he now recover the VAT given that the original invoices were dated more than 4 years ago?

Tax Question of the Week: Property Swap

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Jack and Jill jointly own two investment properties and wish to swap their interests so that they each have ownership of one of the properties. As tenants in common they currently equally own Cornfield with a market value of £210,000 and the original cost of £50,000 and Wheatfield with a market value of £200,000 and the original cost of £49,000. Jack is to have Cornfield and Jill is to have Wheatfield. What are the CGT and SDLT implications?

September 2018 Tax Insider

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This months edition includes:

– Stamp duty tax break saves first-time buyers £284m
– HMRC confirms ‘soft landing’ for Making Tax Digital
– Inheritance tax receipts reach record high of £5.2bn
– SMEs cite VAT as ‘biggest administrative headache’

Read the full article here.

Capital Allowances for Plant and Machinery

Businesses, Investments l

If there’s one thing that keeps us awake at night it’s the thought of how many British businesses are failing to claim capital allowances to which they are entitled – worth billions of pounds across the board, according to some estimates.

Capital allowances provide the mechanism for tax relief on certain types of capital expenditure (the purchase of assets such as office furniture, or equipment) essentially providing a deduction against profits.

Tax on Residential Property

Property, Tax l

First-time buyers in England, Northern Ireland – and for a short time in Wales – were the biggest winners in the most recent shake-up to affect property taxes in Autumn Budget 2017.

Philip Hammond’s headline measure was to abolish stamp duty for first-time buyers on homes worth up to £300,000, and the chancellor didn’t stop there.

Making Tax Digital Update: August 2018

Tax l

HM Revenue and Customs (HMRC) announced its new Making Tax Digital (MTD) in the March 2015 Budget but since then, there have been many consultations and changes in the implementation dates. The aim is for HMRC to be interacting digitally with all taxpayers.

Vat Question of the Week: Sale of Trading Premises

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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

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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?

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