Tax

TQOTW: PROFESSIONAL GAMBLING

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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?

TQOTW: PENSION CONTRIBUTIONS

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

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

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.

Tax on Residential Property

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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

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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.

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?

Tax Question of the Week: Uniforms

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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

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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.

Capital Gains Tax Planning

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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.

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…

June 2018 Tax Insider

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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

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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.

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

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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?…