TAX IMPLICATIONS OF PROVIDING COMPANY CARS

Offering a company car as a benefit can be a valuable and attractive perk to any valued employee.

Unfortunately, it is not necessarily a tax-free perk and it may be liable for PAYE because HMRC considers the private use of a company car to be a benefit-in-kind.

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Tax Insider 2020

Included in this month’s article:

  • RELIEF AS SUNAK EXTENDS FURLOUGH SCHEME UNTIL THE END OF OCTOBER
  • BUSINESSES CLAIM BILLIONS IN STATE SUPPORT TO EASE CASHFLOW FEARS
  • CORONAVIRUS IMPACT PLACES THE UK ECONOMY INTO ‘SIGNIFICANT RECESSION’
  • HMRC RELAXES STANCE ON HOME OFFICE EQUIPMENT UNTIL 2021/22
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HMRC RESUMES INVESTIGATIONS AFTER COVID-19

After temporarily pausing tax investigations as COVID-19
business support measures rolled out earlier this year, HMRC
has restarted probes into businesses and individuals’ tax affairs.

The Revenue has also started to direct its attention towards the
misuse of coronavirus support schemes, such as the furlough
scheme and the self-employed income support scheme.

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TRUSTS AND PASSING ON WEALTH

There are many ways to reduce or eliminate the inheritance tax
payable on your estate without using trusts.

But for some, especially if you are very wealthy, they may not be
enough. For others, the control that trusts give over who benefits
from your wealth, and how, is vital for estate planning.

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July 2020 Tax Insider

Included in this month’s issue:

  • UK ECONOMY SLUMPS INTO RECESSION AFTER RECORD CONTRACTION IN APRIL
  • BUILDERS’ CASHFLOW CHAOS PROMPTS FURTHER REVERSE CHARGE VAT DELAY
  • GOVERNMENT CLARIFIES FURLOUGH SCHEME STANCE FOR EMPLOYERS
  • SELF-EMPLOYED GRANTS ‘ARE LIABLE FOR TAX AND NATIONAL INSURANCE’
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April 2020 Tax Insider

INCLUDED IN THIS ARTICLE:
– COVID-19 POSTPONES OFF-PAYROLL EXTENSION TO THE PRIVATE SECTOR
– CORONAVIRUS PANDEMIC PROMPTS ONE-YEAR BUSINESS RATES HOLIDAY
– CHANCELLOR UPS ANNUAL PENSION ALLOWANCE THRESHOLDS BY £90,000
– ENTREPRENEURS’ RELIEF LIFETIME LIMIT SLASHED FROM £10M TO £1M

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2019-20 Year End Tax Guide

The last few months of the tax year are the ideal time to pause and reflect, and to make sure you’ve organised your finances as efficiently as possible before the new tax year begins on 6 April 2020.

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TQOTW: LOANS TO EMPLOYEES

Many of my small company clients often have overdrawn director loan accounts. When considering minimising the beneficial loan charge, what interest can be taken into account to reduce or cancel the benefit charge?

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TQOTW: TRAINING COSTS

My client is a surgeon who is currently employed by the NHS. During the year, he has attended various training courses to enable him to keep up to date with changes in the profession and gain new qualifications to further his career. Can he deduct the cost of attending these courses from his employment income?

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TQOTW: DEFERRED STATE PENSION

Anne (aged 66) and Brian (aged 68) are a couple who could have started to draw their state pension a few years ago but they chose instead to keep on running their own trading company and defer taking it. From a look at their records for 2018/19, it’s clear that they both started to draw on their state pension in the year but with different effects on their income tax calculations for the year because Brian has received a lump sum but Anne hasn’t.

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TQOTW: JOINT RENTAL INCOME

My husband and I jointly own a rental property, the income of which we declare 50:50 on our Tax Returns. I have been promoted and will be a higher rate taxpayer going forward. Is it possible for my husband to be taxed on a greater proportion of the rental income as he is a basic rate taxpayer?

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