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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VQOTW: RECOVERY OF VAT INCURRED PRIOR TO VAT REGISTRATION

My client ran his decorating business for three years as a sole trader and is now going to incorporate. As a sole trader his turnover never quite reached the registration threshold but he will VAT register when he incorporates as a lot of his customers are now contractors. Will he be able to recover VAT on his limited company registration on the van, tools, and equipment he bought as a sole trader and will still use in the company?

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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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R&D TAX CREDITS IN PRACTICE

The UK tax system is complicated but research and development
(R&D) tax credits can be especially tricky to understand.

That’s partly because what counts as R&D, and what amounts
to true innovation, is judged on a case-by-case basis against
criteria that can seem almost abstract.

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DIFFERENT TYPES OF BUSINESS STRUCTURES

You’ve got a business idea, you’ve got the skills, the concept,
the motivation and maybe even someone that’s keen to pay for
your services, but where do you start? What will you call your
business? What business structure will suit it best?

It may be that as your business grows you run through several
different structures, but most firms will set up one way and
remain just that, even as their turnover grows or falls.

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TQOTW: RESIDENCE NIL RATE BAND

My client has left their main residence to their children through a discretionary trust in their will. If a deed of variation is done within 2 years of the date of death would the residence nil rate band still be available?

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