HMRC Archives - Page 29 of 37

Dec 08 2019

Where Entrepreneurs’ Relief Falls Short

By admin Capital Gains Tax, HMRC, Potts & Co Accountancy & Business Advice News

When you sell your business you can expect to pay Capital Gains Tax (CGT) on any gains you make. Currently, CGT is payable at 10% (if within your basic rate band for income tax) or 20% on such gains. But the 10% rate can also apply to gains of up…

Dec 07 2019

Avoid Tax Traps on Setting Up

By admin General Anti-Abuse Rule (GAAR), HMRC, Potts & Co Accountancy & Business Advice News, Targeted Anti-Avoidance Rule (TAAR)

Successful entrepreneurs often move from one business project to another. If you are about to start up a new business having closed down an old one, be careful not to fall into the phoenix trap. This is when one company is liquidated, so the cash accumulated in the company is…

Dec 06 2019

MTD Digital Links

By admin HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, VAT

Making Tax Digital (MTD) for VAT requires you to do two things: • record data concerning your sales and purchases digitally; and • transfer that data via digital links to the MTD-enabled software which is used to submit the VAT return. Many business systems contain pinch points where different software…

Dec 05 2019

Offshore Investment Funds

By admin Excess Reportable Income (ERI), HMRC, ISA, Potts & Co Accountancy & Business Advice News

HMRC are writing to taxpayers where there is information to suggest those individuals have invested in an offshore collective investment fund. If you hold any amounts in offshore investment funds, however small, you may have to declare the income or gains received on your tax return. If your offshore fund…

Dec 04 2019

Car Benefit Confusion

By admin Company Cars, HMRC, Potts & Co Accountancy & Business Advice News

From 6 April 2020, the calculation of company car taxable benefits will be changed to favour electric and hybrid vehicles. This is good news for some company car drivers. However, due to a switch in the methods used for measuring vehicles' CO2 emissions, there will be two different tables to…

Dec 03 2019

Gains from Off-Plan Homes

By admin Capital Gains Tax, HMRC, Potts & Co Accountancy & Business Advice News, Property

If you bought your home brand new and 'off-plan' you may realise a significant capital gain when you sell that property. This is not a problem if you occupied the property as your main home for your entire period of ownership. In that case, principal private residence relief should cover…

Oct 10 2019

How to Avoid a VAT Penalty

By admin HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, VAT

When a business submits its VAT returns or VAT payments late, whether via MTD software or the old HMRC website, the business will enter the VAT penalty surcharge system. Small businesses with a turnover of less than £150,000 get one free pass, so will receive an advice letter from HMRC…

Oct 09 2019

Off-Payroll Working

By admin HMRC, IR35, Potts & Co Accountancy & Business Advice News

HMRC refer to the IR35 rules as 'off-payroll working' to imply that every freelance worker should be paid through the payroll, which is certainly not the case. For public sector contracts, it is the engager who decides whether the IR35 rules apply to freelance contractors. This will also be the…

Oct 08 2019

Avoid VAT Registration

By admin HMRC, Potts & Co Accountancy & Business Advice News, VAT

As a small business selling to individual consumers you will be acutely aware of the VAT registration threshold which has been frozen at £85,000 until at least 31 March 2022. But what happens if you temporarily exceed that threshold? If you exceed the threshold but you expect your VATable sales…

Oct 08 2019

Claiming Cashback For R&D Costs

By admin HMRC, Potts & Co Accountancy & Business Advice News

Companies that spend money on research and development (R&D) projects can claim an enhanced tax deduction amounting to 230% of the qualifying costs. This can be a huge boost for a struggling business as it can wipe out taxable profits meaning that no corporation tax is payable and it may…

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