Where an individual works through his or her own personal company to provide services, such as IT consultancy, that company must abide by the "IR35" rules, which HMRC calls "off-payroll working". IR35 requires the individual to check whether he would be treated as an employee of his customer if his…
Read More
There was good news for individual taxpayers in the Budget; the personal allowance will rise from £11,850 to £12,500 on 6 April 2019. This will provide taxpayers on the basic rate (20%) with an income tax saving of £130 per year. Those who pay tax at higher rates will also…
Read More
When you sell your only or main home, you expect any gain you make to be free of CGT. But that CGT exemption only applies if you have occupied the property as your main home for the entire period of your ownership. If you move out of your home before…
Read More
When you sell a business or shares in your personal company, the gain made on that disposal will normally qualify for entrepreneurs' relief which applies capital gains tax (CGT) at 10%. Up to £10m of gains can qualify for this relief in your lifetime. For a company to qualify as…
Read More
Electric cars are creating a buzz in environmentally-conscious companies, and not just because of the noise they make. They are cheap to run and the price of many models is coming down. If your employer provides you with an electric company car or van, we have some good and bad…
Read More
All payroll payments and deductions must be reported to HMRC under real time information (RTI). The main RTI report is the full payment submission (FPS), which should be sent on or before the day the payment is made to the employee. If no payments are made for the pay period,…
Read More
As an ordinary business, you may think that landfill tax is someone else's problem. You pay for your waste to be taken away and the waste disposal company is responsible for paying the landfill tax when the waste goes into a hole, rather than to incineration or recycling. However, since…
Read More
If you have taken a lump sum from your pension fund you may have had excess tax deducted by the pension company, but you can reclaim it. Although 25% of your pension savings can be drawn out tax-free, the pension company normally interprets this as being 25% of any single…
Read More
Commercial properties which are more than three years old will not have VAT attached to their sale or rent unless the owner or leaseholder has opted to apply it. This is called the "option to tax". There are three key questions to ask about your own commercial property: - have…
Read More
HMRC is writing to taxpayers who may own assets overseas or have a source of offshore income. These assets could be anything from a Jersey bank account to an overseas holiday let, or more seriously trusts or companies registered overseas. The letters inform the taxpayers that they must declare any…
Read More
