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HMRC BEAT GLASGOW RANGERS IN SUPREME COURT

Blog, HMRC, Tax

A scheme using Employee Benefit Trusts (EBTs) as a means of remunerating directors and staff has been defeated by HMRC in a recent Supreme Court case. Such schemes had been used by many employers to avoid PAYE and national insurance contributions (NICs) and involved complicated trust structures and “loans” to the employees. The Supreme Court […]

NEW GOVERNMENT CHILDCARE SCHEMES

Blog, HMRC, Tax

Working parents can start applying for two new Government childcare schemes launching this year – Tax-Free Childcare which begins immediately and 30 hours free childcare which starts in September. This means that working parents of children, aged under 4 on 31 August 2017, can now apply through the new digital childcare service for Tax-Free Childcare […]

SECOND FINANCE BILL THIS AUTUMN

Blog, HMRC, Tax

It has also been announced that the second Finance Bill will legislate for all policies that were included in the pre-election Finance Bill but had to be dropped in order to rush through the Finance Act 2017 before the snap general election in June. The Government has re-confirmed that all policies originally announced to start […]

THINKING OF WINDING UP YOUR COMPANY?

Blog, HMRC, Tax

Up until 6 April last year, the distribution of cash to shareholders on the winding up of a trading company by a liquidator, was usually taxed as a capital gain, potentially taxed at just 10% with the benefit of entrepreneurs’ relief. However, last year’s Finance Act introduced a targeted anti-avoidance rule that may tax such […]

WORKING IN THE “GIG” ECONOMY

Blog, HMRC, Tax

The House of Commons Work and Pensions Committee has recently published a report calling on the Government to close the loopholes that allow “bogus” self-employment practices, which burden the welfare state but reduce the tax contributions needed to sustain it. This follows the “Matthew Taylor” inquiry which took evidence during February and March 2017 from […]

MAKING TAX DIGITAL FOR BUSINESS DELAYED

Blog, HMRC, Tax

The Government has responded to pressure from accountants and other interested parties and announced the delay of Making Tax Digital for Business to 2020 at the earliest. Quarterly VAT reporting using the new system will be mandatory from 2019. In a further U-turn, three million small businesses and buy to let landlords below the VAT […]

ONE BUSINESS OR TWO FOR VAT?

Blog, HMRC, Money Matters, Tax

A recent VAT Tribunal had to decide whether two hairdressing businesses should be treated as a single business for the purposes of VAT registration. The distinction was critical as the two separate businesses were operating below the registration limit (currently £85,000) and the combined operation would have exceeded the limit meaning that VAT would need […]

WHAT IS THIS “DEMENTIA TAX”?

Blog, Budget 2017, Estate Planning, Money Matters, Tax

The Conservative Party Manifesto announcement and subsequent U-Turn on the requirement to pay for social care may have caused many voters to switch their allegiance in the June Election. Although this so-called “Dementia tax” is not strictly a tax, paying for social care has become more important than Inheritance Tax for many families. If a […]

ADVISORY FUEL RATE FOR COMPANY CARS

Blog, Budget 2017, Employers, HMRC, Tax

These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 June 2017. Where there has been a change the previous rate is shown in brackets. Engine Size Petrol Diesel LPG 1400cc or less 11p 7p 1600cc or less 9p 1401cc to 2000cc 14p 9p 1601 to 2000cc 11p Over […]

MOTOR RACING SPONSORSHIP WAS TAX DEDUCTIBLE

Blog, HMRC, Investments, Money Matters, Tax

In order for an expense to be deductible against business profits it must be incurred “wholly and exclusively” for the purposes of the trade. In a recent tax case a hotel owner near Silverstone sponsored his grand-daughter’s career as a racing driver by making payments through his company. The argument was that this would promote […]