Posts By: ilyas Patel

IR35 News: The Main Pitfalls of the new rule.

Although the government has waivered penalties for the first year of the new IR35 Rule, here are some common blunders businesses should avoid staying on the good side of HMRC Forgetting Relevant Contractor Information on IR35 Under the new IR35 rule, businesses should make sure to identify all the contractors they use by logging the… Read more »

Asset Disposal: Reduce your tax bill when selling your company.

Business Asset Disposal Relief (BADR) is a discounted rate for Capital Gains Tax (CGT). This can significantly reduce your tax bill if you sell or wind up your company. To qualify for BADR you must meet certain criteria, including owning the shares for at least two years. How do I qualify for Business Asset Disposal… Read more »

Pay under 5% tax on a pension over £1 million.

The government has tried to stop people from building up a pension worth over £1 million. To do this they’ve introduced penalties of up to 55% for anyone who breaches the £1,073,100 lifetime pension limit. However, there are ways to reduce these charges, which mean you could be paying tax well below the basic rate…. Read more »

Covid Business Support: Bounce Back Loan Warning!

Bounce Back Loan Warning! The Insolvency Service will be given new powers to investigate directors of companies that have been dissolved. This will close a loophole previously used to avoid paying back Government-backed loans. These powers include harsher punishments for those found guilty of misconduct. Change in Bounce Back Loan Rules Previously, some company directors… Read more »

UK Inheritance Tax: Four Key Factors to Keep in Mind

Inheritance Tax planning can be overwhelming; how do you ensure your family or friends benefit fully from it? Fortunately, protecting your loved ones and assets is easier than you might think.     What is UK Inheritance Tax? Inheritance Tax is a tax on your estate based on its value, payable after your death. Currently, this… Read more »

Pension vs Dividends: What’s best for me?

(4 Minute Read) Pensions vs dividends? Dividends are a traditional way of a director being paid from a company. However, the tax advantages have been reduced in recent years, mostly through increased income tax rates on dividends. This means that other payments can be more tax efficient. One of these methods is company pension contributions…. Read more »

Budget 2021: Capital Allowances and the new super-deduction

(4 Minute Read) What is super deduction tax? The Chancellor announced a new capital allowance, known as the Super-Deduction. This offers tax relief at 130% of the cost of new plant and machinery. This is available from the 1st April 2021 to the 31st March 2023. How does the super-deduction work? The Super-Deduction applies to… Read more »

SEISS Grant 5: When can I apply and how much will I get?

(4 Minute Read) What is a SEISS Grant? The government’s Self-employment Income Support Scheme (SEISS) can be described as the self-employed version of the Coronavirus Job Retention Scheme (CJRS) for employed people. While you’ll still owe Income Tax and National Insurance on any money you get through the SEISS, it’s a grant rather than a loan. That means you… Read more »

Tax on Cryptocurrency UK

(7 Minute Read) What is a tax on cryptocurrency? In the UK, HMRC treats tax on cryptocurrency like stocks, and so any realised gains are subject to Capital Gains Tax. You can cash in, or give away, £12,300 worth of gains a year tax-free, but then pay 10% tax for basic ratepayers or 20% for… Read more »