Posts Categorized: Blog

The tax break scheme which has been labelled “ridiculously generous” by governement’s enterprise advisers is being encouraged to be taken up by backers of start up businesses. As we reported yesterday, The Seed Enterprise Investment Scheme (SEIS) offers 50% income tax relief on investments of up to £100,000, while a capital gains tax holiday means… Read more »

HMRC is promoting the little-known scheme (SEIS) and specified investors can utilise a method known as ‘carrying back’ to circumvent paying capital gains tax on investments in enterprises before April 2014.  This is a year longer than expected.   Tax reliefs of 50% on investments of up to £100,000, a capital gains tax holiday meaning tax… Read more »

As many as 50,000 businesses that have failed to submit VAT returns will be targeted by HMRC this month with warnings that their tax affairs will be closely scrutinised. The VAT outstanding return campaign is aimed at businesses that have one or more VAT return outstanding, and have been told to submit their returns but… Read more »

If I purchase a Land Rover Defender for use in my partnership business can I reclaim the VAT paid on the purchase? I  will use the Land Rover 75% for business and 25% for private journeys. Answer  You first need to check that the specific model of Land Rover Defender is regarded as a commercial… Read more »

Does your business use a polytunnel or glasshouse? In the past the Taxman has refused to allow a tax deduction for the  cost of such structures, on the basis that greenhouses are  buildings. A greenhouse is generally expected to last several  years, so the cost of the structure should be treated in the business  accounts… Read more »

The standard personal allowance (amount of tax-free income) for  2013/14 will be £9,440. We had been expecting a smaller increase  to £9,205. The new higher allowance allows an individual to earn £181.54  per week (about £787 per month) tax free. But the NIC thresholds  will not increase by as much, so an employee starts to pay… Read more »

HMRC are to scrutinse companies who have outstanding VAT.  The taxman will be targeting approximately 50,000 businesses this month who have not paid their VAT on time.  These businesses will be told that from 28 February their tax affairs will be under scrutiny and are exposed to further inspection should their VAT remain outstanding. Some of… Read more »

The rules for reporting wages, hours worked and payroll deductions  under real time information (RTI) are still being written. What to report RTI reports will need to be made where at least one employee is paid  above the lower earnings limit (LEL), (£109 per week for  2013/14). For wages between the LEL and the Primary… Read more »

The annual investment allowance (AIA) gives a 100% deduction for tax  purposes for the cost of plant, equipment and certain fixtures in  buildings, which qualify for capital allowances. The AIA has an annual  cap. This started at £50,000 in 2008, was increased to  £100,000 by the previous government, and was cut to  £25,000 in April… Read more »

HMRC have been slammed by the National Audit Office (NAO) for shoddy customer service that cost callers – one in four of whom couldn’t even get through – £136m in 2011–12. The NAO’s damning report found that taxpayers shelled out £33m in call charges, many clocking up huge bills on costly premium rate numbers even… Read more »