Posts Categorized: Friday Tax Tip’s

Unexpected VAT Bonus on Motor Expenses

VAT rules for cars used in your business are generally strict. However, on certain motor expenses, HMRC are surprisingly generous.     When it comes to the cost of repairing and maintaining your car, the VAT rules become interesting. HMRC allows you to reclaim 100% of the VAT paid on this sort of expenditure even… Read more »

HMRC New ‘Snooping’ Powers

From April 2018, VAT-registered business with a taxable turnover in excess of £85,000 will no longer be able to keep manual records due to the HMRC’s new Making Tax Digital (MTD) regime. What Does This Really Mean To You You will need to use accounting software that integrates with HMRC’s system. Dividends will need to… Read more »

Benefit From Celebrity Inheritance Tax Planning

Sir Bruce Forsyth’s has reportedly left all his estate to his wife in order to avoid paying Inheritance Tax on its £17 million worth.   The inter-spouse Inheritance Tax exemption is one of the simple tax reliefs around. This relief imposes that transfers from on spouse or civil partner to the other are exempt from Inheritance Tax…. Read more »

Does Working From Home Affect Principal Private Residence Relief ?

There is a tax myth about business owners’ capital gains tax position if they sell their main residence, which they also use as a place of work.   Some business owners are being put off in maximising their tax deductible expenses for their ‘office use of home’ as they are prejudicing their capital gains tax position when they… Read more »

Tax Minimisation For Directors

Top 10 tax tools for directors of companies:   1. Dividends Due to the reduction of dividend allowance to £2,000, many small company shareholders are paying significantly higher amounts of tax than they used to. However, by bringing in family members as shareholders, you can split dividends amongst them. This is useful if you are… Read more »

HMRC’s Investigation Powers

HMRC has the authority to recover unpaid tax outside of the enquiry window through discovery assessment. If it has a reason to believe that a tax liability has been understated due to an error in your tax return.     Discovery Assessment Discovery assessment happens in one of three situations: You inform HMRC that you… Read more »

Golden Nuggets From Budget 2018

Philip Hammond unveiled a series of measures that was more generous than expected such as early increase in personal allowance and higher rate tax thresholds.     To make it easier for you, we have outlined the “golden nuggets” that we think will be of interest to you. 1. Personal Allowances The changes on personal allowance… Read more »

What Lies Ahead VAT

With the Brexit deadline just a few months away, HMRC has issued a statement about what will happen if no trade deal has been agreed with the EU.     The statement includes recommended steps that you should consider taking before the March deadline. One of them is to acquire software or an agent to handle… Read more »

Escape Company Tax on Directors’ Loans

As a director shareholder, you might have borrowed from the company to cover your personal expenses. However, owing money to your company can trigger a massive tax bill.     HMRC aggressively taxes loan arrangements between you and your company. This means the company must pay tax of 32.5% of the debt as it stands… Read more »

Top 10 Tax Saving Tips For Small Businesses

Owning and operating a small business can be expensive when you pay more tax than you need to. Saving money on taxes should be a priority for small business owners.     Here are few simple tips for small business owners to consider:  1. Use your allowance Annual Investment Allowance of £200,000 – the full… Read more »