Posts Categorized: Friday Tax Tip’s

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 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 »

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 »

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 »

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 »

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 »

There are still over one million not claiming marriage allowance despite it being recommended by HMRC. They also estimate that of all eligible couples, one in four have not made a claim. Marriage allowance is available to married couples or civil partners. This allows an individual to transfer their personal allowance of up to £1,190 to… Read more »

The tax year 2017/18 is the first tax year wherein cash basis applies by default to unincorporated property business with annual rental income of less than £150,000.     Cash basis essentially takes account of money in and money out when preparing accounts. This means that sales are taken into account in the accounting period… Read more »

Grants are available to UK registered low emissions vehicles. These are available for cars, vans, motorcycles & mopeds, taxis, and home and work recharging points.     To qualify for the grant, your vehicle must emit less than 75g CO2/km and must meet specific performance and safety criteria.   Category 1 Cars:   CO2 emissions of less… Read more »

Here are some quick “hits” on how to reduce the amount of tax you are assessed on.     For example: 1. Switch To Tax-Free Savings If the interest you receive from savings in your standard savings account is more than the new personal savings allowance (£1,000 for basic rate taxpayers, £500 for higher rate taxpayers),… Read more »