Posts Categorized: Friday Tax Tip’s

HMRC has issued factsheet on the individual rights of taxpayers who are facing penalties for non-compliance with tax rules.     The factsheet sets out the individual’s rights when HMRC asks for information regarding potential tax evasion and the extent of HMRC’s power to excise penalties. TAXPAYER RIGHTS   You have the right under Article 6… Read more »

The dividend allowance has been reduced to £2,000 from 6 April 2018, coinciding with the annual shifts in personal allowance and basic rate band. All these changes will have an effect on owner-manager individuals.     PERSONAL ALLOWANCE The personal allowance for 2018/19 is £11,850 and the basic rate band is £34,500. This means that… Read more »

Company cars are becoming increasingly expensive from a tax and National Insurance point of view, especially if private fuel is provided. Moreover, the salary sacrifice scheme for taxable benefits for cars ceased in 2017.   In order to save tax, you should consider purchasing a company van instead. CAR or VAN Generally, a vehicle is considered a… Read more »

Employers who cover the costs of their employees providing entertainment for clients have certain tax, National Insurance and reporting obligations. Here are some of the things you need to know: Tax Deduction in Business Accounts Entertaining expenditure is disallowed as a deduction for tax purposes. However, staff entertaining which is not treated as ‘entertaining’ for tax… Read more »

Investment in shares in an unquoted trading company including AIM shares are exempt from Inheritance Tax, after a two year holding period. This is attractive but taxpayers should also be looking at other investments closer to home that can save them substantial Inheritance Tax.     There are Inheritance Tax planning opportunities associated with investing in one… Read more »

There are several ways to reduce Stamp Duty. Here are some of the examples:     1. Commercial Property Purchase of commercial property results in lower Stamp Duty compared to residential properties of the same value. 2. Mixed-use Property A mixed-use property, wherein it has both residential and commercial aspects, attracts lower rates of Stamp Duty. The 3%… Read more »

  The additional 3% Stamp Duty Land Tax surcharge has been implemented since 1 April 2016. Therefore, if you own more than one residential property then you have to pay 3% more stamp duty than would be applicable based on normal rates. There are various scenarios that require careful planning to avoid paying the additional 3%… Read more »

Wondering about jury service UK pay? Our article can help you! During jury service there is no statutory entitlement for an employee to be paid by his employer, unless there is a clause in their contract regarding such a situation. Employees are however entitled to claim allowances from the court to cover travel and subsistence costs… Read more »

The cost of going to university and living away from home can come up to £20,000 per year. Because students usually don’t have enough time to get a decent job to cover their expenses, the bills often fall to Mum and Dad. Mum and Dad are often higher rate taxpayers. Therefore, it will cost them £33,333… Read more »

Every year, following the 31 January Self-Assessment deadline, HMRC exposes a number of interesting excuses for not completing tax returns online. The most interesting ones are the following:  Late Filing Excuses I couldn’t file my return on time as my wife has been seeing aliens and won’t let me enter the house. I’ve been far too… Read more »