Posts Tagged: Financial planning

Tax relief on pension contributions

Following HMRC’s victory in court they could reclaim millions of pounds in tax.   What contributions are there? If you are a UK taxpayer you can get tax relief on pension contributions of up to 100% of you earnings, or £40,000 whichever is lower. This means that some money that would otherwise go the tax… Read more »

Coronavirus Business Interruption Loan Scheme

  The scheme is now open for applications. All major banks are offering this scheme. The scheme is delivered through commercial lenders, backed by the Government-owned British Business Bank. The CBILS guarantee is to the lender and not the business. Under this scheme, the Government provides the Lender a guarantee for 80% of the loan…. Read more »

Coronavirus Job Retention Scheme

What is it? The Coronavirus Job Retention Scheme (CJRS) applies to all employers with a PAYE scheme. These employers will be able to access support to continue paying part of their employees’ salaries for those that would have otherwise have been laid off during the crisis. This scheme applies to employees who have been asked… Read more »

Changes to Annual Investment Allowance

Find out how Annual Investment Allowance (AIA) is changing from 31st December 2020.     AIA lets you deduct 100% of qualifying expenditure from your tax bill. It has been capped at £1,000,000 for the years 2019 and 2020. However, from 31st December 2020 the cap is being lowered to its previous level of £200,000.  … Read more »

Claiming VAT on entertaining on Valentine’s Day

Claiming VAT on entertaining non-staff is usually not allowed, but there are certain times when you can do it.     The input VAT is usually not claimable on the costs of entertaining non-staff. This rule also applies to staff whose role is to look after the guests and make sure they enjoy themselves.   It… Read more »

New Credit Note Rules

New rules for credit notes came into effect in September 2019.     You are more likely to reduce the price of goods than increase them, for example if the goods are faulty. Credit notes can reduce the VAT accounted for on the original invoice. Since 1st September 2019 you can only reduce the output… Read more »

Is employing family tax efficient?

Putting family on your payroll can be tax efficient if HMRC allow it, but what happens if they challenge it?     For an expense to be tax deductible it has to be incurred wholly and exclusively for business purposes. If you employ your family members, this may gain HMRC’s interest.   HMRC will want… Read more »

A Christmas gift from the VAT man

The corporation tax rules for clients gifts are well known, but what about the VAT rules?     The corporation tax rules for entertaining clients or giving them gifts say that the gifts have to: Advertise to the public (i.e. a free sample) or Cost under £50 and include an advert for the company.  … Read more »

Tax relief on personally owned equipment

If you have a personally owned asset which you sometimes use for business, are you entitled to a tax deduction?     HMRC has a “wholly, exclusively, and necessarily” rule, which means you can’t get tax relief for expenses if there is any non-business use. However, this rule doesn’t apply in the same way to… Read more »

Long-term tax planning for children and shares

Your children might be too young to take over the family company, but can you reduce tax by giving your children shares now?     Parents try to mitigate their tax bills by diverting income to their children that are under 18. These schemes fail because of HMRC’s anti-avoidance rules called settlements legislation. These make… Read more »