Posts Tagged: tax credit

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 »

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 »

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 »

Accelerated Capital Gains Tax

There will be major changes to the tax rule for gains made from the sale of residential properties which will take effect from April 2020.   At present capital gains made by individuals are reported through self assessment, i.e if you sell a property between 6 April 2019 and 5th April 2020 you must declare… Read more »

Cost of Entertaining Staff & Customers

Entertaining is categorized as business entertainment and therefore the cost isn’t tax deductible. There is an exception to this rule as staff entertainment can be tax deductible.     The cost of entertaining staff includes costs relating to the director shareholders. HMRC extends this to all business owners, ie business partners and sole traders, who take… Read more »

Get Tax Back for R & D

How much are you missing out on? All the effort you put into researching what you do and how to do it better, all the development you’ve done to get you this far… may qualify for valuable Tax Credits. Are you missing out? How much further can you take your business when you can afford… Read more »