1. Get your paperwork in order It’s one of the main reasons people leave their tax returns to the last minute: not keeping their records organised during the preceding 12 months. The fundamentals, though, boil down to just two things. You’ll first need details of any untaxed income from the 2019/20 financial year (so any… Read more »
Posts Tagged: tax deductible
Get back on your bike!
Find out about the Government’s new “Fix Your Bike” initiative, which aims to get the country cycling! What is it? The Government is handing out thousands of £50 vouchers for people to get their bikes fixed. The hope is that this will boost the retail sector and get cash flowing again, as well as improving… 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. During the transition… Read more »
Avoiding the Pension Cap
Thousands of people may have unexpected tax bills, because they have contributed too much to there pension schemes. Most people are entitled to contribute up to £40,000 a year into a private pension tax-free. This cap applies across all of your pension schemes, and includes contributions made by employers, or on your behalf by someone… 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 to establish that… Read more »
Reduce the cost of borrowing from your company
A director can borrow £10,000 from their company interest free. However, there are strict anti-avoidance rules which mean that the company has to pay. As the director shareholder of a company the net value of assets belongs to you, however, in law the company is a separate person. This means when you take… 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 »
Directors’s Loans and the importance of proper paper work !
As a director who is borrowing money from your company, it is imperative that you fully understanding how to treat the interest charged on the loans. Loaning money from the company can be a useful bonus, but there are two tax charges which can apply when you lend money to a director (if they… Read more »