Posts Tagged: tax tip

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 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 »

Big Change with Capital Gains

From 6th April 2020 there are three changes that will affect Capital Gains Tax.   Currently you file your Capital Gains Tax in your Tax Return. This means you have until the 31st January to declare it. However, from the 6th April 2020 you will have 30 days following the sale to submit your provisional… 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 »

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 »

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 »

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 »

Don’t forget about Investors’ Relief

Investors should always remember Investors’ Relief. It may have some restrictions, but it can be helpful when things like Entrepreneurs Relief doesn’t apply.     The Investors’ Relief is similar to Entrepreneurs’ Relief, however, there are some important differences, they are: Unlike Entrepreneurs’ Relief, the investor can’t be an officer or employee of the company, There… Read more »