News and Updates
HMRC’s spin on the new EA rules
One-man companies can no longer qualify for the employment allowance (EA). However, the latest official guidance indicates that this rule may be easy to dodge. What's the full story? Tax on employers The employment allowance (EA) was introduced in April by the...
VAT MOSS – Where are we now?
HMRC's mini one stop shop (MOSS) for accounting for VAT on digital services sold in other EU countries seems to have settled down. HMRC has also simplified the rules for some businesses. How might these changes affect you? Digital services Since 1 January 2015, if you...
My client is thinking about making a pension contribution before the end of the tax year. What are the current limits that he needs to be aware of?
Reviewing a client’s pension position is always a good idea before the end of a tax year. As we are approaching the end of the 2015/16 tax year now is a very good time for giving this some thought. Making contributions can preserve personal allowances for anyone...
No more relief for goodwill and intangibles
The Finance Act 2015 and proposals in the Finance Bill restrict the tax relief which your company clients may claim in respect of goodwill and certain other customer-related intangible fixed assets. What are the new rules and what action do you need to take? GOODWILL...
New NI exemption for 2016/17
Apprentices. HMRC has confirmed that starting from 6 April 2016 employers will be entitled to an exemption from secondary Class 1 NI contributions in respect of wages for employees who are apprentices and aged under 25 at the time they are paid. Note. The exemption...
Tax Question of the Week
Q. My client is a limited company. The sole director shareholder travels in a busy city centre. In order to save on travel costs the company is considering purchasing a motorbike. He is concerned that there will be a significant benefit in kind charge. Can you please...
The end of tax motivated incorporation?
The Summer Budget 2015 contained some key measures that were a thinly veiled attack on small business owners. What do you need to be aware of? Dividends. Perhaps the most controversial announcement was the overhaul of tax on dividends. From April 2016 the notional...
It’s P11D time!
HMRC has released its 2014/15 benefits and expenses Form P11D plus updated guidance to go with it. Is there anything new to watch out for? P11D deadline. It’s that time of year when you need to turn your attention to preparing the dreaded Forms P11D . A form is needed...
Personal Companies – Optimal 2015/16 salary
If the director shareholder has no other income and the EA is available, the optimum position will be to take a salary equal to the personal allowance (£883.33 per month) and to withdraw further profits in the form of dividends. Although this approach will result in...
Tax clampdown on goodwill.
Companies have been allowed to claim a tax deduction for the cost of goodwill since 2002. In the autumn Statement it was announced that this will now be restricted but when and how will this take effect? In 2002 HMRC expanded the right of companies to claim tax...