Tax

  • Brief Guide to the Administration of Troncs

    The long-running series of disputes between employers in the hospitality industry and HM Revenue and Customs (HMRC) concerning the taxation of employees’ tips and their National Insurance (NI) status seems to have been concluded by the issue of ...
  • Employed or Self-Employed?

    Whether you are employed or self-employed makes a substantial difference to how you are taxed and the income tax liabilities of an employed person can be very different from those of a self-employed person with similar levels of gross income. The National...
  • Entrepreneur's Relief - the Basics

    From 6 April 2008 disposals of qualifying businesses and business assets have been eligible for Entrepreneurs’ Relief. In simple terms, it allows business owners to reduce their Capital Gains Tax liability to the equivalent of 10 per cent of the...
  • Guide to IHT and Small Business

    Inheritance Tax (IHT) is payable on a deceased person’s estate at 40 per cent above £325,000 (2013/4 and 2014/15) – the current nil rate band. However, business property is treated differently from personal property and may qualify...
  • HMRC - Overnight and Subsistence Expenses

    HM Revenue and Customs (HMRC) are well known for their dislike of claiming expenses without complete documentation but the reality, as every businessperson knows, is that maintaining complete and accurate documentation for all transactions is a...
  • How to Reclaim Foreign VAT

    It is commonly thought that within the EU, recovering VAT on expenditure made whilst abroad is merely a matter of calculating the VAT at the applicable rate and claiming it via your VAT return. However, the right to recover VAT on a VAT return is limited to...
  • Making Training Costs Tax Deductible

    Most business owners and managers think that training costs aimed at improving skills or business profits automatically qualify for tax relief, but that is not necessarily the case. The complexities of the UK tax system mean that the availability of tax...
  • Making Waivers of Dividends Work

    When a company is set up, it is common to divide the shares in it in approximately equal proportions amongst the subscribers. Whether or not this proves to be the most effective way to split them in the long run depends on a variety of factors, of which the...
  • Tax Avoidance Disclosure Rules

    UK tax law is almost unique in that it contains regulations which require professionals to advise HM Revenue and Customs (HMRC) of information regarding tax avoidance schemes (TAS). Failure to comply can lead to a penalty of up to £5,000 plus other...
  • Tax Free Perks

    The Government has continuously sought to limit the tax free perks that businesses can provide for their employees. However, there are some remaining. Here is an update on some of those still available. Childcare Childcare provision and childcare...
  • VAT - Place of Supply of Services

    With different rates of value-added tax (VAT) applying throughout Europe, the place that a supply is made (and hence the VAT rate which is applicable) can be a very important matter. The basic 'place of supply' rule is that in normal circumstances (and...
  • VAT and Electronic Goods - Take Care

    In order to combat ‘missing trader’ fraud, which is estimated to have cost the Exchequer hundreds of millions of pounds, HM Revenue and Customs (HMRC) have introduced measures which can, in some circumstances, make a supplier (or customer)...
  • VAT on Business Assets With Private Use

    It is very commom for a smaller business to have assets which have been acquired which are used for both business and private use. Traditionally, this could be dealt with either by claiming only the percentage of the input VAT which corresponded to the...
  • VAT on Electronic Services: New Rules

      If you supply electronic products (telecommunications, broadcasting and e-services) to non-business customers through online sales, you should start thinking about how you will comply with the new VAT 'place of supply' rules that will come into...