Business Tax

  • news-coins

    Better to pay interest on your loan account than dividends if higher rate taxpayer

      Ever since the introduction of the 7.5% increase in the rate of tax on dividends in April 2016, it has been more tax efficient for owner managed business shareholders to pay interest on their loans to the company rather than pay themselves dividends. The interest would be deductible against the company’s profits saving corporation […]

    in Business Tax on May 12, 2017 Comments 0
  • news-iphone

    Making Tax Digital

      The current tax year, 2017-18, is the last year we have to prepare for the advent of the new reporting system, Making Tax Digital for Business (MTDfB). Following the recent budget, it is now clear which businesses are going to be affected and when. Dates for implementation will be:   From April 2018, unincorporated […]

    in Business Tax on April 26, 2017 Comments 0
  • news-house

    Buy to let property owners – time to start planning for tax changes

      Property business owners, particularly buy-to-let landlords, have been hit with a number of quite dramatic changes in their tax status. One of the most draconian is the gradual disallowance of tax relief for finance payments that starts April 2017.   We have highlighted this issue in past articles posted to this newsletter. In essence, […]

    in Business Tax on March 20, 2017 Comments 0
  • news-iphone

    Making Tax Digital

      We have now seen the response of HMRC to representations made by accountants and other interested parties to their Making Tax Digital (MTD) agenda.   A reminder that MTD will result in the gradual digitisation of small businesses (including landlords) reporting to HMRC. The present proposals will oblige smaller businesses to upload quarterly data […]

    in Business Tax on March 15, 2017 Comments 0
  • news-scotland

    Scottish income tax rates and thresholds

      The Scottish Government has the devolved power to set certain tax rates, principally income tax and land transaction tax (equivalent to SDLT in England and Wales). Although it proposes to freeze the basic, higher and additional rates at 20%, 40% and 45% respectively, the thresholds will not be the same as the rest of […]

    in Business Tax on March 10, 2017 Comments 0
  • news-house-tax

    Property sales- trading or capital gain?

      In the December edition of this newsletter we flagged up that new anti-avoidance legislation in Finance Act 2016 will tax certain transactions in UK land as trading transactions instead of capital gains.   Just before Christmas, HMRC issued guidance to clarify the scope of the new rules. The legislation as enacted in Finance Act […]

    in Business Tax, Personal Tax on March 8, 2017 Comments 0
  • news-self-assesment-2

    Shareholders must also be officers or employees

      In order to qualify for CGT entrepreneurs’ relief on the disposal of shares, the shareholder must have been an officer or employee of the trading company or group throughout the twelve months up to the date of disposal. Although there is no minimum number of hours, it is important that there Is evidence that […]

    in Business Tax on February 27, 2017 Comments 0
  • news-work-from-home

    Do you have enough shares to qualify for CGT Entrepreneurs relief

      Entrepreneurs’ Relief reduces the rate of CGT to 10% on the first £10 million of gains on the disposal of qualifying business assets. This would include sole traders disposing of their business and partners disposing of their interest in a partnership carrying on a business. With many businesses operating as limited companies these days […]

    in Business Tax on February 24, 2017 Comments 0
  • news-pension

    Director disqualified for seven years

      Directors have a responsibility to maintain, preserve and deliver records that are adequate to explain the financial position of their company. If they fail to do so, they run the risk of being disqualified from acting as a director.   In a recent Insolvency Service investigation, a director was banned for seven years. His […]

    in Business Tax on February 13, 2017 Comments 0
  • news-plant

    Considering investing in plant or equipment?

      Business owners may be considering their options for investment in new equipment especially if their trading year end is March, as is often the case. There are a number of considerations:   Cash flow, can the business afford the cost or fund loan or other financing arrangements? Will the new equipment make a positive […]

    in Business Tax on February 10, 2017 Comments 0