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 transgressions are illuminating. They included:   He was unable to explain payments taken for his

  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 impact to the bottom line? What are the tax breaks?   Points one and two

  The Treasury Select Committee has reviewed the proposals for the introduction of “Making tax digital” (MTD) and have agreed with the various professional bodies that if the new systems are introduced too quickly there could be a disaster. It would significantly increase burdens on small businesses. In their report they comment that the overall benefits of mandating the digitising of record keeping and quarterly reporting, as is currently envisaged,

08

Feb 2017

Storm damage

  Costs that businesses incur to clean up after the recent storms, that affected the north and east coasts in particular, need to meet the usual qualifying criteria that they are incurred “wholly and exclusively” for business purposes in order to be a legitimate write-off for tax purposes.   If the costs are covered by insurance, no tax relief would be due. If costs are discovered to be partially covered

  This is also an appropriate time of the year to consider your CGT position if you have already disposed of (or are considering a disposal) of an asset subject to CGT during 2016-17.   Most of our readers will be aware that they can make chargeable gains of up to £11,100 in the tax year 2016-17 and pay no CGT. This exemption cannot be transferred to a future tax

  All UK taxpayers may benefit from pausing, taking a deep breath, and considering their planning options as we approach the run-up to yet another tax year end.   Individuals   The prime areas for consideration are where income levels are threatening to break through into the higher rates of Income Tax. For 2016-17, these are:   If your taxable income exceeds £32,000 (after deducting your £11,000 personal allowance) you

  From 1 December 2016, the advisory fuel rates have changed to:   1400cc or less: petrol 11p per mile, LPG 7p per mile 1401-2000cc: petrol 14p per mile, LPG 9p per mile Over 2000cc: petrol 21p per mile, LPG 13p per mile   Diesel rates:   1600cc or less: 9p per mile 1601-2000cc: 11p per mile Over 2000cc: 13p per mile   These rates can be used from 1

It is worth repeating an article we first published March 2016 that highlighted the cash benefit to company car drivers and their employers, of reimbursing the cost of fuel provided for private motoring. The rates have been updated for 2016-17.   Since the tax on private fuel provided with company cars is so high, many employers now have an arrangement whereby they no longer pay for private fuel. In this

  Where additional tax is payable as the result of an HMRC enquiry and it is shown that the additional tax is due to poor accounting records, the maximum penalty that can be imposed is 30% of the additional tax for failure to take reasonable care. Where the error is deliberate, the penalty will be between 20% and 70% of the extra tax due, rising to 100% where the matter

  Finance Act 2016 brought in new rules to ensure that overseas property traders and developers are subject to UK income tax or corporation tax when they dispose of UK properties from 5 July 2016. However the way in which the legislation is drafted may catch some buy-to-let landlords.   The new rules treat UK property sales/development of land as part of a trade and therefore potentially taxed at income