Tax - Extracting income from a company

Recently added Tips & Advice

EXPENSES - 21.10.2020

The tax-free benefits of business travel

Handling your employees’ travel expenses claims is time consuming and the tax and NI requirements can be tricky. The good news is that the process can be simplified by paying flat rate tax-exempt allowances. What are they?
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CAPITAL ALLOWANCES - 21.10.2020

Capital or revenue expenditure - the tribunal decides

The First-tier Tribunal (FTT) recently ruled on a case involving one of HMRC’s favourite battlegrounds; whether an expense was capital or revenue. What was the outcome and why might it be significant for your business?
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PROPERTY - 21.10.2020

Avoiding the buy-to-let interest restriction

You let a residential property which you bought with the help of a mortgage. Personal tax rules mean that relief for the loan interest is restricted. As you also own a company, can you transfer the income to it and so dodge the restriction?
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PROFIT EXTRACTION - 19.10.2020

Benefit in kind or a distribution?

You’re the shareholder of a company which you’re closing down. It has a small amount of cash in the bank and a van. Is it more tax efficient to sell the van before the company is wound up or transfer it to yourself and sell it privately?
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PAYE - 19.10.2020

When should you account for PAYE on your salary or bonus?

After reducing your salary because of poor cash flow over the summer months the plan is to top up your pay with a bonus. It won’t be paid until after the end of the company’s current financial year, but when must you account for the PAYE?
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PROFIT EXTRACTION - 22.09.2020

Don’t pay the wrong kind of dividend

The director shareholders control a company’s dividend payments but the rules that determine when they are taxable vary depending on the type of dividend. How can you ensure they are taxed at the right time for maximum efficiency?
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Tax - Extracting income from a company

Most read Tips & Advice

PROFIT EXTRACTION - 22.09.2020

Don’t pay the wrong kind of dividend

The director shareholders control a company’s dividend payments but the rules that determine when they are taxable vary depending on the type of dividend. How can you ensure they are taxed at the right time for maximum efficiency?
Read more

EXPENSES - 22.09.2020

Is the cost of travelling to a board meeting tax exempt?

Two directors of our subscriber’s company live over 100 miles from its head office. As they are required to attend board meetings there, can the company reimburse or pay their travel and accommodation expenses tax and NI free?
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CARS - 22.09.2020

Advisory fuel rates updated

New rates. HMRC has updated its advisory fuel rates (AFRs) for company cars from 1 September 2020. The old rates (shown in brackets in the table below) can be used until 30 September 2020. To avoid a car fuel benefit charge, employers and employees can compensate each other at the appropriate AFR for the cost of fuel paid for by the other. Because of variation in fuel prices across the UK you may prefer to work out your own fuel rates. HMRC will accept these as long as they are reasonable. ...
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