Tax

Income tax

Tax - Income tax

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PROFIT EXTRACTION - 17.04.2024

Can dividend ever be paid from loss-making company?

Dividends are generally the most tax-efficient form of income you can take from your company but they can only be paid out of profits. Despite this, might there be a way for your loss-making company to pay you a dividend?

BENEFITS - 17.04.2024

The tax advantages of benefits in kind

Your company is doing especially well and you want to take advantage of its good fortune. The priority income you take should be tax efficient. Why might benefits in kind be your best option?

CONSTRUCTION INDUSTRY SCHEME - 17.04.2024

No more CIS tax refunds

It pays not to talk. HMRC seems hell bent on ditching access to its services by phone. In the last couple of years contacting HMRC by phone for most tax issues has been increasingly limited. The latest victims of the HMRC cutbacks are companies who want to claim a refund of deductions made under the construction industry scheme (CIS). ...

PAYROLL - 17.04.2024

PAYE procedures relaxed for salary advances

Simplification. Following a short consultation HMRC has gone ahead with simplification of PAYE procedures where an employer makes an advance of salary to an employee or director. New regulations became effective from 6 April 2024. Pay now, report later. Until the new regulations became law employers were required to treat a pay advance as a normal salary payment, which in turn meant reporting it to HMRC on a full payment submission (FPS). It’s now possible for employers to make a salary advance without submitting an FPS as long as the advance is not a regular arrangement, it reduces the next normal salary payment only and doesn’t exceed the value of salary accrued by the employee at the time of the advance. ...

INCOME TAX - 17.04.2024

Deadline for child benefit tax

Changes to the high income child benefit charge mean some couples will pay less tax. Others can also benefit but must take steps to do so. What’s required and when?

EXPENSES AND BENEFITS - 03.04.2024

Celebrating a company milestone and the tax consequences

Our subscriber’s company is celebrating 25 years in business with small gifts to customers and a party for its staff. What tax deductions is it entitled to for the extra costs it incurs?

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Tax - Income tax

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VAT - 18.03.2024

Leasing cars - what are the VAT pros and cons?

You’re considering leasing instead of purchasing cars for your business. This will improve cash flow and, according to the salesperson, allow you to reclaim VAT that you would not otherwise be entitled to. Are they correct?

LOANS - 18.03.2024

Make your mortgage interest tax deductible

A friend has told you that his accountant was able to get him tax relief for his home mortgage interest. As relief for this type of interest ended decades ago, how was it possible and might you be able to do the same?

PROFIT EXTRACTION - 20.02.2024

Planning your year-end dividend

The end of the tax year is approaching and you want to make full use of the 8.75% tax rate that applies to dividends. How can you work out how much dividend you can take and ensure its payment before the tax year ends?

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