Category: Tax

IHT business property relief is extremely valuable, as on your death it effectively eliminates inheritance tax on the value of the property. The problem is that, following recent case law, HMRC are likely to resist any claims on the grounds that the activity of letting properties is nothing more than an investment, even where the … Continued

The latest campaign from HMRC is aimed at chiropodists, psychologists and homeopaths who feel they might not have declared all of their income. It offers the usual time-limited disclosure opportunity in which to bring tax affairs up to date on preferential terms. The campaign is not intended for doctors and dentists, who were covered by … Continued

This valuable allowance is due to start for all businesses on 6 April 2014, and simply exempts the employer from the normal employer NICs of 13.8% of the earnings paid. The mechanics are that the allowance will be obtained via standard payroll software and HMRC’s RTI system. A facility will be added to the RTI … Continued

As many as 250,000 people will have to pay income tax rates of more than 60% this year, and thousands more will do so from next April. Anyone earning between £100,000 and £118,880 will have to pay 62% tax on some of their income after the Government’s decision to increase the personal tax allowance to … Continued

Company Directors are the subject of a new HM Revenue & Customs clampdown aimed at ensuring they submit personal tax returns. It forms part of HMRC’s taskforce scheme, which usually operates in “short, sharp bursts of activity” in targeted areas of the country and perceived high-risk industries. HMRC inspectors have started the crackdown in a … Continued

This has always been a major bugbear of the tax rules, as where there is both a business and a personal reason or benefit in meeting an expense, there is no tax relief on any of it. There are a few exceptions; for example, if the expense can be properly split between business and personal … Continued

HMRC have announced 4 new taskforces that will investigate tax evasion in specific commercial and geographical sectors. The taskforces bring together various compliance and enforcement teams for what they term “intensive bursts of targeted activity”. The new taskforces will investigate the following:  Construction industry in London (expecting to raise £3 million)  Security guards, bouncers and … Continued

As mentioned in previous articles, there has been a tightening of the rules regarding the receipt of a loan from a close company. The company can be taxed 25% on the amount of a loan drawn by a shareholder which is still outstanding more than 9 months after the end of the company’s accounting period. … Continued

In autumn 2015, employer-supported childcare will be replaced by a tax-free childcare scheme. However, employees may choose to remain in those schemes or switch to tax-free childcare. The new scheme is designed to help families and the Government will provide 20 per cent of working families’ childcare costs (subject to an annual limit of £1,200 … Continued