Category: Tax

The VAT DIY Housebuilders scheme has been designed to allow a homeowner, building a home, to benefit from certain special VAT rules. The rules allow the qualifying construction costs of new homes and certain conversion works to be zero-rated and VAT repaid on certain qualifying construction costs. The following types of conversion are eligible to … Continued

HMRC taskforces are comprised of multiple teams from across HMRC including special investigations, local compliance and criminal investigation units for targeting specific sectors and locations where there is a high risk of tax evasion. The taskforces use local knowledge and risk profiling to help create a list of businesses to target. The taskforces also use … Continued

Full relief from Capital Gains Tax: In general, taxpayers are entitled to full relief from CGT where all the following conditions are met: 1.       The family home has been the taxpayers’ only or main residence throughout the period of ownership. 2.      The taxpayer has not been absent from the home other than for an allowed … Continued

If an employee or director receives a loan from their employer two potential tax liabilities are triggered: one for the employee and one for the employer. Whether these tax charges are chargeable depends on a number of issues. Employees or directors A tax charge will usually apply to interest free and low-interest loans provided to … Continued

Following intense lobbying by interested parties the Government has withdrawn, or revised a number of proposed changes to VAT that it had intended to introduce in the Budget 2012. The two items that received the most publicity are listed below: VAT on hot food One of the most contentious and unpopular issues announced as part … Continued

There are three main VAT schemes available to small businesses: The flat rate scheme The annual accounting scheme The cash accounting scheme The flat rate scheme – This scheme is especially useful for businesses with minimal VAT on business expenses (input tax) to reclaim. For qualifying traders real cash savings can be made. Businesses can … Continued

One of the surprises of the Budget announcements made on 21 March 2012 was the capping of certain reliefs, particularly the reliefs for charitable giving and business losses. The aim of the cap is to restrict the amount of tax relief claimed by high income earners. What is the cap?  The Budget itself contained very … Continued

Here’s a quick summary of the current tax allowances you can claim: Annual Investment Allowance The annual investment allowance (AIA) is available to all businesses regardless of size.  This AIA allows businesses to write off 100% of the cost of qualifying plant and machinery. From April 2012 it has been reduced to £25,000. Transitional rules … Continued

The following article sets out a few of the personal tax changes that have attracted press commentary since the announcements were made 21 March 2012. Top rate of income tax to fall from April 2013 – Following much speculation the Chancellor announced that the 50% top rate of income tax will be reduced to 45% … Continued

A number of changes to the VAT rules were made as part of the March 2012 Budget. Most of the changes will be implemented on or after 1 October 2012. VAT on hot food – One of the most contentious issues announced as part of the Budget related to the change in definition of “hot … Continued