News

Tax On Sporting Sponsorships

Corporation Tax v VAT We recently looked at whether or not you can claim a deduction for sponsorship costs against a Corporation Tax (CT) bill (yr.13, iss.3, pg.4, see The next step). But well before you need to think about filling in a CT return you......

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Cutting Tax on A Company Car

The tax payable on company cars is calculated from a combination of how much CO2 it emits and its original list price. The higher the emissions, the greater the percentage of the list price is treated as a benefit-in-kind (BiK). This includes the cos......

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Did you know you can fall into a VAT trap by paying perks to your staff but there are ways round it HOW?

Supplying staff benefits The cost of giving perks to your employees is a business expense and so, as you would expect, you’re allowed to reclaim the VAT on this. But its often overlooked that in providing perks you’re making a supply on which you......

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IHT-free holiday homes

What is BPR? Business property relief (BPR) is one of the most valuable tax breaks available for reducing Inheritance Tax (IHT). It applies to assets used in a trading business and usually means they are 100% IHT-free. In the case of Pawson v HM Reve......

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Tax write-offs for HMRC errors to stay

Concession to end. As part of its overhaul of practices, HMRC intended to scrap its long-standing concession, known as ESC A19, which allowed it to cancel tax bills that arose because of errors by its staff. The idea was to replace it with a revamped......

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Bonds – the double tax trap every investor should know

Drawing cash from an insurance bond can mean paying tax, even where it’s made a loss. What’s more, the special tax relief designed to correct this often doesn’t work. Are there steps you can take to avoid these traps? Related documents – ......

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Is there still a VAT advantage for holding companies?

In 2009 the European Commission started action against the UK with the aim of excluding holding and similar companies from VAT groups. Nearly four years later the result is in. What was the outcome and how might it affect you? Related documents ̵......

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How to make tax efficient one-off payments

The office space at work needs a lick of paint, and to keep costs down you’ve decided to do it yourself. Your fellow directors are happy with the arrangement and have agreed to pay you a little extra. Does this have to go through the payroll? Relat......

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Termination payments and company loans

Termination payments and company loans Where the balance of a loan to an employee, say a season ticket loan, is written off as part of a severance deal, it can result in hefty tax and NI charges. How can you structure the pay-off to avoid these? Rela......

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Tax avoidance rule now in force

Avoiding RTI trouble spots PAYE Real Time Information is now in full swing and as expected is suffering quite a few teething problems. We’ve picked up on a couple that seem to be causing more than their fair share. What’s the full story? Related ......

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