Accounting Web
Claimable Expenses?
If researching for a pub and restaurant guide, are food/drink/travel expenses allowable for tax?
Transfer of property - Annaual Exemption Allowance
Can I transfer 50% of my property to my 5 years old daughter name to claim her annaul exemption allowance for the year against any possible CGT?
Employment Related Loans
When Employment related loans are waived this creates an income tax charge on the employee. To stop this charge being avoided I thought there was a provision saying that long term loans would trigger the tax liability, but the tax would be repayed (refunded) as and when the loan is repayed. I cannot find any legislation or HMRC guidance on this. Does anybody know where I can find it?
Loan to company - written off?
I have a client company with 1 sole director and his partner (not married) has loaned the company £60k.
They want to get the debt out of the company so have decided to write off the £60k loan to the company.
My question is - will corporation tax be charged on this £60k as i assume she will be entitled to a capital loss?
Thanks
Capital loss on shares - or not
"My client converted her directors loan account into Cumulative redeemable preference shares in 2002. The company was insolventent at the time.
The company has now gone into liquidation and my client has made a capital gain on another asset. I assume that the loss is allowable against the capital gain?
Does the fact that the shares were worthless at the time of subscription have any effect? (the conversion of the directors loan account into shares just about made the shareholders funds positive)"
New compliance check factsheets
HMRC has published a series of factsheets to help taxpayers and advisers understand the new framework for compliance checks.
Director of limited company taking on a second job - what to do about tax code
My client is a director of a limited company who receives a small salary from the company (around £5,000, paid monthly - no contract of employment), and dividends.
She is a basic rate taxpayer, hence salary is kept low to ensure that it falls within personal allowance, and dividend payments are taxed at effective rate of 0%.
She is about to take on a new job for 9 months with a different employer.
End of the line for Employer’s CD-ROM
HMRC confirmed that this month’s update is the final edition it will send out of its Employer’s CD-ROM.
On the page announcing the September release of the biennial information and software CD, the department announced, “HMRC will not send you a paper Employer Annual Pack and Employer CD-ROM to finalise 2010-11 and start 2011-12. Instead of a CD-ROM a set of PAYE tools will be available to download straight to your computer.”
Employed or Self Employed?
I work for a charity and need to know whether it would be best to employ someone or get them to work as a self employed person. The details are as follows:
The man receives a NHS pension, we could issue him with a contract, the minimum hours he would work is approx 6 hrs a week and max would be 16, his rate of pay is £6.75 per hour so I guess he would have to pay tax or Nat Ins?? Would he be entitled to holiday and sick pay if put on the payroll. He is happy to work self employed but I need to know what would be best for us as a charity.
Vat rate for electronically distributed trade journal
I'm trying to establish if there has been any change to the position of standard rate VAT being charged on a trade journal distributed electronically as a Pdf document. I've read Tottel's VAT digest from March 2006 and a November 2007 Tax Journal which both indicate that it's effectivly EU legislation which is acting as a barrier to VAT law catching up with the electronic age. Does anyone know if there has been any change?
Many Thanks
CD
National Insurance holiday
I assume HMRC will have something in place to prevent this, but I have a client partnership which is about to incorporate into two companies. Does anyone know whether these will class as new businesses and therefore be entitled to the National Insurance holiday for their first ten employees. Presumably at least one of the companies will require a new PAYE ref number . . .
Any thoughts would be most welcome
Thanks
When did Customs & Excise begin to acknowledge options to tax?
My client is about to enter into a property deal. The other party say they have opted to tax, and they have exhibited a copy of their notification of the OTT. It dates from 1996. Notification became compulsory in 1995, but the other party say that Customs & Excise did not begin to issue acknowledgements of OTTs until later. I've phoned HMRC and they say acknowledgements began in 1995. That makes sense, but maybe the guy on the helpline just said that because he couldn't find anything to suggest otherwise.
Regional NIC holiday for start-ups kicks off
New businesses outside of London, the South East and East of England can start claiming a holiday from NIC contributions for their first 10 employees starting from Monday 6 September until 5 Setpember 2013.
HMRC delaying refunds?
Has anyone noticed an improvement in time taken to make tax refunds?
I filed online 24 August and SAR showed almost £800 refund due. A notice was issued 25 August to state refund was being prepared and 27 August I received cleared funds.
In view of loads of negative comments about HMRC, I think it only fair to point out that they can do it!
Pre - owned assets introduced by trader into new business commenced 1 May 2009 - Capital allowances claim?
Joiner partnership commenced trading on 1 May 2009 with £3,000 of pre-owned assets (tools) not used in a business previously introduced by each of two partners. No invoices or receipts exists for these, only a list of tools and partner's values.
Can we claim (a) AIA (b) FYA (c) or WDA on these assets.
Also Van purchasesd 1.5 years previous to commnecement of business (invoice available) , now introduced into above business at current market valuation, can we claim AIA on current valuation. If not can we calim FYA or WDA.
Bankers avoided bonus tax, admits Darling
The ex chancellor has acknowledged that the tax failed to change the industry’s behaviour concerning pay and that employees found “imaginative” ways to avoid it.
Speaking at a financial services conference this week, Darling said the new government would be unlikely to reinstate the 50% tax on bonuses over £25,000 since it was massively unpopular and failed to change behaviour in the sector.
Pension tax relief reforms cautiously welcomed
Business groups have embraced government plans to reduce the annual pension allowance to £40,000 but implementation issues remain, warn experts.
Under the new proposals, the amount that can be saved into a pension will be reduced from £255,000 a year to about £40,000. Higher earners’ tax relief on pension contributions will also be reduced to 20%, while higher rate taxpayers will be entitled to relief of at least 40%, even if they earn more than the £150,000 threshold for the 50% tax rate.
sale of a second home
The first property is rented out but the tenants have just given notice, the client wants to sell that property and purchase anouther in a different area and again rent it out. All the money will be used for the second property and he wants to know is there a way of not paying capital gains on the first property?
