Accounting Web
Allowability of expenses re. voluntary work that is conducted alongside identical fee-earning activity.
An individual has trained in a discipline and undertaken voluntary work in that field and is now qualified and able to take on a first fee-paying client. The business will be slow to grow so voluntary work (in two widely-separated geographic areas) will continue in order to ensure that the minimum number of hours are worked to satisfy Continuing Professional Development (CPD) requirements. The self-employment depends on membership of the professional body so meeting their CPD requirements is essential.
Relocation Expenses Rugby Players
Does anyone have any information on HMRC's current view on relocation packages for Rugby League players? Any information would be appreciated.
Taxation of Feed-in Tariffs and Wind Turbines
I have a client who is installing a wind turbine on their land costing £95,000. It is to generate energy for domestic use and business use - she runs a B & B from home. (She also lets some land.) She says that she is looking to produce approximately £25,000 FITs payments each year which will be well in excess of the domestic/B & B use. Will the excess be subject to income tax? If so, can capital allowances/AIA be claimed on the actual turbine itself?
Help needed on group creation and CG
Reposted from last Thursday with a catchier title.
I have a client who owns 100% of two companies. We are looking to transfer his holding in one company to the other, thus forming a group structure. As he is disposing of shares in a business which has a Net Assets value of £90k, I assume there is a triggered gain. But is there any holdover relief available, as he still owns 100% of both companies, just now in a group structure.
Umbrella companies
what are the advantages of using one of these instead of say LTD Co for consulting services aka 'one man' businesses
any known tax/ni pitfalls v benefits with them to be aware of
anyone actually using one - what are your experiences + comments
will be googling the subject but that doesnt include the hands on experiences and professional views hoped for re the above . many thanks
Umbrella companies
what are the advantages of using one of these instead of say LTD Co for consulting services aka 'one man' businesses
any known tax/ni pitfalls v benefits with them to be aware of
anyone actually using one - what are your experiences + comments
s162 and buy back
Mr A, Sole Trader incorporates, say 5th April 2010. Only asset is goodwill, valued at £100,000. He sells £10,000 of the business to the new ltd (crediting DLA), and pays no CGT due to annual allowance.
On 6th April, he sells another £10,000 (crediting DLA) , and transfers the remaining £80,000 in exchange for 80,000 £1 shares, getting relief under s.162.
Company buy back of shares, capital treatment, 5 year rule
My client has some shares in a private trading company which he would like to dispose of. He can't find a willing buyer, but the company is willing to buy back the shares. He acquired just under 5% of the company in a number of transactions over a period of time and a year or so ago transferred some of his shares to his wife. He currently holds just over 2%, his wife just under 3%.
Chattels
Sorry for this dumb question . . .
If a self-employed trader sells his business (i.e. his assets and goodwill), assuming the assets are all sold for less than £6,000, are they all exempt from CGT? HMRC guidance seems to imply that the £6,000 applies to PERSONAL chattels and NON-WASTING chattels, but what about Plant & Machinery which has had capital allowances claimed?
Sole trader financing tax deductible ?
Hi,
a self employed person has set up their own business, part funded by a personal bank loan. I am right in assuming, that, as the monies put in to the business have bought assets etc, that the interest on the loan is tax deductible ? Would it be any different if the money was used just as working capital ?
thank you,,,
Principal Private Residence relief on sale of part of property
My client sold part of his home a few years ago which I would assume is covered under the Principal Private Residence exemption. However, he is now incurring costs on another part of the property, with a view ot selling this part as a 4 bedroomed house, and his intention is to remain in the rest of the house. My feeling is that this sale will not be covered by PPR and there will be a gain on the difference between the proceeds and the costs involved in developing that part of the property.
Does anyone have any comments on my thoughts?
Greatly appreciated.
Principal Private Residence relief on sale of part of property
My client sold part of his home a few years ago which I would assume is covered under the Principal Private Residence exemption. However, he is now incurring costs on another part of the property, with a view to selling this part as a 4 bedroomed house, and his intention is to remain in the rest of the house. My feeling is that this sale will not be covered by PPR and there will be a gain on the difference between the proceeds and the costs involved in developing that part of the property.
Does anyone have any comments on my thoughts?
Greatly appreciated.
Group Tax Planning
A successful retail franchise in the motor trade is looking at opening a second outlet. No IPR's, no freehold property etc.......
From a tax perspective, would it be better to set up a group structure (Holding Co owns A Ltd and B Ltd) or for the current shareholder to own the shares in A Ltd and B Ltd directly.
Group structure presumably benefits from group loss relief (although 1st franchise break even in Year 1) but the sale of either A Ltd or B Ltd separately in due course would attract Entrepreneurs Relief.
Which course is best ? Comments appreciated.
Capital Gains Tax
A client purchased a property and lived in it for 2 years. He then let it and bought another property that became his family home.
He then sold the Rented property after 7 years.
Is there going to be a CGT exemption for the 2 years he lived in the property or the whole gain is taxable?
Mortgage discount, taxable?
A client has been approached by his buy to let mortgage lender who (as means to encourage early repayment of the loan) has offered to discount the capital sum of the mortgage owed by £35,000.
VAT New Registration
During June after consultation with my accountant my 12 month rolling turnover during May/June of this year required me to register for vat, which my accountant did on my behalf. He had let me know that the VAT Registration was applied for on 16 July 2010.
VAT on wages
What would be the VAT position of the following scenario:
A construction company (company A) makes payments to company B (recruitment agency) for subcontractors & PAYE workers' wages. If for example, a temp works for company A for 20hrs and is paid £8 per hour, company A transfers £160 to company B.
Foreign pension
A UK resident and ordinarily resident client has received a lump sum from a South African pension scheme. Apparently in South Africa, 33% can be paid out as a tax-free lump sum. What is the tax position here where 25% would be tax-free from a UK scheme? Is a further 8/33 of the lump sum taxable, all of it or none of it?
They have also received a commuted fund from a second small pension scheme: again logic suggests 25% should be tax free but logic doesn't always seem to apply.
Interview: Robert Gaines-Cooper
As the Seychelles-based entrepreneur prepares to continue his long-running residence case against HMRC at the Supreme Court, Gina Dyer speaks to the man himself to get the inside story.
Entrepreneur's Relief on part disposal of business property
Client was a sole trader for many years and has now taken on a partner as part of their process for their withdrawal from the business as retiring in 18 months time.
Considering selling half of the business premises to the new partner now and the 2nd half in 18 months when they retire in order to take advantage of two CGT thresholds and to ease the new partner into premises ownership.
