Tax Insider

Attractive tax reliefs are available on contributions to a personal pension plan and to the plan itself, but the focus here is on the basic income tax implications when the saver wishes to draw money from that pension.  

Richard Curtis looks at income tax implications of withdrawals from a personal pension plan.  

It is quite common for building projects to attract more than one rate of VAT on different elements of the development. 

Andrew Needham looks at how businesses can simplify accounting using composite VAT rates when making supplies of different VAT rates, particularly in the construction industry. 

Share loss relief (SLR) applies to ‘qualifying shares’; shares to which income tax relief under the enterprise investment scheme (EIS) is ‘attributable’ are automatically qualifying shares.   

Mark McLaughlin looks at the importance of making a will, and some inheritance tax and other implications of intestacy. 

Under the construction industry scheme (CIS), contractors and deemed contractors must withhold deductions from payments made to subcontractors who do not hold gross payment status (GPS), at either: 20% (the standard rate) or 30% (if the recipient is not registered for CIS or cannot be verified). 

Kevin Read outlines the changes to the CIS rules in Finance Act 2024 and also looks at a recent tribunal case. 

Given this challenging economic environment, many employers are looking to see how they can help employees financially. Pay increases may not be an option, bearing in mind the additional tax and National Insurance contributions (NICs) implications for employers and employees.  

Jennifer Adams considers various ways employers can help employees through the cost of living crisis.  

Accounts depreciation is not allowed within tax calculations; it’s too subjective, so instead of that capital allowances generally apply for tax purposes. These allowances have been in place for ‘wear and tear’ to plant and machinery since 1878, with a factory and mills allowance allowing for economic depreciation within a trading business.    

Chris Thorpe looks at where we are with capital allowances. 

Businesses are generally obliged to pay at least the national minimum wage (NMW) to their workers. Most UK workers over compulsory school age who ordinarily work in the UK are entitled to be paid the NMW.

Mark McLaughlin looks at the national minimum wage for householders, families, and family businesses.  

When considering making an investment, two of the main issues are a good return and an exit strategy. As well as the performance of the investment itself, how to hold it is another matter. Personal income tax rates and those on subsequent capital gains tax (CGT) on disposal, and potentially inheritance tax (IHT), may make holding something personally an unattractive option.  

Chris Thorpe looks at which vehicle an investor should use. 

Unincorporated trading businesses are going through their biggest tax change for a generation, with the switch to a tax year basis of assessment replacing the ‘basis period’ system for 2024/25. The tax year 2023/24 is a transition year with special rules. Further change is now on the way. 

Kevin Read explains why some trading businesses face a big decision. 

The exemption from capital gains tax (CGT) for a dwelling that is the taxpayer’s ‘only or main residence’ is an important one for homeowners. The value of the exemption means that some may be tempted to claim it on properties that may not clearly fall within its parameters. We must therefore look at what is meant by an only or main residence. 

Richard Curtis considers the capital gains tax only or main residence exemption and the required ‘quality of occupation’. 

Usually, it's the supplier who issues a VAT invoice; but in some circumstances, the customer prepares the invoice instead and gives the supplier a copy. This system is called 'self-billing'.  Any business can use this procedure, so long as certain conditions are met.  

Andrew Needham looks at the workings of the self-billing system and how it can be helpful for businesses. 

In April 2023, the National Will Register reported that 42% of adults in the UK had not made any provisions for their estate distribution in the event of death. 

Moneeza Siddiqui looks at how will planning can help to reduce inheritance tax liabilities. 

The strict application of the rule for allowable expenses would require all expense payments to employees to be treated as employment income, leaving the employee to claim relief for the allowable part separately. In addition, an employer is required to notify HMRC of all expenses paid to an employee, even if the employee incurs the expense on the employer’s behalf.  

Jennifer Adams reviews the current use of form P11D and asks - is the form finally no more?

No-one likes to think about their death, so it is perhaps understandable that many people put off drafting their will, and some die without having made a will. 

Mark McLaughlin looks at the importance of making a will, and some inheritance tax and other implications of intestacy. 

Many in business will trade through the medium of a limited company and the directors will generally be remunerated by the payment of dividends or salary. The former are taxed on the recipient and must be paid out of profits subject to corporation tax, while the latter are subject to National Insurance contributions (NICs) as well as income tax. 

Richard Curtis suggests possible alternatives to salary and dividends.

Given the reliance on and impact of cars, special tax rules are in place to manage the environmental footprint of vehicles.

Moneeza Siddiqui compares the tax implications of a personal and company car when used in an individual’s employment.

It is common for leases between landlords and tenants to give details of what services the landlord shall provide and what the tenants shall pay for the upkeep of the building as a whole. The lease may provide for an inclusive rental, or it may require the tenants to contribute by means of an additional charge to the basic rent. These charges are generally referred to as service charges, maintenance charges or additional rent.  

Andrew Needham looks at the VAT position of service charges on commercial property.

Once a sole trader or partnership has incorporated, the owner or partners can no longer help themselves to the business’s profits at will; such individuals were previously subject to income tax and National Insurance contributions (NICs) based on those profits, irrespective of how much they took from the business. 

Chris Thorpe looks at some considerations when extracting profits out of limited companies.

I was asked a question recently about a transfer of shares between a 60% subsidiary to its holding company and whether this would be better structured as a dividend in specie or a distribution in specie. I was initially thrown by the question; surely, they are the same thing? Of course, from a corporation tax point of view, it makes little odds since what some of us still call ‘Schedule F’ income is exempted by (CTA 2009, s 931B).

Ken Moody highlights some confusion over what exactly are ‘distributions in specie’ and outlines some important tax implications.

The cheapest personal bank loan rates are double what they were 18 months ago, though this has stabilised recently. Currently, the best loan interest rate between £7,000 and £25,000 is 5.9%. 

Jennifer Adams explores where company owners might get useful short-term loans.

The UK tax system is full of potential surprises. For example, it sometimes treats certain situations and events as having occurred, which did not necessarily happen in the ‘real’ world.

Mark McLaughlin looks at what ‘by reason of employment’ means and a Supreme Court decision highlighting its significance for tax purposes.