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Business Tax Insider

Try our monthly Business Tax Insider newsletter today and receive: 

  • 3 FREE ISSUES - The current issue July #82 and the previous two issues of June #81 and May #80 (12 tax saving articles)
  • Delivered to your doorstep

Here are the 12 strategies our tax experts are sharing with you as part of your free trial: 

  • Directors' tax perks: Off the beaten track
  • The custom of remunerating employees and directors of a business through benefits-in-kind, as well as or instead of in cash, is probably as old as business itself. And the UK tax system has a typically idiosyncratic way of dealing with the various forms of employment ‘perk’ for tax purposes.
    Alan Pink looks into some useful but little-known directors’ tax perks.
  • Partnership expenses: Panic over? 
  • Individual partners in a partnership sometimes incur business expenses personally. It has been widely accepted that tax relief can be claimed for such expenses. This could be achieved by adjusting for the expenses in the tax computation in the partnership tax return, provided any adjustment was made before the net profit was allocated between the partners.
    Mark McLaughlin explains how a change in HMRC’s published guidance created concern for advisers of business partners.
  • ‘Simples’! Claiming simplified expenses
  • Failing to deduct allowable expenses when computing profits is tantamount to paying unnecessary tax. However, to ensure all allowable expenses are deducted, it is first necessary to be able to identify those expenses – a task which imposes something of a record-keeping burden .
    Sarah Bradford explains how the self-employed can use the simplified expenses system to reduce their record-keeping burden.
  • Use of home as office: Why put up with HMRC’s parsimony?
  • It is pretty much a given that every year, household bills increase (gas, electricity, council tax, and the like); the upward trend is clear.
    Sarah Bradford outlines what constitutes trading and the ‘badges of trade’.
  • ‘Excessive’ remuneration to directors: Tips and traps
  • Generally speaking, HMRC will be only too happy that any employee takes a large(r) salary, because it will mean that HMRC sees higher revenues from income tax and National Insurance contributions (NICs) through the payroll. 
    Lee Sharpe looks at what can happen if directors pay themselves too much in family company scenarios.
  • Tax relief for business gifts and entertaining: Common misconceptions
  • The issues around the tax treatment of entertaining expenses and gifts are widely misunderstood.
    Very many businesses wrongly disallow far more entertaining expenditure than they should; however, many businesses also disallow entertaining expenditure without realising that this does not necessarily prevent a personal tax and NICs benefit-in-kind charge arising.
    Lee Sharpe looks at the principles behind tax relief for entertaining and related expenses. He also highlights some expenses, typically classed as entertaining that could actually be classed as a different – allowable – deduction.
  • Selling the business: Shares vs assets
  • This article is aimed not just at those running a limited company who are thinking of selling; it’s also potentially of relevance to those deciding how to structure their business.
    Alan Pink contrasts the tax implications of the sale of trading company shares and the sale of the company’s trade and assets.
  • So you think there’s a trade? 
  • Income tax is charged on the profits of a trade, profession or vocation. To establish whether there are profits from a trade, it is first necessary to consider whether there is, in fact, a trade and whether a person is trading.
    Sarah Bradford outlines what constitutes trading and the ‘badges of trade’.
  • Sale of goodwill: Income or capital?
  • It is common in many occupations and professions (e.g. law, medicine) for individuals to be engaged as self-employed consultants. Some consultants will build up their own practices before eventually selling them.
    Mark McLaughlin highlights a case on the tax treatment for a professional consultant who sold his business. 
  • Tax schemes that could affect company sales
  • A targeted anti-avoidance rule (TAAR) was introduced (from 6 April 2016) to prevent ‘phoenixism’.  In broad terms, this practice involves company owners winding up their ‘old’ companies and extracting profit reserves as capital (instead of income) and repeating the exercise in one or more successive businesses. 
    Mark McLaughlin points out HMRC’s response to tax ‘schemes’ that could affect company sales.
  • Capital gains rollover relief: ‘Hidden’ wrinkles
  • To summarise capital gains rollover relief, where an asset used for a trade is disposed of at a gain, and another asset is acquired within a set period (being one year before the disposal and three years after) the gain can be ‘rolled over’ against the cost of the new asset, thus reducing or eliminating the tax on that gain. 
    Alan Pink looks at the hidden dangers and opportunities underlying the basic scheme of this very valuable capital gains relief.
  • Have you claimed small business rate relief?
  • Business rates are charged on non-domestic properties and are likely to be payable where all or part of a building is used for non-domestic purposes. Thus, business rates are payable on: shops, offices, pubs, warehouses, factories, holiday rental homes and guesthouses.
    Sarah Bradford explains when small business rate relief is available and highlights the need to claim the relief.
  • Tax Insider: Tax Tips
  • Tax Insider: Your Property Tax Questions Answered by Arthur Weller 
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