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Here are the 12 strategies our tax experts are sharing with you as part of your free trial:
- Overdrawn Loan Accounts - The Private Bills Trap Directors of small companies – particularly those who have run self-employed businesses prior to incorporation – often do not distinguish between the company’s funds and money that belongs to them personally. Therefore, it is very common for directors/shareholders of small companies to use company funds to settle personal liabilities.
Lee Sharpe discusses the implications of knowingly or unknowingly adopting such a strategy and discusses a potentially damaging tax trap.
- Selling The Business: Assets Or Shares? From a tax adviser’s point of view, ‘assets or shares?’ is one of the most obvious and immediate questions that need to be answered when a client comes to them and says they are either considering buying a business or selling a business.
Alan Pink considers the tax planning implications of the sale of a business, and whether it should take the form of a sale of shares in a company or of assets of the business.
- Pension Contributions: Cash Or Assets? Tax relief is available to individuals for contributions to a registered pension scheme if certain conditions are satisfied. The conditions can be complex, but if relief is available, it is given on contributions paid during the tax year.
Mark McLaughlin looks at a recent case on how pension contributions should be ‘paid’ for tax purposes, in which HM Revenue and Customs seemingly ignored its own guidance.
- Staying Fit For Work - How The Tax System Can Help The benefits of physical activity are undisputed, and staying fit and healthy is in the interests of both employees and employers. In 2016/17, 1.3 million workers suffered from work-related ill-health, resulting in the loss of 25.7 million working days – and an estimated cost of £522 per employee.
- Sarah Bradford takes a look at how the tax system can help employers to encourage employees to stay fit for work.
- Employed Or Self Employed: What’s The Latest? This is probably one of the most important ‘grey areas’ in the whole of our tax system – replete though that is with such difficult areas of judgement. A pays B for the provision of a service. Is B an employee of A, or not?
- Alan Pink considers the current Government consultation on employment status.
- Dividends To Spouses: The ‘Settlements’ Rules Readers will no doubt be aware that it is perfectly acceptable (and potentially quite tax-efficient) to pay a wage to a family member, such as one’s spouse. However, there are limitations.
- Lee Sharpe looks at anti-avoidance rules affecting giving up dividends in favour of your better half.
- ‘Good’ Or ‘Bad’ Tax Advice? HM Revenue and Customs (HMRC) will generally seek to impose penalties on taxpayers who (for example) have made tax return errors resulting in their tax liabilities being understated. However, it is important to note that HMRC cannot impose penalties for errors where the taxpayer has taken reasonable care.
Mark McLaughlin looks at whether reliance on professional advice can prevent penalties if tax planning involving avoidance arrangements goes wrong.
- Interest(ing) Times! Interest-Free And Low-Interest Loans There are various situations in which an employee may enjoy a cheap loan from his or her employer, loans to buy a season ticket being a popular example.
- Sarah Bradford looks at the benefit-in-kind charge that may arise where an employee or director has a cheap loan.
- Profit Extraction 2018/19 - What's The Latest? The new tax year began on 6 April 2018, and with it changes to the personal allowance, income tax thresholds, and dividend allowance. For family and personal companies looking to extract profits in a tax-efficient manner, these changes will have an impact.
- Sarah Bradford takes a look at optimal profit extraction strategies for personal and family company owners for 2018/19.
- Loan Accounts: Caution When Borrowing Money From Your Company
- This article looks at some of the main points to consider in relation to director/shareholder borrowings. This does not necessarily mean just a formal loan arrangement, but can also cover a scenario where the director/shareholder has used company funds to pay for the odd private expense – which happens from time to time with many family companies.
Lee Sharpe looks at some key issues to consider with director/shareholder loan accounts.
- Wages For The Children – What’s The ‘Purpose’? Many business owners employ family members such as adult children. The business owner will normally seek to claim a deduction for wages payments to them.
- Mark McLaughlin warns that care is needed by the self-employed when paying their adult offspring if a business deduction for wages payments is to be successfully claimed.
- Practical Tax Points On Selling A Business Tax planning, like any planning, is better done sooner rather than later. Having seen the consequences of lack of planning in a number of real life situations, I thought I’d put down on paper a list of some of the big issues which come up.
Alan Pink considers tax aspects of a business sale, where early planning can pay major rewards.
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