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Here are the 12 strategies our tax experts are sharing with you as part of your free trial:
- Director’s Loan Accounts: No Turning Back! Many company owners have director’s loan accounts (DLAs), and a general understanding of how they operate. However, there are pitfalls for the unwary.
- What’s Your Remuneration Strategy For 2018? To many people, it’s obvious that running your business through a limited company must save you tax. After all, the corporation tax rate is only 19%, whereas a sole trader or person carrying on a business in partnership is taxable at rates of up to 45%, plus Class 4 NIC contributions.
Mark McLaughlin warns that certain director’s loan account adjustments may not be effective for tax and National Insurance contributions purposes.
Alan Pink looks at the tax impact of different methods of profit extraction in the current tax planning environment.
- National Insurance Contributions For The Self-Employed: Where Are We Now? It was all supposed to change from 6 April 2018. From that date, there was going to be a new National Insurance contributions (NICs) regime for the self-employed – Class 2 NICs was to go and Class 4 contributions were to be reformed to take on the role of building up entitlement to the state pension and contributory benefits.
Sarah Bradford takes a look at what the delay to the National Insurance Contributions Bill means for the self-employed.
- Incorporation Relief And Directors’ Loan Accounts: Watch Out For CGT! This article is prompted by reader feedback, whereby there appears to be some misunderstanding about how capital gains tax (CGT) incorporation relief (under TCGA 1992 s 162) works and when it is available.
- Lee Sharpe looks at the incorporation of a business, and some issues affecting incorporation relief for capital gains tax purposes..
- Tax Efficient Loans From Your Company With Christmas approaching, many people’s finances are stretched and the option of some extra money to tide you over the festive period may be appealing. However, arranging a commercial loan or ‘maxing out’your credit card can be very expensive.
Sarah Bradford explores when it can be beneficial to borrow money from your company and the tax implications of doing so.
- Business Related Expenditure: Much Ado About ‘Nothings’! There are two radically opposed ways of looking at the taxpayer’s right to deduct expenses in arriving at his taxable income, and it’s tempting to say ‘never the twain shall meet’.
Alan Pink points out some situations where business related expenditure doesn’t get tax relief, and looks at possible solutions to the problem.
- Distributions When Winding Up Company - Anti Avoidance Rule When HM Revenue and Customs (HMRC) encounters an arrangement that it regards as tax avoidance (or ‘unacceptable’ tax planning), the government will often seek to block it by introducing targeted anti-avoidance legislation.
- Private Bills Paid By The Company – Tax Traps And Tips
It is commonplace for company directors to have their personal bills paid by their own company. In some cases, the bill is paid by the company and then taken to the director’s loan account. This is not always as straightforward as it might seem.
Lee Sharpe looks at a key issue affecting ‘directors’ loan accounts and similar arrangements.
Mark McLaughlin highlights the targeted anti-avoidance rule on distributions by a company to an individual in a winding up.
- Spouses' Wages – Problem Areas With HMRC
Because income taxation in this country goes by individuals rather than households, a very common and long-established practice has existed of spreading income between spouses and other people sharing the same house.
Alan Pink considers the constraints applying to claiming ’spouse wages' as a trading deduction.
- The Best Tax Perks For Directors
The taxman sometimes gives as well as takes, and it is possible for directors to enjoy a number of perks tax-free. With the end of the year fast approaching, it is always a good idea to review and make sure you are maximising the tax perks on offer.
- Sarah Bradford looks at opportunities for providing company directors with tax-efficient benefits.
- Private Use Of Employer Business Assets – A Sting In The Tail?
There are many rules about employers providing business assets for private use, where the employer does not transfer ownership of the asset itself to the employee but permits it to be used personally.
Lee Sharpe looks at the new rules for an employee’s private use of business assets, and warns that the regime may not be as fair as some might think.
- Company Purchase Of Own Shares: Exit With Care!
A company purchase of own shares (CPOS) can be a useful ‘exit’ strategy for shareholders in the right circumstances.
- Mark McLaughlin highlights some practical issues and potential pitfalls on a company purchase of an individual’s shares in a family or owner-managed trading company.
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