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Here are the 12 strategies our tax experts are sharing with you as part of your free trial:
- Gifting Shares To Employed Family Members – Tips And Traps A family situation that can bristle with problems if not handled correctly is where a shareholder in the family business wants to give away shares to other family members.
Alan Pink considers the tax problems that can arise when giving a share of the business to other family members and outlines some possible solutions.
- Coming Soon…The Disguised Remuneration Loan Charge There have been many attempts by employers to ‘beat the system’ and pay employees other than in the form of wages and salary in a bid to save tax and National Insurance contributions (NICs).
Sarah Bradford examines the new charge on outstanding loans from disguised remuneration schemes.
- Making HMRC Prove It! The imposition of penalties by HM Revenue and Customs (HMRC) for non-compliance with statutory obligations such as filing tax returns or paying tax unfortunately seems to be becoming an increasingly common occurrence.
Mark McLaughlin points out that HMRC’s procedures have been found to be flawed and subject to potential challenge in some cases.
- New Rules (And Surprise) For Corporate Losses The new rules for corporate losses have significantly changed the way that losses can be claimed. There is greater flexibility, but it comes at a cost.
Lee Sharpe looks at some of the finer detail in the losses regime, and reveals a rather unpleasant surprise.
- 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.
- Tax Insider: Tax Tips
- Tax Insider: Your Property Tax Questions Answered by Arthur Weller
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