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- 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.
- Beware: The Trap Of Marginal Tax Rates How much tax will you pay on your bonus? Or on that extra dividend? To twist a phrase, income is income, but not all incomes are the same.
- Lee Sharpe looks at how not to fall foul of a selection of quirks in our tax system.
- ‘Dividend Tax’ Impact On Profit Extraction And Business Structuring Alan Pink considers how the recent abolition of the dividend tax credit might affect the way company owners extract value from their businesses; or even how the business is structured.
- Making A ‘Sacrifice’? Valuing Benefits Under The New Rules New valuation rules were introduced with effect from 6 April 2017 for benefits and expenses provided under a salary sacrifice or other optional remuneration arrangement.
Sarah Bradford looks at the new valuation rules for benefits provided under salary sacrifice arrangements and what this means for year-end reporting for 2017/18.
- Investors And Entrepreneurs – There’s A (Tax) Difference! Individual business owners may be aware that a capital gains tax (CGT) rate of only 10% can apply if entrepreneurs’ relief (ER) is available on qualifying business disposals. Likewise a newer and less well-known relief, investors’ relief (IR), also provides for a reduced CGT rate of 10% on lifetime gains of up to £10 million.
Mark McLaughlin highlights five key differences between capital gains tax investors’ relief and entrepreneurs’ relief.
- Fixed Rate Deductions For Traders And Landlords The simplified expenses regime is designed to make life easier by allowing qualifying traders to calculate a deduction for certain business expenses by reference to flat rates, rather than deducting actual expenditure. This reduces the records that they need to keep.
- Partnerships – Past, Present And Future! HMRC’s approach to dealing with what they no doubt see as ‘abuses’ in the taxation of partnerships has proceeded slowly and on apparently fairly random lines.
- Last Minute Income Tax Planning For Directors The tax year 2017/18 comes to a close on 5 April 2018. As the tax year end approaches, it is a good time to take stock and review your financial position and make sure you have made the best use of 2017/18 rates and allowances and other tax saving opportunities.
Sarah Bradford takes a look at the circumstances in which traders and landlords can claim fixed rate deductions.
Alan Pink highlights the background and current state of play in partnership tax.
Sarah Bradford explores important tax saving tips for directors of family and personal companies that should be considered before the start of the new tax year.
- Trading Income – An Unfair Assumption Business owners whose tax returns are subject to enquiry by HM Revenue and Customs (HMRC) may be asked to provide evidence about the source of unidentified bank receipts into a ‘mixed’ account (i.e. an account used for business and private purposes) or sometimes even a personal account.
Mark McLaughlin warns that unidentified bank receipts can result in HMRC assuming that they represent undeclared income, with possible tax implications for a number of years.
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