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When an employer’s car is available for an employee’s personal use, there is an income tax charge on the employee – but that charge depends on what the vehicle is. 

Chris Thorpe looks at the taxation of company vehicles.

Starting a new tax year brings an opportunity to review savings and investments to make sure you maximise tax reliefs. Here’s a brief overview of some key things to consider.

Tristan Noyes points out that saving for the future can be boosted by tax reliefs and explores some options and their advantages. 

Those of a certain vintage will remember ‘Auf Wiedersehen, Pet’, a comedy series from the 1980s. Of course, a PET (potentially exempt transfer) in an inheritance tax (IHT) context has a different meaning. However, the comedy title has a certain relevance in one sense – individuals who make lifetime gifts can say ‘goodbye’ to a PET for IHT purposes after a set period.  

Mark McLaughlin looks at potentially exempt transfers for inheritance tax purposes and considers when they may (or may not) arise. 

Workers who have undertaken work arranged by an employment agency may have found themselves working for an umbrella company. 

Richard Curtis considers the implications of working for an umbrella company.

The recovery of VAT on clothing bought by a business for its staff can result in disputes with HMRC.

Andrew Needham looks at the rules for claiming back VAT on clothing.

I was recently asked about the payment of capital gains tax (CGT) by instalments following a management buyout of a private company involving deferred consideration payable by monthly instalments. I have to say that whenever I have considered this question, I have ‘drawn a blank’ for one reason or another! 

Ken Moody ruminates on recent experiences of trying to work out whether capital gains tax on a private company sale could be paid by instalments.

One success story to come out of HMRC is the ‘time to pay’ (TTP) arrangement. Set up in 2018, HMRC statistics show that over 90% of TTP arrangements are completed successfully, and by the end of November 2024, more than 15,000 self-assessment customers had set up a TTP payment plan for the 2023/24 tax year.

Jennifer Adams examines the new online method of applying for a ‘time to pay’ arrangement.

The employment-related securities legislation deals with arrangements involving shares and securities provided by reason of employment where the full value of the employment reward provided to the employee is not included in the salary package and is charged to tax.  

Jennifer Adams considers the tax implications of shares in a family company being awarded or gifted to family members of employees. 

A sole trader looking to expand their business might be weighing up the ‘pros’ and ‘cons’ of a partnership or a limited company. They are very different, with not only very different tax consequences, but functions as well. 

Chris Thorpe looks at partnerships and companies and considers which business model might be best.  

Under the loan relationships rules for companies, debits on loan arrangements are not deductible for corporation tax purposes in some circumstances.

Kevin Read highlights a recent case concerning the loan relationship rules for companies. 

When HM Revenue and Customs (HMRC) opens a tax return enquiry, the natural reaction of most taxpayers is to speculate about the reason why their tax return has been selected. In fact, HMRC does not need an excuse to open a tax return enquiry; a small proportion of tax returns are simply selected at random. . 

Mark McLaughlin looks at whether a taxpayer can find out if an HMRC enquiry has been opened as the result of an accusation made by a third party. 

When considering the tricky matter of remuneration planning, there are two things to consider; the amount of remuneration, and what form it takes. 

Chris Thorpe looks at what to watch out for with regard to paying employees and directors.

Despite the reduction in National Insurance contributions (NICs) in Spring Budget 2024, more employees are paying tax at higher rates on their earnings due to the freezing of tax thresholds. Some may find that any pay rise or bonus attracts additional tax and NICs such that the net pay increase is minimal.  

Jennifer Adams looks at some alternatives to rewarding an employee with a pay rise or a bonus. 

Mark McLaughlin looks at company purchases of own shares and warns not to become too focused on the more difficult rules for capital treatment. 

A company purchase of its own shares from a shareholder is a popular ‘exit’ strategy when an individual shareholder is retiring, or a dissenting shareholder is departing.