Tax Insider Newsletter Bundle

Personal Use of Company Cars: Where Are We Now?

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. 

What ‘Auf Wiedersehen, Pet’ Can Teach You About Inheritance Tax

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. 

Have You Worked for an Umbrella Company? Here’s What That Means for You

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.

VAT Recovery on Employee Clothing: Why It Can Lead to HMRC Disputes

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.

Capital Gains Tax and Instalments: A Management Buyout Dilemma

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.

HMRC’s ‘Time to Pay’ Scheme: A Success Story You Need to Know

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.

Q&As with Arthur Weller

Dividends or bonuses? We can work it out!

Consider the following scenario:

'On a wintry sunny morning, Alan was reviewing his company’s January 2024 management accounts. Alan was the sole director and 100% shareholder of Llandudno Hotels Ltd, which operated two large hotels in Llandudno. The business was on course to healthy pre-tax profit of around £650,000 for the year ended 31 March 2024. Alan had been planning to pay himself a substantial ‘bonus’ before the year-end'. 

What does Alan do?

Peter Rayney examines an owner-manager’s cash extraction following the numerous tax and National Insurance contributions changes.

Use them or lose them: 2023/24 tax allowances

As the tax year draws to a close, it is prudent to review one’s 2023/24 tax allowances and consider whether there is scope for utilising any unused allowances so they are not lost. 

Sarah Bradford explores options for using 2023/24 tax allowances so they are not wasted.

Record-keeping in a digital age

Lee Sharpe looks at taxpayers’ record-keeping obligations in light of HMRC’s inexorable march to digital everything (almost).

Historically, HMRC has been quite relaxed about whether original records must be maintained or digital facsimiles (scans, etc.). 

Trap for business owners seeking CGT incorporation relief

HM Revenue and Customs (HMRC) recently commenced a ‘One to Many’ campaign, targeting taxpayers who incorporated property businesses in the tax year 2017/18 but reported no capital gains tax (CGT) liability in their tax returns on the basis that ‘incorporation relief’ applied in full. 

Mark McLaughlin highlights a potential trap for business owners seeking capital gains tax incorporation relief.

Q&As with Arthur Weller