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When a married couple runs a business together through a limited company, proper tax planning would dictate that both spouses own shares to receive dividends.  

Chris Thorpe looks at some of the issues to be aware of when paying dividends to spouses. 

When starting a business, few people will give much thought to its end. However, after some years, even a small ‘one-man band’ business may have built up a valuable customer list with a goodwill value. It is therefore important that a business owner should consider how and when they might wish to retire from, sell or pass on their business. 

Richard Curtis looks at tax-efficient exit strategies for business owners.

Being a director does not, in itself, make that individual an employee of the company. A directorship is an office, not necessarily an employment.  

Jennifer Adams considers some key tax implications where a director decides not to take their salary or to waive it. 

There are some commonly held misconceptions about the VAT breaks for businesses buying electric and hybrid cars, even by car dealers trying to sell a new car. There have been a number of cases of businesses being advised by their car dealers that businesses can recover the VAT on the purchase of an electric car. 

Andrew Needham looks at the VAT treatment of electric and hybrid cars and dispels a few myths about tax breaks.

Pomp and pageantry aside, the King’s Speech on 17 July 2024 marked the opening of the UK Parliamentary session for the UK Labour government. It included four bills to highlight, though only two impact workers and employers.  

Ian Holloway points out some important developments announced in the King’s speech. 

The income tax legislation regarding pool cars (ITEPA 2003, s 167(3)) sets out the conditions for a car to be a pool car. 

Kevin Read discusses a recent tax case that also brought in arguments on ‘estoppel’ and ‘legitimate expectation’.

Individuals (e.g., sole traders or company owners) often lend money to their business to help fund its day-to-day operations. Unfortunately, some businesses ultimately fail. Consequently, the loan may become irrecoverable, resulting in it being written off.   

Mark McLaughlin looks at the availability of capital loss relief when a loan to help fund an individual’s business becomes irrecoverable. 

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.