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Tax relief can be claimed when an individual borrows money to invest in their company, if certain conditions are satisfied. The borrowed funds might be used (for example) to purchase additional ordinary shares in the company, or to lend money for the company’s business use.

Mark McLaughlin looks at a potential pitfall for individuals with outstanding loans to buy shares in their company.

Class 1 National Insurance contributions (NICs) are paid by employees and by employers on their employees’ earnings. For most employees, their (primary) contributions are deducted from their salary for each pay period, and the employer also pays a separate (secondary) contribution on top.

Directors may be employees if they have a contract or service agreement. If not, they will be classed as an office holder. For NICs purposes, a director is any person who is formally appointed as a director of a company, or who acts as a director, even if not officially registered as such. This includes executive and non-executive directors, shadow directors, and de facto directors. The director’s status is significant because it determines the method used to calculate their NICs.

Richard Curtis highlights some key points when considering a director’s National Insurance contributions liability.

The capital goods scheme (CGS) is designed to adjust the amount of VAT claimed on a capital item during the ‘life’ of an asset to reflect its taxable business use. 

The CGS applies to certain commercial property, some computer hardware and certain ships, boats and aircraft, and adjusts for taxable or exempt and non-business use of the capital asset. The adjustment period for property is ten years, and five years for other items. For most businesses, the real impact of the CGS applies to commercial property over £250,000 on which VAT has been recovered. 

Andrew Needham looks at the VAT implication of selling a capital goods scheme item.

Over the decades, capital allowances for plant and machinery (P&M) have been one of the areas of tax that has undergone continual change. Following the abolition of the ‘super-deduction’ (i.e., 130% relief for qualifying expenditure) in April 2023, we seem to have entered an era of relative stability. 

Kevin Read explains the Finance Bill 2025-26 changes affecting writing down allowances and leasing companies.

Without planning, investment returns can be eroded by taxes.  

When investing, you always need to consider the tax implications and look at net-of-tax returns. Tax-advantaged wrappers can help with this (ISAs, LISAs, pensions etc), but sometimes the investment itself can be tax-efficient even without structuring. UK gilts are one such investment. 

Tristan Noyes explores the tax implications of investing in UK Treasury Stock and how the tax benefits can provide enhanced returns. 

With ongoing economic pressure across a number of business sectors, bad debts are becoming an increasingly frequent problem for businesses taxed on an accrual basis (i.e., when invoiced), rather than on a cash basis (i.e., when payment is received). Such businesses include companies and unincorporated traders above the £150,000 turnover threshold.

Jennifer Adams considers whether tax relief is available when a debt goes wrong.

The most common type of vehicle used by employees is a company car, rather than any other type of vehicle.  There is no statutory definition of a car within the direct tax legislation. However, VAT Input Tax Order 1992/3222 defines a car as: 
‘any motor vehicle of a kind normally used on public roads which has three or more wheels and either – (a) is constructed or adapted solely or mainly for the carriage of passengers; or (b) has to the rear of the driver’s seat roofed accommodation which is fitted with side windows or which is constructed or adapted for the fitting of side windows’. 

Chris Thorpe outlines how different vehicles are taxed on employees.

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.