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When a company has been incorporated, the first thought by the owner is often how one pays oneself. Proper remuneration planning can help mitigate the effects of perceived double taxation of corporation tax for the company and personal tax for the shareholders or directors. 

Chris Thorpe looks at company remuneration and highlights some potential pitfalls. 

It might be thought that the taxation of interest and dividends should be fairly straightforward, but changing rates and particular rules and exemptions have somewhat muddied the waters.  

Richard Curtis provides an overview of how interest and dividends are taxed on individuals. 

If a business buys and sells second-hand goods, it can use one of the second-hand margin schemes so that VAT is only due on the profit margin, not the full selling price.

Andrew Needham looks at what you can and cannot add to your purchase price or deduct from the sale proceeds when calculating the profit margin on second-hand goods. 

To avoid a benefit-in-kind (BIK), the provision of childcare has two tax exemptions (inserted into ITEPA 2003, Ch 4): (1) Employer-supported childcare, possibly provided by way of a childcare voucher and often via salary sacrifice. ITEPA 2003, s 318A outlines the limited exemption of up to £55 per qualifying week. This exemption from tax and National Insurance contributions ceased to be available to new employees on and after 4 October 2018; and (2) Employer-provided childcare (as outlined in ITEPA 2003, s 318). Commonly referred to as the workplace nursery, this exemption has not ceased. An HMRC article in its July 2024 Agent Update referred to the criteria for this exemption.

Ian Holloway highlights a recent HMRC announcement about meeting workplace nursery partnership provisions.

I am always amazed by the number of people who undertake high value transactions without getting proper advice about the tax consequences.  

Kevin Read looks at a recent case where the appellant had misunderstood all the tax issues involved. 

Several tax implications can arise due to the relationship between the companies, particularly affecting corporation tax, VAT, group relief, and transfer pricing, as well as having an impact on the PAYE employment allowance (EA).  

Jennifer Adams considers the tax implications should employers be 'connected'. 

In property transactions, an option agreement will sometimes be made between an individual property seller and a prospective buyer.

Mark McLaughlin looks at property options and the importance of establishing the tax consequences of property agreements.

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.