Tax Insider Newsletter Bundle

The Benefits of Trusts for Tax and Planning Purposes

Trusts are often mis-trusted (excuse the pun!); they are seen as being vehicles of fraud, dodgy dealings and generally something to be avoided. 

Chris Thorpe looks at how trusts could potentially be used for tax and general purposes.

It is not unusual for small company directors, their family members, or other business partners to have interests in multiple companies. 

Jennifer Adams considers the tax implications of companies becoming 'associated'.

Emergency Tax: When PAYE Causes Problems

There are 30.4 million payrolled employees in the UK, paying tax through the pay as you earn (PAYE) system. 

Tristan Noyes outlines an aspect of the PAYE system and considers when ‘emergency tax’ can cause problems. 

Tax Planning Post-Dividend Tax Credit Abolition

Let me take you back to March 2016, which seems like a lifetime ago in political and economic terms. George Osborne announced that the dividend tax credit system was being abolished from 6 April 2016. This change was also going to put up effective dividend tax rates by about 7.5 percentage points; for an additional rate taxpayer, it was rising from 30.56% to 38.1%.

Kevin Read looks at a tax planning strategy recently upheld in an Upper Tribunal case.

The VAT Rules on Business Gifts: What You Can Claim

Many businesses give gifts to customers and staff, or to promote their business. The rule relating to free gifts not only relates to promotional items and Christmas gifts but also (among others) to:
•    ‘executive presents’;
•    long service awards;
•    retirement gifts;
•    items distributed to trade customers;
•    prizes from amusement machines, etc.;
•    prizes in betting gaming and lotteries; 
•    Christmas gifts; and
•    goods supplied to employees under attendance or safety at work schemes.

Andrew Needham looks at the VAT recovery rules for business gifts and when output tax is due.

Tax Planning Post-Dividend Tax Credit Abolition

Let me take you back to March 2016, which seems like a lifetime ago in political and economic terms. George Osborne announced that the dividend tax credit system was being abolished from 6 April 2016. This change was also going to put up effective dividend tax rates by about 7.5 percentage points; for an additional rate taxpayer, it was rising from 30.56% to 38.1%.

Kevin Read looks at a tax planning strategy recently upheld in an Upper Tribunal case.

Emergency Tax: When PAYE Causes Problems

There are 30.4 million payrolled employees in the UK, paying tax through the pay as you earn (PAYE) system. 

Tristan Noyes outlines an aspect of the PAYE system and considers when ‘emergency tax’ can cause problems. 

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