Tax Insider Newsletter Bundle 

The salary sacrifice ‘trap’

As well as providing their employees with a salary, many employers wish to offer other benefits-in-kind (BIKs) as a means of further incentivisation or simply out of care for one’s workers. 

Chris Thorpe gives an overview of how salary sacrifice can still be used for employees.

When businesses purchase assets, they invariably use some form of finance on the pretext that it is better to conserve cash, because once it's gone – it's gone! 

Jennifer Adams considers different methods and tax implications of asset purchases by businesses.

Is your tax advisers on HMRC’s ‘naughty’ list?

Mark McLaughlin suggests that taxpayers should check whether tax advisers are on HMRC’s ‘naughty’ list before seeking tax advice. 

Taxpayers might be forgiven for considering that HM Revenue and Customs (HMRC) has more than enough powers to tackle taxpayers over what it regards as ‘naughty’ behaviour. 

VAT consequences of selling new commercial buildings

For VAT legislation purposes, a new commercial property or civil engineering work can be partly constructed or up to three years old and still count as being new.  

Andrew Needham looks at the VAT consequences of selling new commercial buildings and civil engineering works.

Construction industry scheme: What is tax-deductible?

Contractors in the construction industry have big regular construction industry scheme (CIS) tax obligations and responsibilities. A contractor will have to get relevant financial and fiscal details regarding the subcontractor they plan to use to carry out construction work. The contractor will then have to ‘verify’ them. This means going online, submitting the appropriate details to HMRC, and waiting for a decision from HMRC as to how to pay them. 

Tim Palmer outlines the construction industry scheme tax obligations placed on a contractor to withhold the correct amount of tax when paying a net registered subcontractor.

A tax-efficient Christmas!

Christmas comes but once a year and while, one hopes, this is accompanied by a feeling of goodwill and generosity to all, this may not extend to HMRC! In fact, perhaps the seasonal expenditure on family and friends may prompt the idea that this may be softened by tax savings elsewhere. 

Richard Curtis provides a few thoughts for seasonal tax saving.

What is Form R185 and why did I receive one?

If a trust beneficiary receives a Form R185 from a trustee, it is good news. It means they have been paid some income during the tax year. 

Meg Saksida considers the purpose and application of form R185.

Q&As with Arthur Weller

Perfect timing? Directors’ bonuses

It is common for an element of a director’s salary to be contingent on targets being met, which then results in them becoming entitled to be paid a bonus. Where a bonus is contingent on the profits made by the company, it may be some time after the year end until it can be determined whether it will be paid and, if so, how much.

Joe Brough outlines the conditions that must be met for a company to secure a corporation tax deduction for directors’ accrued bonuses and the associated PAYE implications.

Ending the company – Tax-efficiently!

There are currently numerous scenarios where it may be advantageous overall to operate a business outside of a company wrapper. This article considers the tax aspects of ending a trading or property rental company from the perspective of an owner-managed business (OMB) or ‘family’ company. I shall assume that there is a standalone company which is solvent, with the prospect of a healthy cash surplus after settling all remaining liabilities, and that the shareholder-directors will have relatively significant capital gains implicit in their share interests.

Lee Sharpe considers the main options when a company is ready for the chop – but is it always necessary?

Is the Christmas party a taxable benefit?

Employers often provide staff with a Christmas party. When planning the event, it is important to ensure that the tax implications are considered alongside the venue, the entertainment and the food. .

Sarah Bradford highlights some tax traps to avoid when providing staff with a tax-free Christmas party.

Can HMRC clearances be relied upon?

Whilst death and taxes are said to be the only certainties in life, certainty is often conspicuously absent when seeking to establish the tax treatment of an event or transaction.

Mark McLaughlin looks at taxpayer clearance applications to HM Revenue and Customs and whether clearances given can be relied upon.

Q&As with Arthur Weller

BIM47000: Where are we now?

It is difficult enough for landlords to navigate through complex tax legislation and pay the ‘right’ amount of tax without HM Revenue and Customs (HMRC) guidance apparently contradicting itself. But that seems to be the current position. 

Mark McLaughlin looks at interest relief for landlords, and HMRC’s current view on additional funds borrowed against the value of residential lettings.  

Transferring property rental income: Anti-avoidance traps

This short article will cover the key aspects of ownership and splitting income, in terms of co-owned property. Note in particular that there are special rules for property owned between those in a married couple (or civil partnership) that can complicate matters. Note also that the rules for property ownership differ a little in Scotland, and readers should check that the rules align in the devolved territories of the UK.
 
Lee Sharpe looks at the main rules that govern a taxpayer transferring rental income rights to another.

Related property: How it affect IHTs

The ‘related property’ rules are inheritance tax (IHT) anti-avoidance provisions that set out to stop taxpayers taking advantage of Aristotle’s old adage, “The whole is worth more than the sum of the parts”. 

Meg Saksida looks at the special inheritance tax valuation rules for ‘related property’ and its potential effects on married couples (and civil partners).

Business rates: Are you paying too much for your property business?

Business rates are charged on non-domestic properties such as offices, shops, pubs, factories and warehouses. Holiday rental homes are also within the scope of business rates, and this can be a good thing. 

Sarah Bradford advises that you should check your business rates bill to ensure that you are not paying too much.

Q&As with Arthur Weller