Tax Insider 3 x Newsletter Bundle 

Director’s remuneration: Options to consider

HMRC defines remuneration as ‘the compensation an individual receives in exchange for the work or services they provide, sometimes called reward’. 

Jennifer Adams outlines some methods of remunerating directors in an owner-managed business.

Tax-free perks: Healthy options

In the current Covid-19 climate, it is more important than ever to stay as fit and healthy as possible. 

Sarah Laing looks at some tax-efficient incentives that employers can use to help keep employees fit for work.

Claiming back VAT on staff training

Claiming back VAT on staff training    "When considering VAT and staff training, the first point to determine is whether VAT is being charged on staff training. The basic position is that if a business engages a profit-making organisation to provide vocational training to its staff it will normally be charged VAT at the standard rate. 

Andrew Needham looks at charging and reclaiming VAT on staff training.

Beneficial incorporation: A case study

When considering the incorporation of a business it is worth weighing the ‘pros’ and ‘cons’ of each alternative in order to conclude which is the optimum route in the particular circumstances. Sometimes the result is surprising. 

Ken Moody looks at a case study to illustrate that incorporating a business can be beneficial from a tax perspective in some cases. 

Just hold your hand up if you’ve made a mistake!

The Supreme Court’s decision in Pitt v Holt [2013] UKSC 26 concerned the scope of ‘Hastings-Bass doctrine’. Broadly, this allows those acting in a fiduciary capacity to unwind arrangements into which they have entered, where there are unforeseen consequences. 

Kevin Read discusses how equity, rather than tax law, can decide tax cases.

Termination payments: What a minefield!

Can we still assume that termination payment will be covered automatically by the £30,000 tax free exemption?  

Reshma Johar considers the need for extra due diligence when it comes to understanding termination packages.

So you think you have HMRC clearance?

Anyone working in tax knows how complex it can be. There are so many ‘grey’ areas of uncertainty. It is sometimes difficult to know whether one’s interpretation of tax law is correct.

Mark McLaughlin warns that a clearance given by HMRC is not as watertight as some people might think. 

Q&As with Arthur Weller

Bonus or Dividend? Key issues to be aware of during Covid-19

Many business owners are in a similar predicament to Monty…

“On a dark December morning, Monty Marshtitch was staring depressingly at ‘his’ company’s management accounts for November 2020.  Monty was the 100% shareholder of Barnsdale Garden Centres Ltd, which operated two garden centres. The business had been ravaged by Covid-19 and whilst almost all the staff has been furloughed for several months, it was still likely to make a trading loss of around £80,000 for the year ended 31 December 2020.

He rang up his accountant, Carol Greenwood; “Hi Carol, the figures this year are pretty dismal due to Covid...”

Peter Rayney uses a case study to look at an owner-manager’s cash extraction plans during Covid-19.

Use of home as office: What are the issues?

Many more people have been working (more) from home, as shops and other businesses have been forced to shut their normal premises. In some cases, this might involve no more than a laptop and a ban on Radio 2 or Netflix during working hours. In other cases, a bedroom or similar will find itself being given over to predominantly business use.

Lee Sharpe explores some potential tax risks in relation to working from home.

Putting the business in ‘mothballs’!

The question of whether, and if so when, a business has stopped can be crucially important for all kinds of tax reasons. 

Alan Pink looks at the sometimes thorny question of when a business ceases to trade, and why it’s important.

Purchase of own shares: What could possibly go wrong?

A company purchase of own shares (CPOS) is often a tax-efficient way for an individual shareholder to dispose of their shares (e.g. on retirement). 

Mark McLaughlin highlights a case in which the tax treatment of a company purchase of own shares was not as the taxpayer had hoped. 

Q&As with Arthur Weller

Is incorporation the best option for landlords?

Landlords of unincorporated property lettings businesses have had a rough time of it lately. Having only recently got to grips with losing the ‘wear and tear’ allowance and with mortgage interest now only being deductible at basic rates, the Covid-19 pandemic has hit; and with it an immediate loss of earnings, particularly with commercial lettings due to lockdowns; and loss relief only being available to carried forward. 

Meg Saksida explores the incorporation of a rental property business from a tax perspective.

Can landlords still mitigate CGT?

With lettings relief now virtually abolished, what options do landlords have left at their disposal? Many landlords began their climb up the property ladder by renting out their previous main home. Until April 2020, such individuals were able to take advantage of lettings relief (LR) when selling rental properties where they previously resided.

Iain Rankin looks at some of the possibilities for landlords to potentially reduce or defer capital gains tax liabilities.

Something different: Using a property LLP

When looking to set up a property business, most people will weigh up the pros and cons of operating as an unincorporated property business or as a limited company. 

Sarah Bradford highlights some of the advantages and disadvantages of using a property LLP.

Repairs: Or is it?

The basic rules for allowable expenditure by sole traders and partnerships (or companies) appear straightforward, at least on the face of it. Profits of the trade are calculated in accordance with generally accepted accounting practice, subject to any adjustment required or authorised by law.

Mark McLaughlin highlights a case in which the ‘capital or revenue expenditure’ issue was considered.

Q&As with Arthur Weller