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June 5, 2019
I inherited my late father’s house in March 2018, which I subsequently sold in December the same year. I have never lived in the house. The total value of my father’s estate is less than £175,000. Will I have to pay tax on the proceeds of the sale? For tax purposes you will inherit the…Read More
May 16, 2019
I have been running my own business for several years and my turnover has recently exceeded the VAT registration threshold. I have registered with HMRC and am waiting for my VAT number and certificate. Can I claim back VAT on purchases made by the business before the registration date? A. There is a time limit for…Read More
May 10, 2019
I have some permanent employees and I also pay temporary workers as and when I need extra help. I understand that changes have recently been made to the rules concerning payslips. Could you please provide some clarification? Prior to April 2019, employers were only obliged to give payslips to employees. From April 2019, all workers…Read More
April 24, 2019
I bought a property several years ago to rent out. Over the last five years its value has risen from £120,000 to £220,000. I understand that if I sell it now, I would be liable to pay capital gains tax on a gain of £100,000. If I sell this property and re-invest the proceeds in…Read More
April 12, 2019
I run my own business, which is registered for VAT. If I purchase a new car for business use, can I reclaim the VAT I pay on it? If you only use the car for business purposes, you may be able to reclaim all the VAT paid on the purchase price. However, the car must…Read More
March 21, 2019
My employer has offered to give me an interest-free loan to purchase an annual rail fare ticket costing £3,500. Will I have to pay tax on the loan? Strictly, the taxable benefit on cheap or interest-free loans is the difference between any interest paid and the interest payable at the ‘official rate’ (currently 2.50%). However,…Read More
March 7, 2019
For accounting purposes, cash transactions between a director and a personal or family company are recorded through the director’s loan account. At the end of an accounting period, if the director owes the company money (i.e. the account is considered overdrawn), and the company is close (broadly, one that is controlled by five or fewer…Read More
February 14, 2019
My client and her husband run a boutique hotel in partnership. Due to the location and quirky nature of the décor, they are increasingly getting requests to host celebrations and parties in addition to overnight accommodation. As the financial outlay in preparing and staging the events can be quite considerable, the client asks for a…Read More
February 6, 2019
Q) My client, a VAT registered company, has been renting two adjacent units for use in its own joinery business. The landlord has opted both properties and charges my client VAT on the rent. The company uses one unit as a workshop; the ground floor of the other unit is his hardware shop. Above the…Read More
January 9, 2019
My client’s 2017/18 net income is just over £100,000 and their personal allowance is being tapered. Is there anything that can be done now? Your client can make a qualifying gift aid donation before their 2017/18 tax return is submitted and treat the gift aid donation as being made in the 2017/18 tax year. Although…Read More
January 3, 2019
You can adjust your current VAT account to correct errors on past returns if the error: was below the reporting threshold (in broad terms this is less than £10,000, or up to 1% of your box 6 figure (up to a maximum of £50,000); was not deliberate; and relates to an accounting period that ended…Read More
December 13, 2018
The first key change was the definition of a personal company for Entrepreneurs’ Relief. Previously, a personal company was defined as one in which the shareholder: is an office holder, director or employee of the company or group company; and holds at least 5% of the ordinary share capital and of the voting rights of…Read More
December 5, 2018
I need to register an Estate of a deceased person with HMRC but cannot find any relevant online forms. How do I register? The law has not changed but unfortunately, HMRC has continually changed its administration procedures regarding estates. The law (Section 7 Taxes Management Act 1970) requires the personal representatives to notify liability within…Read More
November 22, 2018
My client is a basic rate taxpayer with a small profit on their rental property. They also have employment income that is covered by their personal allowance, in addition, dividends have been voted from their limited company to utilise their basic rate band. On completing their self-assessment tax return for the year ended 5 April…Read More
November 9, 2018
Q. I am a builder. I have recently started operating the construction industry scheme (CIS) although it is still quite new to me. I have recently taken on two labourers, both of whom are registered with HMRC as subcontractors. One of the subcontractors worked for me 3 months ago, the other has never worked for…Read More
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