Tax treatment of incentive award schemes
Companies use incentive award schemes to encourage their employees in various ways. For example, to sell more of their own goods and services. The award can be in various forms including cash, vouchers or other gifts. Where an employer meets the tax payable on a non-cash incentive award given to a direct employee by entering […]
Income excluded from UK property business
HMRC publishes a list of income streams that are excluded from a UK property business. The list includes fishing concerns, hotels and guest houses, tied premises, caravan sites, lodgers and tenants in their own home, extra services to tenants and letting surplus trade accommodation. In most cases the income from these activities will be taxed as […]
Scope and legal basis of VAT
The scope and legal basis of how VAT is charged on taxable supplies is defined as follows in the VAT Act 1994: VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of […]
Court dismissed £141k multiple dwellings relief claim
The Court dismissed the appellant’s claim for multiple dwellings relief (MDR) leaving the home owner with a £141,750 bill for stamp duty land tax (SDLT) The First Tier Tribunal (FTT) dismissed an appeal from John Mason who claimed that the property he had purchased was eligible for multiple dwellings relief, but the tribunal found that […]
Taxpayers saved £30m inheritance tax bill by gifting
The most recent figures show that taxpayers saved £30m in inheritance tax (IHT) through gifting last year with many taking advantage of the £3,000 annual gift allowance But there is criticism that the annual gift allowance that allows taxpayers to gift £3,000 each year without incurring inheritance tax should be around £11,760 had it been […]
Need a National Insurance number?
You can apply for a National Insurance number if you live in the UK and have the right to work in the UK. You must also be looking for work or have an offer to start work in the UK. If you have already started working you can still apply. Make sure you’re eligible before […]
Tax Diary September/October 2021
1 September 2021 – Due date for Corporation Tax due for the year ended 30 November 2020. 19 September 2021 – PAYE and NIC deductions due for month ended 5 September 2021. (If you pay your tax electronically the due date is 22 September 2021) 19 September 2021 – Filing deadline for the CIS300 monthly […]
Reporting travel and subsistence benefits
There is no requirement to report certain routine expenses to HMRC. The types of expenses and benefits covered are referred to as exemptions and have replaced dispensations which can no longer be applied for. The travel and subsistence benefits that do not need to be reported include reimbursed costs to employees covering business travel. As […]
Covering pension contributions with unused allowances
The annual allowance for tax relief on pensions is currently set at £40,000. The annual allowance is further reduced for high earners. This means that if your income is in excess of £240,000 you will usually begin to see your £40,000 annual allowance tapered. For every complete £2 your income exceeds £240,000 the annual allowance […]
Recovering VAT on car purchases
There are complex VAT rules that determine how you can recover VAT on car purchases. The usual fallback rule is that if you purchase a car for your business then no VAT can be reclaimed. The main exception to this rule is if the new car is used solely for business use. To qualify for […]
