There are certain gifts you can make that will not create a capital gains tax (CGT) charge, but care should be taken as there are exceptions. This article outlines some of the more common issues that need to be considered. Gifts to your spouse or civil partner Ordinarily, you will not pay CGT if you gift assets - that would normally create...
Muras Matters: Off Payroll Working in the Private Sector
Background As previously reported in Muras Matters last year the rules for off payroll working, commonly referred to as ‘IR35’, are due to be extended by HM Revenue & Customs (HMRC) to the private sector for all except small businesses from 6 April 2020. Most readers will be aware that the rules refer to the legislation which prevents individuals from providing their...
Do you have a furnished holiday lets business?
Most property owners who let property under the Furnished Holiday Let (FHL) tax rules, submit their income and expenditure details on their tax return each year. This article considers occupancy, and the need to review occupancy of FHL properties each year. If your FHL business accounts year is the end of the tax year, 31 March (5 April), we suggest that you...
We are out, but no immediate change
The 31 January has past and we are out of the EU. But what difference does this make and what is the transition period? The word “transition” is defined as: A change from one to another or the process by which this happens… Essentially, until 31 December 2020 – when the transition period ends – the UK will continue to pay into the...
Loans to directors and staff
If a company makes loans to its employees (including directors) there may be tax consequences. The same may also apply to loans extended to their family members. For example, the employer will have an obligation to report a beneficial loan to HMRC (and pay Class 1A NIC) and the deemed benefit would be a taxable benefit in kind for the relevant...
Don’t fall for this scam
The Insolvency Service has issued a warning that fraudsters have been contacting investors in insolvent schemes claiming to be from the Official Receiver’s office or to have been appointed by the Official Receiver to help recover funds for a fee. These approaches are always fraudulent. Official Receivers or any agent legitimately instructed to act on their behalf will never ask you to...
Pay-back to save tax
At first sight, company car drivers whose private fuel costs are met by their employers may seem to be onto a good thing, but there is a nasty tax hit… Enter, the Car Fuel Benefit charge. Let’s say the following circumstances apply: list price of your car when new was £30,000 your employer pays for all your private fuel CO2 emissions are 147 g/km, and the...
Current Advisory Fuel Rates
To assist with your calculations, see previous article, we have reproduced below the current, HMRC Advisory Fuel Rates. They are: These rates apply from 1 December 2019. Engine size Petrol - amount per mile LPG - amount per mile 1400cc or less 12 pence 8 pence 1401cc to 2000cc 14 pence 9 pence Over 2000cc 21 pence 14 pence Engine size Diesel - amount per mile 1600cc or less 9 pence 1601cc to 2000cc 11 pence Over 2000cc 14 pence Hybrid cars...
Tax Diary February/March 2020
1 February 2020 - Due date for Corporation Tax payable for the year ended 30 April 2019. 19 February 2020 - PAYE and NIC deductions due for month ended 5 February 2020. (If you pay your tax electronically the due date is 22 February 2020) 19 February 2020 - Filing deadline for the CIS300 monthly return for the month ended 5 February...
When assets can become a tax liability
There are certain assets that may be carried on your balance sheet at values higher than their market value or past their sell by date. If so, and if these amounts are written-off against your profits, you will pay less tax. Three possibilities are sketched out below: Stock Businesses that accumulate stocks of goods do so in the expectation that the stock items...