We consider the optional rules which allow small unincorporated businesses to calculate their profits for tax purposes on a cash basis rather than the normal accruals basis. Accruals basis and cash basis One example which illustrates the difference between the accruals basis and cash basis is that credit sales are included in the accruals basis […]
Capital Gains Tax and the Family Home
The capital gains tax (CGT) exemption for gains made on the sale of your home is one of the most valuable reliefs from which many people benefit during their lifetime. The relief is well known: CGT exemption whatever the level of the capital gain on the sale of any property that has been your main […]
Capital Gains Tax
A capital gain arises when certain capital (or ‘chargeable’) assets are sold at a profit. The gain is the sale proceeds (net of selling costs) less the purchase price (including acquisition costs). What are the main features of the current system? From 6 April 2016 capital gains tax (CGT) is charged at the rate of […]
Capital Allowances
Overview The cost of purchasing capital equipment in a business is not a revenue tax deductible expense. However tax relief is available on certain capital expenditure in the form of capital allowances. The allowances available depend on what you are purchasing. Here is an overview of the types of expenditure which qualify for capital allowances […]
Business Structures – Which Should I Use?
Having made the decision to be your own boss, it is important to decide the best legal and taxation structure for your enterprise. The most suitable structure for you will depend on your personal situation and your future plans. The decision you make will have repercussions on the way you are taxed, your exposure to […]
Business Motoring – Tax Aspects
This factsheet focuses on the current tax position of business motoring, a core consideration of many businesses. The aim is to provide a clear explanation of the tax deductions available on different types of vehicle expenditure in a variety of business scenarios. Methods of acquisition Motoring costs, like other costs incurred which are wholly and […]
Agency Workers Regulations
Regulations which took effect from 1 October 2011 mean that workers supplied to a company, or to any other entity, by an agency will become entitled to receive pay and basic working conditions equivalent to any directly employed employees after a 12 week qualifying period. […]
Autumn 17 Newsletter
Please click below to view the Autumn newsletter for 2017 in PDF. Autumn 17 Newsletter […]
Dividend Payments – Getting it Right
Used in conjunction with a salary at or just below the personal allowance level, the extraction of funds from the company using dividends still offers the most tax effective route to minimising your personal tax liability. […]
Loans to directors
This article concerns an announcement made in the Budget 2016 for which legislation will be introduced through the Finance Bill 2016. Where loans are made to directors and unpaid nine months after the company year end, the tax charge is now 32.5% for all funds drawn. […]