Today the remuneration of many directors and employees comprises a package of salary and benefits. Essentially two tests must be applied in determining the tax implications of any benefit. Is the benefit taxable? If the benefit is taxable, what is its taxable value? In this factsheet, we give guidance on some of the main benefit […]
Employee Expenses
This factsheet considers the operation and reporting of expenses and benefits. A new exemption regime for such expenses replaces the need to report these items on P11Ds as long as the necessary conditions are met. To meet the conditions the business must satisfy itself that the employee would be entitled to full tax relief on […]
Directors’ Responsibilities
The position of director brings both rewards and responsibilities upon an individual. Whether you are appointed to the Board of the company you work for or you are involved in establishing a new business and take on the role of director you will feel a sense of achievement. However the office of director should not […]
Corporation Tax Self Assessment
Key features The key features are: a company is required to pay the tax due in advance of filing a tax return a ‘process now, check later’ enquiry regime when the tax return is submitted the inclusion in the tax return, and in a single self assessment, of the liabilities of close companies on loans […]
Construction Industry Scheme
The Construction Industry Scheme (CIS) sets out special rules for tax and national insurance (NI) for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’. They may be companies, partnerships or self employed individuals. The CIS applies to construction work and also jobs such as alterations, repairs, […]
Companies – Tax Saving Opportunities
Due to the ever changing tax legislation and commercial factors affecting your company, it is advisable to carry out an annual review of your company’s tax position. Pre-year end tax planning is important as the current year’s results can normally be predicted with some accuracy and time still exists to carry out any appropriate action. […]
Child Benefit Charge
The High Income Child Benefit charge applies to a taxpayer who has income over £50,000 in a tax year where either they or their partner, if they have one, are in receipt of Child Benefit for the year. We set out below the main points of the charge and illustrate some of the practical issues. […]
Charitable Giving
If you are thinking of making a gift to charity, this factsheet summarises how to make tax-effective gifts. You can get tax relief on gifts to UK charities if you give: under Gift Aid through a Payroll Giving scheme, run by your employer, or by making a gift of certain shares or land. Location of […]
Cash Basis for the Self-Employed
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 […]