Latest News

Keep up to date with our newsletter here

23 August 2017

When deciding if an expense is deductible or not for tax purposes it is important to consider if the expenditure was incurred wholly and exclusively for the purposes of your trade or employment. This is a difficult starting point as there is often a fine line dividing what meets the ‘wholly and exclusively’ rule and what does not.

In general, HMRC takes a slightly more relaxed view...

23 August 2017

A business that incurs expenditure on taxable and exempt business activities is termed as partially exempt for VAT purposes. In essence, the business has to make an apportionment between the exempt and chargeable activities using a 'partial exemption method'. This is required in order to calculate how much input tax is recoverable.

There are a number of partial exemption methods...

21 August 2017

Around 230 employers have been named and shamed for underpaying their workers the national minimum wage (NMW) or national living wage (NLW). This is the 12th “naming and shaming” list to have been published and it covers more than 13,000 UK workers and means they will now collectively receive around £2 million in back pay. In addition to paying workers back the money they are owed, employers...

17 August 2017

The taxable turnover threshold, that determines whether businesses should be registered for VAT is currently £85,000.

Businesses are required to register for VAT if they meet any of the following conditions:

  1. At the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £85,000.
  2. At any time, there are reasonable grounds...
17 August 2017

The Supreme Court has dismissed HMRC’s appeal in a long running case between the BPP Group of companies (who provide professional and academic education) and HMRC. The case initially centred on the VAT liability of supplies of books and education by BPP. BPP had a corporate restructure in 2006 and began to use one company to supply the books (BPP University College of Professional Studies Ltd...

17 August 2017

The assessment of self-employed or partnership profits is relatively straight-forward if the accounting date, to which accounts are prepared, falls between 31 March and 5 April. However, year ends that fall outside these dates create overlap profits.

Overlap profits can be created in the first 3 years of the business or in any year in which there is a change of basis period and...

17 August 2017

If a company has stopped trading and has no other income then HMRC should be informed that it’s dormant for Corporation Tax purposes. HMRC can also send a notification if they think a company is dormant. This notice will state that a company or association is dormant and is not required to pay Corporation Tax or file Company Tax Returns.

A company is usually dormant for Corporation Tax...

17 August 2017

The Annual Investment Allowance (AIA) limit has changed significantly over the last number of years. However, the limit has been fixed at £200,000 for all qualifying expenditure on or after 1 January 2016.

The current £200,000 limit is a generous allowance and will more than cover the annual capital expenditure spend of many small and medium sized businesses. There are transitional...

17 August 2017

Companies House guidance sets out the main requirements for incorporating a company in the UK. The guidance entitled Incorporation and Names also provides advice on checking which names are acceptable to Companies House when naming a company.

Choosing a company name can be one of the most important considerations for a new business. The name must meet certain legal requirements and at...

10 August 2017

Entrepreneurs' Relief applies to the sale of a business, shares in a trading company or an individual’s interest in a trading partnership. Where Entrepreneurs' Relief is available CGT of 10% is payable rather than the normal main rate of 20%. This can significantly reduce the amount of CGT due.

When the relief was first introduced there was a lifetime limit of £1 million for gains....

10 August 2017

Business Asset Rollover Relief allows for the deferral of Capital Gains Tax (CGT) on gains when you sell or dispose of certain assets and use all or part of the proceeds to buy new assets. The relief means that the tax on the gain of the old asset is postponed. The amount of the gain is effectively rolled over into the cost of the new asset and any CGT liability is deferred until the new asset...

10 August 2017

The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for tax purposes.

In order to qualify as a furnished holiday letting, the following occupancy criteria need to be met:

  • The property must be let on a commercial basis with a view to the realisation of profits. Second homes or properties that are...
10 August 2017

HMRC offers a number of alternative methods for claiming back VAT on car fuel where there may be a mix of business and private mileage. They fall into a number of broad categories:

  1. Standard scale charge - HMRC operates a useful simplification measure that allows businesses to use a standardised scale charge to value fuel costs for private use. The scale charge is a fixed amount...
10 August 2017

The VAT Capital Goods Scheme (CGS) adjusts the initial VAT recovery in respect of certain assets over either 5 or 10 year period. The scheme seeks to agree a fair and reasonable attribution of VAT to taxable supplies and non-taxable supplies relating to the use of an asset over its lifetime. In effect, the recovery of VAT input tax following the capital expenditure, is spread out over a number...

10 August 2017

Donations to charities are a recognised way to benefit charities and certain tax payers. To facilitate these advantages, taxpayers must ensure they keep a proper record of all donations to back up claims on their tax return.

Donations that are made through the Gift Aid scheme allow for the recipient charity to claim 25p worth of tax relief on every pound donated. Higher rate and...

Pages

Providing the direction that leads to growth.

"Sam and her team have acted as trusted advisers since 1999 "
AM Data Specialists