HMRC have updated their guidance on employees’ travel and subsistence in booklet 490, available on the Gov.uk website. The publication provides numerous examples illustrating which journeys do and do not qualify as business journeys and are eligible for tax relief. No tax relief is available for ordinary commuting or private journeys. Ordinary commuting is where […]
Selling your Company? Shares or Assets?
The Corporation Tax deduction for acquired goodwill and other intangible assets that has been available to companies since April 2002, has meant that companies buying other businesses have generally preferred to buy the trade and assets rather than the shares in the target business. However, the vendors would normally prefer to sell their shares in […]
Creating a healthy workplace
We all know how important the work environment is in terms of productivity, creativity and job satisfaction. All businesses strive, or should strive to achieve a healthy work environment for their employees. But what constitutes a healthy work environment? Literal health, as in good ventilation, natural lighting and lots of plants? Psychological health, as in […]
Buying a Business? No relief for goodwill now
Ever since April 2002 when a limited company acquires the trade and assets of another business it has been possible to obtain a tax deduction for the goodwill and other intangible assets of the acquired business, generally in line with the accounting treatment. So, if the goodwill of the acquired business was worth say £500,000 […]
VAT is due on clothing given to employees!
The high street retailer French Connection has recently lost a case before the Tribunal concerning whether or not VAT is due on the supply of clothes to their employees. The retailer required employees in their shops to wear clothes from the current range and these were supplied free of charge. The case concerned whether or […]
Tax Relief for replacing furniture in LET properties
The government announced in the Summer Budget that from April 2016, the current 10% Wear and Tear Allowance for furnished lettings will be replaced with a relief that enables all landlords of residential dwelling houses to deduct the costs they actually incur on replacing furnishings in the property. This will give relief for capital expenditure […]
Pension Tax Relief restricted for higher earners
As mentioned in the Conservative party manifesto, tax relief for pension contributions is to be restricted for those with income in excess of £150,000 a year. We were told that this is intended to fund the increase in the inheritance allowance for passing on the family home. The current £40,000 pension annual allowance will be […]
Changes to taxation of dividends & the impact on family companies
The Chancellor has announced that from 6 April 2016 there will no longer be a notional tax credit associated with dividends received and the following rates will apply after a £5,000 tax free dividend allowance: Basic rate taxpayers – 7 ½% Higher rate taxpayers – 32 ½% Additional rate taxpayers – 38.1% This will mean that from […]
New company car advisory fuel rates
Company car advisory fuel rates These rates are the suggested reimbursement rates for employees’ private mileage in their company cars and are reviewed each quarter on 1 March, 1 June, 1 September and 1 December. In line with an increase in fuel prices, the rates that apply from 1 June 2015 are as follows: Engine […]