Expense claims for the self-employed You can claim tax back on some of the costs of running your business, or what HMRC calls ‘allowable expenses’. These appear as costs in your business accounts and will be deducted from the profit that you pay tax on. In other words, expenses can reduce the average sole trader…
Croner Taxwise have issued the following notes in respect of the recovery of VAT incurred prior to VAT registration: The entitlement to recover VAT on stock and assets on hand at registration as if it were input tax is contained in regulation 111 of the VAT regulations 1995. In the case of a limited company,…
Croner Taxwise have issued the following notes in respect of joint rental income: A married couple (or those in a civil partnership) who are living together and own a rental property in joint names are generally treated as entitled to half of the income each. This deeming rule is found in s836 ITA2007 which states:…
We are seeing an increase in the number of clients being contacted by HMRC who are subject to the High Income Child Benefit Tax Charge but have not disclosed this on their Self Assessment Tax Return. In these cases, the taxpayers are required to pay back some, or all, of the Child Benefit received, with…
Employment Allowance Reform What are the new changes coming into play? With effect from 6 April 2020, employers with a National Insurance contributions (NICs) liability of £100,000 or more, or employers who are connected to other employers where their cumulative secondary Class 1 NICs liability is £100,000 or more, will no longer be able to…
CAPITAL ALLOWANCES (claimable by the company against corporation tax profits) Until 1 April 2021 (5 April 2021 for income tax) a low or zero emission car can qualify for a 100% first year allowance (FYA) if its CO2 emissions do not exceed 50g/km and the car is purchased new and unused.. PERSONAL INCOME TAX…