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Not All Shares Qualify for CGT Entrepreneurs' Relief Now

As the result of changes announced in the Autumn Budget, and now incorporated into the latest Finance Bill, not all ordinary shares necessarily qualify for the 10% CGT entrepreneurs’ relief rate on disposal.

As mentioned in last month’s Budget newsletter the definition of a personal company was tightened up so that from 29 October the shareholder must have entitlement to at least 5% of the company’s ordinary share capital, voting rights, profits available for distribution, and assets available on the winding up of the company.

Collecting Unpaid Tax for 2017/18 Through Your PAYE Coding

Under certain circumstances, it is possible to arrange the collection of unpaid tax through your PAYE coding rather than making a balancing payment on 31 January.

Gifts to Charity

Where possible higher rate taxpayers should “Gift Aid” any payments to charity to provide additional benefit to the charity and for the individual to obtain additional tax relief on the payment. 

For example, where an individual makes a £20 cash donation to a charity the charity is able to reclaim a further £5 from HMRC making a gross gift of £25. Where the individual is a 40% higher rate taxpayer he or she is able to claim a further £5 tax relief under self-assessment, reducing their net cost to £15.

Gifts of up to £50 to Employees

From April 2016 new rules were introduced to allow employers to provide their directors and employees with certain “trivial” benefits in kind tax-free.

The new rules were brought in as a simplification measure so that certain benefits in kind do not now need to be reported to HMRC as well as being tax-free for the employee. There are of course a number of conditions that need to be satisfied to qualify for the exemption. 

Conditions for the exemption to apply:

Christmas is the Time for Giving

Those thinking about making gifts at Christmas should take advantage of the various inheritance tax (IHT) exemptions and reliefs available to them. Note that certain gifts can also have capital gains tax (CGT) implications.

The IHT Annual Exemption - Use it or lose it!

What is Making Tax Digital?

Making Tax Digital (MTD) is the latest change to the method by which businesses must keep and administer their accounting records.

Initially MTD for VAT will require VAT registered businesses with taxable turnover above the VAT registration threshold to keep records in digital form and file their VAT Returns using software.

Getting Your Whole Business to Make the Most of Social Media

Getting your whole business to make the most of social media 

Most, if not all, of your staff will have social media accounts. What if you could get all of your staff to like and share your business’s social media posts?  

Co-Working Spaces - Can They Work for You?

Co-working spaces were once the preserve of freelancers and creative types. Now medium to large sized businesses are getting in on the act too.

The modern workplace is evolving. First, we had flexible working. Then we had remote working. Now we are seeing an increased demand for co-working spaces – workspaces which are shared by people who don’t all work for the same business.

Confirmation Bias

Most business people these days have too much information and not enough time. We don’t have the time to weigh up every facet of every decision. This tends to encourage us to take shortcuts where we can. As such, we often go into a meeting or a negotiation with an idea as to what the outcome might be.

This is known as confirmation bias. It is our natural tendency to seek out information or to look at things in a way that confirms our preconceptions.

Helping Customers to Pay You on Time

You’ve done the work. You’ve invoiced the customer 60 days ago. You are still waiting to get paid 30 days after payment was due. It’s time to chase for payment.

It’s never easy chasing customers for payment. However, this is business and you are entitled to be paid for the work that you have done. Unless your company is a bank, you are not in the business of providing credit for your customers. So what should you do?

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