Tax News

Short-Term Business Visitors

HMRC are consulting on ways to simplify the tax treatment of short-term business visitors from the foreign branch of a UK company, to ensure the UK is an attractive location for business headquarters.

Notify HMRC of EBT and Similar Loans by 30 September

HMRC have published revised guidance on settling tax liabilities in relation to the use of disguised remuneration schemes involving Employee Benefit Trusts (EBTs) and similar arrangements.

In order to settle on preferential terms before the outstanding loan charge arises on 5 April 2019, taxpayers must register with HMRC and provide all of the required information by 30 September 2018.

Trust Taxation

We are still awaiting the promised consultation on the taxation of trusts announced in the Autumn 2017 Budget. However, in the meantime, HMRC have updated their guidance on how different types of trust income are taxed, what management expenses and reliefs can be deducted, and understanding the tax pool.

Advisory Fuel Rate for Company Cars June 2018

These are the suggested reimbursement rates for employees' private mileage using their company car from 1 June 2018.

Note that for hybrid cars use the equivalent petrol or diesel scale charge. However, it may be more beneficial to compute the actual cost.

Where there has been a change the previous rate is shown in brackets.

Extracting Money from my Property Company

There are three ways of extracting money from your property business and the best option usually depends on how far into the property journey you have travelled. These are by way of Director or Shareholder Loan Repayments, a Salary and/or Dividends. Let’s cover these in a little further detail.

Property Company Tax vs Landlord Tax Return

To enable us to explain the differences between how you pay tax as a company and how you pay as a Landlord, the easiest way is to explain the two regimes that are currently in place.

Company Taxation

Why Set Up a Limited Company for My Property Business?

Sadly the answer to this question is “It Depends!!” However, there are some general principles that you can consider when deciding what is the best approach for you and your business.

There are some questions which depend on your tax position, and a few that relate to your own preferences. These are some starting questions to ask yourself:

Simplification of Inheritance Tax

The Office of Tax Simplification (OTS) have been tasked with carrying out a review of Inheritance Tax (IHT) with a view to simplifying how the tax operates. IHT is perceived to be complicated and currently yields a relatively small amount of tax compared to income tax and national insurance.

Making Tax Digital Delayed Further, Apart from VAT Reporting

HMRC have confirmed that no further MTD for business changes will be brought in before 2020 at the earliest.

The Treasury set out its revised priorities for current digital transformation projects, to make room for the additional demands on its resources of work to upgrade customs systems in preparation for Brexit. 

Marriage Relief

Since 6 April 2015, it has been possible for you to transfer £1,190 of your annual personal allowance to your husband, wife or civil partner if they earn more than you do. This is a relief which is not being made the most of by a number of people but is worth a tax reduction of up to £238 per year.