The Office of Tax Simplification has today published a document dealing with the taxation of small businesses. It contains a general appreciation that for very small businesses the existing tax rules are over complicated and that they tend to cause problems and costs for the business owner or manager that discourage and penalise entrepreneurial ideas. [...]
Her Majesty’s Revenue & Customs have announced a new hit list of potential tax cheats who they are targeting for investigation. High on that list are teachers who make extra cash from giving private lessons, people selling goods on eBay, Amazon or other internet sites, personal trainers and tradesmen and businesses who hide their true [...]
HM Revenue & Customs (HMRC) has published revised Advisory Fuel rates to be used as mileage allowances where an employee is provided with a company car but not with company fuel. This can be, and usually is, advantageous to the employee who instead of being liable to be taxed on the “benefit in kind” of [...]
The Institute of Directors (IoD) today publishes the results of a survey of its members on the administrative burdens that the tax system imposes on them. The picture is much gloomier than that painted by last Friday’s World Bank survey, which placed the UK fourth for ease of paying taxes. The IoD argues for specific [...]
On Tuesday 4th January 2011 the Standard Rate of Value Added Tax is increasing from 17.50% to 20%. This change will mean a lot of extra work for VAT registered businesses and any non registered business or private individuals should consider whether there are any steps they can take to try and pay at the [...]
If you have decided to start your own business as a self-employed sole trader (perhaps having read Choosing the Structure for Your Business) then you might think that you have nothing else to do apart from finding some work and getting paid when you have done it. Unfortunately it isn’t quite as simple as that, [...]
Today, 1st October 2010, sees a number of changes in respect of the UK national minimum wage (NMW) regulations. From today the age at which UK workers become eligible for the full rate drops from 22 to 21 and the rate itself increases from £5.80 per hour to £5.93. The hourly rate for workers aged [...]
We live in momentous times. Everything is changing – and a lot faster than you think. The old rules no longer apply. The institutions and traditions you take for granted are faltering. In fact, beneath the surface of what appears on the daily TV news is a much more disturbing story – one which you [...]
UK tax law is among the most complex in the world, and it has been getting more complex every year. Despite the fact that I earn a fair amount of my income advising on tax matters I welcome the announcement by Chancellor George Osborne of the establishment of the Office of Tax Simplification. The problem with UK [...]
Despite all his tough talk when he was in opposition as the Liberal Democrat Shadow Chancellor, since becoming Business Secretary in the Coalition Government Vince Cable has been singularly unable to get banks and building societies to open their wallets and start lending to businesses or individuals. There is no doubt that Dr Cable is [...]
In the latest edition of Pulse – UK Economic Outlook, the IoD forecasts Gross Domestic Product (GDP) growth of only 0.9 per cent in 2010 and 1.8 per cent in 2011. The IoD describes this as “one L of a recovery”. The L shaped cycle does not mean there will be continued zero quarter-on-quarter growth [...]
Any business can claim tax allowances, called capital allowances, on certain purchases or investments. This results in a reduction in the business tax bill – which can’t be bad. In general capital allowances are available on plant and machinery, buildings – including converting space above commercial premises to flats for renting – and research and [...]
“Transfer pricing” is an increasingly important and contentious area of international tax law. This is because so much of modern world trade involves the transfer of goods, intangibles or services within multinational enterprises (MNEs) – groups of companies or related businesses based in 2 or more countries. Such international trade offers scope for an MNE [...]
HM Revenue & Customs are facing a flood of legal claims that will blow another massive hole in the public finances. In the past few weeks thousands of High Court claims have been lodges by companies and local councils relating to millions of pounds of interest wrongly charged by HMRC. When HMRC makes a repayment [...]
The controversial tax which was introduced by Gordon Brown shortly after he became Chancellor has proven to cost far more to administer than the cash it has raised. Gordon Brown has long had the typical socialist view of business owners which sees them all as crooks only concerned with paying as little tax as possible. Tax [...]
Accounting is viewed by most non accountants as a complicated and highly technical matter, and this is a view that is encouranged by the accountancy profession. But the truth is that it is based on a very simple principal which once understood allows business owners and managers to understand the financial state of their business without [...]
In the UK it is remarkably easy and cheap to form a limited company. For less than £100, perhaps even less than £50, you can have a company formed in a matter of hours. This compares to the situation in many other EC countries where the costs can run into thousands and it can take [...]
A New Publication – Standing together: universities helping business through the downturn, has been put together by Universities UK, as the major representative body for the higher education sector, with the assistance of the Higher Education Funding Council for England (HEFCE). It sets out the kind of support universities and colleges can offer employers, both [...]
Amid much hype and to no-one’s surprise, yesterday Alistair Darling cut the standard rate of VAT to 15% with effect from the 1 December 2008. The cut is temporary and so on 1st January 2010 the standard rate will return to 17.5%. The 15% rate will apply to the supply of goods and services currently [...]
As of today’s date 24 MPs have signed an Early Day Motion which on the face of it is supportive of small businesses but in actual fact is totally pointless. In fact it could be evidence, if such is needed, that MPs really have no idea of the realities of business life. The motion reads: [...]
