1

For several years HM Revenue & Customs (HMRC) have been concerned that directors and shareholders of companies, referred to as “close companies”, have been able to avoid paying tax by abusing rules relating to loans made to directors, shareholders or other “participants” or indeed to their associates. Typically this might involve a director or shareholder […]

Continue Reading

0

If an individual engages in a business (as a sole trader) and makes a profit, that is taxed. If two or more individuals engage in business (as a partnership or limited liability partnership) and make a profit the partnership does not pay tax but the profits flow through to the individuals who pay tax on […]

Continue Reading

1

Consumers can now access free credit reports showing publicly held information on their borrowings, repayments history and financial relationships with other people without getting tied in to ongoing “insurance” or “advisory” services which come at a fee. Currently Experian and Equifax – the two main credit reference agencies – offer “free” reports but these come […]

Continue Reading

1

Captive Insurance Companies have long been used by many prominent companies to manage their insurance risks. In its simplest form, a captive is a wholly owned subsidiary created to provide insurance to its non-insurance parent company and or other group companies. They are essentially a form of self-insurance whereby the insurer is owned wholly by […]

Continue Reading

1

For the purposes of UK Taxation a close company is broadly defined as being one controlled, directly or indirectly, by five or fewer “participators” or by any number of directors who are participators. HM Revenue & Customs (HMRC) defines a participator as a person who has a share or “interest” in a company. A participator […]

Continue Reading

2

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. […]

Continue Reading

1

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 […]

Continue Reading

0

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 […]

Continue Reading

0

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 […]

Continue Reading

2

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 […]

Continue Reading

1

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, […]

Continue Reading

0

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 […]

Continue Reading

0

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 […]

Continue Reading

0

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 […]

Continue Reading

0

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 […]

Continue Reading

0

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 […]

Continue Reading

7

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 […]

Continue Reading

26

“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 […]

Continue Reading

0

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 […]

Continue Reading

6

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 […]

Continue Reading