Straight from the horse’s mouth

Tax relief on property rental

5th February 2020
There’s more than one rule which determines the type of tax relief you can claim for capital expenditure in a property rental business. Different rules can apply from year to year. But which can you claim and how can you ensure maximum relief? Brona MacDougall takes a closer look. Generally, it doesn’t matter what type...

IMPORTANT INFORMATION – The 2020/21 National Minimum Wage rates

5th February 2020
The government has announced a big increase in the national living wage and national minimum wage rates for 2020/21. What are they and when do they take effect? The government has announced the national living wage (NLW) and the four national minimum wage (NMW) rates which will take effect on 1st April 2020. You should...

Is food and drink for customers tax deductible?

4th February 2020
As a business which hosts seminars and courses, food and drink is provided as part of this during the day. A tax inspector refused to allow a tax deduction for the cost because he says that it is business entertainment. Is he correct? Income tax, corporation tax and VAT legislation each contain a similar rule...

February Q&A

1st February 2020
Can I change my mind about a dividend? Q. In 2019 my company paid me cash adding up to over £25,000. This was charged to my director’s loan account (DLA), and at the company’s year end (31 December 2019) I still owed the money. My accountant says because of this the company will have to...

Holiday pay calculation changes

31st January 2020
In April 2020, an important change will be made to the holiday pay reference period which is used to calculate holiday pay entitlement for employees and workers. As an employer, what do you need to know? Head of Payroll Joanne Gibson finds out. On 6th April 2020 the holiday pay reference period will be extended...

Dealing with VAT on fundraising events

30th January 2020
A local sports club held a Christmas fundraising dinner, the club is non-profit making but they are unsure about how to deal with VAT on the income. Also can the club claim any input tax on the costs of the dinner? John Craig provides the answers. The good news is that the income from the...

January Q&A

7th January 2020
VAT on overseas work? Q. I am VAT registered as a window cleaner. I visit my mother in Dublin for one week every two months and do some work while I am there. Do I need to charge VAT on this work or is it not an issue because I am doing the work outside...
Do you need to make an adjustment for unpaid invoices?

Do you need to make an adjustment for unpaid invoices?

7th January 2020
Your business has some unpaid purchase invoices in the 90-day+ column of its aged creditors report. Input tax has been claimed on these invoices. Why does this lead to a problem and how could you avoid it in the future? Bob Johnstone from our Galashiels office investigates. If you pay and claim VAT based on...

Rent-free period on commercial property deal

6th January 2020
Mr Brown owns a warehouse that he rents out and the income that he receives is exempt from VAT. He has offered a new tenant a three month rent-free period at the beginning of a new rental agreement. Does this create any VAT problems? Our VAT expert John Craig discusses. Rent-free or not? The first...

What are the rules on motoring expenses and VAT?

3rd January 2020
When you buy a car, unless you use it 100% for business, you can’t reclaim any of the VAT paid on the purchase. However, more generous rules apply to the cost of motoring expenses such as accessories, repairs and so on. John Craig explains exactly what these rules are and how you can benefit from...