Tax

News by Category

Out of pocket business expenses and tax

6th July 2021
Susan has been meeting some business expenses out of her own pocket. But can your company pay you interest for using your own money and is there any tax advantage to doing so? Naomi Swan takes a look. Susan is the sole director and shareholder of a small company. She frequently travels for work and...

Is a home charging point tax exempt?

14th June 2021
Your company is paying for an electric charging point to be fitted at your home. Both you and your partner will use it as you each have electric cars. But will this count as a taxable benefit in kind and what are the tax consequences if you sell your home? Joanne Gibson advises. The tax...

Can car fuel be a perk?

8th June 2021
Company cars continue to be a popular benefit in kind. However, employer-paid-for fuel has a poor reputation for resulting in disproportionately high tax bills. Is this still justified or might it be time for another look? Helen Johnstone does just that. Car versus fuel The calculation of tax and Class 1A NI on company cars...

Exposing hidden business property relief

7th June 2021
Inheritance tax (IHT) planning often involves giving away your wealth, but as a business owner business property relief (BPR) can significantly reduce IHT. What can you do to help your estate achieve the maximum relief? Inheritance tax expert Brona MacDougall advises. IHT and business property Where you own a business, or a share of one,...

May Q&A

3rd May 2021
Expenses for travel to temporary workplaces Q. In April 2020 we furloughed an employee who since June 2019 had been temporarily working away from her normal workplace. She is about to return to work at the temporary location and is expected to be there for the next six months at least. We have always paid...
tax

SURF – Self-Assessment repayment claim verification letters

7th April 2021
HMRC’s new refund verification system looks disconcertingly like a scam. We have had several clients recently receive SURF1 and SURF2 letters from HMRC in response to 2019/20 tax returns that requested a refund. The SURF1 is being sent mainly to people who are newly registered in self assessment and it is a fraud prevention tactic....

How to reduce your corporation tax bill

23rd March 2021
Your company’s financial year ends soon. Despite the difficult trading conditions over the last year the accounts will show a profit. But what steps can you take to legitimately reduce the corporation tax bill? Joanne Gibson advises. Generally, expenses that your company incurs are tax deductible. However, special rules mean that tax relief for some...

Incentive for ‘green’ cars extended

22nd March 2021
Despite the financial pressures caused by the pandemic, the government has gone ahead with the planned extension to tax breaks for environmentally friendly vehicles. What might this mean for your business? Bob Johnstone advises. Businesses wanting to take advantage of the capital allowances (CAs) tax break for environmentally friendly cars and other vehicles have been...

Avoiding the Gift Aid tax trap

21st March 2021
You recently saw a press article about tax and Gift Aid donations, it said that people who donate to charity and whose income has been hit by coronavirus can face unexpected tax bills. Are you at risk of this? Helen Johnstone provides the answer. As you probably know, under the Gift Aid scheme charities and...