I was going to start this article with a joke about the ‘trickle-down’ economy, but 99% of people wouldn’t get it…… Trickle down economics was known in the latter part of the nineteenth century as ‘horse and sparrow economics’. The theory being that if you fed the horse enough oats, some will pass through to...

The rules for sharing income from your company with your spouse or civil partner are well known. But, if you’re not legally joined, is there a tax-efficient way to share your income?  Helen Johnstone looks at this in more detail below. A few years ago, HMRC lost a long running fight to prevent married couples/civil...

During major sporting events such as The Open or Commonwealth Games, many people looked to boost their income by renting property to spectators and so on. So why might these people receive a letter from HMRC? Lauren Herbert advises. A sporting event held over several days is a great opportunity to utilise spare rooms or...

A set of draft company accounts have been prepared and they show that the director shareholders received “unlawful dividends”. What are the tax consequences of this and how can they best be managed? Jane McWilliam provides advice. The last couple of years have been tough with many businesses having had significant contractions in profits compared...

You are planning on holding a summer party for your employees but what is the tax and NI position of such an event and what do HMRC’s rules say about it? Lauren Herbert advises. Usually, business entertainment is not a tax-deductible expense. However, the cost of entertaining your employees (including directors), such as having a...

HMRC has issued new guidance to employers about the tax and NI which is payable on tips. It explains the position when customers choose to tip electronically. The most common form of electronic tipping is already explained in the existing E24 guidance. Where customers pay by card, Apple Pay and so on, and add a...

Several of your employees have been affected by the recent NI rate increase. As their employer, they have asked if there is anything that you can do to increase their pay packages. Could salary sacrifice be an unexpected solution? Brona MacDougall provides the answer. The tax advantages of some salary sacrifice schemes for employees, for...

As of 6 April 2024 most self employed traders and private landlords will be required to comply with HMRC’s new MTD for ITSA rules. Who is required to comply? All individuals who are subject to income tax on the profits of a trade, profession, vocation or property business who have a total turnover from all...

The UK government has recently run a public consultation on a potential new Online Sales Tax. The consultation period ran from February 2022 to 20 May 2022. The results are currently under review. COVID has had a big impact on how we shop, work and generally interact, but even before COVID the retail sector in...

With climate change and the cost-of-living crisis high on everyone’s agenda, is this a good time to look at an electric company car policy? What benefits would such a scheme bring? Brona MacDougall advises. Company cars have fallen out of favour in recent years as tax charges have risen and the optional remuneration arrangement changes...