Tax

News by Category

Health and Social Care Levy and the Dividend Tax Increase

21st September 2021
Boris Johnson unveiled plans on 7 September for tax increases that aim to specifically address underfunding in the NHS and social care systems. The new Health and Social Care Levy Bill is currently at committee stage in the House of Commons and is set to be fast tracked to ensure that the relevant changes are...

Spend Now, Pay Later

21st September 2021
The Super-Deduction and the Increase in the Main Rate of Corporation Tax Rishi Sunak’s plan for replenishing the public purse consists of encouraging businesses to invest heavily now to strengthen the economy, so that by 2023 they will be resilient enough to start paying tax at much higher rates. The government anticipates a £10bn loss...

Paying dividends to spouses – how to avoid the tax traps

9th September 2021
Many companies pay dividends to spouses, but what are the tax traps to avoid and how can spouses benefit from splitting company shares? Brona MacDougall advises. It is very common for one-person companies to utilise their directors’ tax-free allowance by paying themselves a small salary. With proper planning, the director incurs no income tax or...

Planning for retirement – tax efficiently 

3rd September 2021
There are not many areas of tax planning where one can say that something is a ‘no-brainer’, but utilising pensions planning wherever possible is one.  Tax and Succession Planning expert Brona MacDougall advises. Income tax savings The saving that most people obtain from contributing to a pension is income tax relief. A basic rate taxpayer...

MTD deadline accelerated

1st September 2021
Whilst the Finance Bill 2021 was fairly low key, one announcement might mean a year has been slashed from a crucial Making Tax Digital (MTD) deadline for many unincorporated businesses. What’s the full story? Kenny Logan takes a look. A major aim of MTD is to bring the payment date for all taxes closer to...
Tax deductions for giving away goods

Tax deductions for your buy-to-let property

26th July 2021
In between tenants you are doing some work on your rental property. How these are categorised, as repairs or improvements, determines whether or not you’re entitled to an income tax deduction. What factors should you consider? Improvement or just repair? As a rule, a “revenue” tax deduction can’t be claimed for the cost of improving...

MTD for individuals

26th July 2021
HMRC wants individuals who are self-employed or have a property rental business to trial its Making Tax Digital for Income Tax service before it becomes mandatory. HMRC has changed the login process for its digital services for all business users; it now requires two-step verification. Lauren Herbert discusses in greater detail below. MTD for income...

How to cut your corporation tax?

23rd July 2021
Despite a difficult year, it looks like the accounts will show a profit after all. What could you look at to legitimately reduce the corporation tax bill the company has to pay? Kenny Logan advises. Generally, expenses that the company incurs are tax deductible. However, special rules mean that tax relief for some expenses might...

Does your Guest House qualify for letting relief?

8th July 2021
Since April 2020 there have been restrictions on when letting relief on the disposal of residential property can be claimed. You are selling your Guest House and would like advice about potential letting relief. Brona MacDougall advises. Letting relief changes Letting relief can reduce a chargeable gain by up to £40,000 for someone letting accommodation...

The benefits of company mobile phones?

7th July 2021
David has just taken out a contract on the latest mobile phone. As he uses it mainly for work, he wants to put the cost through his company. But what are the tax consequences for him and the business? Wendy Brown finds out. David was so keen to get his hands on the latest mobile...