Straight from the horse’s mouth

Contactless payment limit is £100

14th October 2021
In April 2020 the contactless payment limit was raised from £30 to £45. To help businesses recover following the pandemic, the limit has now been raised again, this time to £100. Although the change is already effective, banks and firms will need to make the necessary changes to their systems and contactless payment terminal software....

The tax implications of writing off loans

12th October 2021
An employee who is being made redundant has asked his employer to write off their outstanding training costs loan as part of their redundancy termination package. But what are the tax implications here?  Tax Expert Brona MacDougall explains. Where a loan to an employee is written off by the employer for any reason, HMRC treats...

When is selling land or buildings “trading”?

8th October 2021
The First-tier Tribunal recently ruled on whether profit made from the sale of land bought as part of a residential property was taxable as trading income or capital gains. What was the outcome and why?  Brona MacDougall looks at this in more detail. The dispute The case of Heather Whyte v HMRC followed a long...

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...
Joanne Gibson, Partner JRWCA

NI break if you employ a veteran

10th September 2021
The government has introduced an NI exemption to encourage employers to take on former military personnel. If this is something you’d like to support, what are the key considerations? Head of Payroll Joanne Gibson advises. Overview The government made a commitment at the last election to better support veterans in their transition to civilian employment....

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...

Unregistered suppliers and VAT

8th September 2021
You need some building work done at your office, but your preferred supplier is not registered for VAT. This means that it will not be able to reclaim input tax on materials, increasing the final bill to your business. Is there a solution? Bob Johnstone takes a closer look. Frozen VAT threshold Even though the...
VAT on homeworking allowances

VAT on homeworking allowances?

7th September 2021
You are downsizing your office and have asked a few staff to permanently change to homeworking. You’ll pay them a one-off allowance towards the cost of setting up their home workspace. Can you reclaim the VAT they incur? VAT expert John Craig provides the answers. People often suggest that “putting it through the business” will...

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...