The Managing Director of a company, who is also the main shareholder, has given loans of £25,000 to the company to support it through the economic downturn. The company’s losses for the latest year end are £30,000. As the director’s loan is currently showing as a liability, the director is considering writing it off to...

You pay a clothing allowance to your customer-facing staff and your business pays their PAYE tax and NI. You are considering providing the clothing direct as you recently read that it’s more tax efficient than paying an allowance. Is this correct?  Naomi Swan discusses below. Cash allowance versus reimbursed expense Generally, if you pay one...

You received a new laptop for Christmas which you will use for work. Even though it cost you nothing, can you claim a tax deduction in respect of the business use?  Kenny Logan from our Edinburgh office provides the answer below. A gift with extra benefit It’s nice to receive gifts and apart from thanking...

HMRC is getting better at detecting and penalising people who make extra income but don’t declare it. With that in mind if you have a small side venture to make some extra cash, is it always necessary to declare it to HMRC?  Audrey Rankine outlines the details in this article. Naturally, HMRC is interested in...

What do the NI rate cut changes mean for both the employed and the self-employed? And what action do you need to take, if any?  Natasha Crockatt from our Payroll team explains below. Classes 2 & 4 currently The self-employed currently pay two classes of NI contributions – Class 2 and Class 4. Class 2...

Your business is registered as a VAT group and is partially exempt. All cars are leased through one group member that only has taxable income. How much input tax can you claim on the leasing payments and what other issues must you consider?  Associate, Bob Johnstone from our Galashiels office explains in this article. Even...

The National Insurance cuts in the 2023 Autumn Statement grabbed the headlines, but there were a number of other changes also announced. What were the most important to be aware of?  Naomi Swan outlines the changes in this article. Self-assessment The criteria to be met for an individual to fall within self-assessment have been changed....

A trustee of an environmental charity has launched a fundraising appeal to ask for donations from supporters. One tree will be planted in a city centre for each £20 donation. Are the donations subject to VAT as a supply of services?  Naomi Swan explains in this article. What is a donation? VAT is not payable...

From all at JRW Hogg & Thorburn we wish you a very Merry Christmas and Happy New Year   Our offices will reopen on the 4th January at 9am

If you own the trading premises of your business, charging rent can be a good way to extract income. The trouble is it can increase any capital gains tax (CGT) payable if you sell the property. Can the income tax saving justify the extra CGT? Kenny Logan from our Edinburgh office takes a closer look....