Straight from the horse’s mouth

tax-free perk for being the boss

Q&A – A tax-free perk for being the boss?

2nd March 2020
Q. A friend has told you that he and his wife are taking a tax-free luxury weekend away on the company. Apparently, because the business has been running a long time HMRC allows this. Is this something you can take advantage of? A. Tax rules include a surprisingly long list of benefits in kind which...

Q&A – Can I claim a mileage allowance while using a courtesy car?

2nd March 2020
Q. I’m a director and co-owner of a company. I use my own car for business journeys for which the company pays me a mileage allowance at HMRC’s official rates. Last month my car was off the road for over three weeks for repair and the insurance company provided me with a courtesy car. Apart...

Q&A – Is a working holiday tax deductible?

2nd March 2020
Q. Mr Jones has arranged to add on a couple days to his family holiday so he can visit colleagues to discuss work matters. His accountant has told him that he can’t claim any of the costs relating to the trip. Is this correct? A. As you probably already know about the general rule for...
Avoiding tax costs on staff uniforms

How to avoid tax costs on staff clothing

28th February 2020
A business provides their staff with workplace clothing but because of a recent change to the rules, they might face a tax and NI bill. What are HMRC referring to and is there any way to avoid these tax costs? Helen Johnstone finds out. ABC Limited provides all staff who might come into contact with...

Tax relief on property rental

5th February 2020
There’s more than one rule which determines the type of tax relief you can claim for capital expenditure in a property rental business. Different rules can apply from year to year. But which can you claim and how can you ensure maximum relief? Brona MacDougall takes a closer look. Generally, it doesn’t matter what type...

IMPORTANT INFORMATION – The 2020/21 National Minimum Wage rates

5th February 2020
The government has announced a big increase in the national living wage and national minimum wage rates for 2020/21. What are they and when do they take effect? The government has announced the national living wage (NLW) and the four national minimum wage (NMW) rates which will take effect on 1st April 2020. You should...

Is food and drink for customers tax deductible?

4th February 2020
As a business which hosts seminars and courses, food and drink is provided as part of this during the day. A tax inspector refused to allow a tax deduction for the cost because he says that it is business entertainment. Is he correct? Income tax, corporation tax and VAT legislation each contain a similar rule...

February Q&A

1st February 2020
Can I change my mind about a dividend? Q. In 2019 my company paid me cash adding up to over £25,000. This was charged to my director’s loan account (DLA), and at the company’s year end (31 December 2019) I still owed the money. My accountant says because of this the company will have to...

Holiday pay calculation changes

31st January 2020
In April 2020, an important change will be made to the holiday pay reference period which is used to calculate holiday pay entitlement for employees and workers. As an employer, what do you need to know? Head of Payroll Joanne Gibson finds out. On 6th April 2020 the holiday pay reference period will be extended...

Dealing with VAT on fundraising events

30th January 2020
A local sports club held a Christmas fundraising dinner, the club is non-profit making but they are unsure about how to deal with VAT on the income. Also can the club claim any input tax on the costs of the dinner? John Craig provides the answers. The good news is that the income from the...