HMRC introduces risk based scoring for IR35

IR35 is concerned with companies as intermediaries providing personal services, rather than them being provided personally as an employee.

HMRC is trying to lay down the law by publishing a risk based scoring system to decide whether a company is at a low, medium or high risk of being assessed for IR35.  While the principles have been in place for several years and there are many case law decisions it is a radical step to rationalise these.  The risk levels are as follows: read more

Budget Summary 2012

Most of the key changes in the Budget had already been leaked before the Chancellor stood up, although not necessarily the exact details.  There were a few headline grabbing changes read more

Company directors pay for 2012/13

If you are a company director and are paying yourself a low salary and topped up with dividends allow read on.  Up to 5 April 2012 you are probably paying yourself £589 per month, this is greater than the NI Lower Earnings Limit at which you build up state entitlements but below the Secondary Threshold at which point the employer starts paying read more

Is it worth me getting a company car?

The first question is always why do you want a company car and what do you want to use it for, in many cases a van or low emission car

iQ driven to #autotweetup by Scott Brownlee

may be more appropriate, depending on the use it may be free or a low cost benefit.  However if you are looking for a regular family car read more

Tax thresholds and planning opportunities 2011/12

There are lots of thresholds which can be utilised or avoided in order to make the most use of the  tax system.  As accountants we need to consider each clients personal situation to make sure that we make the most of the opportunities while minimising their tax bill.  read more

Can I claim R&D Tax Credits?

I recently attended a tax update course and the lecturer was very enthusiastic about R&D tax credits and the regime to positively encourage investment through the taxation system.  Costs specific to a qualifying project are eligible for 200% tax relief read more

Badges of trade – HMRC targeting Ebayers

HMRC target Ebayers

You may have heard about HMRC targeting people carrying on a business on Ebay, or bootsales.  HMRC are always keen to collect additional tax read more

Is sponsorship allowable for tax?

Lots of big companies sponsor sporting and cultural events, but you may be wondering whether your company can do so and what the rules are.  Providing you can demonstrate that you have considered the following points there is no reason why all the expense cannot be allowable

Demonstrate the sponsorship is wholly and exclusively for the purposes of the trade read more

Budget Summary 2011

With most of the major changes already released or leaked pre-budget there were not the usual number of new announcements to make.  The Chancellor started by running through the main economic statistics:

• Growth is slower than expected but only by a small amount but the future forecasted increases are still expected
• Inflation will hold at around 4-5% this year but then fall to 2.5% next year then the Bank of England target of 2% in the following year

The starting point for the areas which will affect us all was the statement that UK taxes are too complicated and 42 taxes and reliefs are being abolished and there is going to be a consultation on merging the Income Tax and National Insurance which will reduce bureaucracy for employers and HMRC in administration.  Then onto the actual details:

• Main corporation tax rate will reduce by 2% from April then 1% per annum read more

Capital gains tax and principal private residence

As people become increasingly mobile and time spent in one place reduces the rules for whether you get tax relief for any capital gains on your home become more important.  You get full relief for your principal private residence (PPR) however if you have more than one home or use it for business purposes you may not get the full relief.

If you live in one home from the time you buy it to the time it is sold this will be your principal private residence.  However circumstances do change and if the do so what are the rules? read more