To the latest edition of Tax Tips & News, our monthly newsletter designed to bring you tax tips and news to keep you one step ahead.
If you need further assistance just let us know or you can send us a question for our Question and Answer Section.
We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.
Please contact us for advice in your own specific circumstances. We’re here to help!
New Employee Shareholder Status
The Government thinks that employees who own shares in their employing company feel more involved in that business and hence are happy and loyal employees. So it has introduced a new share scheme from 1st September 2013 which allows you, as an employer, to give your employees tax-free shares in your company, but in return the employees must give up some key employment rights. – click here to read more >>
Contractor Loan Schemes
Have you taken part in a contractor loan scheme? This is a tax saving scheme which was widely sold to workers in personal service industries, such as IT contractors. – click here to read more >>
Child Benefits When Your Child Turns 16
If you have a child aged 16, check whether you are still receiving all the child benefit and child tax credits you expect to. – click here to read more >>
VAT on Sale of Commercial Buildings
When purchasing or selling a commercial property one of the first things to establish is whether VAT will be applied to the price of the property. Land and buildings are generally exempt from VAT, but ‘new’ commercial property (i.e. less than three years old) will have VAT applied. Otherwise VAT should only be charged on the sale of a commercial property where the seller has previously elected to apply VAT to the property. This election is known as the ‘option to tax’. – click here to read more >>
October Question and Answer Section
Q. There is an offer in my area to lease an electric car for two years, to help test the electric charging infrastructure installed by the council. Can my company take advantage of the tax breaks if I lease the car?
A. No. If the lease for the car is in your personal name your company cannot claim the 100% capital allowances which are available for electric and low-emissions vehicles. If the car will be used for your business we can help you crunch the numbers to see if it would be worthwhile for your company to purchase or lease the car and claim the allowances. However, from 6 April 2015 there will be a tax charge for your personal use of the electric car.
Q. My daughter is now studying at University, but she worked full-time after leaving school in June and had tax deducted from all of her wages. Can she claim that tax back now, or does she have to wait until the end of the tax year?
A. She can claim the tax back now, and doesn’t have to wait until the end of the tax year on 5 April 2014 to receive her tax refund. She needs to complete form P50 and send to HMRC.
However, if she expects to work again in the Christmas holidays, she may want to wait until she has completed that stint of work to reclaim all of the tax deducted in one go.
Q. I’m going to represent my company on an official UK trade mission to Australia, organised by my trade body. It will involve meetings with Australian potential clients over four days in two cities. My wife will accompany me on the trip, but she will not take part in the meetings. We will stay on in Australia to enjoy a short holiday. How should I split the costs between business and personal?
A. Your wife’s share of the costs, such as air-fares and hotel bills, are not a business expense, so you need to personally reimburse your company for those costs. Any expenses relating to the holiday part of the trip (e.g. hotel and car hire expenses) should also be borne by you personally, not by your company.
October Key Tax Dates
1 – Due date for payment of Corporation Tax for the year ended 31 December 2012
5 – If a Tax Return has not been received, individuals and trustees must notify HMRC of new sources of income and chargeability in 2012/13
14 – Return and payment of CT61 tax due for quarter to 30 September 2013
19 – Tax and Class 1B NI due on PAYE settlements for 2012/13
19/22 – PAYE/NIC and CIS deductions due for month to 5/10/2013 or quarter 2 of 2013/14 for small employers
31 – Deadline for 2012/13 self assessment paper returns to be filed for HMRC to do the tax calculation. If a paper return is being filed also the deadline for tax underpaid to be collected by adjustment to your 2014/15 PAYE code (for underpayments of up to £3000 only)