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Using your car for work and claiming for passengers

30 Aug, 2017

Do you use your own car for business purposes? If so, you may be able to claim a tax-free allowance from your employer known as a Mileage Allowance Payment or MAP. The allowance is paid when employers use their own car, van, motorcycle or bike for work purposes. It is important to note that this tax-free allowance is not available for journeys to and from work, but is available to employees who use their own vehicles to do other business-related mileage.

Advisory fuel rates for company cars

30 Aug, 2017

The latest advisory fuel rates became effective on 1 September 2017. Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December. You can use the previous rates for up to 1 month from the date the new rates apply.

The rates are as follows:

Tax-Free Childcare Scheme compensation

30 Aug, 2017

HMRC has announced the launch of a new compensation scheme for users affected by system issues when trying to register to the new Tax-Free Childcare Scheme (TFCS). The TFCS was launched in April 2017 to the first tranche of working parents. The scheme was initially made available to working parents of children aged under 4 on 31 August 2017.

When do you qualify for the Additional State Pension?

30 Aug, 2017

The Additional State Pension is only available to those who reached the state pension age before 6 April 2016 and are receiving the Old State Pension. The Additional State Pension is an extra amount of money paid on top of the basic Old State Pension.

The Old State Pension is designed to provide individuals of state pension age with a basic regular income and is based on National Insurance Contributions (NICs). To get the full basic State Pension, most people need to have 30 qualifying years of NICs.

Who are people with significant control?

30 Aug, 2017

The register of people with significant control (PSC register) lists individuals who exert significant control over UK companies and came into effect 6 April 2016.

A PSC is anyone in a company or LLP who meets one or more of the conditions listed in the legislation. This is someone who:

Tax Diary September/October 2017

24 Aug, 2017

1 September 2017 - Due date for Corporation Tax due for the year ended 30 November 2016.

19 September 2017 - PAYE and NIC deductions due for month ended 5 September 2017. (If you pay your tax electronically the due date is 22 September 2017)

19 September 2017 - Filing deadline for the CIS300 monthly return for the month ended 5 September 2017.

19 September 2017 - CIS tax deducted for the month ended 5 September 2017 is payable by today.

Costs that qualify for Research & Development Relief

23 Aug, 2017

Small and medium-sized companies can claim R&D tax credits of 230% of qualifying expenditure incurred on or after 1 April 2015. This article lists a summary of costs that can be considered for this relief, broadly, if they contribute directly to seeking an advance in science or technology. They are:

VAT partial exemption

23 Aug, 2017

A business that incurs expenditure on taxable and exempt business activities is termed as partially exempt for VAT purposes. In essence, the business has to make an apportionment between the exempt and chargeable activities using a 'partial exemption method'. This is required in order to calculate how much input tax is recoverable.

What is the wholly and exclusively rule?

23 Aug, 2017

When deciding if an expense is deductible or not for tax purposes it is important to consider if the expenditure was incurred wholly and exclusively for the purposes of your trade or employment. This is a difficult starting point as there is often a fine line dividing what meets the ‘wholly and exclusively’ rule and what does not.

In general, HMRC takes a slightly more relaxed view than a strict reading of the legislation would suggest. HMRC’s own internal manuals offers advice to HMRC inspectors to exercise care when applying the test.

Terminal losses for the self-employed

23 Aug, 2017

There are a number of different reliefs available to the self-employed or members of a trading partnership that suffer tax losses, and a number of ways these losses can be used.

One commonly used relief, is terminal loss relief. This relief is available to businesses that suffer a loss in the last year of trade. Terminal loss relief allows for the carry back of any trading losses that occur in the final 12 months of trading to be set off against profits made in any or all of the previous three tax years.

Running a business from home?

23 Aug, 2017

Anyone running a business from home should check if they need permission to do so: from a mortgage provider or landlord. Your local council may also need to be notified, for example, if you need a licence to run a home-based business. Running a business from home may also create a charge to business rates and might affect property insurance costs.

Other business costs you may need to consider include:

What is Form 17?

23 Aug, 2017

As a general rule, the fall-back position for couples who live together with their spouse or civil partners is that property income held in joint names is divided 50:50. This is regardless of the actual ownership structure. However, where there is unequal ownership and the couple want the income taxed on that basis a notification must be sent to HMRC together with proof that the beneficial interests in the property are unequal. This is done using Form 17 published by HMRC.

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