As you may be aware motor cars used in a business that emit no more than 95g CO2 per kilometre qualify for a 100% capital allowance. This threshold reduced from 110g back in April 2013 and there are now fewer cars that qualify for this generous tax relief. However, if your business can afford one, […]
Protect Your Pension from 55% Tax Charges
HMRC has just issued a reminder that the deadline to protect large pension funds from the decrease in the lifetime allowance is fast approaching. Lifetime allowance. There is a limit to the size of a pension pot that qualifies for tax breaks. If your pension fund exceeds this limit, the lifetime allowance, then there will be […]
The Employer’s £2,000 NIC Allowance
This valuable allowance is due to start for all businesses on 6 April 2014, and simply exempts the employer from the normal employer NICs of 13.8% of the earnings paid. The mechanics are that the allowance will be obtained via standard payroll software and HMRC’s RTI system. A facility will be added to the RTI […]
Transferable Tax Allowance for Married Couples
From 2015/16, married couples and civil partners can transfer up to £1,000 of their personal allowance to their partner, but only if neither individual pays tax at the 40% rate. It is therefore a modest tax break, worth a maximum of £200 each tax year, but every little helps (as we are often reminded)! The […]
Tax issues for UK Vodafone shareholders
Following the announced sale by Vodafone of its stake in a US mobile phone network, Verizon Wireless, what are the UK tax implications for owners of Vodafone shares? The deal. It’s anticipated that Vodafone shareholders will receive shares in Verizon Communications, Verizon Wireless’s parent (with the base cost for capital gains tax purposes split between […]
High Income Child Benefit Charge (HICBC)
The HICBC was introduced on 7 January 2013 and applies to couples where: One partner has received Child Benefit payments after 7 January 2013, and Either partner has income in excess of £50,000 a year. The person with the highest income, if both are over £50,000, will be liable to pay the charge. It will […]
100% Tax Write-off for a Low Emission Car
If you buy a new car for your business that has CO2 emissions of no more than 95g/km, you can claim a full deduction against your business profits. There are approximately 30 cars that fall into this category, but the list is growing. If you run your business as a limited company, the private use […]
The High Income Child Benefit Charge & How to Avoid It
HOW IT WORKS In 2012/13 and later tax years, a proportion of the child benefit received by an individual may be taxable if the individual has “adjusted net income” exceeding £50,000 and either: a. he was entitled to child benefit for any week in the tax year, and no other person who was his partner […]
Budget 2013 implications for Directors Loan Accounts
Budget 2013 announced various anti avoidance measures aimed at “loans to participators”, this is the technical term for what we call “your overdrawn directors loan account”. The Rules Where a company makes a loan or advance to a participator (which to all intents and purposes means you as a director), it must account for tax […]