Company cars are a popular benefit and are often something of a status symbol. But, they have also been an easy target for the taxman. Where a company car is available for private use, the employee is taxed on the associated benefit that this provides. The amount that is charged to tax – the cash…

The VAT flat rate scheme is a simplified VAT scheme, which allows small traders (turnover of less than £150,000 excluding VAT) to account for the VAT that they pay to HMRC by reference to a percentage of their VAT-inclusive turnover. Prior to 1 April 2017, the flat rate percentage depended only on the business sector…

The National Insurance employment allowance can reduce an employer’s National Insurance bill by up to £3,000 – but not all businesses can benefit. Nature of the allowance Where available, the allowance is set against the employer’s secondary Class 1 National Insurance bill. The allowance, set at £3,000, reduces the National Insurance payable by the employer…

Cash basis threshold increased The cash basis is a simpler way for smaller businesses to work out their taxable profit. Under the cash basis, profit is calculated by reference to cash in and cash out, rather than by reference to income earned in the period and expenditure incurred, as is the case under the traditional…

The Summer Budget included a new tax break for homeowners whose estates are worth enough to be liable to inheritance tax. So how will the new tax allowance work and is there any planning you should be doing to take advantage? Election promise During the run up to the general election the government made promises…

Higher rate tax relief will be restricted for buy-to-let landlords on the costs of finance, including mortgage interest, from 6 April 2017 onwards. The change is being phased in over three years. All finance costs (not just loan interest) will no longer be an allowable expense when calculating your taxable rental profits. Finance costs include…

VAT isn’t usually the first thing you think about when you are considering starting up a new business, but there are a few simple things you should keep in mind to make sure you don’t miss out, even if you don’t intend to register for a few years until your turnover breaches the registration limit.…

Before any business can start to trade, there is a certain amount of expenditure that is inevitably incurred. For example market research; kitting out of business premises; financial advice in preparing business plans; travel costs; supplies; advertising etc. Although the business bank account doesn’t exist yet, you can still get tax relief on these vital business costs…