Tax E-News November 2023
Welcome to the November edition of Tax E-News. We hope that you find this informative.
Please contact us if you wish to discuss any matters in more detail.
Below we set out some of the main points.
SALARY OR DIVIDEND BEST IN 2023/24?
In recent years many accountants have advised their director/shareholder clients that the most tax efficient method of extracting profit from their family company was to pay themselves a low salary, at or around the £12,570 personal allowance, with the balance in dividends…
YEAR END PLANNING IDEAS FOR YOUR BUSINESS
As mentioned above it is always a good idea to set up a planning meeting with us a couple of months before your business year end so that we can advise you on the best actions to take to reduce your taxable profits. In addition to considering paying yourself a bonus from your company you might consider…
NOT ALL LLP MEMBERS ARE SELF-EMPLOYED
Since April 2014 members of a LLP are no longer automatically treated as self-employed for tax purposes. A recent case before the Upper Tax Tribunal has examined the tax status of 82 members of an LLP and found that most of them should be taxed as employees not self-employed…
HMRC CHALLENGES LLP SCHEME FOR PROPERTY BUSINESSES
HMRC have recently published Spotlight 63 which alerts taxpayers to a marketed tax avoidance scheme that claims to help taxpayers reduce the tax payable on their property rental profits.
The HMRC view is that the “hybrid” structure involving an LLP with individual and corporate members does not have the tax savings that the scheme promoters claim…
CHARGING ELECTRIC CARS AT HOME
HMRC have recently clarified their view of the tax treatment of the reimbursement of electricity costs where employees charge their electric company cars at home. HMRC now accepts that reimbursing part of a domestic energy bill, which is used to charge a company car or van, is exempt from income tax. Their previous view was that such reimbursements were taxable…
RECLAIMING INPUTVAT ON THE SALE OF SHARES
The sale of shares is an exempt supply for VAT purposes, which means that input VAT on professional fees in connection with the transaction cannot be claimed. However, a recent tax tribunal decision has determined that, under certain circumstances, the input VAT may be claimed…