Tax free gains

 There are a number of assets that you can sell at a profit without paying capital gains tax (CGT) on the sale. They include: Any car that is owned personally, and not by a business. Personal possessions worth up to £6,000 each. For example jewellery, paintings or antiques. Stocks and Read more…

Charity based tax schemes quashed

HMRC have had recent successes in the courts that have neutralised tax schemes utilising charity tax reliefs. Here’s what they have to say on the GOV.uk website: HM Revenue and Customs (HMRC) successfully challenged the tax avoidance scheme used by Nicholas Green and designed by Afortis Limited as part of Read more…

Tax anomalies

Institute for Fiscal Studies director, Paul Johnson, recently spoke at the annual Chartered Tax Advisor Address. He pointed out a number of the unnecessary complications and policies that have left the UK tax system more complex and less efficient.  “For example: There is a basic rate of income tax of Read more…

Why it\’s important to plan

Consider this case study: Bill Smith, a self-employed electrician, purchased a brand new van 15 March 2014 for £18,000. Due to a downturn in the local economy his trading profits for the year to 31 March 2014 were just £9,400. Fortunately, he had secured a number of regular contracts for the Read more…

NIC employment allowance

HMRC have published further clarification regarding who can, or cannot, claim the new £2,000 a year NIC Employment Allowance. Extracts from the update are set out below: Public authorities Public authorities (such as local authorities, town councils and parish councils) are not eligible for the Employment Allowance unless they have Read more…

Small business VAT scheme

If you are a registered VAT trader and your present turnover is below £150,000 you may be advised to take a look at the VAT Flat Rate Scheme (FRS). FRS users pay VAT as a fixed percentage of their total sales including VAT. You still add 20% VAT to your Read more…

International tax competitiveness

David Gauke, the Exchequer Secretary to the Treasury, recently gave a speech to the Lord Mayor’s Taxation Forum. His presentation focussed on international tax competitiveness, and how the UK’s system fares compared to our overseas competitors. Here’s an extract of his comments: Competitiveness “Since 2010 we’ve cut corporation tax from Read more…

Second incomes under HMRC microscope

In the first week of April 2014 HMRC issued guidance on its latest tax gathering campaign. The target group this time is UK taxpayers who have second incomes and are not presently declaring these income streams on their tax return. The information published by HMRC about the scope of the Read more…