Latest News

Are Christmas parties tax free?

Last year, the Covid-19 pandemic and national lockdown took Christmas parties (other than virtual ones) off the agenda. This year, to make up for lost time many employers have a date in the diary already. In this article we look into how you can celebrate the festive season without triggering a tax liability in the…
Read More

Reporting income from property on your self-assessment tax return

With the deadline soon approaching for filing your 2020/21 self-assessment tax return online (31 January 2021), if you haven’t already, you need to begin collating your records. As part of your return, you may need to tell HMRC about income you have received from property and in this article, we will cover whether this income…
Read More
Street featuring bed and breakfast

Directors loan accounts – Bed & Breakfasting Rules

Throughout an accounting period a director can withdraw monies from the company against the Director’s Loan account (DLA), the withdrawals usually being satisfied by the taking of a salary and/or bonus and/or dividends (dividends being preferable as no NICs are payable) or by repaying the monies withdrawn. By the end of the accounting period sufficient repayments…
Read More

Different ways of deferring CGT by selling or gifting a business asset

Capital gains tax (CGT) is levied on capital gains made on the disposal (including gifts) of most assets. However, if the disposal is of ‘business assets’ by a trader (including a personal trading company) then it is possible to defer the charge. Methods of deferral available for both self-employed and companies are most typically via…
Read More
London Skyline in Autumn

Autumn Budget 2021 Highlights

“Growth up, jobs up, and debt down: Let there be no doubt – our plan is working.” These were the opening remarks from Chancellor, Rishi Sunak, during his Autumn Budget announcement earlier today. He began with an overview of the economic landscape with the news of better-than-expected economic growth and a warning about inflation. Economic…
Read More
London Skyline in Autumn

Autumn Budget 2021 – What can we expect to be announced?

Chancellor, Rishi Sunak, will be announcing his Autumn Budget on Wednesday 27th October. As with every Budget and Spending Review, there is already plenty of speculation around about what we can expect to be announced, so we thought we’d try and summarise some of this in advance. There is a common feeling that this budget…
Read More
Question mark drawn onto window pane

How are dividends taxed?

Dividends have their own tax rules and their own rates of tax which can make it difficult to understand how dividends are taxed. The rules and the rates apply in the same way regardless of whether the dividends are paid from your personal or family company as part of a profit extraction strategy, or whether…
Read More

The New Health & Social Care Levy

A new health and social care tax will be introduced across the UK to pay for reforms to the care sector and NHS funding in England. A social care package, which the prime minister has called “the biggest catch-up programme” in the NHS’s history, will be funded through a new, UK wide 1.25% health and…
Read More

Mileage allowances for Employees

Making mileage payments to employees As the country emerges from the Covid-19 pandemic, business travel is once again on the agenda. Where employees undertake business travel, they will usually be able to claim the associated expenses from their employer. If the journey is by car, the easiest way to do this is for the employer…
Read More

Final SEISS Grant

The fifth and final Self Employed Income Support Scheme (SEISS) grant is available to apply for from the government. The scheme is available to anyone who is self-employed or a member of a partnership and thinks their business profit will be impacted by the pandemic between 1 May 2021 and 30 September 2021. You do…
Read More

Gifting property to children

No one likes the idea of the taxman taking a chunk of their estate when they die, particularly if it will be necessary to sell a much-loved property to pay the inheritance (IHT) bill. The introduction of the residence nil rate band (RNRB -set at £175,000) means that a couple can now leave combined estates…
Read More

Collection of Tax Debts

During the Covid-19 pandemic, HMRC paused much of their tax collection work, both to allow resources to be diverted to other activities, such as administering the various coronavirus support initiatives, such as the Coronavirus Job Retention Scheme and the Self-Employment Income Support Scheme, and to provide those whose finances were adversely affected by the pandemic…
Read More

Fab5 Feature – June

Welcome to June’s edition of Fab5, the last one prior to the refresh we have planned… You’ll have heard us mention that lockdown derailed many of our plans but at last we have good news – we’re getting them back on track. In the coming days we’ll be announcing something exciting, a fresh identity to…
Read More

Expenses and benefit returns for 2020/21

Expenses and benefits returns P11D and P11D(b) for 2020/21 need to be filed by 6 July 2021. Meeting this deadline is important as penalties may be charged for returns that are filed late. Form P11D A form P11D must be filed for every employee who has been provided with taxable benefits and/or expenses in the…
Read More

Buy to let or furnished holiday letting?

When looking for an investment property, there are various decisions that need to be made. If the intention is to let the property, one consideration is whether to go down the buy-to-let route or whether to look at a holiday let. From a tax perspective, holiday lets that qualify as furnished holiday lettings have their…
Read More

How does a directors’ loan account (DLA) work?

What is a DLA? A ‘Directors Loan Account’ (DLA) is an account in the company’s financial books that records all transactions between a director who is a participator (or another participator) and the company.Directors Loan Account’ (DLA) is an account in the company’s financial books that records all transactions between a director who is a…
Read More

Fab5 Feature – May

Welcome! With further restrictions being lifted from Monday, it felt right for this month’s Fab5 feature to be focussed on recovery. This month’s feature includes an article from one of our retail clients, an introduction to our newest team member and details of the Recovery Loan Scheme and reduced VAT. Pop the kettle on and…
Read More

Reduced rate of VAT

To help the hospitality and leisure industry recover from the impact of the first national lockdown, a reduced rate of VAT of 5% was introduced for a limited period from 15 July 2020. The reduced rate of VAT was originally to apply until 12 January 2021. However, in September last year, the Chancellor announced that…
Read More

Client spotlight: Non Essential Retail

With clients in both the retail and hospitality sector, we have witnessed first-hand the impact the last year has had on said businesses. No two businesses have been affected in the same way and every business owner has their own story to tell. To the relief of many, non- essential retailers were permitted to reopen…
Read More

Restart Grants and Recovery Loans

As lockdown restrictions are eased, businesses may need help to re-open and to recover from the impact of the pandemic. Depending on the nature of the business, they may be eligible for a Restart Grant or a Recovery Loan. Restart Grants The Restart Grant Scheme provides support to help businesses that were required to close…
Read More