Read how making use of statutory exemptions for certain benefits-in-kind offers an opportunity to extract funds from a family company without triggering a tax charge.
Timing the date of a dividend payment from a company can determine both the amount and the due date of the tax payable. This may be a particularly useful strategy in a close or family-owned company.
A member’s voluntary liquidation (MVL) can be an attractive option when the taxpayer’s personal circumstances are such that it is beneficial for the remaining funds to be taxed as capital (and liable to capital gains tax), rather than as a dividend. However this depends upon the level of funds to be extracted the costs of the liquidation may be more than covered by the tax savings that can be achieved.
Employees with a company car are taxed – often quite heavily – for the privilege. The charge is on the benefit which the employee derives from being able to use their company car for private journeys. The rates are different if it’s a diesel car.
As part of its efforts to encourage us all to choose more environmentally friendly ways to travel the Government has put in place some beneficial tax arrangements for users of electric cars.
Some small businesses can choose to use the ‘cash basis’ when calculating taxable income, under which participants are taxed on the basis of the cash that passes through their books, rather than being asked to undertake complex and time-consuming calculations designed for big businesses.
If you have an entrepreneurial spirit and are starting a business, tax is often the last thing on your mind. Here we set out some of the things that need to be considered from a HMRC tax perspective
If a member of staff regularly visits other offices or is seconded to a different workplace they maybe able to benefit from claiming tax free travel expenses.
HMRC has updated its guidance for R&D expenditure credit (RDEC) which replaced the large company scheme in April 2016.
Entrepreneurs’ relief is there to reduce the rate of capital gains tax to a flat rate of 10% on certain qualifying business disposals. Selling shares in the business that has been nurtured and grown over the years can be an emotional experience as well as it being a significant asset – quite often it can be more valuable than the family home so it’s important to apply Entrepreneurs’ relief correctly.