News

New Research and Development tax relief plan with ‘advance assurance’ to boost SME usage.

Question. I own a small company and I think I may be carrying out product and process improvements that may qualify as Research and Development for tax relief purposes. How can I find out whether my product development meets the necessary conditions? Answer, Entrepreneurs and small company business owners are faced with many uncertainties and issues they need to address in order to ensure their company is able ...

PKF-FPM Optimistic We Can Get Director Michael Farrell Released on Bail on Saturday!!!

Michael is spending the night in Crumlin Road Gaol on Friday 5th November 2015 for ‘cooking the books’, of course we know this is not true and are hoping everyone will get behind us to have Michael released.  Hopefully we will have Michael back in the office bright and breezy on Monday morning. Please free feel to donate at: http://www.downgaa.net/jail-break  

Tax savings of operating my property rental business through a company

Question. I own a portfolio of 12 properties and currently have outstanding loans on these. As a result of the recent changes to the tax deduction on loan interest and wear and tear allowance, I am considering incorporating my rental property business, is this something that you would advise a landlord to do? Answer. Due to the recent changes announced by HMRC relating to the tax deductibility of ...

Don’t be spooked by the 31 October tax return deadline

Question. As a small business owner, I have read that my tax return for the year ended 5 April 2015 is due by 31 October. Is this correct? I thought I had until the end of January next year to submit my tax return. Answer. There are two ways to submit your tax return. You can either send a paper tax return to HMRC or submit your ...

Loans to directors – when is a repayment “taxable”?

  Question. I had a loan from my company which was outstanding at the end of the year and a dividend was approved at the AGM to clear my loan account. I also took further loans from the company after the year end and I have heard about the changes introduced in Finance Act 2013 which may impact the tax treatment of the repayment of these loans? Answer. It ...

For Better Or Worse

Question. We are selling a property which used to be our family home, but it has been let out to tenants for the last five years. Are we entitled to capital gains tax relief? Answer. One of the tax benefits of marriage used to be the previous ‘married man’s allowance’. In 1988 however, the then Chancellor Nigel Lawson finally struck a blow for women’s rights not seen since ...

Are you paying your employees enough?

Question. As an employer, I have heard that there are new national minimum wage limits being introduced. How do I ensure I comply with these and what can I do to correct an underpayment to an employee? Answer. From the 1 October 2015 the adult rate of the National Minimum Wage will rise by 20 pence from £6.50 to £6.70 per hour and there is a further increase ...

The settlement of undeclared tax liabilities under favourable terms

Question. I have recently approached an accountancy firm to discuss a disclosure of income that I need to make to HMRC. The disclosure relates to overseas bank interest, undeclared income dating back to the 1980s and capital gains tax on the disposal of a property in Dublin in 2000. My accountant advised me that HMRC can go back 20 years to review my tax affairs. I ...

Tax on the Family Home

Question: We are selling a property which used to be our family home, but it has been let out to tenants for the last five years. Are we entitled to capital gains tax relief? Answer: If you have previously lived in the property you are selling or giving away, you are able to claim ‘principal private residence relief’ (PPR) and reduce the amount of capital gains ...

New powers to directly collect unpaid tax

Question. I have heard that HMRC have received new powers to collect unpaid tax direct from a taxpayers bank account. In what circumstances can they do this?  Answer. George Osborne first announced in the 2014 Budget that he would be giving HMRC the power to collect debts directly from taxpayers’ bank accounts. The legislation included in the Finance Bill 2015–16 does not include all of the ...