Insights

Builder goes South to win new work

Question.   I am a building contractor resident in Northern Ireland. To date, all of my work has been based in Northern Ireland. I recently accepted a job renovating a house in Dublin and am concerned about the Irish VAT implications of same. Can you please advise what I need to do?   Answer.   There are special VAT rules within the construction industry and the status of your customer and ...

It’s that time of year again

Question: With the 6th July deadline approaching for employers to report employee benefits and expenses I am aware of changes brought in on 6th April 2016. Can you explain the main changes that an employer needs to be aware of?   Answer: For employers who provide non-cash benefits to employees, the run-up to 6 July can be a busy time as that is the deadline for telling HMRC ...

Guests to say ‘I do’ to wedding gift tax relief

Question. I am attending a family wedding next month and I want to understand the tax implications of making a gift to the happy couple. Answer. As Pippa Middleton, sister to the Duchess of Cambridge, walked down the aisle recently, marking the start of the wedding season, and as the bride of a multimillionaire hedge fund manager, Pippa has probably spent some time considering her financial position ...

Splitting income from properties between married couples

Question:   My wife and I have some properties in joint names but as I put in the most money to buy the properties, it seems only fair that I get the lion’s share of the income from them too. However, I have been told that any income from the properties must be split 50/50 – is this true?   Answer: The renting out of property by individuals ...

The new saving fund called LISA

Question: I am in my mid-twenties and I have just started my own business. I am thinking about investing in the new Lifetime ISA. Can you explain how it works?   Answer:   The government’s new Lifetime Individual Savings Account (LISA) is available from 6 April 2017. Announced in the Budget back in March 2016, Lifetime ISAs are a new tax-efficient savings scheme designed to help people aged 18 ...

The Rising Cost of Staff Pay

Question: I have a small team and have heard that the National Living Wage is due to go up in April 2017 – could you please tell me by how much? Answer: The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker’s age and if they are an apprentice.   The Government’s National ...

The changing world of dividends

Question:   I own a company and extract a salary of £10,000 per annum and a dividend of £30,000. For 2015/16, I paid no income tax on this income. I know there has been changes to how dividends are taxed. Can you explain what my tax liability will be in 2016/17 and what impact the recent budget will have on my income for the forthcoming tax year ...

All change for workers in the public sector

Question: I operate my own company and I provide my services to a number of public authorities and to the private sector. One of the public sector organisations is going to start deducting PAYE and NIC from payments to me. They say this is new legislation. I am confused and don’t know what to do.   Answer:   There are estimated to be more than 250,000 personal service companies ...

Planning for tax before the end of the tax year

Question: The tax year is almost over. What can I do to structure my business and personal finances so that they are as tax efficient as possible? Answer: The end of the tax year on 5th April is fast approaching, and this is always a good time of year to think about ways to structure your business and personal finances so that they are as tax-efficient ...

Budget 2017 – a taste of Spring?

Question: What were the main announcements in the Chancellor’s Budget last Wednesday? Answer: The Chancellor, Philip Hammond, delivered his first Budget last Wednesday and it was the first of two due in 2017. The final spring Budget came little more than three months after an Autumn Statement that suggested government finances had taken a post-referendum turn for the worse. However, the latest short-term economic numbers turned out much ...