Insights

Tax Implications for commercial rentals

Tax Implications for commercial rentals

Question.   I have a Northern Ireland incorporated company which has recently acquired an Irish company which owns a rental property. I am considering renting the property out on a commercial basis and providing ancillary services such as meals, transport and cleaning. I was born in Northern Ireland and currently reside in the Republic of Ireland. What are the general tax implications of my situation?   Answer.   If your UK ...

Payslip law changes from April 2019

Payslip law changes from April 2019

Question.   I operate a small business with 35 employees who work different shift patterns and hours each month. What payslip changes came into force in April 2019?   Answer.   The law requires that a payslip is provided to all employees each time they are paid. The exception to this legal requirement means that for the following there is no obligation to provide a payslip, non-employees: contractors, freelancers and workers. ...

Penalty warning for those who enrol too early for Making Tax Digital

Penalty warning for those who enrol too early for Making Tax Digital

Question.   I am VAT-registered and I have sales of about £200,000 per annum so I believe I have to register for Making Tax Digital for VAT. When must I do this by as I have read that there may be penalties applied if I register at the wrong time?   Answer.   The 1st April marked the introduction of Making Tax Digital (MTD) but businesses need to be aware that ...

The risks of buying property for your children

The risks of buying property for your children

Question.   I would like to help my daughter on to the property ladder, but I am concerned about the risks involved and the possible loss of family wealth if she enters a future relationship which fails. She has just finished university and is hoping to buy a house with her boyfriend. He’s still studying and can’t get a mortgage, so I would like to give ...

Tax Implications of Shareholder Protection Insurance

Tax Implications of Shareholder Protection Insurance

Question.   I have formed a company with three other individuals and we have been advised to have a Shareholders Agreement prepared. We are also taking out Life Insurance (Shareholder Protection Insurance). What it are the tax implications of Shareholder Protection Insurance?   Answer.   You are very wise to have a Shareholders Agreement prepared and also to insure each other’s lives under a Share Protection Policy. A Share Protection ...

Making Tax Digital has started but don’t jump the gun

Making Tax Digital has started but don’t jump the gun

Question   I am a VAT registered business and I have received correspondence from HMRC in relation to registering for Making Tax Digital. What do I need to do to be compliant and should I register immediately to Making Tax Digital?   Answer.   From last Monday, 1st April, an estimated half a million VAT registered businesses must comply with the requirements of Making Tax Digital. But businesses need to ...

Irish Income Tax Liability for Secondees

Irish Income Tax Liability for Secondees

Question. I have businesses in Belfast and I need to second staff from Belfast to Dublin for a period. Will I have to operate an Irish payroll. Answer.   Whether you will be liable to operate an payroll will depend on the length of the Secondments. The Irish Tax Law for secondees or Short Term Assignees (STA’s) is complex and has developed following updated legislation published in December 2016 ...

Last minute tax planning before the end of the tax year

Last minute tax planning before the end of the tax year

Question.   With the tax year end fast approaching, is there any last minute tax planning that I should be considering?   Answer.   With just over one week to go to the end of the UK Income Tax Year on 5 April 2019 there is still time to undertake income and capital gains tax (CGT) planning to avail of any reliefs still unused. The Capital Gains Annual Exemption is currently ...

Making Tax Digital starts on 1 April – Are you ready?

Making Tax Digital starts on 1 April – Are you ready?

Question.   I run a small business and I have received a letter from HMRC about Making Tax Digital for VAT and a deadline of 1 April. What do I need to do?   Answer.   The countdown is on until the UK Government’s digital tax reporting system, Making Tax Digital, opens for VAT-registered businesses on 1st April 2019.   The Making Tax Digital (MTD) initiative is designed to bring the UK’s ...

The complexities of Entrepreneur’s Relief

The complexities of Entrepreneur's Relief

Question.   I want to transfer some shares in my trading business to my sons while ensuring that all the shareholdings remain tax efficient if the company is sold in the future. In particular, I want everyone to benefit from entrepreneur’s tax relief if we sell the company, so that we all only have to pay 10% capital gains tax. Are there any conditions I need ...