Insights

Before your year ends

Question.   I have a small family business that is operated through a limited company with a 30 September year end. With less than a month to go to our year end, are there any things that I should be attending to?   Answer.   As a director of and shareholder in a limited company there are many items that you should attend to before your year end. A couple of ...

Warning to disclose unpaid offshore tax or face severe penalties

Question.   I read somewhere that HMRC have provided an opportunity for taxpayers to disclose offshore tax liabilities before the end of September or face much stiffer penalties. What is this opportunity and what happens if a taxpayer doesn’t meet this deadline?   Answer.   Taxpayers have only a few weeks left to disclose undeclared offshore tax liabilities to HMRC or risk a stiff penalty. Taxpayers who need to make a ...

What business clothes can I include in my expenses?

Question.   I work as a consultant in a specialist and high risk sector and I wear my own protective clothing when I am visiting manufacturing plants. Am I allowed to claim the cost of these clothes that I wear to work?   Answer.   The purchase of general clothing is not an allowable deduction for tax, as it could be worn for non-work purposes – the fact that you ...

Family Property Planning

Question.   I own a property which I have rented out for many years. It’s become a burden as there are endless maintenance issues to deal with and it’s becoming increasingly difficult to find reliable tenants. Ideally, I’d like to sell it as soon as possible. It was bought at the peak of the property boom so I will certainly make a loss on the sale. ...

Tax Implications of Gifting Shares

Question.   I am considering gifting some shares in my company to family members. The company is a trading company however holds some investments. Are there any potential tax implications of these gifts?   Answer.   There are essentially two important capital tax matters to consider when gifting shares in a company to family members. These are: Capital Gains Tax (CGT) and Inheritance Tax (IHT). The gift of business assets, ...

Tax benefits of providing electric cars to my staff

Question.   I own a small distribution business and we have introduced a “help the environment” initiative and my key salesman has just bought his own electric car and we have installed an electric charge point at the business premises. Are there tax implications for him by charging the car at the business premises?   Answer.   If an employer provides electricity to charge a company car, then no benefit ...

Tax credit renewal deadline

Question.   I have received my tax credit renewal forms to complete before the 31st July. If I completed one last year and there are no changes to my circumstances, do I still need to complete the form?   Answer.   Tax credits claims last for a maximum of one tax year from 6 April to following 5 April. Once you have made your claim you do not have to ...

Travel expenses and tax relief

Question.   I work for a engineering company and travel to work each day by car to the head office which is 20 miles from my family home. My job also occasionally involves travelling to clients or to one of our other provincial offices. As I don’t have a Company car what fuel costs can I claim tax relief on?   Answer.   As an employee you are entitled to tax-free ...

Declaring rental income on your foreign holiday home

Question.   I have recently sold my Spanish Holiday Home. I live in Belfast and have never declared any rental income as I believed it to be outside of the scope of UK taxation. Is this correct?   Answer.   All UK resident taxpayers are liable to income tax on their worldwide income regardless of the situation of the asset that generates the income. You should have declared the rental income ...

Planning my tax payments on account

Question.   I am due to make my 2nd Payment on Account before the 31 July 2018, to HM Revenue & Customs. My accountant advised me of my payment for the end of July some time ago but suggested that I could reduce the payment as my business profits have reduced in comparison to last year. What are the implications if I do not pay the full ...