Tax Tips

Changes to Tax Liability

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 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 ...

Changes to Tax Liability

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 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 ...

Payroll Benefits

Question. I am an employer and have started to pay medical insurance for my employees. How do I report this to HM Revenue & Customs? Answer. As you have missed the registration deadline for online reporting for the tax year 2016/17 you will need to complete both Plld & Plld 9(b) for 2016/17, deadline for submission if these forms is 6th July 2017.   Form P11D should be prepared ...

Sales of goods to Irish Business

Question. I own a Vat registered business based in Newry. Should I charge Vat on the sale of goods to my Vat registered customers in the Republic of Ireland? Answer.   You can zero rate the supply of goods if the customer provides their Irish VAT registration number, business details and if you arrange for the product to be delivered to the business address in the Republic of ...

Gift Aid Payment

Question. I am considering donating a sum of money to a charity and have been asked to make a Gift Aid declaration. What is Gift Aid and are there any tax implications for me?   Answer. Gift Aid allows charities and community amateur sports clubs (CASC) registered with HMRC to claim the basic tax rate paid by qualifying donors. This, in effect, increases the value of the donation, while ...

Capital Allowances Relief

Question. I have recently started trading and my business is currently incurring large amounts of capital expenditure, what tax relief is available for this expenditure? Answer. If you buy an asset, for example computer equipment, machinery or buildings for use in your business, you cannot deduct this expenditure from your trading profits. However, if it is a qualifying asset you will be able to claim capital allowance ...

Small Gift Exemption from Irish Payroll

Question.   I operate part of my business in the Republic of Ireland and operate southern payroll. As my business performed very well, as a gesture of my gratitude I would like to give a gift or bonus to my southern based employees. Is there any non-taxable gifts or bonus that I could give?   Answer.   Unfortunately there is not that many non-taxable Benefits-In- Kind available, however one that would ...

BPRA Relief

Question. I am considering purchasing a derelict commercial property, the property requires major renovation works to bring it back in to functional use. Will I get tax relief on the renovation costs? Answer Business premises renovation allowance (BPRA) was introduced with effect from 11 April 2007 to provide an incentive for businesses to tackle derelict shops and empty business premises and to bring them back into productive use. Under ...

HMRC PAYE Penalty Notices

Question.   I have received penalty notices from HM Revenue & Customs for late payment of PAYE for the last 2 months. I pay by cheque each month and cheques were posted on or before the 19th of the following month. Why would I have got a penalty and how much will I pay?   Answer. Late payment notices are issued when liability amounts are either not paid in full ...

Is Irish VAT registration required

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 ...

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