Tax Tips

Overdrawn Director’s Loan Account

Question.   I have an overdrawn director’s loan account in my limited company. What are the tax implications if I do not have the funds to pay this back?   Answer.   An overdrawn director’s loan account may create tax implications for both the company and its director.   When a director who owns at least 5% (or less and loan greater than £15,000) of the ordinary share capital of a company, is ...

Transferrable Marriage Allowance

Question.   I got married a couple of years ago, and my wife works part-time. Some of my colleagues have said I am entitled to claim an additional allowance, is this correct?   Answer.   The transferable Marriage Allowance was first introduced in the 2015/16 tax year and should not be confused with the age related Married Couple’s Allowance which is for people born before 6th April 1935.   To be entitled to ...

VAT on property sale

Question.   I am selling my business premises to a developer who intends converting it to flats. I assume that I will charge VAT on the sale. Am I correct?   Answer.   The first thing to consider is the age of the property, as the sale of a new commercial building is always standard-rated for VAT. New in HMRC terms is a building less than three years from completion. If, ...

Cross Border Employment

Question.   I live in Newry and have been offered employment with a private company based in Dundalk and have been told I will be paying Irish tax. Is this correct and would I also have to pay UK income tax?   Answer.   The fact that your employer is situated in the Republic of Ireland (ROI) does not mean you will automatically be on an Irish payroll. If for ...

Tax implications on purchase of a commercial vehicle

Question.   I have recently bought a double cab pickup to use in my business, can I reclaim the VAT on the purchase? And are there any income tax implications?   Answer.   For tax purposes there are different treatments for cars and commercial vehicles. Usually a double cab pickup would be considered a car, however there is a clause for double cab vehicles to treat as a commercial vehicle ...

Restricting Finance Cost Relief for Individual Landlords

Question.   I rent out a property and I have heard that there are changes in the way relief is given on my qualifying mortgage interest deducted from my rental profits and this is being phased in over the next couple of years. Can you explain what the changes are and what this means for me as an individual?   Answer.   There are new changes which came into effect in ...

RoI Vat Registration

Question.   I am an electrician living in Newry, I am registered for VAT in the UK. If I carry out work in the ROI, do I have to register for VAT in the ROI also?   Answer.   There are specific rules relating to VAT on the supply of services and the corresponding VAT obligations arising from same. These rules stipulate in which country the supply is deemed to be ...

Employed or Self Employed

Question.   I have heard a lot of comments recently about the status of workers and as I engage quite a few small self-employed labourers, I would like to know if this has any impact for me.   Answer.   Quite often businesses will engage a self-employed person rather than an employee due to the nature of the work or length of contracts and this does not give rise to ...

Transborder Workers

Question.   I live in Co Louth and travel to Armagh daily to work in my own business, which is in Armagh. I have heard there is a relief for Irish residents working in Northern Ireland – can I claim this?   Answer.   Transborder workers relief is a relief for people resident in the Republic of Ireland who work and pay tax in another country, in your case Northern Ireland. ...

Electric Cars

Question.   I am considering replacing the company cars used by my employees with electric or hybrid cars as I have been advised that they are more tax efficient than petrol/diesel cars. Is this correct?   Answer.     There are a number of tax benefits available on the purchase of an electric/hybrid car.   The first point is that HMRC has no special VAT breaks for electric cars and hybrids. There is ...

One thought on “Tax Tips

  1. Pingback: Tax | Pearltrees

Comments are closed.