Tax Tips

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 ...

IHT Free Gifts

Question.   I understand that the ability to make gifts free from inheritance tax could be about to change. Is this correct?   Answer.   In January 2018 Chancellor Philip Hammond wrote to The Office for Tax Simplification requesting a review into the inheritance tax regime including how current gift rules interact with the wider inheritance tax system and whether the current framework causes any distortions to taxpayer’s decisions. It ...

Sugar Tax Explained

Question.   I own a newsagents in Newry and have heard about the Sugar Tax that was introduced from 6 April 2018. Can you explain what it is?   Answer. The sugar tax, otherwise known as the Soft Drinks Levy is not a tax on consumers but will apply to the packagers and importers of soft drinks and low alcoholic drinks (alcoholic content of up to 1.2%) containing added ...

Making Tax Digital

Question.   I am a VAT registered business and have been advised that I may need to implement Making Tax Digital, what is this and how will it have an impact on my business?   Answer.   Making Tax Digital, or MTD for short, is a key part of the government’s plans to modernise the tax system and make it easier for individuals and businesses to get their tax right based ...

VAT Capital Goods Scheme

Question.   I intend on selling existing property which we had bought in 2010 when it was new and had reclaimed the VAT in full as it had been used fully for our taxable business. Would there be any VAT issues on the sale?   Answer.   Assuming the existing property was bought for more than £250,000 + VAT and was done so within the last ten years, the disposal is ...

Termination Payments

Question.   Are all termination payments to employee’s tax free up to £30,000?   Answer.   Termination payments are made to employees for all sorts of reasons, but the first thing to understand is that there’s no automatic entitlement to pay the first £30,000 tax–free, and if the employer gets it wrong it’s the employer who ends up paying the tax, plus interest and possibly even penalties, while the employee ...

Utilising Allowances

Question.   I want to check if I have used my tax allowances effectively in 2017/18. What should I look at?   Answer.   A good starting point is to ensure your employer has used the correct tax code in their payroll. If your income is below £100,000 your personal allowance should be £11,500, therefore your tax code will be 1150L (£11,850 and 1185L after 6 April 2018). If you have ...

VAT Fuel Sale Charge

Question.   I am the sole director of my own company and I regularly use my private car for business journeys, can I reclaim the vat on the fuel purchased.   Answer.   There are different ways for a business to recover vat on fuel purchased, providing the business is not using The Flat Rate Scheme. The business can either claim back all the vat incurred and pay the correct ...

What VAT will I be charged on residential renovations?

Question.   I recently bought a vacant house at a property auction as an investment. I intend to get it renovated to enable me to let it. When I built my own home I was not charged VAT, however the same builder is now charging me VAT on this work. Is this correct?   Answer. The construction of a new residential dwelling is zero rated and this would be ...

Non Resident RCT Reclaims

Question.   I am a building contractor based in Newry and worked in ROI for several months during the year. I was required to register for Relevant Contracts Tax (RCT) and received notification that my deduction rate was 20%. Therefore the principal contractor deducted 20% RCT from all my payments, can I reclaim the RCT tax deducted from Revenue Commissioners and if so how do I ...

One thought on “Tax Tips

  1. Pingback: Tax | Pearltrees

Comments are closed.