Tax Tips

Incorporation of Rental Business

Question.   I own a few rental properties and due to recent restrictions on mortgage interest I am thinking of transferring the properties into a Limited Company, will I get incorporation relief?   Answer.   It will be a question of whether your rental property portfolio is classed as a business or whether the rental properties are just held as investments. There must be a genuine business carried as this is ...

National Insurance Changes

Question.   I have several self-employed clients all of whom are subject to the Class 2 national insurance rules and currently pay contributions. I had been reading that Class 2 was to be abolished but now I have heard recently that this is not happening. Is this correct?   Answer.   Class 2 National Insurance Contributions are payable by the self-employed. The contributions are payable at a flat rate and entitle ...

Reminder to file your tax return

Question.   I have received a reminder from HM Revenue & Customs to file my 2017/18 tax return. I always file mine online in January. Why do they want it submitted earlier?   Answer.   The tax return filing deadline for manual tax returns is fast approaching on 31 October 2018, but there is an extended deadline for online submissions of 31 January 2019. These are, however, the very latest dates ...

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 ...

One thought on “Tax Tips

  1. Pingback: Tax | Pearltrees

Comments are closed.