Tax Tips

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 ...

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 ...

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