COVID-19: Support for Businesses

Further to the developing situation surrounding the coronavirus pandemic, this post is to update you on planned financial support for businesses from the government. The Chancellor has set out a package of temporary measures to support public services, people and businesses through this period of disruption caused by COVID-19. This includes a package of measures to support businesses including: a …

Changes to off-payroll working rules (IR35)

UPDATE: This has now been delayed until April 2021 because of the spread of the coronavirus (COVID-19) pandemic. The delay is to help businesses and individuals deal with the economic impact of COVID-19. As part of a review into changes to the way the off-payroll rules (IR35), HMRC has announced that the changes will only apply to payments made for services …

Decrease your tax liability with Venture Capital Trust (VCT) investments

In a previous post, we discussed ways to decrease your tax liability by investing in companies registered under the SEIS and EIS schemes. These schemes are a highly tax-efficient, though tax relief obtained by investors are offset by the high-risk nature of the investment. Another invesment vehicle, similar to the EIS, are VCTs. VCTs were introduced by the Government in …

Opening a Business Bank Account

If you are working as a sole trader or you have opened a limited company, it is highly advisable (though not a legal requirement) to open a commercial bank account to separate business transactions from personal ones. This will make your life much simpler when it comes to your bookkeeping. The question of which bank to go to is a …

What is IR35?

IR35 refers to the UK’s off-payroll working rules which aim to decrease so-called ‘disguised employment’, whereby a company hires a member of staff through a company set up by the staff member to avoid paying income tax and National Insurance Contributions (NICs). There are a number of criteria that HMRC look at when deciding whether a worker falls within the …

The Enterprise Investment Scheme (EIS)

What is EIS? The Enterprise Investment Scheme is now 25 years old and through it, qualifying companies have raised over £18 billion. Administered in HMRC by the Venture Capital Reliefs Team (VCRT) – formerly the Small Companies Enterprise Centre (SCEC) – EIS allows investors to invest up to £1m in EIS companies in any year (£2m if the company is …

Tax on Christmas bonuses

Christmas bonuses or gifts paid in cash by employers to employees are almost invariably taxable as earnings. The Courts have upheld decisions on many occasions and this can mean that a gift from a well-intentioned employer is worth less than the giver or the recipient initially expected. If you are an employer and looking to give a Christmas bonus to …

Less than 100 days to go to submit your Self Assessment!

HMRC has published a news release to remind you that you have less than 100 days to file your 2018-19 tax return. Last year over 11.5 million taxpayers were required to complete a Self Assessment tax return but over 700,000 people missed the deadline. The deadline for submitting your 2018-19 Self-Assessment tax returns online is 31 January 2020. Please also …

What expenses can I claim through my limited company?

When it comes to understanding what expenses you can claim through your company as a company director, there is one phrase it is important to remember. Your expenses must be incurred “wholly and exclusively” for business purposes. But first, let’s understand exactly how ‘expenses’ are defined and what the implications of paying for them through your company are. We will …

What taxes do I have to pay if I’ve just arrived in the UK?

Moving between countries, whilst a fantastic and often life-changing experience, can create a huge amount of additional personal administration, not least of which involves ensuring you are complying with all the new local tax legislation. UK tax law is extremely complicated so, understandably it will be impossible to answer this question exhaustively in a short article. Here, we are going …