When a married couple runs a business together through a limited company, proper tax planning would dictate that both spouses own shares to receive dividends. Salaries may or may not be paid as well, depending on other income sources, but dividends will inevitably be the main means of profit withdrawal from the company. Dividends Alongside […]
Spousal Dividends: Tips and Traps Read More »
Being a director does not, in itself, make that individual an employee of the company. A directorship is an office, not necessarily an employment. However, if the company enters into a service contract with the director, the terms of which make the director an employee, that director is taxed under the same rules as any
Waiving Director’s Remuneration: Tax Issues Read More »
The income tax legislation regarding pool cars (ITEPA 2003, s 167(3)) sets out the conditions for a car to be a pool car. These include the following: The car was made available to, and actually used by, more than one employee. The car was not ordinarily used by one of those employees to the exclusion
A ‘Dive’ Into Pool Cars Read More »
Pomp and pageantry aside, the King’s Speech on 17 July 2024 marked the opening of the UK Parliamentary session for the UK Labour government. It included four bills to highlight, though only two impact workers and employers. Budget Responsibility Bill The Office for Budget Responsibility (OBR) produces ‘fiscal and economic forecasts’ twice annually, one alongside
There are some commonly held misconceptions about the VAT breaks for businesses buying electric and hybrid cars, even by car dealers trying to sell a new car. There have been a number of cases of businesses being advised by their car dealers that businesses can recover the VAT on the purchase of an electric car.
VAT: Electric Cars and Hybrid Cars Read More »
When starting a business, few people will give much thought to its end. However, after some years, even a small ‘oneman band’ business may have built up a valuable customer list with a goodwill value. It is therefore important that a business owner should consider how and when they might wish to retire from, sell
Heading for the Exit? Read More »
Individuals (e.g., sole traders or company owners) often lend money to their business to help fund its day-to-day operations. Unfortunately, some businesses ultimately fail. Consequently, the loan may become irrecoverable, resulting in it being written off. Relief is At Hand…Or is It? A crumb of comfort is that the individual may be able to claim
Trusts can be a very useful planning tool for inheritance tax (IHT) purposes, as well as family and business succession planning. Tax is only one factor, as preservation of the family silver is another potential advantage of trusts; but they are not necessarily always suitable. What are Trusts? A trust exists broadly when the legal
Trusts: IHT Issues and Benefits Read More »
For directors, remuneration is typically assessed on an annual earnings period basis; all earnings for the tax year are considered, rather than looking at each pay period individually. This approach recognises that directors often have irregular payment patterns and bonuses rather than a set amount per month. The payment date is broadly deemed to be:
When Are Director’s Remuneration and Dividends Deemed to Be Paid? Read More »
HMRC does not like private companies lending money to their owner-managers, and there is a raft of provisions aimed at discouraging such debts – from benefits-in-kind rules to the ‘quasi-distribution’ provisions in CTA 2010, Pt 10, Ch 3, which kicks off with the notorious section 455. If a loan remains outstanding for more than nine
Loans to Shareholders Rules: An Unexpected Twist? Read More »
