Blog

Claiming back pre-trading costs

Generally speaking, any business expenditure that you make up to seven years before you actually start trading, is treated for tax purposes as if it was incurred on the first day of trading. This expenditure includes rent, rates, insurance, wages and other costs that you have had to pay. You can also claim capital allowances…
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Claiming back pre-registration VAT

The good news is you can reclaim VAT added to certain expenditure that was paid out prior to your business registration for VAT. HMRC’s instructions on this issue confirm: There is a time limit for backdating claims for VAT paid before registration. From your date of registration, the time limit is: 4 years for goods…
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Football agent loses tax appeal

In a recent tax case, Jerome Anderson v HMRC, the First-Tier Tribunal denied a football agent relief for trading losses. The judges’ arguments centred on the issue of whether he was carrying on a trade, and if he was, was it on a commercial basis with a view to making profits? There is already legislation…
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Incorporating a buy to let property business

Any buy to let landlord that presently claims a tax deduction for mortgage interest is likely to be adversely affected by changes in the tax rules from April 2017. In previous blogs we have pointed out that from April 2017, finance charges (including mortgage interest) will gradually be disallowed as a deduction when computing a…
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Directors loans – tax implications

Lending money to your company If you lend money to your company, the tax effects are as follows: ·         Your company will not pay corporation tax on the money you lend it. ·         If your company pays you interest on the loan, it will need to deduct income tax at 20% from the interest it…
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HMRCs consultations

It is not difficult to gauge the focus of our tax collectors. Since the Brexit vote, 23 June 2016, and the change in government leadership, HMRC have published a number of consultation documents, all issued during August 2016. Prior to the Brexit vote, there were a smattering of consultations, but none issued after 23 May…
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Directors responsibilities, legal, signs and stationery

Legal responsibilities We are often asked to clarify the responsibilities that directors take on when they agree to become directors of limited companies. A summary of directors’ duties published on the GOV.UK website are reproduced below. As a director of a limited company, you must: try to make the company a success, using your skills,…
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Landlords – George Osbornes legacy

George Osborne’s summer budget 2015, and the subsequent Finance (No2) Act 2015, introduced far ranging changes to the income tax relief that can be claimed by individual landlords for finance costs. George believed that property landlords were adding too much inflationary pressure to the UK’s housing stock. To remedy this, he set out to reduce…
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Autumn statement 23 November 2016

Philip Hammond has announced the date for the Autumn Statement: 23 November 2016. In the past, Chancellors have used the occasion to set the scene for the following years’ budgets. This year, Philip Hammond will be disclosing the fiscal direction of the new Conservative government. Are we to have evermore “austerity”, cuts in government expenditure,…
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Taxman safeguards billions of tax payments

The Financial Secretary to the Treasury, Jane Ellison MP, announced last week that HMRC has collected £3 billion up-front from tax avoiders. The move continues the government clampdown on tax avoidance following last month’s announcement that enablers of tax avoidance will face tough new sanctions. The 60,000 accelerated payment notices (APNs) issued since the new…
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