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IT consultant held contract for services

HMRC’s application of the IR35 rules remains ambiguous after an IT contractor successfully appealed to the First Tier Tribunal (FTT) against a tax charge arising under the intermediaries’ legislation. In RALC Consulting Ltd v HMRC [2019] TC 07474, the FTT allowed an appeal against HMRC’s determination that IR35 applied because the ‘hypothetical contract’ between various…


Are workers employees?

It is important to know whether a worker is employed or self-employed as there are many differences in the way in which they will be taxed. Broadly, employees are taxed under the PAYE system with income tax and Class 1 national insurance contributions (NICs) being deducted from payments made to them. Class 1 NICs are…


Landlords: Dealing with finance costs correctly

The self-assessment deadline is looming. Self-assessment tax returns for the year to 5 April 2019 must be filed online by 31 January 2020 if a late filing penalty is to be avoided.Landlords will need to complete the property income pages. Particular care should be taken where the landlord has a loan or a mortgage as…


Are you making the most of the Capital Gains exemption for married couples and civil partners in transferring assets?

There are a number of tax concessions available to married couples and civil partners which recognise that their financial affairs may be interlinked. One of these concessions relates the transfer of assets between spouse and civil partner for capital gains tax purposes. The disposal is deemed to take place at a value which gives rise…


The high-income child benefit charge explained

Does the high-income child benefit charge apply? The high-income child benefit charge (HICBC) applies to claw back child benefit from either the claimant or his or her partner where at least one of them has an income of £50,000 or more. The charge is perhaps one of the more unfair tax charges in that the…


Have you overpaid an employee? Here’s what to do…

Correcting an overpayment of wages Mistakes happen, and it can be very easy inadvertently to pay an employee too much when doing the wages. Perhaps a number was keyed in incorrectly or figures were transposed, or maybe commission was overstated or an employee was paid for more overtime hours than they actually worked. From an…


Using company vans for tax-free home to work travel

As a general rule, travel between home and work is regarded as private travel and if the employer meets the cost of that travel, a benefit-in-kind tax charge will be triggered. However, it is possible for employees with a company van to use that van to travel between home and work, and for the employer…


Utilising the 2019/20 dividend allowance

The dividend allowance is quite unusual in that it is available to everyone and everyone has the same allowance. For 2019/20 the allowance is set at £2,000. In common with many allowances, it is a case of use it or lose it. As the end of the 2019/20 tax year draws closer, what can be…


Can my company buy me a new bicycle?

The government introduced ‘cycle to work’ back in 1999. Broadly, this is an annual tax exemption that allows a business to loan bicycles and cycle safety equipment to employees as a tax-free benefit. This tax break has had a positive impact on workplace health and employee motivation and has encouraged new groups of people to…