Category: Business Tax

Annual investment allowances

From January 2019, businesses considering investing more than £200,000 in plant and machinery may benefit from a change to the capital allowances rules, which should allow them to obtain tax relief at a much earlier time. Broadly, business profits, after any adjustments for tax purposes (for example depreciation of fixed assets), are reduced by capital…


Cars and vans – What’s new for 2020/21

There are a number of changes that apply from the start of the 2020/21 tax year that relate to the taxation of company cars and vans. New way of measuring CO2 emissions The way in which the level of a car’s CO2 emissions is determined changes from 6 April 2020. The CO2 emissions figure for…


Advisory and approved fuel rates – What are they and how are they claimed?

The subject of allowable mileage rates for tax purposes often causes confusion as different rules apply depending on whether a car is employee or company owned. Broadly, employees can only claim mileage allowance tax relief where their own vehicle is used for business purposes. If the employee is provided with a company car, a mileage…


Incidental overnight expenses

A tax exemption enables an employer to meet small personal expenses when an employee stays away from home for work, without the employee suffering a tax charge and without any need to report the expenses to HMRC. What are incidental overnight expenses? Incidental overnight expenses are personal (i.e. non-business) expenses incurred when an employee travels…


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…


Gift cards and the trivial benefits exemption

The trivial benefits exemption allows employers to ignore benefits in kind that cost £50 or less for tax purposes, as long as the conditions of the exemption are met. Where the exemption applies the benefit does not need to be reported to HMRC. Staying within the scope of the exemption is perhaps easier said than…



Worthless assets and negligible value claims

Where an asset has been lost or destroyed or the value of the asset has become negligible, it may be possible to take advantage of an allowable loss for capital gains tax purposes. It should be noted, however, that the loss will only be an allowable loss if any gain on the disposal of the…


When is a car a pool car?

Rather than allocating specific cars to particular employees, some employers find it preferable to operate a carpool and have a number of cars available for use by employees when they need to undertake a business journey. From a tax perspective, provided that certain conditions are met, no benefit in kind tax charge will arise where…


Timing dividends right could help save tax

Timing the date of a dividend payment from a company can determine both the amount and the due date of the tax payable. This may be a particularly useful strategy in a close- or family-owned company. The dividend allowance, which was originally introduced from 6 April 2016, was cut from £5,000 a year to £2,000…