Jointly-owned property Where property is jointly-owned, the way in which the rental income can be split between the joint owners for tax purposes depends on whether the joint owners are married or in a civil partnership or not. Married couples and civil partners Where a property is jointly owned by a married couple or civil…
New tax rates and allowances came into effect from 6 April 2019 which have affected the optimal salary calculation
Family companies – optimal salary for 2019/20 For personal and family companies it can be beneficial to extract some profits in the form of a salary. Where the individual does not have the 35 qualifying years necessary to qualify for the full single-tier state pension, paying a salary which is equal to or above the…
Employing family members It is permissible for a business to claim a tax deduction for the cost of a reasonable wage paid to a family member who helps in the business. Their duties could, for example, include answering the phone, going to the bank, bookkeeping and other administrative tasks. The tax legislation specifies that ‘in…
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A statutory exemption exists, which allows employers to meet the cost of certain social events for staff without triggering a liability to tax or NICs, providing certain conditions are met. The legislation refers to ‘an annual party or similar annual function’. Although HMRC does not seem to interpret this to mean that the same event…
Unless rental income is less than £1,000, landlords must declare it to HMRC and pay tax on any profit made by the property rental business. The profit can be calculated by deducting allowable expenses from rental and other income of the property business. However, where it is beneficial to do so, the landlord can claim…
Making Tax Digital (MTD) for VAT went live on 1 April 2019. VAT registered businesses with VATable turnover above the VAT registration threshold of £85,000 are required to comply with the requirements of MTD for VAT from the start of their first VAT accounting period beginning on or after 1 April 2019. For certain businesses,…
- Annual investment allowance or writing down allowance?
- Mileage allowance payments – what is NIC-free?
- Relief for trading losses
- Should an LLP partner be treated as a salaried partner?
- Gift cards and the trivial benefits exemption
- Using your car in your property rental business
- Grounds and gardens for SDLT
- Joint tenants v tenants in common – Does it matter?
- Employer-funded scholarships
- Weighing up LLPs
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Did you know?
Did you know you can rent a room in your home tax free? You can rent out a room of your main home (that you live in) and receive up to £7500 per year tax free.
That’s £625 per month or £144 per week.
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