This short article looks at aspects of commercial property rental.
This article looks at the types of expenses incurred in running a residential property business and what can be deducted from profits to calculate income tax. If an expense can be deducted from profits to calculate tax, it is called an allowable expense. It can also be called deductible or revenue expenditure.
From 6 April 2017, the cash basis became the default basis for individual landlords with less than £150,000 of rental receipts in a year.
However landlords may opt to continue to use the accruals basis.
From 2017/2018 tax year onwards, the default accounting method for calculating income from property, be it commercial or residential property, is the cash basis.
Usually accountancy fees are tax deductible. This article looks at the few exceptions.
Clayton Accountants Limited are proud to be a member firm of the Institute of Chartered Accountants in England and Wales.
If a sale of a business qualifies as a transfer of a going concern (TOGC) then no VAT is charged on the sale.
Most goods and services have been categorised to determine whether they are subject to VAT when sold and what the rate of VAT would be.
All corporation tax must be paid electronically and corporation tax returns must be filed electronically.
If you fall under one or more of the categories set out here you will need to complete a tax return for tax year
If you are planning to entertain any clients (existing or potential), remember that the costs will be not be an allowable expense in calculating your taxable profits.
Are you thinking of throwing a party for your staff? Whether you are planning a one off party or a regular annual event, please read on for advice on avoiding an extra tax charge.
IR35 rules affect those workers who provide a personal service to an end client via a company in which the worker has a material interest.
Eamon Holmes, provided his services to ITV's This Morning Show via his personal service company, Red, White and Green Ltd. HMRC argued that this was in effect an employment and therefore National Insurance Contributions and Income Tax were due.
This legislation was introduced in 2000 to target “disguised employment” situations.
If you dispose of a UK residential property, the gain will have to be reported online to HMRC within 30 days of disposal. The date of disposal for this purpose is the date of completion.
Employees may agree to give up a proportion of salary to help an employer in difficult circumstances.
The government will pay a bonus to employers for each employee that is retained after the Coronavirus Job Retention Scheme (CJRS) ends on 31 October 2020.
Employment law and tax law differ so a director can be taxed as an employee but not necessarily have the rights of an employee under the Employment Rights Act such as statutory redundancy pay, unfair dismissal, auto enrolment, National Living Wage.
A taxable grant, worth 80% of an average 3 months trading profits, was payable in June 2020. To be eligible, you must have submitted your 2018-2019 tax return on 31 January or have submited your return by 23 April 2020.
Applications for the second grant opened on 17 August 2020 and closed on 19 October 2020.
Any business which, due to coronavirus, has suffered severe downturn in operations and is unable to maintain their current workforce as usual.
On 24 September 2020, the Chancellor set out a series of new measures in response to Coronavirus and its continuing impact on the economy.
The Act received Royal Assent on 22 July 2020. The main features of the Act are
Read up on the major changes announced in the 2020 Budget.
A common scenario in these times - read more about the tax issues.
New rules apply when you dispose of a residential property that is not your home.