Fees related to a trade are often allowable but it depends on the nature of the fees. Generally, fees related to the purchase or sale of property/assets and to do with raising equity finance are disallowed for tax purposes. “Capital” expenditure: not deductible Legal and professional fees are “capital” if they relate to an asset’s:… Continue reading Are legal and professional fees tax deductible?
Trading losses If your company makes a loss from its trading operations then it can claim relief against corporation tax. Current year If you make a trading loss, you can offset the loss against profits/gains from other trades or sources in your company in the current year. Carry back against previous year If you can’t… Continue reading Loss relief
Bad debts can receive tax deductions if they are: bad debts that definitely cannot be recovered (eg debtor has already closed down) specific bad debts that are doubtful/unlikely to be received debts released by the creditor as part of a statutory insolvency arrangement Bad debts won’t receive tax deductions if they’re general provisions against overall… Continue reading Can tax deductions be claimed for bad debts?
Business entertainment means the provision of free or subsidised hospitality or entertainment. The person being entertained may be a customer, a potential customer or any other person. We’ve broken it down into 3 categories: 1) Clients and potential customers Client entertainment usually isn’t allowable for tax purposes. Examples may include: taking clients out for meals/drinks… Continue reading Is entertaining tax deductible?
Pension contributions can be a great way to save tax. Disclaimer Decisions about whether or not to make pension contributions should normally be led by investment considerations and our clients generally use financial advisers to decide whether or not to contribute as the money will usually be locked away and there can be various risks… Continue reading Pension contributions tax savings
From 1 April 2020 the cash refund for payable R&D tax credits for small and medium size businesses (SMEs) will be limited based on the amount of payroll taxes paid by the company. SMEs can claim upto £20,000 plus 300% of its total PAYE and NIC liability for the period. However, a company is exempt… Continue reading Cap on R&D tax credits
As usual there are many changes to the 2018 Autumn Budget, however they’re not all relevant to our clients. So here we have set out the important changes that may affect our clients. The 2 main issues are IR35 changes for contractors and limits on R&D cash refunds. We’ve also added a reminder about the… Continue reading 2018 Autumn Budget Update
EMI schemes (Enterprise Management Incentives) are tax advantaged schemes offered by H M Revenue & Customs to small and medium sized businesses (“SME”) for incentivising the SME’s employees. EMI schemes are share option schemes which fundamentally provide tax savings for both the employee and the SME whilst also providing the facility for the SME to incentivise… Continue reading EMI Schemes (Enterprise Management Incentive)
Factors involved in setting up company structure There are different factors involved in setting up company structure and it depends on the type of business, circumstances of the shareholders and their aims for the business. Shareholders: if you may sell the company and re-invest the profits a holding company may be useful otherwise, the co-founders can… Continue reading Setting up company structure
Draft legislation has just been released for the diverted profits tax, which was recently announced in the Autumn Statement 2014 https://www.gov.uk/government/publications/finance-bill-2015-draft-legislation-overview-documents Effective date The new rules will be effective in respect of profits arising on or after 1 April 2015. 1st Rule The first rule is designed to address arrangements which avoid a UK permanent establishment… Continue reading Diverted Profits Tax