Mileage allowance

Can directors claim for fuel and motor expenses? We cannot include car repair, fuel and running costs in a limited company’s accounts unless they are for a company car. Directors can claim for 45p per mile for the first 10,000 business miles per year and 25p thereafter. We would normally make an adjustment for this… Continue reading Mileage allowance

VAT Overview

What is VAT? Value Added Tax is an indirect tax aimed at consumers. If a business meets certain criteria then it has to charge VAT on its sales of goods and services. In a supply chain there are usually a series of businesses selling to each other until the final product or service reaches the… Continue reading VAT Overview

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Gift Aid

If you give money to charity then you can obtain tax relief if you are a higher rate taxpayer and the donation was made to a registered charity in the EU (plus Norway, Iceland and Liechtenstein). You can also obtain relief for donations made to Community Amateur Sports Clubs (CASCs) that were registered with HMRC… Continue reading Gift Aid

Are legal and professional fees tax deductible?

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?

Loss relief

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

Can tax deductions be claimed for bad debts?

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?

Is entertaining tax deductible?

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?

Can VAT on entertaining be reclaimed?

You cannot usually reclaim input VAT on business entertainment however you can sometimes reclaim it for staff entertainment. The notes below primarily come from VAT Notice 700/65 and VIT43200. 1) What is entertainment? Entertainment involves hospitality of any kind, such as: provision of food and drink provision of accommodation (such as in hotels) provision of… Continue reading Can VAT on entertaining be reclaimed?

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Autumn Budget 2021 update

We have analysed the Autumn Budget 2021 for the key changes relevant to small and medium businesses (SMEs). Please find below the key points which we feel may be of interest to our clients. 1) Payroll taxes / NIC From April 2022 there will be a new employment tax of 1.25% for the Health and… Continue reading Autumn Budget 2021 update

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