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
Category: Tax
VAT and financial services
VAT and financial services: Are you losing out on VAT? VAT and financial services is a very tricky area and this video presentation gives a brief overview: https://www.youtube.com/watch?v=IaYzGej4p0c The main points covered are: 1) VAT and financial services exemptions under VAT Act 1994 Schedule 9 Group 5 (eg money, loans, securities, advising collective investment scheme)… Continue reading VAT and financial services
Pre trading expenses
Pre trading expenses: summary You can get a tax deduction for pre trading expenses incurred upto 7 years before your business started trading. Pre-trading Under CTA2009 s.61, if a company incurs expenses for the purposes of a trade before (but not more than 7 years before) the date on which the company starts to carry… Continue reading Pre trading expenses
VAT on Bitcoins
see here for latest HMRC guidance on Bitcoins. http://www.hmrc.gov.uk/briefs/vat/brief0914.htm The post below was written before their guidance was published: VAT on Bitcoins Download the full report here There has been a lot of uncertainty regarding the treatment of VAT on Bitcoins and other cryptographic currencies. This uncertainty has led to a VAT risk… Continue reading VAT on Bitcoins
Residential property tax planning
Residential property can be a lucrative business, but profits or gains will be subject to tax. In this post we discuss some of the property tax planning options, including using limited companies or LLPs, trading vs investment property, capital gains tax and entrepreneurs relief. Please download the full report on residential property tax planning for full details. Trading stock vs Investment… Continue reading Residential property tax planning
Delay VAT liability
It is sometimes possible delay VAT liabilities on invoices, and extra care should be taken with the timing of invoices close to the VAT quarter end. VAT Act 1994 The legislation states that VAT becomes due on the earlier of the following possible tax points: the services or goods have been supplied to the customer… Continue reading Delay VAT liability
Using a holding company
Holding company Many businesses will structure their affairs by using a group of companies. There will be a parent or holding company at the top, and this will hold 1 or more trading subsidiaries. Advantages of using a holding company There is no tax on dividends from subsidiaries to the holding company, so you could… Continue reading Using a holding company
Use deferred income to save tax
Use deferred income to save tax Sales invoices need to be recognised in the correct accounting period. An invoice can sometimes be deferred when preparing the annual accounts, thereby deferring corporation tax for another year also. If an invoice has been raised prior to the year end it is imperative to analyse any supporting contract or sales… Continue reading Use deferred income to save tax