Are Christmas parties tax free?

Last year, the Covid-19 pandemic and national lockdown took Christmas parties (other than virtual ones) off the agenda. This year, to make up for lost time many employers have a date in the diary already. In this article we look into how you can celebrate the festive season without triggering a tax liability in the…

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Reporting income from property on your self-assessment tax return

With the deadline soon approaching for filing your 2020/21 self-assessment tax return online (31 January 2021), if you haven’t already, you need to begin collating your records. As part of your return, you may need to tell HMRC about income you have received from property and in this article, we will cover whether this income…

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Directors loan accounts – Bed & Breakfasting Rules

Street featuring bed and breakfast

Throughout an accounting period a director can withdraw monies from the company against the Director’s Loan account (DLA), the withdrawals usually being satisfied by the taking of a salary and/or bonus and/or dividends (dividends being preferable as no NICs are payable) or by repaying the monies withdrawn. By the end of the accounting period sufficient repayments…

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Different ways of deferring CGT by selling or gifting a business asset

Capital gains tax (CGT) is levied on capital gains made on the disposal (including gifts) of most assets. However, if the disposal is of ‘business assets’ by a trader (including a personal trading company) then it is possible to defer the charge. Methods of deferral available for both self-employed and companies are most typically via…

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Autumn Budget 2021 Highlights

London Skyline in Autumn

“Growth up, jobs up, and debt down: Let there be no doubt – our plan is working.” These were the opening remarks from Chancellor, Rishi Sunak, during his Autumn Budget announcement earlier today. He began with an overview of the economic landscape with the news of better-than-expected economic growth and a warning about inflation. Economic…

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Autumn Budget 2021 – What can we expect to be announced?

London Skyline in Autumn

Chancellor, Rishi Sunak, will be announcing his Autumn Budget on Wednesday 27th October. As with every Budget and Spending Review, there is already plenty of speculation around about what we can expect to be announced, so we thought we’d try and summarise some of this in advance. There is a common feeling that this budget…

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How are dividends taxed?

Question mark drawn onto window pane

Dividends have their own tax rules and their own rates of tax which can make it difficult to understand how dividends are taxed. The rules and the rates apply in the same way regardless of whether the dividends are paid from your personal or family company as part of a profit extraction strategy, or whether…

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The New Health & Social Care Levy

A new health and social care tax will be introduced across the UK to pay for reforms to the care sector and NHS funding in England. A social care package, which the prime minister has called “the biggest catch-up programme” in the NHS’s history, will be funded through a new, UK wide 1.25% health and…

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Mileage allowances for Employees

Making mileage payments to employees As the country emerges from the Covid-19 pandemic, business travel is once again on the agenda. Where employees undertake business travel, they will usually be able to claim the associated expenses from their employer. If the journey is by car, the easiest way to do this is for the employer…

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Final SEISS Grant

The fifth and final Self Employed Income Support Scheme (SEISS) grant is available to apply for from the government. The scheme is available to anyone who is self-employed or a member of a partnership and thinks their business profit will be impacted by the pandemic between 1 May 2021 and 30 September 2021. You do…

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