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25 Apr 2024

Post-cessation expenses – When and how are they allowable?

When an unincorporated business stops trading, accounts are prepared to the date of cessation. Where a limited company ceases trading, it is either registered as dormant or its directors can apply for the company to be struck off or go into liquidation, if the company is unlikely to be required again in the future. HMRC states that a business ends when it ‘permanently ceases to carry on a trade’.

23 Apr 2024

HMRC informers – How important are they in reducing the 'tax gap'?

The 'tax gap' is a phrase that has been around for almost twenty years and refers to the difference between HMRC’s expected tax revenue and the total tax received from all taxpayers. Notably, it is an estimated figure compiled on an annual basis and, although there has been a decline in the 'tax gap' amount since first recorded in 2005, when it stood at 7.5%, the reduction to 4.8% in 2021/22 still equates to £35.8 billion in absolute terms.

19 Apr 2024

Partnerships – Cessation on death of a partner

Partnerships exist in either ordinary format or as limited liability partnerships (LLP).

17 Apr 2024

Should I sell before the end of the FHL regime?

Furnished holiday lettings (FHLs) enjoy tax advantages not available to landlords letting residential property on long-term lets. The advantages are particularly beneficial when it comes to capital gains tax as landlords disposing of an FHL are able to benefit from a range of reliefs, including business asset rollover relief, business asset disposal relief and gift-holdover relief.

15 Apr 2024

Relief for replacement domestic items

Landlords letting residential property are not entitled to a deduction for the cost of the domestic items that they provide in the property. They are not able to claim capital allowances for the cost of those items either.

12 Apr 2024

HMRC revise stance on replacement boilers

In 2023, HMRC wrote to some taxpayers with property income asking them to check that the information provided in the property pages of their 2021/22 Self Assessment tax return was correct. The letter advised that the cost of ‘upgrading a central heating boiler from an older, less efficient model’ was not allowable in calculating the profits of the property business.

10 Apr 2024

Taxation of company cars in 2024/25

A taxable benefit arises where an employee has the private use of a company car. Unless the car is an electric car, a further benefit arises if the employer meets the cost of fuel for private travel.

08 Apr 2024

VAT records – What do you need to keep?

If you are registered for VAT, you will need to keep normal business records. The records must be complete, up to date and sufficient to enable you to calculate the VAT due to or due from HMRC. You will also need to maintain a VAT account and keep copies of your VAT invoices.

05 Apr 2024

New VAT thresholds – When must you register and when can you deregister?

The VAT registration threshold rose from £85,000 to £90,000 from 1 April 2024. The deregistration threshold increased from £83,000 to £88,000 from the same date. The changes in the thresholds change the trigger points for compulsory registration and optional deregistration.

03 Apr 2024

Small earnings from self-employment – Tax and National Insurance implications

Many people earn small amounts of money from self-employment, often as a side hustle. For example, this may be from craft or baking activities, tuition or the provision of services, such as babysitting. If you earn money in this way, it is important to understand the associated tax and National Insurance implications.

01 Apr 2024

Extracting profits in 2024/25

If you run your business as a personal or family company, you will need to extract your profits in order to use them personally outside your company, for example, to meet your living expenses.

28 Mar 2024

Employer-provided equipment – Tax implications for employees of working from home

Since the start of COVID-19 in March 2020, the number of people working from home in the UK has dramatically increased. As of January 2023, research shows that 44% of workers in the UK work from home – which translates into approximately 23.4 million people.

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