High Clarity Accountants

accounts

TAX TIP OF THE WEEK – Your company has accumulated significant profits and you looking for a tax-efficient way to use them.

One possible way would be to consider purchasing a share of the freehold in the trading property. This would be a more tax-efficient method to acquire a property as opposed to extracting a dividend and then buying a property in your own name. A further even more tax-efficient twist to this is by using the …

TAX TIP OF THE WEEK – Your company has accumulated significant profits and you looking for a tax-efficient way to use them. Read More »

TAX TIP OF THE WEEK – Your daughter wants you to pay for her driving lessons. Would getting your company to pay the £1000 cost be more tax efficient than paying for it personally?

As a director of your own company you are free to put any personal expenses through the company, however, it will come at a cost of benefit in kind taxes for you and the company. Therefore in most cases, it is best to first draw payments out as dividends and then pay for any personal …

TAX TIP OF THE WEEK – Your daughter wants you to pay for her driving lessons. Would getting your company to pay the £1000 cost be more tax efficient than paying for it personally? Read More »

TAX TIP OF THE WEEK – With the cost of living going up your employees may soon be hankering for a pay rise even if you think their performance doesn’t deserve one. A ‘Staff Suggestion Scheme’ could be the answer.

Once this is implemented, it will incentivise your team to develop ideas to improve your business, and any reward payments you make a FREE of tax and NI. You can pay up to £5k for a suggestion but there are some conditions and payment must be linked to the financial benefit for your business, which …

TAX TIP OF THE WEEK – With the cost of living going up your employees may soon be hankering for a pay rise even if you think their performance doesn’t deserve one. A ‘Staff Suggestion Scheme’ could be the answer. Read More »

TAX TIP OF THE WEEK – If you own a buy-to-let commercial property which has gone up in value meaning you will be facing a high CGT bill. Then you could take advantage of a loophole that may allow you to cut this drastically

Ordinarily, any gains made on the sale of the property would give rise to CGT. However where a property sale is included in the sale of a business then Business Asset Disposal Relief may apply. This would normally be apportioned to the time the asset has been used in a business. But if you are …

TAX TIP OF THE WEEK – If you own a buy-to-let commercial property which has gone up in value meaning you will be facing a high CGT bill. Then you could take advantage of a loophole that may allow you to cut this drastically Read More »

TAX TIP OF THE WEEK – You may know that petrol/diesel company cars tend to work out quite expensive from a tax point of view. But what’s the position for Motorbikes/Scooters?

Motorbikes are classed as plant and machinery, not cars, which means: Benefit in Kind taxes are based on a lower rate than of a car meaning less personal tax The companies NI cost will be lower Full Corporation tax relief can be claimed in the 1st year VAT can be claimed on the cost where …

TAX TIP OF THE WEEK – You may know that petrol/diesel company cars tend to work out quite expensive from a tax point of view. But what’s the position for Motorbikes/Scooters? Read More »

TAX TIP OF THE WEEK – Thinking of investing In a new bike, could you get the company to pay?

The cost of a new bike these days can be quite a cost, especially if you are thinking of an e-bike which can run into £1000’s The good news is using the government’s cycle-to-work scheme you can purchase the bike through your company which means you will benefit from: Personal tax savings – as you will …

TAX TIP OF THE WEEK – Thinking of investing In a new bike, could you get the company to pay? Read More »

TAX TIP OF THE WEEK -If you and your spouse sell a property that is jointly owned, how can you ensure you ensure you do so tax efficiently..

By default the ownership share is split equally between you and your spouse. As you are both taxed independently, this can mean an inefficient use of allowances and reliefs. For example, if you are a high rate taxpayer and your spouse doesn’t work, the sale will incur more tax at the higher rates. The good …

TAX TIP OF THE WEEK -If you and your spouse sell a property that is jointly owned, how can you ensure you ensure you do so tax efficiently.. Read More »

TAX TIP OF THE WEEK – Are you planning a new business but are unsure of its viability. What’s the most tax-efficient way to proceed?

New ventures can often be risky a business and result in losses. The good news is that there are some fall-back tax positions that can help you claw back some of that money. For both trading as a limited company and sole trader, you can carry those losses forward against future profits. However in the …

TAX TIP OF THE WEEK – Are you planning a new business but are unsure of its viability. What’s the most tax-efficient way to proceed? Read More »

TAX TIP OF THE WEEK – Thinking of selling your business, but worried about finding a buyer and the capital gains tax? An EOT may be your answer.

There are a few problems that owners face when trying to sell their business: There may not be a ready market to sell to Buyers will most likely want to buy the assets rather than shares meaning you miss out on tax relief In these scenario’s it may be worth considering if your employees can …

TAX TIP OF THE WEEK – Thinking of selling your business, but worried about finding a buyer and the capital gains tax? An EOT may be your answer. Read More »

TAX TIP OF THE WEEK – Thinking of building a garden office, how could you benefit by getting your company to pay.

Since 2020 many business owners have realised that they can still operate effectively even from home. Meaning garden offices have become more popular. As a company director then there can be some benefits of getting your company to fund the new office: If your company is VAT registered then it will be able to recover …

TAX TIP OF THE WEEK – Thinking of building a garden office, how could you benefit by getting your company to pay. Read More »

TAX TIP OF THE WEEK – Are you looking to close or sell your company soon, then perhaps you could benefit from a redundancy package.

Employees (including directors) laid off due to a business being sold or closed down, can be entitled to statutory redundancy payments that are TAX FREE up to £30,000. The redundancy payment is calculated based on payroll wages, age and time worked for the business. This causes a problem for owner directors as they are most …

TAX TIP OF THE WEEK – Are you looking to close or sell your company soon, then perhaps you could benefit from a redundancy package. Read More »

TAX TIP OF THE WEEK – Does owning a buy to let property through a company always save tax?

With the introduction of the S.24 mortgage interest relief restriction coming in a few years ago, the standard practice seems to be purchase any new buy-to-let via a Ltd co structure. However this isn’t always the best course of action, for example, if you were looking for a regular income from the rental profits then …

TAX TIP OF THE WEEK – Does owning a buy to let property through a company always save tax? Read More »

TAX TIP OF THE WEEK – Using your home for work? Don’t be off by some of the Myths out there claiming that a tax deduction will mean you lose the CGT exemption on your home.

One of the effects of the Covid pandemic meant that working from has become more common. For this reason, you may wish to claim some of the associated costs of gas, electricity etc against your business or employment income. However, you may have been told that using your home as an office will mean you …

TAX TIP OF THE WEEK – Using your home for work? Don’t be off by some of the Myths out there claiming that a tax deduction will mean you lose the CGT exemption on your home. Read More »