High Clarity Accountants

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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 – How to save stamp duty on a house purchase,

Given the average price of housing at the moment one of the biggest costs to moving or acquiring a buy-to-let investment is the stamp duty payable. If you are acquiring a 2nd property for say £500k the stamp duty alone would be an eye-watering £30k Wouldn’t it be great if you could reduce this, well …

TAX TIP OF THE WEEK – How to save stamp duty on a house purchase, 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 »

TAX TIP OF THE WEEK – Just purchased a holiday home?Make sure you take steps to minimise the eventual capital gains tax liability.

When you eventually sell your holiday home any gain made from property (sale – purchase price) is likely to be subject to CGT. However, you can use principal private residence (PPR) relief to mitigate some of these gains where you have a 2nd home. This is done by a process called an election,  whereby you …

TAX TIP OF THE WEEK – Just purchased a holiday home?Make sure you take steps to minimise the eventual capital gains tax liability. Read More »

TAX TIP OF THE WEEK – Had a fall out with your business partner and looking to split it, what is the most tax efficient way you can do this?

It’s an all too common scenario where friends start a business and all is well for a few years. After which they start having different ideas about the direction the business should take or concerns about who is contributing the most, so on… Now it could either be that one partner decides to buy the …

TAX TIP OF THE WEEK – Had a fall out with your business partner and looking to split it, what is the most tax efficient way you can do this? Read More »

TAX TIP OF THE WEEK – Becoming VAT registered for the 1st time? Make sure you don’t miss out on reclaiming old VAT.

So you probably already know that once your business becomes VAT registered you can start reclaiming the VAT paid on purchases. However in addition you may also be able to recover VAT that was incurred months or even years ago. This falls into two categories: Goods/Equipment – you can claim the VAT back from the …

TAX TIP OF THE WEEK – Becoming VAT registered for the 1st time? Make sure you don’t miss out on reclaiming old VAT. Read More »

TAX TIP OF THE WEEK – What is the best way to set up a new business venture which expects to make losses in the first year or two?

You might think that it is better to start a new company, as profits a generally taxed at lower rates than unincorporated businesses. However, where there are early-year losses the company can only carry these losses forward against future profits. And if the venture fails then any loss relief will have been lost In this …

TAX TIP OF THE WEEK – What is the best way to set up a new business venture which expects to make losses in the first year or two? Read More »

TAX TIP OF THE WEEK – Use a loan swap to get tax relief on your main mortgage interest

Ordinarily, the mortgage interest you pay on a home is not an allowable deduction against your income for tax purposes. However, if you have built up some value in your company over the years, then with a bit of re-structuring you could get tax relief on the mortgage interest. This would work as follows: 1. …

TAX TIP OF THE WEEK – Use a loan swap to get tax relief on your main mortgage interest Read More »

TAX TIP OF THE WEEK – Sponsoring a local sports team can be a great way to give back to the community. In addition, there are also tax reliefs to be obtained, however, to avoid issues with the Taxman it is important to follow the correct steps..

So you have just helped your son’s football team with a sponsorship payment from your company. In the past HMRC have declined tax relief on these payments as they argued the reason was more of a personal donation than something that would benefit their business. To avoid this situation it is advisable to ask the …

TAX TIP OF THE WEEK – Sponsoring a local sports team can be a great way to give back to the community. In addition, there are also tax reliefs to be obtained, however, to avoid issues with the Taxman it is important to follow the correct steps.. Read More »

TAX TIP OF THE WEEK – Made some good gains from Cryptocurrencies in the last few years? Great but have you considered the tax position when you eventually come to sell them?

Crypto is classified as an asset which means when you come to sell them you will be subject to capital gains tax. However, with a bit of year-end planning, this can be minimised. In years gone by you can use your annual CGT allowance to effectively sell assets such as shares and buy them back …

TAX TIP OF THE WEEK – Made some good gains from Cryptocurrencies in the last few years? Great but have you considered the tax position when you eventually come to sell them? Read More »

TAX TIP OF THE WEEK – Looking to sell your 2nd property but worried about capital gains tax?

In recent years house prices have gone through the roof and if you have owned the property for a decent amount of time then you will likely be facing a hefty CGT bill on sale. However with a bit of planning your liability could be reduced somewhat, here are a few options: If you are …

TAX TIP OF THE WEEK – Looking to sell your 2nd property but worried about capital gains tax? Read More »

TAX TIP OF THE WEEK – As a director of a Ltd Co could you benefit by also being a self-employed contractor to it?

Generally, any work you do for your Ltd and you are paid for will count as employment earnings or dividends. However, if say the work was sufficiently different to your normal duties (say giving the offices a lick of paint) and you negotiated the terms of the work with the other directors then any payment …

TAX TIP OF THE WEEK – As a director of a Ltd Co could you benefit by also being a self-employed contractor to it? Read More »

TAX TIP OF THE WEEK – Fancy getting away for the winter months to that new holiday home in Spain , could you do so tax efficiently?

You would love to buy that property, the problem is you don’t have that much in personal savings to stump up a deposit, as all your cash is sitting in your Ltd co bank account. Of course, you could draw this out as salary or dividends, but much of that cash would be lost to …

TAX TIP OF THE WEEK – Fancy getting away for the winter months to that new holiday home in Spain , could you do so tax efficiently? Read More »

TAX TIP OF THE WEEK – Are you planning to buy out your business partner and co-director in the near future? Make sure you do so tax efficiently

Are you planning to eventually buy out your business partner and co-director? Make sure you do so tax efficiently.. So you have agreed a fair price, the trouble is you now need to find the cash to pay them. Assuming you don’t have the spare funds lying around you may need to secure a loan …

TAX TIP OF THE WEEK – Are you planning to buy out your business partner and co-director in the near future? Make sure you do so tax efficiently Read More »