VAT reclaim – When things don’t go to plan
Even the best laid plans are liable to change. The ‘payback and clawback rules‘ for VAT reflect this reality. These rules only relate to input …
Directors’ loan accounts – The 30-day rule
Interest rates are coming down, but HMRC’s official rate of interest (ORI) for employee loans has increased to 3.75% per annum (6 April 2025), and, …
Checking your tax code
The tax code is fundamental to the operation of PAYE. An employee’s tax code provides the employer with the information needed to deduct the correct …
Paying sufficient salary to get a qualifying year for state pension purposes
There are various ways in which profits can be extracted from a personal or family company. A popular and tax-efficient extraction strategy is to pay …
Information that must be included on a VAT invoice
A VAT invoice is an invoice that contains information required by the VAT regulations. A VAT invoice can only be issued by a business that …
Class 2 NIC (National Insurance contributions) charged in error
The liability for self-employed earners to pay Class 2 NIC was abolished with effect from 6 April 2024. Now Class 2 National Insurance is a …
IHT charge on unused pension benefits
From 6 April 2027, inheritance tax will be payable where someone’s estate at death includes unused pension funds or death benefits. The measure was announced …
Using former FHL losses
From 6 April 2025, furnished holiday lets are treated in the same way as other lets for tax purposes. Landlords letting both holiday accommodation and …
Holiday lets and business rates
Although the end of the tax regime for furnished holiday lettings relieved landlords of the need to keep track of the number of days for …
Earn tax-free income from renting out your garage
There is a demand for garage space, particularly from tradespeople who want somewhere to store their tools safely rather than leaving them in their van …
Credit notes or VAT bad debt relief claim – which?
Bad debts pose a significant challenge for every business. Staying on top of non-payments is essential for maintaining a healthy cash flow and ensuring the …
The tax consequences of not repaying an ‘illegal dividend’
Dividends can only be declared out of a company’s available undistributed profits and even if the bank account is in credit as at the date …
