A recent case highlighted some important points regarding Private Residence Relief (PRR). PRR is the mechanism that prevents capital gains tax being charged for most people when they move house. However PRR can get a little bit complicated especially when multiple houses are owned: For PRR to apply, you must properly live in the house. […]
For businesses just starting out on VAT, HMRC’s webinars can be very useful. These can be found here: https://www.gov.uk/guidance/help-and-support-for-vat As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like detailed specific advice please contact us.
A recent first tier tribunal VAT case held that professional services in connection with a rather convoluted share scheme for the owner managers was a valid business expense. HMRC had contented that the advice was for the benefit of the shareholders and nothing to do with the business. However the taxpayer won the case that […]
Thinking of incorporating your sole trade or partnership? And maybe becoming VAT registered? There are lots of tax opportunities and pitfalls to consider around these changes. Always consult a tax professional before transferring to a limited company or becoming VAT registered. As with all of our tax tips and web pages this information is necessarily […]
In a recent case HMRC denied VAT relief for a DIY builder. HMRC’s case appeared plausable albeit subjective. The taxpayer appealed and the first tier tribunal found in favour of the taxpayer, granting VAT relief on the cost of building a new house. We report this case not for the technical detail of the VAT […]
This is a case close to home. Our local village Cricket Club here in Eynsham (ECC) appealed HMRC’s decision that VAT had to be charged on the construction of its new pavilion. ECC is registered as Community Amateur Sports Club (CASC), but not as a charity. If they were a charity the construction would have […]
VAT groups can be a useful tool to avoid VAT losses in certain scenarios. Broadly, a VAT group is where companies under common control are treated as one single VAT entity. This has the effect that transactions between those companies are not supplies by the VAT entity and therefore no VAT is charged. New rules […]
If your company or your employer pays professional fees on your behalf you will be subject to income tax on the benefit in kind. There is no such charge as long as the fees are directly related to your job, and the professional association appears on the HMRC list. https://www.gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3 As with all of our […]
HMRC are looking for tax evading landlords by contacting tenants. If you are a tenant and receive any contact from HMRC about your landlord, we recommend you contact us. In some cases, where a landlord is overseas, rent should be paid to them net of UK tax. The UK tax element is then paid to […]
Charity accounting updates have been issued in the form of a second edition of the Charities SORP (FRS 102). For most small charities their accountants will prepare the accounts under this updated guidance. As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you […]