The deadlines requiring businesses to file quarterly accounts with HMRC under the ‘Making Tax Digital’ (MTD) legislation have been postponed . The earliest date any business will be subject to mandatory quarterly filing is now April 2019 (instead of April 2018) and that deadline only applies to businesses that are completing quarterly VAT returns. Other […]
VAT on property – The Capital Goods Scheme
The Capital Goods Scheme (CGS) can have a very significant impact on the net cost of commercial property. It can impact both the amount of VAT that is recoverable from HMRC on acquisition and the amount of VAT that is payable to HMRC on sale. The CGS rules apply to capital expenditure on land and […]
Property developers – Extracting profits as capital
A fairly common practice is to set up a new company for each development and then liquidate the company when the property is sold, in the hope that the distribution is eligible for Entrepreneur’s Relief and thereby benefits from a 10% tax rate, saving as much as 28.1% when compared to the rate payable on […]
Buy to let investors – don’t pay too much stamp duty land tax!
As landlords will be aware, in addition to the normal rates of Stamp Duty Land Tax (SDLT) for residential properties, there is now a 3% SDLT surcharge which is payable on the acquisition of a second ‘dwelling’ (e.g. a home, a buy to let, a holiday let). So how does this charge affect you […]
Tax free reimbursement of directors and employees expense claims
Formulating, processing, and evidencing expense claims for travel & subsistence costs incurred by directors and employees can be a frustrating burden on any employer’s time. So is there another way of doing things? The obvious alternative is to reimburse expenses using HMRC’s ‘benchmark’ scale rate payments, thus circumventing the need to collect receipts and then collate […]
The impact of VAT and Income Tax on a Landlord’s profits
If you are in the property letting business you might find the following information useful when appraising the cost of building projects, because VAT and Income Tax can make a very significant impact on your profitability. The general rule is that short term ‘net of tax’ costs are lower if expenditure is categorised as being ‘repairs/refurbishments’ related […]
