REDUCED PAYMENT WINDOW FOR RESIDENTIAL PROPERTY GAINS
Reduced payment window for residential property gains Currently, capital gains on the sale of residential property in the UK are reported on the self-assessment tax return and the total capital gains tax liability for the tax year is payable by 31 January after the end of the tax year. Thus, the capital gains tax on…Read More
PARTY TIME FOR SMALL COMPANIES
Although there is no specific allowance for a Christmas party or any other employer-provided social function, HMRC do allow limited tax relief against the cost of holding an ‘annual event’ for employees, providing certain conditions are met. Broadly, the cost of staff events is tax-deductible for the business. Specifically, the legislation includes a let-out clause,…Read More
DEALING WITH FINANCE COSTS CORRECTLY
The self-assessment deadline is looming. Self-assessment tax returns for the year to 5 April 2019 must be filed online by 31 January 2020 if a late filing penalty is to be avoided. Landlords will need to complete the property income pages. Particular care should be taken where the landlord has a loan or a mortgage as the way…Read More
USING YOUR CAR IN YOUR PROPERTY RENTAL BUSINESS
Landlords will often use their car for the purposes of their property rental business. Where they do so, they are able to claim a deduction for the costs that they incur. Using mileage ratesWhere a landlord uses their car for business purposes, the easiest way to work out the amount that can be deducted is…Read More
CAN YOU CLAIM TAX DEDUCTIONS FOR UNUSED PREMISES?
A tax inspector is disputing deductions for costs relating to unused business premises included in your latest accounts. Are you entitled to tax relief for these or does the inspector have a point? Your business’s accommodation needs can change for any number of reasons, such as expansion or contraction of your trade. Whatever the reason…Read More
IS THE COST OF ENTERTAINING A DIRECTOR TAX DEDUCTIBLE?
One of our clients, who runs a one-man company, wanted to know if he was entitled to a tax deduction for the cost of an extravagant meal with his partner following the completion of a successful contract? Business expensesGenerally, expenses incurred by businesses in the course of trading are tax deductible, but there are exclusions.…Read More
SELF ASSESSMENT PENALTIES
Due to cash flow difficulties, I have not yet paid my self-assessment payment on account, which was due on 31 July 2018. I realise that I will have to pay interest on the amount outstanding, but will I also have to pay a penalty? A. As you correctly say, HMRC will charge interest on the overdue…Read More