Blog - PMA Accountants

November Questions and Answers

Q. I have recently started running my own business providing training services. HMRC have advised me that VAT is not charged on the type of services I am providing. Does this mean that my services are zero-rated for VAT or actually exempt? Do I need to register for VAT? A. Although both zero-rated and exempt supplies result in no VAT being applied to the supply, the consequence is very different between them and it is important to get it right. Zero-rating is a rate of VAT, albeit at zero per cent. The goods and/or services to which it applies are [...]

Asif2019-11-01T21:18:11+00:00November 11th, 2019|Categories: Questions & Answers|Tags: Employees, Medical Treatment, Property, Q&A, VAT|0 Comments

Salary or bonus?

As 31 December approaches, many companies will be getting ready to tie up tax matters for their financial year-end and giving consideration to salaries, bonuses and dividends. Given current tax rates, paying a dividend rather than a salary will often be a more cost-effective way of withdrawing profits from a company. However, if the company is loss-making and has no retained profits, it will not be possible to declare a dividend, and an alternative will need to be considered. This often involves an increased salary or a one-off bonus payment. From a tax perspective, the position will be the same [...]

Asif2019-11-01T21:15:38+00:00November 9th, 2019|Categories: Blog, PAYE|Tags: BLOG, Bonus, Dividends, Salary|0 Comments

Losses in the first years of trade

If a new business makes losses in its first few years of trading, there may be scope to carry back those losses and set them off against other income received in the years prior to commencement of the trade. This is commonly referred to as 'early trade losses relief' and it applies to losses sustained in the tax year in which a trade is first carried on, or in any of the next three years. The provisions may be particularly useful to new businesses as they may be used to generate a cash boost in the form of a [...]

Asif2019-11-01T21:10:34+00:00November 6th, 2019|Categories: Business|Tags: BLOG, Losses, Start-Ups|0 Comments

Recognising genuine HMRC contact

Broadly, phishing is the fraudulent attempt to obtain sensitive information such as usernames, passwords and credit card details by disguising oneself as a trustworthy source in an electronic communication. This is generally carried out by email spoofing or instant messaging, and it often directs users to enter personal information at a fake website which matches the look and feel of the legitimate site. Most people are aware of the increase in volume and sophistication of phishing campaigns in recent years, but worryingly, there has also been a notable rise in reported incidents of phone calls and/or electronic communications from [...]

Asif2019-11-01T21:08:16+00:00November 3rd, 2019|Categories: HMRC|Tags: BLOG, HMRC|0 Comments

Private residence relief and the final period exemption

Private residence relief (also called main residence relief) is well known. It prevents a liability from capital gains tax arising on any gain on the disposal of a property which has been the taxpayer’s only or main residence throughout the period of ownership. Where a property has not been the only or main residence throughout, the amount of private residence relief is reduced. It is available both for the period during which the property was the taxpayer’s only or main residence and, currently, the final 18 months of ownership (the ‘final period exemption’). Where the property has been let, [...]

Asif2019-10-28T23:04:14+00:00October 31st, 2019|Categories: Blog, Property, Taxation|Tags: BLOG, Capital Gains Tax, Private Residence Relief, PRR|0 Comments

What is an EORI number and who needs one?

An economic operator registration and identification (EORI) number will be needed for UK businesses to be able to continue to trade with the EU after the UK leaves the EU. If there is a no-deal Brexit In the event that the UK leaves the EU without a deal, an EORI number that starts with GB will be needed to move goods in and out of the UK. An EORI number is not needed if goods are only moved between Northern Ireland and Ireland. However, one is required for imports and exports that move directly between Ireland and Great Britain [...]

Asif2019-10-28T22:58:37+00:00October 29th, 2019|Categories: Blog, Business|Tags: Brexit, EORI, Import|0 Comments

October Questions and Answers

Q. Our house has always been owned jointly by myself, my mother and my sister. My sister and I now want to buy our own homes and want to make mum the sole owner of our current home. If we put the house in her sole name will she have to pay capital gains tax (CGT) on it? A. Transferring the house into your mother's sole name will not trigger a liability to CGT, but it may have CGT implication for you and your sister. However, since you live in the property, it is quite likely that you would qualify [...]

Asif2019-10-03T00:19:07+01:00October 23rd, 2019|Categories: Questions & Answers|Tags: Capital Gains Tax, Company Car, Construction Industry Scheme|0 Comments

Tax-free expenses for home-workers

Providing certain conditions are met, no tax liability will arise if an employer makes payments to employees for reasonable additional household expenses, which the employee incurs in carrying out duties of their employment at home under 'homeworking arrangements'. 'Homeworking arrangements' are arrangements between the employee and the employer under which the employee regularly performs some or all of the duties of the employment at home. There is no requirement for any part of the employee's home to be used exclusively for the purposes of the employment. HMRC will accept that homeworking arrangements exist where: - there are arrangements between the [...]

Asif2019-10-03T00:15:53+01:00October 4th, 2019|Categories: Blog, Taxation|Tags: BLOG, Expenses, HMRC, Working From Home|0 Comments

Overdrawn director’s loan accounts

In a personal or family company, the lines between the directors as individuals and the company are often blurred – the director may lend money to the company when cashflow is tight and the company may lend money to the director or pay personal bills on the director’s behalf. Transactions between the director and the company are tracked via the director’s account. If the director’s account is overdrawn at the end of the accounting period (such that the director owes the company money) and the company is close, there are tax consequences to consider. Broadly, a close company is [...]

Asif2019-08-23T16:24:33+01:00September 20th, 2019|Categories: Blog, Taxation|Tags: BLOG, Directors Loan, Section 455 Charge|0 Comments

September 2019 Questions and Answers

Q. I am a qualified chiropractor and I have been running my own business for many years. I would now like to specialise in a particular area and have enrolled on a university course to obtain the relevant qualification. The cost is around £18,000 per annum and the course is three years in duration, during which time I intend to continue working part-time. Is the cost of the course deductible for tax purposes? A. Expenditure incurred by the owner of a business on training courses for themselves is revenue expenditure if the course merely updates existing expertise or knowledge. Expenditure [...]

Asif2019-09-16T17:36:46+01:00September 18th, 2019|Categories: Questions & Answers|Tags: Buy-To-Let, Capital Gains, Q&A, Training Courses, VAT, VAT MOSS|0 Comments

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