Salary or dividend best in 2023/24
In recent years many accountants have advised their director/shareholder clients that the most tax efficient method of extracting profit from their family company was to pay themselves a low salary, at or around the £12,570 personal allowance, with the balance in dividends.
Diary of main tax events November/December 2023
Please see below for the diary of main tax events for November/December 2023. Any questions we are here to help.
Charging electric cars at home
HMRC have recently clarified their view of the tax treatment of the reimbursement of electricity costs where employees charge their electric company cars at home. HMRC now accepts that reimbursing part of a domestic energy bill, which is used to charge a company car or van, is exempt from income tax. Their previous view was that such reimbursements were taxable.
Reclaiming input VAT on the sale of shares
The sale of shares is an exempt supply for VAT purposes, which means that input VAT on professional fees in connection with the
Remember not all LLP members are self-employed
Since April 2014 members of a LLP are no longer automatically treated as self-employed for tax purposes.
Year end tax planning ideas for your business
It is always a good idea to set up a planning meeting with us a couple of months before your business year end so that we can advise you on the best actions to take to reduce your taxable profits. In addition to considering paying yourself a bonus from your company you might consider:
Tax benefits of electric company vans
Employers investing in new vans will be rewarded for choosing zero-emission models. Not only will employees be able to use the vans privately without having to pay tax on the benefit, there will be no Class 1A National Insurance for the employer to pay either.
Are you due a national insurance refund on car allowances?
Recent Tribunal decisions in favour of employing companies and against HMRC has caused many organisations in similar circumstance to make protective claims for the recovery of National Insurance Contributions (NIC) in respect of car allowances paid to employees using their own cars or vans for business journeys.
Reminder: Keep up to date profit forecasts for tax
In order that we can help predict your taxable profits and tax liabilities we need up to date profit figures and projections.
Diary of main tax events October/November 2023
Please find below the main tax events for October/November 2023. As always, if you need further guidance, do not hesitate to reach out to us.