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Landlords: Dealing With Capital Expenditure Under The Cash Basis

From 2017/18 onwards, the cash basis is the default basis for landlords with rental profits of less than £150,000 who meet the qualifying conditions. The extension of the cash basis to landlords is one of the simplification measures ahead of the introduction of digital recording and reporting under Making Tax Digital. The rules for the[…] Read more »

Tax Free Mileage Allowances

Employees often use their own cars for work, usually claiming expenses in the form of a mileage allowance to cover the costs. While it is up to the employer to decide how much to pay by way of mileage allowances, and indeed whether to pay a mileage allowance, it is the taxman who decides what[…] Read more »

Top 10 Reasons Why Small Businesses Would Benefit From HR Management System

When we find a task boring we often put it off for as long as we can. Unfortunately, mundane HR admin tasks fall into this category. However, these tasks are incredibly important to your business and you can’t afford to forget about them or get them wrong. Thankfully technology can make our lives a whole[…] Read more »

NIC And The Self-Employed

Change is on the horizon – from April next year, the self-employed will only pay one Class of National Insurance rather than the two currently payable. Current position Depending on the level of their profits, the self-employed may currently be liable for two Classes of National Insurance contribution – Class 2 and Class 4. Class[…] Read more »

Using Loan Trusts To Save IHT

A loan trust can be used as a vehicle to save inheritance tax, whilst retaining the ability to access the funds lent to the trust. How does it work? There are two elements to setting up a loan trust – the loan and the trust. A trust is set up, which can be an absolute[…] Read more »

Transferring Rental Income To A Lower Tax Paying Spouse

In the UK, it is not uncommon for spouses and civil partners to have income taxed at widely divergent rates of income tax. If one of the individuals is a high earner and the other stays at home, for example, the difference between the tax rates payable by the couple can currently be as high[…] Read more »

Buy-To-Let Landlords – Relief For Interest

With rising property costs and low interest rates, many people took out a mortgage to invest in a buy-to-let property. As long as property prices continued to rise and the tenants paid their rent, investors could make money from the rising market while the rent from the tenant paid off the mortgage – all the[…] Read more »

Claiming Tax Relief For Employment Expenses

In most cases, employees will be able to claim back any expenses that they incur in doing their job from their employer. However, where the employer will not reimburse the employee’s expenses, there may be tax relief to be had. Qualifying expenses Relief can only be claimed for qualifying expenses. These may be either qualifying[…] Read more »

An Inheritance Tax-Free Rental Property Business?

Many individuals would like to have a rental property business, but may be concerned about the possible eventual inheritance tax (IHT) liability. However, a valuable IHT relief may be available to alleviate the problem in certain circumstances. Business Property Relief (BPR) applies to various types of “relevant business property”. For example, BRP can apply to[…] Read more »

Starting A Business – What Profits Are Taxed?

An unincorporated business pays tax on what is known as the `current year basis’. This means that, as a general rule, the profits for a tax year are taxed by reference to the profits for the 12 months to the accounting date that ends in that tax year. So, for example, if Joe has been[…] Read more »