Entries by Mike Atkinson

IR35 Personal Service Companies

The ‘IR35’ rules are designed to prevent the avoidance of tax and national insurance contributions (NICs) through the use of personal service companies and partnerships. The rules do not stop individuals selling their services through either their own personal companies or a partnership. However, they do seek to remove any possible tax advantages from doing […]

Using the Inheritance Tax Gift Exemptions

As Benjamin Franklin observed in 1789 ‘In this world nothing can be said to be certain, except death and taxes.’ More than two centuries on, this statement still rings true! These days however, inheritance tax is often referred to as a voluntary tax, because there are various ways to minimise liability to it, or even […]

Paying Class 2 NICs

Whether or not Class 2 National Insurance Contributions (NICs) can be paid depends on whether an individual falls within the definition of a ‘self-employed earner’ for NIC purposes, and if so, whether profits are in excess of the existing small profits threshold (£6,025 for 2017/18). The definition of a self-employed earner is defined as someone […]

Redress Payments

Was your business mis-sold an interest rate hedging product (IRHP) by its bank? The Financial Conduct Authority (FCA) has required the banks concerned to make redress payments to the wronged businesses, and some of those payments are coming through now. If you receive an IRHP redress payment it will be made up of: consequential losses […]

Travel Question

If you contract through your own personal service company (PSC), you will be an employee of that company and you have to obey the strict tax rules that apply to employees’ travel deductions when claiming expenses from your PSC. The first rule is that the cost of ordinary commuting cannot be claimed. This is defined […]

HMRC Taskforce at Large

HMRC has set up specialist tax investigation teams to concentrate on recovering unpaid tax from particular business sectors or as a result of tax fraud. The latest HMRC taskforce teams are looking at: fraudulent VAT repayments in the West Midlands and Nottingham areas; and property tax evasion in South West England and South Wales. The […]

Scottish Taxes

The Scottish people have spoken and the majority have decided they want Scotland to remain part of the UK. However, that doesn’t mean everything will remain the same. We already know there will be two new taxes in Scotland from 1 April 2015, and a variation to income tax rates for Scottish taxpayers from 6 […]

Travel and subsistence for directors and employees

Travelling and subsistence expenditure incurred by or on behalf of employees gives rise to many problems. We highlight below the main areas to consider in deciding whether tax relief is available on travel and subsistence. Employees with a Permanent Workplace Many employees have a place of work which they regularly attend and make occasional trips out […]

Accelerated Payments

The Taxman now has the power to demand tax from you if you have used a registered tax avoidance scheme, or if he thinks the tax scheme you have used is similar to one that has been judged to fail by a Court or Tribunal. For some years most tax avoidance schemes have been registered […]

Marginal tax rates

What rate of tax would you pay on an additional £1 of earnings? If your annual income is between £41,865 and £150,000 you may think the tax rate would be 40%, but the peculiarities of the UK tax system mean you could pay much more. To start with earned income above the 40% threshold carries […]