Author Archives: McMillan Rose

The first stage of MTD comes into effect in April 2019. All businesses that have registered for VAT will need to use software that files the VAT return directly to HMRC. The option of logging into HMRC’s website and manually inputting the VAT figures will no longer be available. All new VAT registrations after April […]

It’s not very often that free money comes along but from 6th April 2017 the Government will introduce the Lifetime ISA. If your child is somewhere between 18 and 40 and hasn’t yet purchased their first home then any savings into this new scheme will attract 25% additional funds from the Government. Where else can […]

There is no longer a need to report trivial benefits for staff to HMRC (Benefits up to £50). An employer can now pay a benefit to an employee where it is no more than £50, as many times in the tax year as they wish. However, this must not be a reward for services as […]

From 6th April 2016 the wear and tear allowance will be removed and replaced by the actual expenditure. For those landlords who have furnished property this is likely to mean an increase in their tax payments from 31st January 2018. Planning for this cost could be critical where the rents only cover the mortgage payments.

The restriction will come in from 6th April 2017 and will be phased in over five years. This will only affect higher rate taxpayers and only those with residential let property (not commercial property) and does not apply to a property business or furnished holiday lets. So for landlords that are basic rate taxpayers there […]

The summer budget had some nasty surprises for small companies. If your company pays dividends and you are a basic rate taxpayer but don’t use up all your basic rate band, then consider taking additional dividends before 6th April 2016. These dividends don’t need to be paid but you do need to have sufficient reserves […]

On top of the legislation there has also been a number of recent tax cases. Use this link to keep up to date on how to calculate holiday pay: http://tinyurl.com/npwcrwa

HMRC would try to treat a dividend as illegal (insufficient profits) and assess tax and interest if you have not followed the correct procedures. To avoid this print a quick profit and loss account before the dividend is declared. Assuming there is enough profits (after providing for tax [currently 20%]) then prepare the dividend minutes […]

Consider this. You mainly supply services to other business customers who are registered for VAT themselves. You have very little expenditure where you would be able to claim VAT back. Depending on your type of business by using the FRS you can gain a financial advantage. For example: you invoice to your customer £100 plus […]