“Shareholders should be aware of the adverse tax implications of gifting shares to their employees. Instead, avoid unwanted tax charges by offering employees EMI share options.
EMI options are a tax-efficient means of giving employees shares in their employer company, and have minimal set-up costs. To find out more, please contact our Employer Solutions Team.”
“If you are thinking of selling all, or part of your business – have you considered the options and do you know about the potential tax reliefs available?
Our advice is that you must plan any sale in advance to minimise your tax bill. Speak to our Transaction Taxperts for more information.”
“Payments on account for the current tax year, 2019/20, are due in January 2020 and July 2020 and are based on your income tax liability for 2018/19.
As we are now ¾ of our way through the 2019/20 tax year, you may be in a position to know whether your total taxable income is going to be less than that of 2018/19. If this is the case, your payments on account can be reduced accordingly.”
“Do your accounting records give you, and your advisors, good enough information on which to base management decisions and undertake tax planning?
Using cloud accounting software such as Xero and financial management add-ons like Figured can help farming businesses do both.”
“Residential property landlords, due to legislative changes, have been reconsidering their business strategy.
In our experience, it’s first important to get the basics of ownership and expenses deduction right first before exploring more complex routes.”
“If a business qualifies for Entrepreneurs’ Relief, a Capital Gains Tax rate of 10% will apply but there are several potential restrictions to avoid.
Review your existing ownership structure to ensure that your current arrangements meet the current criteria for securing Entrepreneurs’ Relief, particularly given recent changes.”
“For larger, more profitable companies, the quarterly payment regime for corporation tax applies (if your annual taxable profits exceed £1.5m).
Avoid having unnecessary group companies as they can bring down this threshold and accelerate the date on which you pay corporation tax.”
“If you have annual taxable income of between £100,000 and £125,000, did you know that any charitable donation might attract over 60% of income tax relief?”
“There are significant differences between the tax treatment of cars and vans. In many cases it will be obvious whether the vehicle you are purchasing is a car or a van for tax purposes, but in some cases it is not so clear.
To avoid unwanted tax charges, please discuss the position with your EQ Taxpert.”
“Tax enquiries and investigations can often be avoided by simply paying attention to good tax compliance.
Did you know that lodging accounts and tax returns right on the filing deadline is an indicator of tax risk to HMRC?”