New IHT Rules for Unused Pension Benefits from April 2027 From 6 April 2027, inheritance tax (IHT) will apply to unused pension funds and death benefits left in an estate. Announced in the Autumn 2024 Budget, this change will increase the IHT burden on estates where pension wealth is passed on after death and not fully sheltered by available […]
VAT Adjustments: Understanding Payback and Clawback Rules Even with the best planning, business intentions can change — and with VAT, that means adjustments may be needed. HMRC’s “payback and clawback” rules ensure VAT claims reflect actual use, not just initial intentions. These rules only affect input tax (VAT on purchases), and can require businesses to either reclaim more VAT […]
Most people hope their estate will be shared according to their wishes. But if you die without a will (known as dying intestate), the law decides who gets what. The distribution depends on the value of your estate, whether you were married or in a civil partnership, and if you had children.(Note: These rules apply to […]
Loans from a personal or family-owned company to its directors aren’t unusual — but when those loans are written off, the tax and National Insurance implications can catch people off guard. HMRC has recently been paying closer attention to this area, even contacting individuals whose loans were released or written off between 6 April 2019 […]
Bad debts are an unfortunate reality for most businesses. When customers don’t pay, it impacts cash flow, profitability, and overall financial stability. But beyond the cash loss, there’s also the VAT question: should you issue a credit note or claim bad debt relief (BDR)? While both options adjust VAT, the rules are very different—and choosing the […]
Taxation in a Partnership: Who Pays What? In the UK, a partnership is not treated as a separate legal entity. Instead, the individual partners are responsible for tax and National Insurance contributions (NICs) based on their share of the partnership’s profits or losses. Each partner is taxed as if they are a sole trader, paying Income Tax on their […]
What is Adjusted Net Income? Adjusted net income is a crucial figure when it comes to calculating tax liabilities in the UK. It determines your entitlement to personal allowances and affects other tax-related calculations like the High Income Child Benefit Charge. In essence, adjusted net income is your total taxable income before personal allowances are applied, but after deducting […]
Why Consider Lending Through Your Company? There are various scenarios where you may wish to financially support a family member—such as helping a child with a deposit for their first home. If you own a personal or family-run company with retained profits, it might seem practical to lend the money directly from the company rather […]
Understanding When VAT Registration Is Mandatory If you’re operating a business in the UK—whether as a sole trader, in a partnership, or through a limited company—you must register for VAT when: Your total VAT-taxable turnover exceeds £90,000 over the past 12 months, or You expect your turnover to exceed £90,000 in the next 30 days alone. Important: If both you and your […]
The Appeal of Holding Property in a SIPP Using a Self-Invested Personal Pension (SIPP) to purchase and hold commercial property can offer some significant tax advantages, especially when the property is leased to your own business or family-run company. Instead of rent being paid to a third-party landlord, it’s paid directly into your pension scheme. […]
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