Understanding the Off-Payroll Working Rules Off-payroll working applies when a worker provides their services to a medium or large private sector company, or a public sector body, via an intermediary, such as a personal service company. To ensure compliance with these rules, the end client must carry out a status assessment. If this assessment determines […]
HMRC’s Expanding Investigative Powers Her Majesty’s Revenue & Customs (HMRC) has significantly strengthened its ability to detect unreported or “invisible” income. While it has always had the right to enquire into any tax return without giving a reason, the scope and sophistication of its tools have grown. Whether income is deliberately concealed or unintentionally missed, […]
The Rise of Property Incorporation More landlords are now considering running their property ventures through limited companies. This trend has accelerated due to the increasing gap between corporate and personal tax rates, as well as the full deductibility of finance costs available to companies. Additionally, with the tax perks for furnished holiday lettings coming to […]
Understanding Mileage Relief When employees use their vehicle or a company car for business travel and cover the fuel costs themselves, they may be eligible for tax relief. Employers often reimburse these expenses through mileage allowances. However, employees can claim tax relief for the difference if the reimbursement is less than HMRC’s approved rates or […]
Understanding Partnerships and Their Legal Nature A partnership is one of the most flexible forms of business and can be established with just a verbal agreement. As soon as two or more parties begin working together in a business venture with the aim of making a profit, a partnership is formed—whether they are individuals, companies, […]
Understanding Your Reporting Duties As an employer, if you’ve provided taxable expenses or benefits to your employees during the 2024/25 tax year, it’s essential to fulfil your reporting responsibilities. These include submitting the necessary information to HMRC and ensuring employees receive the relevant details. Your exact obligations will depend on whether or not you’ve chosen […]
Taxing Company Cars: The Basics If you have access to a company car for personal use, you’re required to pay tax on the benefit you receive. The tax charge is calculated as a percentage of the car’s list price, including any optional extras, with adjustments for any employee capital contributions up to £5,000. This percentage, […]
A Unified Approach to Property Income From 6 April 2025, a major shift is coming to the way rental income is taxed. The separate tax treatment that applied to Furnished Holiday Lettings (FHL) will be scrapped. Going forward, income from FHLs will be taxed under the same rules as income from other residential properties. If […]
What Is the Official Rate of Interest? The official interest rate is a benchmark set by HMRC used to calculate the taxable benefits employees may receive from their employer. Specifically, it applies to: Cheap or interest-free employment-related loans Employer-provided accommodation valued above £75,000 This rate determines how much tax an employee may owe on these […]
Why Invest in Woodlands? Take a drive through the countryside, and you may notice signs declaring ‘Woodlands for Sale.’ These aren’t just scenic plots of land—they can be a strategic investment with noteworthy tax advantages. Investing in commercial woodlands can open the door to several reliefs and exemptions, especially when managed with profit in mind. […]