Advisory Fuel Rates (AFRs) are the rates recommended by HMRC to assist businesses either in reimbursing employees for using company cars for business travel or in being reimbursed back by employees for fuel costs for private travel when using a company car.The rates that apply from 1 June 2019 are:(please note that you can use the previous rates for up ...read more
The Rent a Room relief is an optional scheme that allows you to earn up to £7,500 a year tax-free (or £3,750 if you’re letting jointly) when you let out furnished accommodation to a lodger in your main home and you are also living in the accommodation for at least some of the time that the accommodation is let.Claiming the ...read more
The new tax year starts on 6th April and with it comes changes to the tax rates and thresholds.Below we have summarised what we consider the most important changes. Dividend Allowance:The tax-free dividend allowance will be reduced from £5,000 to £2,000 per year for 2018/19 onwards. This will mostly affect directors of small businesses who pay themselves through dividends rather than ...read more
When providing services to your client, occasionally you might need to pay for items on their behalf. How do you then treat the VAT on the expenses that you recharge to the customer? There is one simple rule that you need to keep in mind: all recharged expenses carry VAT, unless the item is a disbursement. If you pay an expense on ...read more
A new tax-free childcare scheme has been introduced this year allowing around 2 million households to reduce the cost of childcare, including self-employed parents.How does the new scheme work?Parents with children under 12 years old can open an online account and pay in the amounts they would like for childcare provided by a registered childcare provider.For every 80p that is ...read more
Enterprise Management Incentives (EMIs) are an approved tax-advantaged employee share scheme allowing employers to grant share options to employees, most of the time as a reward for their efforts. It is designed for small companies and is not to be confused with the Enterprise Investment Scheme (EIS), where investors receive tax relief on their investment to small companies.What are the ...read more
Is your foreign income taxable in the UK? Whether or not you should declare and pay UK tax on your income earned abroad depends not only on which country you have ‘residence’ status in but also on your ‘domicile’ status. If you are unsure of your UK residence status – that is, whether you are a UK resident or not ...read more
Christmas is just days away and one of the traditions of the season is the company Christmas Party. Whether you choose lunch, dinner or a visit to Winter Wonderland, you might be wondering if you can claim back any of those expenses against your Corporation Tax bill.Well, we have good news for you! HMRC allows a maximum amount of ...read more
…a worker doesn’t have a fixed place of work. Therefore those of us who work in the same location each day are unable to claim that those many many hours spent in a car or pressed against a train window count as time on the job.This has been the case since a ...read more
The most significant impact on anyone's tax is arguably their residence status. Concluding on whether a person is UK resident for tax purposes is not easy. It's really difficult, in fact. To make life a little easier, we have summarised below the key points of the residency test:View a higher-resolution version of the infographic ...read more
