Loans to and from directors in close companies can cause all sorts of tax problems, but since the accounting standard FRS 102 came into effect for accounting periods starting on and after 1 January 2016, such loans can cause accounting problems as well.
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VAT Option to Tax
Land and buildings are generally exempt from VAT, but it is possible to charge VAT on supplies of commercial buildings if the taxpayer opts to tax the building. The process of how to make this option to tax election is set out in VAT notice 742A.
MTD Update
HMRC has published some documents alongside the latest Finance Bill, which give us a little more insight to how making tax digital (MTD) may work in practice. There are two draft regulations on how the digital record keeping and reporting will apply for income tax, and an overview of legislation to implement MTD for VAT.
Still Entitled to Child Benefit?
We remind clients in receipt of child benefit to update their child’s educational status if their child is age 16 or over and is continuing in full-time education or undertaking an apprenticeship. Child benefit can continue to be claimed in respect of teenagers aged 16 to 19 who are in approved education of training. This must be full-time (more than 12 hours a week) and will include study for A levels, Scottish Highers, NVQs up to level 3 and traineeships in England. However, it does not include higher education, such as study for a university degree or a BTEC Higher National Certificate. Approved training includes foundation apprenticeships.
Livery Business Qualified for BPR
Business property relief (BPR) is a valuable relief that provides 100% or 50% relief from inheritance tax. To qualify, the property must be `relevant business property’.
PPR – No Minimum Period
A recent decision by the First-Tier Tribunal has confirmed that there is no minimum period of residence to secure the availability of private residence relief. All that matters is that there has been a period of residence as the only or main home. Private residence relief is available to shelter a capital gain on disposal where a person occupies a residence as the taxpayer’s only or main home.