The enhanced tax relief for expenditure on research and development (R&D) projects is very attractive for small companies. Unfortunately, the rules are not that simple and HMRC keeps changing its guidance, which is contained in the Corporate Intangibles Research and Development manual (CIRD) and a simpler version on gov.uk.
News & Updates
This is a new corporate criminal offence that comes into effect on 30 September 2017, which firms of accountants, tax advisers and all company directors need to be aware of. The underlying law is contained in the Criminal Finances Act 2017, which was hurriedly passed on 27 April before Parliament dissolved for the General Election.
The business tax account (BTA) has the potential to be extremely useful online facility for employers, as it should enable the employer see what they have paid as PAYE, and what is owning, as well as any PAYE-related penalties or charges. The BTA isn’t generally open for the employer’s tax agent to view, although there is a pilot ongoing which allows tax agents to view their clients’ BTAs.
Ventura UK Ltd was a typical small company owned by four director/ shareholders in equal parts. One of the directors (B) lent the company around £240,000 at some point before April 2010.
Directors and shareholders of micro-companies generally take significant dividends from their companies. In past tax years the practice has been to take a dividend payment sufficient to cover the taxpayer’s basic rate band, as before 6 April 2016 dividend income lying within the basic rate band attracted no further tax.
Care homes in the UK are largely run as private business. Where a building is constructed solely to be used as a residential care home, the first sale of that building should be zero rated for VAT. However, the first sale of a hospital building is subject to standard rate VAT.