Monthly Archives November 2019

HMRC rules state that you cannot claim VAT paid on the purchase of a car if there is any private use at all, this even means when commuting to and from your place of work.  There is of course the exception on cars used as taxis or for a driving school, you will still need to account for the VAT on the private use though.  The rules do not apply to leased and since June 2019, purchases using personal contract purchases (PCPs). The 50/50 rule When you lease or buy a car using a qualifying PCP with the intention that
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What was your dream when you set up your business?  Was it that you wanted to work for yourself and no-one else?  Did you dream that one day the business would be so much of a success you could pass it down to your children? What if we told you that you can pass some of your business to them now and they’re only 5 and 7? HMRC has wide-ranging anti-avoidance rules which are known as settlements legislation.  This basically means you as the parents as still liable to tax on income derived from assets (unless the income per child
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New rates. Updated advisory fuel rates (AFRs) from 1 September 2019 for fuel costs when using company cars. Engine Size Electric per mile Petrol per mile LPG per mile Diesel per mile Up to 1,400cc – 12p (12p) 8p (8p) – 1,401cc to2,000cc – 14p (15p) 10p (9p) – Up to 1,600cc – – – 10p (10p) 1,601cc to2,000cc – – – 11p (12p) Over 2,000cc – 21p (22p) 14p (14p) 14p (14p) N/A 4p (4p) – – –  
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“Employing” your husband, wife or children for the purposes of increasing your business costs and therefore reducing your tax liability has been widely used by businesses. Whether HMRC will wear it is another matter. Where do you actually stand if the Taxman challenges this decision? An expense normally has to be “wholly and exclusively for the purpose of the trade”, if not then no tax deduction is allowed. If a tax inspector notices the appearance of such payment, questions will more than likely follow. Is it a justifiable expense? You should first establish if the family member actually works for
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