Running your company from home

If you run your business through a limited company and your base of operations is your home office, it is possible to charge your company rent. Of course if you do this the company will be able to deduct the rents from its profits and you will need to declare the rents on your self-assessment…

Employed or self-employed

Whether an individual is employed or self-employed is often far from clear, it is a case of shades of grey rather than “black and white”. There have been numerous court cases over the years, and the judgements in these cases form the law on this area. HM Revenue & Customs have recently published new guidelines…

HMRC further online incentive

From 1 October 2008 HMRC will no longer send taxpayers a postage paid envelope to use when paying their tax or filing/paying their VAT returns. This apparently is a signal to us all to make returns and payments online. To ease the payment process HMRC are also about to make it easier to pay our…

Capital Allowances and personal tax planning

There has been a big change to the amount small businesses can claim for tax purposes when they invest in capital items such as plant and machinery (these are known as capital allowances). From the 6 April 2008 sole traders and partners can claim up to £50,000 a year as a direct write off against…

Immediately vested pension contributions

If you are of pensionable age, (presently 55 or 50 if you were born before 6 April 1960) here is some information you could find very interesting. The illustration below shows you for example that a higher rate tax payer can start to draw an income (pension) from a fund of £37,500 at a cost…