Peer to Peer lending

I have to confess, when I first heard about peer to peer lending, I thought it was a bit of a gimmick, not a real world solution which could be useful for our clients. What changed my mind was listening to the BBC money box programme on ‘Broken Banking’ It is available to listen to on…

Equitable Life compensation

If you are due, or have already received, compensation in respect of the Government’s maladministration of Equitable Life pensions and policies you may be interested in the tax position of these payments. There is no need to declare receipts to HMRC as they are not subject to Income Tax, Capital Gains Tax or Corporation Tax.…

Furnished Holiday Lettings

Does your holiday home qualify as a Furnished Holiday Let (FHL) property? And if it does, what are the tax advantages? Does your property qualify? From April 2012 the following conditions apply: The property must be situated in the UK or EEA. The property must be available for commercial letting as holiday accommodation for at…

VAT flat rate scheme

The VAT Flat Rate scheme provides smaller businesses with a number of options that can often create real cash savings. Benefits include: Simplified administration, quicker to produce returns. Depending on the market sector your business operates within, you may be able to reduce your overall VAT payments. To qualify, your annual turnover must not exceed…

Taking too much out of the company

Any payment made to a director as part of their remuneration package is generally subject to tax that is usually collected via the PAYE system. The payments made by the employer are allowable expenditure and reduce the employer’s taxable profits. However, many smaller limited companies pay personal expenses on behalf of directors. These personal expenses…

Capital Gain on second home

You don’t need to live in a residence for long, but you do have to live there! A recent case involved a couple who inherited a second home from a deceased parent. Anyone owning two residences can make an election as to which one is to be treated as their main residence for CGT purposes.…

VAT flat rate and cash schemes

Two of the VAT special schemes can provide particular advantages for smaller businesses. The Flat Rate Scheme (reviewed in our June 2012 newsletter) can reduce overall VAT payable, especially for traders that are subject to the lower Flat Rate percentages. Cash Accounting allows you to defer payment of VAT added to your sales until the…