Salaried members of an LLP

HMRC published the draft Finance Bill 2014 last month. Included were changes to the taxation of certain partnerships. This article discusses the introduction of a new type of partnership member for Limited Liability Partnerships (LLPs) that will commence 6 April 2014: the “salaried member”. The new status has been introduced to counter so-called “disguised employment”…

Private Use of Company Assets

Where employees are provided with living accommodation, a car or a van, any private use is usually subject to specific scale charges or other rules. This article considers the provision of two further classes of assets provided for an employee’s or director’s personal use. The cash equivalent of the asset provided is the annual value…

VAT flat rate scheme and bad debts

If you use the flat rate cash-based turnover scheme you may still be due a VAT reclaim even though you will not have paid a VAT contribution to HMRC. Section 14 of the VAT Notice 733 spells it out: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000345&propertyType=document#P633_59475 The following is extracted from HMRCs notice: If you use the cash turnover method of…

VAT scale charge where fuel is used for private motoring

Most limited companies do not provide fuel for private use, as the tax charge is normally greater than the cost of the fuel. So the following applies more often to partnerships and sole traders, where there is an apportionment between business and private use. VAT fuel scale charges, for taxing private use of road fuel,…

National Minimum Wage from 1 October 2013

  The National Minimum Wage rates are increasing from 1 October 2013. They will be:   •         Apprentice rates: £2.68 per hour. * But see note below. •         Under 18s: £3.72 per hour. •         18 to 20 years: £5.03 per hour. •         Age 21 years and over: £6.31 per hour.   *This is the rate…

Tower to Tower Blackpool to Paris

The ride from Blackpool Tower to the Eiffel Tower is to start on Saturday July 20th from Blackpool arriving in Paris on Saturday 27th July. More details on http://www.justgiving.com/TowerToTowerOn2Wheels Confirmed Route : (All Distances are approximate) Day 1: Blackpool to Manchester – (51.46 miles) Day 2: Manchester to Barlborough – (60.94 miles) Day 3: Barlborough to Huntingdon – (94.5 miles) Day 4: Huntingdon to Northfleet – (89.63…

Medics travel expenses

In what might be a landmark decision in the interpretation of ‘wholly and exclusively’ expenditure, Dr Samadian has lost his protracted battle with HM Revenue & Customs (HMRC) over his claim for business mileage. Dr Samadian has 56 days to appeal against the ruling made on 28 January 2013. Dr Samadian has endured an enquiry which started…