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…

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…

Termination payments

In a recent First-tier case the Tribunal considered the tax treatment of a businessman who was paid £123,750 on the termination of his employment. He dutifully deducted the usual £30,000 tax-free amount from this payment and declared the difference on his tax return. Unfortunately, the termination payment was paid under the terms of his contract…

Cars LLP and company

In a potentially wide ranging decision, a First-tier Tribunal has ruled in favour of HMRC. The case involved an LLP partnership that was formed to provide management services to a company. The following details are of interest: As part of the arrangement the LLP owned and provided the use of cars to the partners. This…

Tax Investigations – the dash for cash

We provide insurance for our clients to cover the cost of professional fees in the event of a tax investigation. The company which provides this cover has revealed that their data shows HMRC has started twice as many tax enquiries last month as they did in June 2009. It seems HMRC have been instructed to…

Beneficial loans to employees or directors

Image via Wikipedia If a company makes a loan or loans to an employee or director and the combined outstanding value to an individual never exceeds £5,000 there is no personal tax or National Insurance contributions to pay. However, beware; loans to employees who are also shareholders and directors may create a corporation tax charge…

Tax free long service awards

As the name suggests, tax free long service awards are tax efficient. If you provide an employee with a non-cash award to reward long service, the payment can be made without deduction of tax or National Insurance contributions, as long as the following criteria are observed: As this is a reward to employees it is…