Overview of some of the common tax issues on rental expenditure.

Rental expenses Overview of some of the common tax issues on rental expenditure. The general rule when calculating rental business profits is that expenses will be treated as revenue expenditure provided they are incurred wholly and exclusively for the purposes of the business and are not of a capital nature. Expenditure incurred before a property is first let out The tax deductibility of expenditure incurred before a property is first let out depends on whether it is capit...
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Tax saving initiatives

Businesses of all shapes and sizes are currently facing a highly favourable environment for investment. A number of tax reliefs and incentives are available to business seeking to secure investment, in addition to the growing sources of finance such as peer-to-peer lending and crowdfunding. Businesses may also qualify for help with business rates or tax relief for research and development. In this article we list the various reliefs and incentives available. Business rate relief Ma...
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CIS employed or self-employed

CIS employed or self-employed? Source: HM Revenue & CustomsThere are sound tax reasons for contractors to engage the services of self-employed labour as opposed to employed labour. For example there are significant savings in employer’s National Insurance.There are advantages too for the self-employed subcontractors: they are treated as a business for self-assessment purposes and can claim a wider range of allowable expenses.For these very reasons HMRC will seek to challenge a subcontra...
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Building the finance function in growing businesses

Building the finance function in growing businesses The global drive for economic recovery has placed a huge focus on supporting small and medium-sized enterprises (SMEs) as a vehicle for job creation, economic stability and wealth creation. Governments are also capitalising on the opportunities presented by SMEs for market innovation and its value in building social capital. In order for SMEs to achieve their maximum impact, efforts to promote them cannot be limited to encouraging more of th...
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Common myths about accountants!!

Many accountants will have lost count of the number of times they have been asked to check the bill in a restaurant (whilst out with family or friends…”because they are an accountant!”. As a traditional industry with centuries of history, accountancy has gained more than its fair share of myths. Here are a few you may have come across: Myth 1: Accountants add up rows of figures in their heads So many people assume that accountants have an inherent ability to add up long rows of figures in thei...
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The importance of effective cashflow management

The importance of effective cashflow management We see it all too frequently, businesses of all sizes getting into financial trouble and struggling to pay their suppliers, the taxman and their own staff. This can happen because the people running the business are so focused on their product or service or customers that they forget to take care of cashflow management, which is key to sustainable growth. Cash is the lifeblood of every enterprise, but although entrepreneurs want to make money, i...
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Tax crackdown brings in extra £23bn – Investigation

New figures from HM Revenue and Customs (HMRC) have revealed that it brought in a record £23.9 billion in extra taxes over the last year, after stepping activity to make sure people pay all the tax they owe. The additional tax, brought in through HMRC investigations, on top of funds collected from those who pay their taxes on time, is up £3.2 billion on the previous year, up £9 billion on three years ago and nearly £1 billion above the target set at Autumn Statement 2013. More than £8 bill...
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Important considerations for company directors!

Do you need to top up your National Insurance contributions? As a director of your own company, you may have been taking a basic salary which falls below the lower earnings limit (which you may have topped up with dividends) and you may not have paid any National Insurance contributions on your earnings. The lower earnings limit for 2013/14 is £473 per month. You could have gaps in your National Insurance contributions record, which may affect your entitlement to the basic State Pension an...
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Child benefit tax penalty threat from HMRC

High earners subject to the High Income Child Benefit Charge (HICB) could face a fine of £100 if they miss the paper tax return deadline of 31 October. The deadline for online returns is 31 January, after which the same penalty from HM Revenue and Customs (HMRC) applies. Many people who face a tax charge because they receive child benefit, will be filing for the first time. The HICB is chargeable on families where one parent has received Child Benefit after 7 January 2013 and the total ...
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Harrow times: Figures reveal house price surge

Figures reveal house price surge © Press Association 2013 » House prices have risen at their fastest rate this year so far according to official figures which add to mounting evidence that the property market is bursting back into life. Growth in buyer numbers was seen across the UK, figures suggest Prices rose by 3.1% year-on-year in June to £242,000 on average, marking the strongest annual upturn recorded by the Office for National Statistics (ONS) in the last six months. On a monthl...
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