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What constitutes profit for tax purposes?

There is no simple answer to this question. We have listed below some of the matters that need to be are considered. As self-employed business owners’ profits are subject to income tax and National Insurance - and limited companies to corporation tax - we have divided our comments accordingly.

Before making this distinction it is important...

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Tax Diary December 2019/January 2020

1 December 2019 - Due date for Corporation Tax payable for the year ended 28 February 2019.

19 December 2019 - PAYE and NIC deductions due for month ended 5 December 2019. (If you pay your tax electronically the due date is 22 December 2019)

19 December 2019 - Filing deadline for the CIS300 monthly return for...

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Obtain proof of employment history

If you need evidence of employment for a claim, the following notes published by HMRC may help.

You can ask HMRC for a record of your employment history, for example if you are making a compensation claim for:

  • an industrial injury (for example asbestosis or industrial deafness)
  • a road traffic accident
  • medical negligence
  • hardship (for example you’re claiming through a...
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Christmas gifts

You don’t have to pay tax on a benefit (gift) to your employee if all of the following apply:

  • it cost you £50 or less to provide
  • it isn’t cash or a cash voucher
  • it isn’t a reward for their work or performance
  • it isn’t in the terms of their contract

Gifts that fall into this category are known as...

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Flood support

The government announced 13 November that it will extend its Farming Recovery Fund to support farmers badly affected by the recent flooding across Yorkshire and the Midlands. Through this scheme, farmers and land managers who have suffered uninsurable damage to their property will be able to apply for grants of between £500 and £25,000 to...

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Time is running out for tax planning 2019-20

A reminder that in just a few months the present tax year closes, 5 April 2020.

After this date, a whole raft of 2019-20 tax planning options for individuals will cease to be available.

These cover a multitude of opportunities to reduce your liability to Income Tax, Capital Gains Tax and National Insurance. These opportunities include, but...

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Planning holidays for next year?

The following details were recently published on the gov.uk and regional websites. They set out bank holiday dates for Christmas 2019 and 2020.

 

Upcoming Christmas bank holidays in England and Wales, Scotland and Northern Ireland 2019

25 December

Wednesday

Christmas Day

26 December

Thursday

Boxing Day

Upcoming bank holidays in England and Wales... Read more

Using your vehicle for business purposes

As a general rule, if you use your private transport for trips related to your employment, you may be able to claim tax relief if you are not reimbursed for this business use by your employers.

Exceptionally, any normal travel between your home and your place of work will always be excluded from this calculation unless...

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Do not fall for the fraudsters

We are fast approaching the deadline for filing self-assessment tax returns in the UK for 2018-19. As readers will be aware, this deadline is 31 January 2020.

Unfortunately, this coincides with a pick-up in scamming activity by fraudsters pretending to be the tax office. HMRC have recently posted an alert for taxpayers and this is reproduced...

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When trivial can be significant

The following extracts from HMRC’s website explain how certain benefits to employees can be tax-free. Surprisingly, HMRC describe these as “trivial” benefits.

You don’t have to pay tax on a benefit for your employee if all of the following apply:

  • it cost you £50 or less to provide
  • it isn’t cash or a cash voucher
  • it isn’t a reward...
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