01 - May 2019
Director’s loan accounts: recording personal expenses
Posted by : Pro-Taxman
View : 212
Comment : 0
HMRC commonly find errors in relation to directors’ loan accounts when making routine reviews of company tax returns. This article looks at the importance of maintaining proper records of cash and non-cash transactions between the company and the directors. Directors’ personal expenses A statutory rule states that a company may not deduct expenditure in computing […]
01 - May 2019
Year-end tax planning tips
Posted by : Pro-Taxman
View : 96
Comment : 0
As the end of the 2018/19 tax year approaches, it is worthwhile taking time for some last-minute tax planning. Here are some simple tips that may save you money. Preserve your personal allowance: the personal allowance is reduced by £1 for every £2 by which income exceeds £100,000. For 2018/19, the personal tax allowance is […]
01 - May 2019
Salary v dividend for 2019/20
Posted by : Pro-Taxman
View : 188
Comment : 0
A popular profits extraction strategy for personal and family companies is to extract a small salary, taking further profits as dividends. Where this strategy is pursued for 2019/20, what level should be the salary be set at to ensure the strategy remain tax efficient? Salary As well as being tax effective, taking a small salary […]
01 - May 2019
Tax-free investments using Premium Bonds
Posted by : Pro-Taxman
View : 135
Comment : 0
Premium Bonds (PBs) are an investment product issued and maintained by National Savings and Investments (NS&I), which in turn, is backed by HM Treasury. With a return rate comparable with regular savings accounts (currently 1.40%), it is not difficult to see why PBs remain one of Britain’s favourite ways to save – around 21 million […]
01 - May 2019
Make the most of your allowances
Posted by : Pro-Taxman
View : 141
Comment : 0
The tax system contains a number of allowances which enable individuals to enjoy income and gains tax free. In seeking to maximise your tax-free income, it makes sense to take advantage of available allowances. The following are a selection of some of the allowances on offer. Personal allowance Individuals are entitled to a personal allowance […]