Category: HMRC

Pension Tax Allowances
Articles

Making Most of Pension Tax Allowances

The annual allowance can be carried forward for up to three tax years if it is not used, after which it is lost. The current year’s allowance must be used first, then brought forward allowances from an earlier year before a later year.

Directors Expenses
HMRC

Recording Directors Expenses Correctly

Where the expenditure forms part of the remuneration package it will be an allowable expense of the company and the appropriate employment taxes (PAYE income tax and NICs) should be paid, where relevant.

Mileage Allowance
HMRC

Mileage Allowance Payments | What is NIC Free

The terminology for National Insurance purposes is different too – rather than the ‘approved amount’ the relevant amount is the ‘qualifying amount’ (QA). As long as the mileage payments paid in the earnings period are not more than the qualifying amount, they are NIC-free.

Airbnb Lets Qualify Furnished Holiday Lets
HMRC

Airbnb Lets Qualify Furnished Holiday Lets

Qualifying as a FHL offers a number of advantages. It opens the door to various capital gains tax reliefs for traders, including entrepreneurs’ relief. The landlord is also eligible to claim plant and machinery capital allowances if the cash basis is not used. Profits also count as earnings for pension purposes.

Weighing Limited Liability Partnership
HMRC

Weighing Limited Liability Partnership

Along similar lines to a company, an LLP is a separate legal person, meaning that the members are not personally or jointly liable for the LLP’s debts, and all contracts are between the LLP and its clients or third parties.

HMRC

Managing a Rental Business from Home

Where the expenses are wholly and necessarily incurred, a deduction can simply be claimed for the actual expenses. In reality, this will take some working out as household bills will not be split between personal and business expenses.

Property Partnerships
HMRC

Property Partnerships | Property Tax Planning

Property Partnerships business is treated as a separate business from any other rental business carried on by the partner. Thus, if a person owns property in their sole name and is also a partner in a partnership which lets out property, the partnership rental income is not taken into account in computing the profits of the individual’s rental business – it is dealt with separately.

Rental Deposits
HMRC

Rental Deposits | Landlord Tax

The retained deposit is reflected as rental income of the property rental business for the period in which decision to retain the deposit is taken, rather than for the period in which the deposit was initially collected from the tenant.