Tag Archives | tax

Making Tax Digital

Making Tax Digital

Making Tax Digital is a step towards government tax collection in real time. That may sound fanciful, but we’ve heard ministers and commentators talk about taxing internet transactions as they happen – maybe just wishful thinking. In 2010 the Treasury put forward the idea that employers might pay gross salaries to a government agency, which […]

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Internet Purchase

Internet Purchases and Record-keeping

It’s about evidence.  If you get a tax enquiry, HMRC could ask a question like this: “Please provide supporting invoices for the expenditure listed in Repairs and totalling £3,567.” So you bought the office equipment via Ebay.  You know what it’s for, you know it’s genuinely tax-deductible, but can you find the paperwork? You see […]

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Christmas parties – tax deductible or taxable?

Is it tax-deductible for the Employer? Yes.  The general rule is that entertaining is not tax-deductible, no matter how essential it is to winning business, but by exception, staff entertaining IS tax-deductible. “Staff”: in practice, the definition of ‘employees’ is extended to include retired members of staff and the partners of existing and past employees. […]

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Squeezing blood from a stone

Are you paying 46% tax on your salary?

  Many employees don’t realise just how much tax the government collects from employees. Let’s take an employee earning about £15k.  She has used up all her personal allowance, and so is in the basic rate tax band.   For each additional £100 of gross pay, this employee sees a deduction of: £20 tax £12 […]

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Dealing with HMRC

By training and culture, HMRC staff are likely to think that every taxpayer may be hiding something. Usually a client says “I’ve got nothing to hide”, and like you, the majority of business people are straightforward and genuine, they pay their tax, and simply want to avoid any trouble with the tax office. If you […]

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