Capital allowances and the super deduction

Capital allowances are an expenditure a business may claim against its taxable profit. When a business incurs costs, such as salary payments, it can usually deduct them as expenses from its taxable profits. This reduces the tax due. However, when it buys assets for operational purposes, things are not quite so straightforward. There are HMRC[…]

How to extract profits out of companies

Believe it or not, there are more than 4.7 million limited companies registered in the UK. This includes the 810,316 incorporations that signed up in 2020/21.  Only around 2m are actively trading. But, the number of new companies formed during the previous tax year was a 22% year-on-year increase.  Unsurprisingly, that percentage represented the highest[…]

Company Car: The pros & cons of an electric car.

Despite the potentially high personal taxable benefit, many employees still enjoy and prefer the convenience of being offered the use of a company car by their employer. Those employers familiar with the benefit-in-kind tax rules will be aware the tax impact on the employee is much lower for those that choose an electric vehicle, rather[…]

Allowable Expenses – The costs you can reclaim.

If you’re self-employed, there are costs which you are able to deduct as allowable expenses for your business in 2021/2022. Deducting these allowable expenses as part of your business’s taxable profits, allows us to reduce your income tax.  If your business has turnover of £50,000 in 2021/22, and you have £15,000 in allowable expenses, your[…]

Travel and Subsistence

Your obligations for reporting travel expenses Many employees need to travel as part of their job for various reasons, whether it’s acquiring new customers, working with current ones or attending conferences and events. The system of benefits and taxation surrounding this essential economic activity is classed as ‘travel and subsistence’ in the eyes of the[…]