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Tax deductions for subcontractors operating within the construction industry scheme (CIS)

Q. I am a builder. I have recently started operating the construction industry scheme (CIS) although it is still quite new to me. I have recently taken on two labourers, both of whom are registered with HMRC as subcontractors. One of the subcontractors worked for me 3 months ago, the other has never worked for[…] Read more »

DON’T FORGET THERE MAY BE TAX TO PAY ON YOUR DIVIDENDS IN JANUARY

The rules for taxing dividends changed radically from 6 April 2016 with the removal of the 10% notional tax credit and the introduction of new rates of tax on dividends. For many taxpayers that meant more tax to pay on those dividends on 31 January 2018. The same will also apply on 31 January 2019.[…] Read more »

CHECK YOUR NATIONAL INSURANCE CONTRIBUTION HISTORY

In order to maximise entitlement to full State Benefits a full contribution record is required.  For example full State Pension entitlement requires 35 years contributions. It is possible to check your National Insurance record online to see: what you’ve paid, up to the start of the current tax year (6 April 2018) any National Insurance[…] Read more »

Recharged expenses, disbursements, and VAT thereon

Q. My client is an IT consultant, operating through a VAT registered UK company. He is supplying consultancy services to another UK IT business. He has incurred hotel, travel and meal expenses, and is charging these on to the company he is supplying. Can he treat these as disbursements, and therefore not charge any VAT[…] Read more »

Class 2 was about to be abolished but this has now changed

Class 2 national insurance contributions are payable by the self-employed. Contributions are payable at a flat weekly rate and entitle the contributor to short-term contributions based employment and support allowance, maternity allowance, widowed parent’s allowance, state pension, and bereavement benefits. The current weekly for 2018/19 is £2.95 and is based on whether profits are at[…] Read more »

Carelessness and tax avoidance: the new rules

If HMRC find that your tax return understates your tax liability, you can expect them to raise the question of penalties:  but only if the inaccuracy was either deliberate or due to your carelessness.  To put it another way, if you take “reasonable care” to get your tax right, you cannot become liable to pay[…] Read more »

Tax Question – Non Resident Capital Gains Tax

My client is a non-UK resident, having left the UK in April 2016. His main home which he purchased in July 2014 has been let out since he left. He is now planning to sell the property and is wondering whether he is liable to capital gains tax in the UK and whether there are any[…] Read more »

Understanding Tax on Overdrawn Directors’ Loan Accounts

For sole traders or partnerships, taking money from a business is a straightforward process, but withdrawing money from a company by a director is a different matter. An overdrawn DLA is where a director has taken money out of the company that is not classed as a dividend or salary and the figure exceeds any[…] Read more »

New VAT Rules for Building Trade in 2019

Under new rules due to come in on 1 October 2019 builders, subcontractors and other trades associated with the construction industry will have to start using a new method of accounting for VAT. The measure is designed to combat VAT fraud in the construction sector labour supply chain which HMRC argue presents a significant tax[…] Read more »

Gold Sponsors at the SME Bedfordshire Business Awards

We were delighted and proud to be Gold Sponsors at the SME Bedfordshire Business Awards 2018 of the Best Customer Service Category last Thursday evening.  The winning place going to Subway, Biggleswade, and runner up to AllenDay Recruitment – Congratulations to both.     


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