Gifts to charity and Employees

Gifts to charity Where possible higher rate taxpayers should “Gift Aid” any payments to charity to provide additional benefit to the charity and for the individual to obtain additional tax relief on the payment. For example where an individual makes a £20 cash donation to charity the charity is able to reclaim a further £5 […]

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Passing on the family home

From April 2020, an additional nil rate band of up to £175,000 is available on death where your residence is left to direct descendants. This is on top of the normal £325,000 nil rate band. The residence nil rate band is however restricted if your assets exceed £2 million. Note that the additional inheritance tax […]

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Gifts out of surplus income

Inheritance tax only applies to gifts of capital. There is currently a very generous exemption from inheritance tax for regular gifts out of income. In order to qualify for the exemption it is important to set up regular transfers and to be able to prove that after those regular gifts you are left with sufficient […]

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Pension Planning

For most taxpayers the maximum pension contribution is £40,000 each tax year, although this depends on their earnings. This limit covers both contributions by the individual and their employer. Note that the unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the […]

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Could you save money through Research and Development tax relief?

It’s amazing but there are still many limited companies who are unaware of the major savings they are entitled to in tax relief if they are involved in Research and Development. Have you given any thought to it yet? Here’s an example that may just sway you. During the past year we have been helping […]

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The Clear Alternative

We know what you are thinking. Accountancy and dealing with financial matters are not the most thrilling subjects in the world, particularly when those advising you appear to be talking in a language slightly more difficult to understand than Klingon! But there is an exception. For the last seven years, our expanding team has been […]

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New appointment

A leading Shropshire chartered accountant and business advisor has taken on a new member of staff to meet the increased demand for its services. Hudson LM Limited, based in Whittington near Oswestry, works with clients across Shropshire, Cheshire, Powys and North Wales, specialising in online accounting, limited companies and agricultural businesses. The firm, founded by […]

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Director’s Loan Account

HMRC states that a detailed breakdown of directors loan account transactions is required, including dates. The significance is that where the loan account is overdrawn (debit balance) there may be a possible P11d benefit on the director and also a tax charge on the company. A taxable benefit in kind would arise where the loan […]

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Furnished Holiday Lets

Furnished holiday lettings businesses are eligible for capital allowances on equipment in the property. Where the business incurs finance costs such as mortgage interest the restriction that applies to other residential property businesses does not apply to furnished holiday lettings. It should also be noted that qualifying furnished holiday lettings businesses are eligible for a […]

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When is a van not a van?

HMRC are being urged to provide clarity and consistency on the tax treatment of commercial vehicles such as VW Kombi Vans marketed as goods vehicles. Capital Allowances definition of “Motor car” The definition of a “motor car” for plant and machinery allowances purposes is a mechanically propelled vehicle except a vehicle: 1. constructed in such […]

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