Redundancy and tax

11 June 2020

Termination payment to a director

A termination payment to a director may become part of your tax planning in these difficult times, if your business has to close.

You be aware that the most tax-efficient method of getting the money out of your company when it closes down is to wind it up and take its cash and other assets.  That way the maximum rate of tax on what you receive is 10%, assuming that capital gains tax (CGT) entrepreneurs’ relief (ER) applies. This is true but it overlooks what you might be entitled to receive entirely tax free

Angus Nicolson

30 May 2020

Local Authority Grants – tax treatment

Under the coronavirus special measures, local authority grants can help businesses with Small Business Grant Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF) payments. If your business receives such a grant must it pay tax on it?

Angus Nicolson

Tax return

9 May 2020

Government Gateway account

Goverment Gateway account

You will need a Gateway account to be able to claim the Self Employment Income Support Scheme. Here are the instructions how to create an account.

Angus Nicolson

Nicolson Accountancy - what we do

25 March 2020

Job Retention Scheme

Details of the Job Retention Scheme and Business Interruption Loans, as updated on 13/4/20.  Now with details of how to claim, and what we will do for you.

The published version of the information is at https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme and covers the scheme in some detail.  HMRC will continue to issue further guidance using their new powers to explain precisely how the scheme will operate.

The Coronavirus Job Retention scheme provide for government grants which will cover 80% of the normal salary of PAYE employees who would otherwise have been laid off as a result of this crisis. The scheme is open to any employer and will cover the cost of wages backdated to 1 March 2020 and will be open before the end of April. It will continue for at least three months, and can include workers who were in employment on 28 February.

Angus Nicolson

Payroll continuity services

17 March 2020

Payroll continuity

Payroll continuity is vital in these troubled and unprecedented times. One of the major concerns for business is ensuring the resilience of payments to all their employees.

We totally understand that many businesses and accountancy firms rely on a single individual to process their payroll. Therefore, employers have to hope that staff holidays aren’t at times that disrupt this process.  In addition, that staff illness does not interrupt the work.

Angus Nicolson

AIA claim on this truck

24 January 2020

AIA – Annual Investment Allowances – are cut

The AIA – the Annual Investment Allowance – will drop to £200,000 at the end of 2020.  If your accounting year crosses that date, then you can expect the new transitional rules to unexpectedly restrict your entitlement further.  Are there any steps can you take to work around this?  (Spoiler alert: yes)

Angus Nicolson

1 November 2019

Payments on Account – what are they?

Payments on Account are the way in which HMRC get you to pay next year’s tax bill in advance. As a result, the idea is very simple but, inevitably, there are added complications that leave everyone scratching their heads.

 

Angus Nicolson

17 January 2019

VAT Registration tips and hints

The main VAT registration test for an unregistered trader is based on traders checking historic sales on a rolling twelve-month basis to ensure they have not exceeded £85,000.

But there is also a second test to consider. You must register for VAT if your forecast taxable sales exceed £85,000 in the next 30 days alone. The registration date is the beginning of the 30-day period. This test ensures that large businesses have to register as soon as they start trading in the UK. For example, immediate registration applies to a large retailer opening a new UK shop as a separate limited company.

Angus Nicolson

27 December 2018

Leases and IFRS16

IFRS16 is a new international accounting standard for reporting lease transactions.  This will become effective for periods commencing 1 January 2019 if your business prepares its accounts under International Financial Reporting Standards (IFRS) or FRS 101.

If your accounts are prepared under FRS102 or FRS105 then you don’t have to worry about this quite yet. 

Whilst the FRC has not set a date to incorporate the changes to IFRS into FRS 102, it is widely expected to be included as part of the 2022 FRS 102 triennial review.

Angus Nicolson

11 June 2018

High Income Child Benefit charge

The High Income Child Benefit charge can result in a parent having to repay the full amount of Child Benefit received.  But not claiming Child Benefit may not be the best way to deal with this.

Anyone who is responsible for a child should claim Child Benefit at a rate of £20.70 per week for the first child, and £13.70 for each subsequent child. What’s quoted are the 2018/19 rates and changes should be updated on the HMRC Child Benefit pages once they occur.

Angus Nicolson

2 March 2018

Capital Gains Tax and PPR relief

Capital Gains Tax is chargeable on all gains, including your Principal Private Residence (“PPR”), but there are some allowances and deductions which can reduce the tax you have to pay.

Angus Nicolson

23 May 2017

CIS Refunds

Nicolson have recovered around £1,000,000 in CIS for clients in the past 18 months with one client receiving a cheque in excess of £300,000 that their previous agent told them they weren’t due.

Angus Nicolson

15 December 2016

Scottish Tax rates differ from the rest of the UK

In the Scottish Budget today, Finance Secretary Derek MacKay set the Scottish Tax levels.  He announced that the higher rate tax band for individuals resident in Scotland would not increase by as much as that in the rest of the UK.

Angus Nicolson

22 October 2016

Companies must check their CT600 online

“Making tax digital” is the latest change to CT600 forms that will affect taxpayers and although it is some distance away HMRC is making major structural changes in preparation. The latest moves, which it announced on 19 September 2016, include withdrawing tax return confirmations for companies.

Angus Nicolson

30 August 2016

Personal  bank statements can be business records

The First-tier Tribunal has confirmed that a taxpayer’s statutory records can include statements for a personal bank account if the account is used for business purposes. As a result, HMRC’s information notice requesting those statements was not appealable. Akrill v HMRC [2016] UKFTT 0550 (TC).

Angus Nicolson

29 May 2016

Attention – Judge & Co clients

If you were formerly a client of Judge & Co and you receive a penalty notice for Kate filing of any tax, then please let us know immediately. We cannot promise to have the penalty waived, but we will submit the outstanding returns and lodge our very best appeal against the penalties.

Angus Nicolson

24 April 2016

Acquisition of Judge & Co

We are delighted to announce that we have acquired the practice of Judge & Co, Chartered Accountants, of Glasgow with immediate effect. Judge & Co was founded in 1999 and serves over 200 clients across Scotland, providing personal tax and accounting services, very similar to our existing clients.

Angus Nicolson

21 April 2016

Changes to dividend tax

We have circulated a newsletter for clients to outline the changes in dividend tax which will occur in April 2016, and you can download a copy of the newsletter.

Angus Nicolson

18 February 2016

Limiting access to Altinn?

If you have received a letter this week from DIFI (who manage the electronic systems for Skatteetaten), you might think that your access to Altinn may be being limited significantly.

Angus Nicolson

5 February 2016

Auto Enrolment penalties surge

The Pensions Regulator (TPR) said that it made 1,021 £400 fixed-penalty notices between 1 October and 31 December on employers that did not automatically put workers into a pension scheme.

Angus Nicolson

9 November 2015

Years of farming losses disallowed

The First-tier Tax Tribunal has refused to allow trading tax relief on the losses of a farmer’s sheep-breeding business, because it had made a loss in several successive years and so had no ‘reasonable expectation of profit’ as required by s68 of the Income Tax Act 2007.

Angus Nicolson

14 September 2015

Buy to let loans

Over the four years starting on 6 April 2017 tax relief at higher rates will be progressively phased out for interest on loans which were used to purchase buy-to-let residential properties. From 6 April 2021 the maximum rate of tax relief available will be the basic rate.

Angus Nicolson

19 August 2015

Tax saving on company loans

The personal tax cost of any company loan you receive is currently low. When the time comes to repay the loan there’s a simple trick you can use to reduce it further. What is this trick and how does it work?

Angus Nicolson

12 August 2015

Maximising your claim for pre-registration VAT

It’s common for new businesses to incur hefty vat liabilities on start-up costs. While you can claim a tax deduction from profits for these, tricky rules mean you might not be entitled to reclaim all the VAT. What steps can you take to maximise the tax recovery?

Angus Nicolson

26 July 2015

Leaving the UK

The introduction of the statutory residence test provides more certainty over residence status now that lifestyle factors are less important.

Angus Nicolson

17 July 2015

R&D tax deductions for capital costs

SMEs can claim enhanced tax relief for research and development (R&D) costs. The bad news is that this doesn’t apply to the equipment used for the project. However, you can make use of a different tax break. What is it?

Angus Nicolson

10 July 2015

VAT on e-services (MOSS)

January 2015 may just have come, but for businesses supplying e-services, broadcasting and telecommunications to consumers cross border, now is the time for the introduction of the MOSS.

Angus Nicolson

9 July 2015

2015 Summer Budget

The 2015 Summer Budget contained a few surprises for everyone, and whilst we all await the fine print in the actual legislation, there are three main issues that are likely to affect our clients.

Angus Nicolson

4 April 2015

New VAT rules on customer discounts

New rules on prompt payments came into effect on 1 April 2015.  New rules apply to the VAT treatment of prompt payment discounts (PPDs). VAT can only be reduced to reflect the discounted price if the customer pays within the discount period. Previously it applied whether or not the customer paid on time.

Angus Nicolson

2 April 2015

National Insurance for under 21’s

From 6 April 2015 employers with employees under 21 years old will no longer have to pay Class 1 secondary National Insurance contributions (NICs) on earnings up to the Upper Secondary Threshold (UST) for those employees.

Angus Nicolson

24 February 2015

Paperwork is vital with shareholdings

A tribunal was asked to rule on whether some of the shares apparently owned by a director were actually his wife’s. What did the tribunal rule and what useful tax planning tips can shareholders take from it?

Angus Nicolson

30 January 2015

Company loan: a tax saving tip

The personal tax cost of borrowing from your company is now quite low. However, when the time comes to repay the loan there’s a neat trick you can use to cut it further. What is it and how does it work?

Angus Nicolson

1 2

Glasgow
31 Lynedoch St.
G3 6EF

Kilmarnock
71 King Street
KA1 1PT

Stornoway
49-50 Bayhead
HS1 2DZ

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