Entries by Taxfile

Clothing: Wholly and Exclusively for trade purposes

When dealing with self-employment expenses, great care needs to be taken. An expense needs to have incurred wholly and exclusively for the purpose of the trade in order to be considered allowable. Some expenses by their very nature have a non-trade use and so are disallowed by the Tax Man. So it is the case […]

Pension Contributions and Tax Relief

Do I get tax relief on my pension contributions? This is something we hear a lot from our clients. The answer is yes, you do get tax relief on pension contributions, being a good way to save for retirement. The way you get tax relief on pension contributions depends on whether you pay into a […]

Workers in Construction Industry Scheme

We recently came across a client who got very confused about becoming a limited company and his tax position. If people are both self employed and/or employed and they only work part of a tax year on that basis, it is likely that they would not have time and understanding of the implications of becoming […]

VAT Accounting Schemes

Using Standard VAT Accounting, we must complete four VAT returns each year. Any VAT due is payable quarterly, and any VAT refunds due are also repayable quarterly. In contrast to standard VAT accounting, there are several alternative ways we can account for VAT that could save us time and money. Each of the schemes has […]

Non-taxable payments and benefits

Under general tax law, expenses payments and benefits made to certain directors and employees are taxable earnings (better known as remuneration). As it is the case with most rules, there are exceptions where benefits or payments to an employee are not normally taxed: • Annual parties or similar functions provided that the cost incurred by […]

Data Protection Act and HMRC

As a tax agent you might have found it quite difficult trying to deal with subcontractors’ tax returns (those working in the Construction Industry Scheme) for the year ending on the 5th April 2008. The main reason behind this situation is the struggle of gathering all the relevant data in order to submit an accurate, […]