Value Added Tax is a sum of tax paid against the value of an item. The VAT figure is added to the cost of most commercial transactions and it’s become so familiar that it often gets overlooked.
Did you know that soon, PILONs could be a thing of the past? No, not Pylons as for now we’ll still need those for carrying our electricity. What we mean here are PILONs, aka Payments in Lieu of Notice or, the amount of money some employees are given in exchange for not working their notice period.
History of the PILON
Our very own tax expert, Matthew Harrison has written an article for Green Umbrella in which he explains, “Historically, where an employee didn’t work their contractual notice period they received a ‘Payment in Lieu of Notice’ or PILON as they became known. Over time, a whole series of case law developed around whether this should be taxable or not. The question that arose was ‘Is the PILON a contractual right or not?’ If so, then it would be subject to tax and national insurance under the normal earnings legislation.”
However, if not a contractual right then it could be classed as damages instead which would have tax, national insurance and structure of contract implications.
The Whole Story
Rather than us re-write the well written expertise of our colleague Matt, we’re going to direct you straight to his article to find out the rest.
Read all about how this could be the end of the line for tax free PILONs.
Our property tax experts have put together this definitive list of all recent changes to property taxes and given advice on how to manage them.
The Annual Tax on Enveloped Dwellings, ATED for short is one of the newest taxes having been introduced in 2013 and applies where companies hold residential property within a limited company or limited partnership.
Cottons Chartered Accountants are proud members of VPG (VAT Practitioners Group), a national organisation of people who specialise in VAT.
Cottons Chartered Accountants are proud members of VPG (VAT Practitioners Group), a national organisation of people who specialise in VAT.
Here at Cottons Chartered Accountants, we understand what it is like to be a small business.
Reviewing your finances throughout the year provides sufficient time before the end of the tax year, at the beginning of April, in order to make sure that you are fully utilising all of the tax reliefs which are available to you.
The new calendar year is a great time to take stock of your finances. Reviewing your finances in January and February provides sufficient time before the end of the tax year, at the beginning of April, in order to make sure that you are fully utilising all of the tax reliefs which are available to you.
We all like to receive gifts but are you aware that there are also tax breaks when giving gifts too! Provided that a few simple guidelines are followed then a business can successfully deduct the cost of providing them against their profits and in turn pay less tax.
Whilst costs relating to entertaining staff and clients are a common cost of doing business, and are perfectly valid to include within your profit and loss account, only certain associated expenditure will be allowed to be deductible for corporation tax and VAT purposes.
You may already be aware of the recent first-tier tribunal case involving Brabners LLP, in which the firm lost their appeal against an assessment from HMRC for Output VAT not collected on recharged local authority search fees.
If you pay for registered childcare, then you might be already using or be eligible to apply for childcare vouchers, but the world of tax-free childcare is undergoing its most significant change since they were first introduced into the tax system back in 1989.
Directors can pay themselves from their limited companies either in the form of dividends or salary but following changes in 2016/17 to the treatment of dividends, they now need to give a bit more upfront consideration and attention to which they pick so that they are able to remunerate themselves within the most tax efficient manner.
Self Assessment – New Payment Deadlines
HMRC recently announced new payment deadlines for anyone paying their Self Assessment tax liability.
Recent findings indicate that 46% of UK small businesses are not knowledgeable about tax relief that is available from the Government.
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