1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188 
If I do not take a tax deduction for private expenses in the company I am not taxed personally.
Page 38
Page 39
If you've noticed an error in this article please click here to report it so we can fix it.
Where a company incurs expenditure on behalf of a director this gives rise to a benefit in kind if the amounts are not reimbursed to the company. This is irrespective of whether or not the company takes a tax deduction.
If 1 pay a self-employed person, it is not my concern if they pay tax.
If you engage a person to do work for you, it is important to ensure you do not have an employer/employee relationship. If you do have an employer/employee relationship you have an obligation to deduct tax and national insurance. You are deemed to have made a net payment and could find yourself out of pocket for the tax and national insurance. An employer/employee relationship is established by the working relationship: one of the tests is whether that person is free to turn down work that you offer. A contract stating that there is no such relationship is not enough.
If I get paid into an overseas bank account,I will not have a tax liability.
Most people in the UK are taxed on their worldwide income irrespective of where they keep the money. There are some special rules for non-domiciled individuals, who are taxed only on overseas income arising on a remittance basis. There can be substantial penalties for individuals under-declaring income.
If I put money in my children's names they can utilise their personal allowances and lower-rate tax bands.
Where parents transfer funds to children the interest arising is taxed on the parents if the interest is more than £100. However, capital gains will belong to the children.
If I call a car a pool car I will not have a benefitin-kind charge.
Pool cars do not give rise to a tax liability on an employee. However, the conditions for pool cars are very strict. For a earlobe a pool car the following five conditions must be met: 1. The car is made available to, and actually used by, more than one employee.
2. It is made available, in the case of each ol those employees, by reason of the employee's employment.
3.11 is not ordinarily used by one of those employees to the exclusion of the others.
4. In the case of each of those employees, any private use of the car made by the employee is merely incidental to the employee's other use of it in the tax year.
5.1t is not normally kept overnight on or in the vicinity of any residential premises where any of the employees is residing. except while being kept overnight on premises occupied by the person making it available to them.
Where the conditions are not met, the car is taxed on the individual using it -and depending on the type of car, the charge can be quite high.
Ill have not received a tax return I am not obliged to complete one.
Individuals who have not received a tax return must notify HM Revenue and Customs (HM RC) of anything that affects their chargeability to tax by 5 October following the tax year. Failure to do so will result in penalties and interest. iii give shares to my employee there are no tax consequences.
'llie gift of shares to an employee triggers a number of tax charges.The employee is subject to tax and possibly national insurance. The donor triggers a capital gain. Professional tax advice should be taken before transferring any shares to an employee as there are some extremely tax-efficient methods if the right planning is carried out.
I can liquidate im.. company after two years, extract the cash and pay only 10% tax. I can then start a new company.
Since the introduction of taper relidindividuals have tried to avail themselves of the valuable relief by liquidating companies, extracting the cash and starting again. Where there are phoenix company arrangements HM RC can apply some speci I ic anti-avoidance legislation, which will tax the proceeds on liquidation as income.So instead of a 10% tax rate. there could be a charge of 25% of the amount received.
If I acquire a property for resale I can avoid tax by living in it for a short whik.
There is an exemption from tax on the sale of an individual's main residence. However where the property is acquired with the intention of selling at a gain, the exemption will he denied.
At the end of the day. it is wise not to make any assumptions about taxation matters. It could prove to he an expensive gamble that you may lose, especially as it could give HM RC an excuse to take a very close look at your affairs. If it sounds too good to he true. it probably is.
Paula Tallon is a director and head of direct tax at Chiltern.