Introduction If a director or employee has a loan from the company and: then the difference is treated as a taxable benefit and must be reported on the P11D form. How is the benefit calculated? There are two accepted methods for calculating the benefit-in-kind: Example (2024-25 tax year) A director has: This £787.50 is reported […]

Unless a detailed written contract of employment was made, an employer is required to provide a new employee a written statement setting out certain terms of the contract of service with their employee. This needs to be provided on or before their first day of employment and must include the following – Additionally, on the […]

If your company provides you with a company car, you may be wondering what the extra tax that you will have to pay on this benefit will be. Step 1 – Defining list price of the car The P11D list price of a car is the manufacturer’s recommended retail price (RRP) on the day before […]

Stamp Duty Land Tax (SDLT) is a tax paid when you buy property or land in England or Northern Ireland. It applies to both residential and commercial purchases. When Does SDLT Apply? You pay SDLT if you: For Residential Property, SDLT usually applies when: Exemptions (No SDLT Due) You usually don’t pay SDLT if: Stamp […]

Freehold Estate A freehold estate in the UK refers to complete and indefinite ownership of land and any buildings on it. It is the most complete form of property ownership in UK law. Key Features – In Legal Terms: A freehold estate is often called an “estate in fee simple absolute in possession” — meaning: […]

Limited companies CANNOT claim Employment Allowance if they have just one director and that director is the only employee liable for secondary Class 1 National Insurance. This means that companies with several employees, where the director is the only employee paid above the Secondary Threshold, are not eligible for the Employment Allowance. If a company […]

HMRC has reported that its security systems detected unauthorised access to some taxpayers’ online accounts. Criminals attempted to claim repayments from HMRC using these accounts. Around 100,000 people have been affected, and HMRC has lost £47 million. Guidance is available for those impacted. Background This incident, described as an organised crime operation, began in 2024. […]

It is important for tax purposes to establish whether a gift was a “Lifetime Gift” and will be excluded from inheritance tax or gift after person passed away and liable to inheritance tax. Definition Lifetime Gift is where the donor INTENDS to make a gift of their property in their lifetime and TRANSFERS the ownership […]

Many taxes provide exemptions or special rules based on an individuals’ marital status. For capital gains tax purposes, transfers of assets between spouses/civil partners who are living together in a tax year are exempt from taxes, it is tax neutral. For inheritance tax purposes transfers of assets between UK spouses/civil partners are exempt. However, there […]

There are 2 main type of contract workers – An independent contractor, controls their work schedule, utilizes their own tools and equipment, and bears the financial risk for their work. Dependent contractors retain a level of economic dependence on a single “principal” (the company that hires them). Independent contractors do not have any employment rights. […]