Business Tax
HMRC attacks legitimate staff travel costs
The Upper Tribunal recently ruled on a dispute between HMRC and British Airways (BA) regarding the free accommodation it provided for its employees. HMRC said it was taxable, BA disagreed. What was the outcome?
Should you voluntarily payroll benefits in kind?
The window to sign up to voluntarily payroll non-mandatory benefits in kind for 2027/28 will open in November. Is it worth volunteering to pay HMRC earlier than required or should you wait until it becomes mandatory in 2028/29?
Save tax by combining directors’ loan accounts
You started a company last year and it’s time to prepare its first accounts. Your director’s loan account (DLA) is in credit but your spouse’s is overdrawn. Might amalgamating the DLAs avoid or reduce a tax charge?
The tax incentive to do a thorough stock-take
The annual stock-take isn’t exactly your favourite thing to do. You know resources could be better spent elsewhere so you try to get through it as quickly as possible. Why might it be worth a little more of your time?
Are hotel costs tax deductible?
A company has made a generous offer to a key hire. The would-be employee lives 150 miles from the office and the director has asked if the company can reimburse expenses for overnight stays during the week. What are the tax implications and is there a better way?
Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
When is pensions advice exempt from tax?
You’re close to retirement age and want some professional advice on topping up your pension and a rough idea of how much you’ll have to live on in retirement. If your company foots the bill, will it qualify for the tax exemption?
The tax‑free perks league table
You know that there are certain items or services your company can pay for without incurring a tax charge, but you’re hazy on the details. What are the most valuable tax-free perks for owner managers and which ones are you missing out on?
Topping up your spouse’s pension
Company pension contributions are highly tax efficient. As you’ve maxed out your contributions you want to begin adding to your spouse’s pension pot. Can your company make the contributions or do you need to pay out of your own pocket?
Personal vs company donation to charity
You’re an owner manager and want to make a £5,000 donation to a local charity. You’ve claimed income tax relief under the gift aid scheme for smaller amounts but could it be more tax efficient to make the donation via the company?
When are staff discounts tax efficient?
Staff discounts provide a valued perk for the employee and usually cost the employer next to nothing. Whether it’s a modest discount for supermarket employees or a free ticket for airline staff, the underlying tax principles are the same.
Double up on the employment allowance
You’re the sole shareholder of a limited company which employs several members of staff. You’re working on plans to start another business with an ex-colleague. Can both businesses benefit from the full employment allowance (EA)?