HMRC have recently updated the list of trade and professional organisations for directors and employees who receive a tax reduction for annual subscriptions. NI can also be avoided if the bills are directly paid by the employer
2. Autumn Statement
Unfortunately the capital gains tax exemption on homes will be less generous but the good news is that no NI will be payable to employees under 21 from April 6th and business rates will be increased and capped at 2% for 2014/15.
To make sure the director or employee is contributing to company car running costs continues to be taxed, it would useful to amend your car policy so that it counts only against the tax year in which it’s paid.
4. Corporation Tax
There is an option of asking the bank for a loan or HMRC for extended...
Sole traders are permitted to claim an amount for using their own homes for business but companies are not so if a director works from home and wants to claim for the cost incurred, it is important for the company to rent the proportion of the property that the director uses. It would be advisable to have a rental agreement in place between the director and company for legal reasons and to ensure the company is eligible to claim corporate tax reduction for the rent.
The rent should be calculated by the proportion of the expenses incurred during the time and apportioned to the time the property is available. The expenses that can be claimed include council tax, mortgage interest, heating & lighting costs, water insurance, broadband connection, maintenance and repair.
After receiving the rent,...
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