• Generally speaking, you can’t claim a tax deduction against your business profits for the cost of buildings or structures, but there are exceptions. When does a building qualify for capital allowances and when are you entitled to make a claim? Is it a building? Any accountant will tell you that it’s one of the most contentious issues in tax: whether a structure is a building or a piece of [...]

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    There are tough rules to prevent directors overusing loans from their companies and trying to get the most from a tax-free loan.  However, it’s possible to have tax-free personal use of your company’s money for up to 21 months. How is it done? Company loan recap If you borrow money from your company there are two possible tax charges. The first is for you on a benefit in kind (BiK), but [...]

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    Usually you can reclaim VAT on purchases for the VAT quarter in which you receive the goods or services, even if you don’t pay for them. However, if you delay paying the supplier’s bill you might have to repay the VAT you reclaimed or face a penalty. Does repaying input tax to avoid a penalty help and what steps can you take to achieve this? Timing your claim Unless you use HMRC’s cash [...]

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    One of your companies is struggling, but the good news is that tax rules might offer the chance of a personal tax refund which you can use to boost your business. How do you produce investment capital from trading losses? Negligible value - recap HMRC will tell you that, as a rule, tax consequences only ever follow a transaction. For example, if you bought an investment that lost value you [...]

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    Usually if you buy equipment which is used for private as well as business purposes HMRC expects you to scale down the amount of VAT you reclaim. How can you ensure are recovering more VAT on IT equipment and thereby maximising your claim? The same but different HMRC has struggled over the years to keep its VAT guidance on mobiles and IT equipment up to date. Changes in technology have meant [...]

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