Slides from the tax element of this mornings presentation.

1. Top Ten Teasingly Topical Tax Tips James Hayes FCCA

2. 1 - Capital Allowances The annual investment allowance is reduced from 100k to 25k! Purchase or rental of cars is now wholly based on a vehicles CO2 emission levels. Emissions under 110gr/km qualify 100% first year allowance Full rental is tax allowable, provided the CO2 level is not more than 160gr/km. Plant and machinery tax rate reduces from 20% to 18%. Long life and other assets is reduced from 10% to 8%. Cars in excess of 160gr/km will not receive a balancing allowance on disposal.

3. 1 - Capital Allowances Source www.direct.gov.uk

5. For cars emitting between 1 and 75gr/km percentage is reduced to 5% (8% for diesel).

6. Zero emission cars -0%.Vans BIK of £3,000 plus a further £550 if fuel is provided by the employer for private travel. Can avoid a benefit if do not to use the van for personal journeys. BIK reduced to nil for vans which cannot produce C02 emissions at all.

7. 1 – Private Cars for Company Business Rate for business mileage in a private car now 45p a mile for the first 10,000 business miles. Where an employer pays a lower rate than this the employee can make a claim for tax relief.

9. SME credit limit re PAYE and NICs is to be abolished;

10. claiming of subcontractor costs easier

11. the rate of relief increases further to a whopping 225% When the work that you do seeks, through the resolution of scientific or technological uncertainty, to achieve an advance in overall knowledge or capability in a field or science or technology.

13. Is designed for small businesses with turnover under 150k pa

14. Applying a fixed percentage to gross turnover and ignores VAT incurred on purchases.

15. It makes keeping books and records easier.“Oh No it’s VATman !”

16. 4 - CGT - Entrepreneurs Relief £10million, gains on qualifying business disposals taxed at only 10%. Be careful of disposals where business property is concerned.

18. Organisational interdependence. Tax bandings are shared between companies that are associated. The definition of who is associated rested called “common control.” The law has recently changed. Attribution now based on substantial commercial interdependence.

20. A new relief for purchasers of residential property who acquire interests in more than one dwelling.

22. 8 – Salary vs Dividend

24. Cancellation could occur at anytime.

25. no payment if no work is done.Then It is difficult for HMRC to argue that IR35 should apply.

26. 9 – Income Shifting But the transactions were exempt under inter-spousal settlement exemptions. Key is shares are not just a right to income. Arctic Systems case. Pay dividends to a spouse to minimise tax. HOL contended that dividends paid were bounteous and not commercial . In effect tax her income as the husbands.

28. 3 months late – a daily penalty of £10 per day, up to a max of £900.

29. 6 months late – the greater of 5% of tax due or £300.

30. 12 month late – the greater of 5% tax due or £300. In more serious cases up to 100% of the tax due .

31. On top of this, penalties for late payment exist.

32. 30 days late – 5% of the tax unpaid.

33. 6 months late- a further penalty charge of 5%.

35. Junior ISA scheme replacing the reportedly unaffordable child trust funds.