2 minute read.

Where an employer does not pay a mileage allowance to an employee who uses his or her own car for work or pays an allowance which is less than the approved amount, the employee can claim tax relief for the shortfall. This can be done in the employee’s self-assessment return, on form P87 or by writing to HMRC.

4 minute read.

IR35 has its own special terms and the following is a glossary of key terms as they apply to the rules in their application prior to 6 April 2020 where the end client is in the private sector (and prior to 6 April 2017 where the end client is in the public sector). The terms, as defined by HMRC are set out in their Employment Status Manual at ESM8020.

• ‘Client’ – the entity for whom the worker provides his or her services. The ‘client’ could be any third party in the contractual chain.
• ‘Company’ – a body corporate or unincorporated association, but not a partnership.
• ‘Deemed employment payment’ – the amount that the intermediary is treated as paying to the worker under the IR35 legislation and which is chargeable to income tax as employment income. The National Insurance equivalent is the ‘worker’s attributable earnings’. For simplicity’s sake, the term ‘deemed employment payment’ is assumed to refer to the amount liable to both income tax and National Insurance, unless otherwise stated.
• ‘Intermediary’ – the third party through which the worker provides his or her services. An intermediary could be a company (e.g. a personal service company or a service company), a partnership (including a limited liability partnership), an unincorporated association or an individual.
• ‘Relevant engagement’ – an engagement to which the IR35 legislation applies.
• ‘Worker’ – the individual who personally performs the services for the client.
• ‘Worker’s attributable earnings’ – the National Insurance equivalent of the ‘deemed employment income’ on which Class 1 National Insurance contributions are payable

This is an extract from our tax report IR35: Tax Tips for Contractors – find out more here.

7 minute read.

The appellants were entitled to reduce the period of reckonable gain on disposal of their private residence by a 24-month period immediately preceding the appellants taking up residence in the property, based on the tribunal’s decision regarding extra statutory concession (ESC) D49.

2 minute read.

Have a read of the best forum queries, news and articles on our partner website TaxationWeb.

3 minute read.

The Approved Mileage Allowance Payments (AMAPs) scheme allows employers to pay tax-free mileage allowances to employees who use their own cars for business journeys, as long as the allowance paid does not exceed the approved amount.

6 minute read.

Incorporation involves the disposal of an existing self-employed or partnership business to a new entity (‘person’) in exchange for shares in the company. Any assets of the business (e.g. the business’s premises) are transferred to the company which then carries on the business as successor to the former self-employed owners.

3 minute read.

In September 2009, the appellant made a claim for input tax it claimed it had incurred on postage totalling £383,599, which HMRC rejected in 2010.
The appellant carried on a mail order business and used the services of Royal Mail to despatch its orders and also to distribute advertisements.

It was accepted that at the time the Royal Mail made those supplies to they were considered to be exempt from VAT.

5 minute read.

Malcolm Finney looks at the quirky deed of variation and its use for inheritance tax purposes but warns against its abuse.

It is, of course, impossible for a testator to predict what circumstances may exist at the date of their death. In particular, they will not know the circumstances, financial or otherwise, of their proposed beneficiaries.

2 minute read.

As explained in Tips 2 and 3, from 6 April 2017 alternative valuation rules apply to work out the taxable value for most benefits where provision is made via an optional remuneration arrangement, such as a salary sacrifice scheme.

2 minute read.

Have a read of the best forum queries, news and articles on our partner website TaxationWeb.