Continuing our review of what's new in private company tax we having been looking at the changes made to the Companies Act 2006 in order to accommodate the introduction of the new "employee shareholder" (ES), amongst other things.
The ES employee was created by the Growth and Infrastructure Act 2013 (GIA 2013). Don't click away at this point because the changes are rather interesting if you are advising SMEs: companies may now hold their shares in treasury and also buy back their shares by instalment, then of course, there are the favourable tax measures to take on board. The new measures will take some time for people to fully absorb but many smaller companies might now consider that it is worth awarding shares to employees in lieu of bonuses.
We also have new guides covering the new Fixtures regime, including guides to talk over with Buyers and Sellers. Really you want to be aware of the rules before you start negotiations to purchase property - at the very least it will save you several hundred pounds in legal fees.
We have further updates on Travel and Subsistence and also a timely up-date on Christmas Parties.
Finally, we are looking for a tax editor and writer, please do make contact to hear more.
Scroll on down for more news, toolkits, briefings, and updates on Finance Act 2013.
Nichola Ross Martin FCA
Your online Virtual Tax Partner: practical support for accountants, tax advisers and their clients
Travel and tax
UPDATE: this is our sign-post to our guides in this area. If you are ever short of something to say to a client start here - the new rules for simplification of accounts make this whole topic quite fun.
Tax-free benefits and perks
UPDATE: can you spot the changes? (scroll to the bottom to find the answers).
Staff parties and annual functions
UPDATE for 2013.
Directors' loan accounts: toolkit
An essential guide for directors and companies on the income tax and NICs treatment of overdrawn loan accounts.
Subscribers - new Close Company guides and updates
Employee Shareholder Status - tax & planning
NEW: a new type of employee and a new type of employee share scheme. Next time we consider valuation issues.
Employment Related Securities
UPDATE: explaining what happens when you give an employee or director shares.
UPDATE: start here for the new rules with guides for seller and buyer:
Close company loans toolkit
UPDATE: essential reading if you advise private companies, with a focus on new rules for "bed and breakfasting" loans to participators and measures affecting loans to LLPs. Review of latest consultation for reforming the loans to participator rules.
Loss relief (income tax) disposal of shares
NEW: summary of the conditions for obtaining relief with pitfalls and planning points.
CGT relief: loans to traders
UPDATE: tax relief when a company gets into difficulty and cannot repay your loan account.
Coming to terms with the new Finance Act and other recent changes
The new relief applies from 1 April 2013. It may be useful for small companies which decide that it is administratively easier to scale down and become sole trades or partnerships.
Limit (cap) on income tax reliefs
UPDATE: new examples of situations which are affected (from our Virtual Tax Partner helpline).
IHT: non-domiciled spouses
From 6 April 2013 a non-dom spouse may elect to be treated as UK domiciled, this might be a dangerous election to make without some careful consideration.
IHT: restrictions on liabilities against the estate
Provisions were introduced by the Finance Act 2013 that restrict to what extent certain liabilities may be deducted against an estate on death. HMRC has now updated its manuals to reflect the changes which may catch out advisers and taxpayers alike.
'Simpler' Accounting for tax
Accounting: Simpler Income tax (cash basis) / fixed expenses Start here (self-employed taxpayers) to decide which of (or both) the new measures to adopt.
Board and lodging adjustments All change from 5 April 2013.
Cash or accruals accounting toolkit At a glance summaries with planning points and examples for all advisers in this new guide.
Flat rate expenses or actual cost toolkit Essential briefing for advisers and clients.
Land and Property
Furnished Holiday Letting
UPDATE: our detailed guide contains a summary of all the recent changes which is useful for talking over with clients.
Wear and tear allowance and the renewals basis
The rules changed on 6 April 2011 and then again on 6 April 2013: this updated guide explains the different tax treatments year by year.
Annual Tax on Enveloped Dwellings (ATED)
The first self-assessment return for ARPT will be due in 2013/14 and made by 1 October 2013.
Joint property: legal v beneficial ownership This guide provides you with a concise summary of the differences between legal title and beneficial ownership and explains what elections or actions are necessary to ensure that tax treatment matches your intentions.
Schedule 36 information notices
Mini guide to HMRC's power's with topical tips and case law
Purchase (repurchase) of own shares Step by step guide to ensure Companies Act and tax compliance is met to allow a repayment to be treated as capital in the hands of the outgoing shareholder.
Top Tips for directors
Converting part of a home into an office
How to create a tax-efficient home office.
Directors' tax planning toolkit 2013/14
Our rolling planner which is updated throughout the year
Can I charge my company rent for use of my home? UPDATE: you may consider:
- Recharging the company, on the same basis as a conventional home working employee for a proportion of your bills and running costs. This is explained in Working from home (directors) or
- Formalising a licence agreement with your company in order to allow it to occupy part of your property. It then pays you rent and service charges and you then claim all your expenses under self-assessment...More
Working from home (directors)
UPDATE: the same rules apply to home working directors as other employees. However, a director is more likely to be able to charge rent and there may be some additional issues and complications by virtue of their office.
Do I pay a salary or dividend? 2013/14
UPDATE and re-write of last year's highly popular guide: this is designed to save you having to do all these workings yourself.
Tax masterclass: running an LLP & Co structure
A guide is for trading companies and professional practices: we see many different structures and so we are constantly updating this guidance.
ABC or alphabet shares: directors & employees
UPDATE: essential reading for directors.
Annual Investment Allowance
NEW: a handy summary with planning points.
Tax free benefits and perks
Changes - did you spot them? Additions for relocation, travel to and from abroad, employee status, and we have at last added the link to Van benefits!
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