Changes are on the horizon for buy-to-let property owners. It is important to understand these. Separately, the interest on any mortgage or loan taken to buy, improve or maintain the property, is fully deductible.
HMRC is set to gain powers to collect tax debts directly from taxpayers’ bank accounts under the Direct Recovery of Debts (DRD) rules, Finance Act 2015. This is likely to be late September or early October 2015.
One key question asked by contractors and freelancers when trading as a limited company, is, "how is best to extract income from the company?". It is important to understand the differences between drawing money as salary and drawing money as dividends, and the tax treatment of each.
It's good news! For a limited company, the entire cost of a motorbike purchase qualifies for capital allowances; for other motor vehicles the same doesn't necessarily apply, so it could be an option worth considering.
Even though transferring shares to your children is caught by "anti-avoidance rules", which taxes the parents on any dividends paid to the children, it is an area that is still worth looking into for possible tax savings.
HMRC expenses rules state that the company can provide staff with ONE mobile phone for business purposes, which is exempt from tax on the individual as a benefit-in-kind (BIK) and a legitimate allowable expense against corporation tax. Rules apply though.
The question of how best to structure the use of a car which is used partly for business and partly for private use, is common. Whilst each situation is specific to your individual needs, there are some general rules that apply and, that are worth knowing.