The government introduced the Research & Development (R&D) Tax Credit Scheme in April 2016. This allows eligible businesses to claim tax relief against their corporation tax liability. However, there are plenty of myths surrounding the scheme, including some that could put businesses off claiming it altogether. Here we debunk five of the most common misconceptions…
All businesses can claim allowable expenses – even those incurred by a limited liability company (LLC). This includes telephone calls and postage stamps. Businesses can claim certain expenses without having to prove how many they cost. These include things such as telephone calls, photocopying, stationery, printing, and postage. A limited company must pay corporation taxes…
Leasing a car is one of the most common financial decisions you’ll make throughout your life. Whether it’s a personal car lease or a business car lease, there are some considerations to take into account. Here’s everything you need to know about both types of car leases. Personal Car Leases A personal car lease is…
You might think it’s too late to start saving money for your child’s education – but it isn’t. There are still some options open to parents looking to save money on uniform costs. The Government Digital Service (GDS), part of HM Treasury, recently published information on how to claim flat rate expenses for items such…
Costs that qualify as allowed charges The rules surrounding what you are allowed to claim as allowable expenses vary depending on whether you work in the UK or overseas. If you are working abroad, you might find it easier to use the allowances set out in HM Revenue & Customs’ International Allowances Guide. However, even…
Claiming mileage for electric cars Electric car drivers are often confused about what type of fuel their vehicle uses. This is because it depends on where you live. In some areas, electricity is cheaper than gas, while in others, it isn’t. So, if you want to claim tax relief for your electric car, you’ll need…
The government has announced that it will extend the tax relief on employee entertainment allowances to include virtual events. A spokesperson for HM Revenue & Customs told us: “As part of our ongoing commitment to help businesses during this difficult period, we’ve introduced a temporary extension to the taxation of employee entertainment allowances for companies…
Clothing does not qualify for tax breaks if it is suitable for daily use. This includes items such as t-shirts, jeans, coats, hats and gloves. However, clothing that is necessary for work purposes should be exempted from VAT. The European Commission has published guidelines on what qualifies as “everyday wear.” These include items such as…
The debate about whether legal and professional fees should be considered revenue or capital expenditure often rages on. Should you treat it as revenue or capital expenditure? If you’re confused, here’s how to decide. In accounting terms, legal and professional fees fall into one of three categories: operating expenses, fixed assets and intangible assets. Fixed…
Taxpayers are often surprised to find out that they owe money to HM Revenue & Customs (HMRC). And it’s not always because they didn’t declare all their income. You might also be liable for additional taxes such as National Insurance contributions (NIC), Income Tax or Capital Gains Tax. If you think you owe tax, you…