Petrol and diesel pump prices are high, but the tax-free mileage rates (see table) payable to employees who use their own vehicles on business haven’t been adjusted for over a decade.
||First 10,000 miles per year
||Above 10,000 miles per year
|Cars and vans
Brexit has introduced a VAT border between Great Britain and Northern Ireland, the implications of which are still being worked through.
From 1 May 2023, second-hand vehicles which are purchased in Great Britain then sold in Northern Ireland have to carry VAT on the full selling price. Before this date motor traders could use the second-hand margin scheme under which VAT is charged only on the margin of sales value added by the dealer.
To compensate these dealers, HMRC has introduced a…
Entrepreneurs’ Relief (ER) was renamed Business Asset Disposal (BAD) relief on 11 March 2020, and at the same time the value of gains which can be covered by this relief was reduced from £10m to £1m on 11 March 2020. Where gains qualify for either ER or BAD relief the capital gains tax (CGT) is payed at 10% instead of at the full rate of 20%.
This cap of £1 million of gains is a lifetime cap for the taxpayer not an annual cap. What’s…
Your business may well be stretched right now, the NMW rates rose by over 10% from 1 April and other input costs have increased by even more, particularly food and energy. It is tempting to use the amounts deducted from your payroll to pay pressing bills, but that is not a good idea.
Where the payroll deductions are not paid over to HMRC on time – by 22nd of each month – late payment interest is charged at 7%.
In addition to…