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  • Claiming premises against tax

    The tax treatment of the acquisition of premises is totally different to the acquisition of equipment. The premises themselves do not attract capital allowances at all; instead they form the basis of any future Capital Gains Tax computation (which I will not be discussing in this article). To add insult to injury, if the premises are not usable, then any expenditure incurred in making them… Continue reading

  • Is VAT an issue?

    When VAT was introduced, it was hailed as a system that was “simple and easy to follow". Unfortunately, through successive budgets, it has become one of the most complex taxes in the UK. HM Revenue & Customs have created a distinction between the activities of health professionals, which are “for the primary purpose of protecting, maintaining or restoring a person’s health”, and any other activities… Continue reading

  • Loans and interest claims against tax

    Many people borrow money to run their business. Often this is to fund working capital, especially in the early days. Later on it might be used to cover equipment costs. I am often asked about what is allowable in this regard. Firstly, you have to separate the loan and what it is used to pay for. The Revenue is not interested in where the loan… Continue reading

  • Migration to a company

    These are the various steps you need to take when moving from a sole trade or partnership into a corporate entity (be it limited or unlimited): 1. Set up company: we can do this for you for a nominal fee, but if you so wish, you can set it up yourself by selecting the basic package on the following website: www.theformationscompany.com. I would strongly recommend… Continue reading

  • PAYEing the Reception Committee

    Over the years I have come across as many misconceptions concerning paying reception staff as I have people who do not get all six numbers on the lottery. In this article I will set out my views of this area, together with examples of how the Inland Revenue sometimes apply the law. Basic principles If you pay someone for providing you with services, they are… Continue reading

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