One of the more tax efficient ways of reducing a company’s tax bill and increase the amount of money withdrawn at the same time, is by paying salary to a member of the director’s family. This could be the director’s spouse or children at university. Partner Joanne Gibson advises in this article. Another good reason...

Partner Andrew Wayness provides the answers in this month’s Q&A. Is a charity’s loss-making event exempt from VAT? Q. We are a charity that is registered for VAT. We recently held a fundraising event, treating the income as being exempt from VAT, but the event made a loss. Should we treat the income as standard-rated...

You have agreed to reimburse part of an employee’s broadband bill for when they work from home. HMRC’s guidance says that although this is a business expense, you must deduct PAYE tax and NI from anything you pay. Why is this and can it be avoided?  Audrey Rankine advises. Generally, employers can reimburse or pay...

You are making an overseas trip for business and have decided to take your husband and two children, so they can holiday while you are working. The question is, can you put the expense through the company and if so, are there any tax considerations?  Kirsten Hancock looks at the implications. The answer to the...

JRW Hogg & Thorburn have just announced the appointment of a new Partner in the firm. Christiaan Hansen, who is based at the firm’s Hawick office, is a tax specialist with particular interest in Inheritance Tax planning and business restructuring, as well as assisting on Trust and Estate related tax matters. Originally from Cape Town...

You pay a clothing allowance to your customer-facing staff and your business pays their PAYE tax and NI. You are considering providing the clothing direct as you recently read that it’s more tax efficient than paying an allowance. Is this correct?  Naomi Swan discusses below. Cash allowance versus reimbursed expense Generally, if you pay one...

You received a new laptop for Christmas which you will use for work. Even though it cost you nothing, can you claim a tax deduction in respect of the business use?  Kenny Logan from our Edinburgh office provides the answer below. A gift with extra benefit It’s nice to receive gifts and apart from thanking...

HMRC is getting better at detecting and penalising people who make extra income but don’t declare it. With that in mind if you have a small side venture to make some extra cash, is it always necessary to declare it to HMRC?  Audrey Rankine outlines the details in this article. Naturally, HMRC is interested in...

The National Insurance cuts in the 2023 Autumn Statement grabbed the headlines, but there were a number of other changes also announced. What were the most important to be aware of?  Naomi Swan outlines the changes in this article. Self-assessment The criteria to be met for an individual to fall within self-assessment have been changed....

If you own the trading premises of your business, charging rent can be a good way to extract income. The trouble is it can increase any capital gains tax (CGT) payable if you sell the property. Can the income tax saving justify the extra CGT? Kenny Logan from our Edinburgh office takes a closer look....