One of the more tax efficient ways of reducing a company’s tax bill and increase the amount of money withdrawn at the same time, is by paying salary to a member of the director’s family.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...

If you earn a little income on the side, the trading allowance can exempt it from tax or reduce the amount payable. What types of income does it apply to and how does it work?  Kirsten Hancock explains in this article. In 2017, the government announced two completely new allowances out of the blue: the...

You hold the main interest in a family-owned trading partnership and are planning to retire, selling your interest to your adult children. But you have been advised that this could lead to an inheritance tax (IHT) charge?  Partner Kenny Adamson advises. Unincorporated traders Business property relief (BPR) is an extremely valuable tax planning tool. BPR...

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...

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....

You have been offered financial donations from friends and family to help start your new business. If it’s a success, you plan to reward them. What would the tax position be for the business and the donors?  Kenny Logan from our Edinburgh office explains. It’s far from unusual for close relatives and occasionally friends to...

The way we allocate profits to tax years for sole traders and partnership businesses has change in the 2023/24 tax year. The current system used to allocate profits was designed in the 1920s and creates a situation whereby businesses that do not have an accounting period that is aligned with the tax year may pay...

The main rate of corporation tax increased to 25% from 1 April 2023. The relevant thresholds must be shared between companies that are Associated, which means the increase will affect some businesses more than others. Is there a way around the problem?  Kenny Logan from our Edinburgh Office explains here in this article. Since April...