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Tax Question of the Week: Can a limited company still claim capital gains indexation allowance post-January 2018?
Q: Can a limited company still claim capital gains indexation allowance post-January 2018? A. As announced by the Autumn Budget 2017 there has been a removal of capital gains indexation allowance for companies from 1 January 2018. However, contrary to belief,...read more
Q. I understand that a small trader may claim a fixed rate per business mile under the simplified expenses rules. This method is an alternative to keeping detailed records of actual expenditure. Can this method be used for letting income where a few residential...read more
Q: A client has recently sold an asset, for what he believes to be the market value, to his sister-in-law. A capital loss has arisen and he would like to know how he could use this loss. A: The first thing to be aware of when making a disposal of an asset to a...read more
Q. Why doesn’t the relief for an individual landlord for his finance charges in 2017/18 always result in a reduction of his income tax bill of 20% x 25% of those charges? A. Most people preparing Self-Assessment tax returns for individuals are aware that there is a...read more
Q. I am self-employed and subject to the Class 2 national insurance rules and I currently pay contributions. Class 2 was about to be abolished but I have heard that this has now changed. Is that correct? A. Class 2 national insurance contributions are payable by the...read more
Q. Several of my limited company clients allow directors/shareholders to overdraw their director loan accounts. What should be considered in this situation? A. There are a number of tax and company law considerations to bear in mind when a company makes a loan to a...read more
Q. My client has recently enquired about the possibility of claiming relief for the expenses of cleaning of clothing that she wears in her role in nightclub security, having heard that there are flat rate expenses that employees are able to claim. A. Your client is...read more
Q: Is tax relief available for training costs when setting up a new trade in a limited company? A: Corporation Tax Relief is generally available for officer and employee training costs. Income Tax Relief and National Insurance Relief is also available to officers...read more
Q: We have an employee who is being made redundant and is entitled to Statutory Maternity Pay (SMP). Do we have to continue paying SMP after the redundancy? A: The simple answer is yes, as for an employee receiving SMP at the time they are made redundant the...read more
Q: I have to frequently stay in hotels when I'm on business trips. The hotel takes a deposit at the time of booking with the balance of the cost paid over when the stay takes place. Sometimes my plans, or those of my customers change and I have to cancel the booking...read more