Director’s Loan accounts A director’s loan account (DLA) is simply a record of transactions between a director or shareholder and their company. An overdrawn DLA, that’s one where the director owes the company money, can result in special tax charges for the director and the company. In this Focus, we look at the rules governing ... Read More
Further rise in HMRC interest rates confirmed Following the 13th consecutive increase in the Bank of England (BoE) base rate, HMRC’s interest rates on overpaid or underpaid tax will also increase. What are they and when will they take effect? From 3 July 2023 the following rates will apply: From 11 July, the rates for ... Read More
Turn a tax trap into a tax-efficient golden handshake You’ve heard that £30,000 of any lump sum payment on termination of a job can be paid tax and NI free. Is that correct, and can this tax break be used to reward a long-standing employee who’s due to retire shortly? Termination pay or earnings? Tricky ... Read More
How to avoid a common mistake with mileage payments Several of your employees use their personally owned vehicles for work, for which you pay a mileage allowance at HMRC’s approved rates. But there’s a potential trap that could land you with a tax and NI bill. How can you avoid it? Mileage allowance You probably ... Read More
Meals for employees an especially valuable perk You’re considering providing free meals to your employees to help them with the rising cost of living. You’ll be able to buy in bulk and so access discounts not normally open to individual employees. How will HMRC view your plans? Food inflation While the headline rate of inflation ... Read More
The hidden inheritance tax on gifts | Dunhams News Blog The usual advice is that potential inheritance tax (IHT) payable on gifts starts reducing (tapering) once three years have elapsed, and after seven the gift is IHT free. However, the three-year deadline is often an illusion. Why? IHT planning The simplest way to reduce inheritance ... Read More
Interest on unpaid tax bills increases again The Bank of England’s base rate has crept up again, causing late payment interest rates to increase from next week. What are the new charges, and is there an end in sight to these increases? The Bank of England’s base rate increased on 11 May from 4.25% to ... Read More
New fuel scale charge flat rates apply The fuel scale charge is one option for accounting for VAT where an employer pays for fuel costs and there is a mix of business and private use. The figures you have to use will change from 1 May. What do you need to know? Using the fuel ... Read More
Is pension advice tax free? Some of your company’s directors are considering retiring in the next few years and each wants advice about funding their pensions. Can the company pay for the advice and treat it as a tax-free benefit in kind? Pensions advice Employers can pay up to £500 per person per tax year ... Read More
Payment of pension arrears could mean tax bill A large number of people have been underpaid their state pension. Payment of what’s owing is underway but if you receive such a payment, it may give rise to an income tax bill. What’s the issue? The state pension arrears identified so far exceed £300 million, mainly ... Read More
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