Directors only tax-saving package
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A Tips & Advice book about...
In a nutshell
This fully updated book shows how to increase your net income and stay off HMRC’s radar through proper tax planning. It features legally safe ways to save tax on all your dealings as a director. Instead of focusing on schemes, it explains in simple to follow steps how to claim all your entitlements.
In detail
In recent years the government has taken an increasingly aggressive approach to tax-saving schemes and arrangements. To ensure HMRC doesn’t run off with the lion’s share of your hard-earned income, our team of experts have put together this book. It covers:
- Tips to make the best use of remuneration strategies such as
- Salaries, dividends and benefits
- Pensions
- Company loans
- And much more...
- Vital strategies to minimise major taxes such as
- Income tax
- National Insurance
- Capital gains tax
- Inheritance tax
In this book you’ll find all the key facts and see how to use them through worked examples. It will help you exploit all the loopholes and reduce the amount of tax payable.
We've created this Tips & Advice book especially for...
Company directors that want to:
- Minimise tax and NI in a legitimate way
- Increase their net income
- Make the best use of remuneration strategies
Tax advisors that want to:
- Help their clients take income from their company in the most tax-efficient ways
In this Tips & Advice book you'll read about...
1. Salaries
1.1. A director’s perspective
1.2. Minimum salary, the NMW and the NLW
1.3. Salary waiver
1.4. Spouse’s/family members’ salary
1.5. Year-end bonus
1.6. National Insurance employment allowance
1.7. Key points
2. Benefits and expenses
2.1. A director’s perspective
2.2. Tax relief for the company
2.3. School fees
2.4. Moving home
2.5. Cheap loans
2.6. Second company car
2.7. Is a van cheaper?
2.8. Computers, etc.
2.9. Childcare vouchers
2.10. Travel and subsistence costs
2.11. Trivial and minor benefits
2.12. Key points
3. The use (and abuse) of dividends
3.1. A director’s perspective
3.2. Timing payments of dividends
3.3. Dividend waivers
3.4. Separate classes of shares
3.5. Dividend income for a spouse
3.6. Dividend income for children
3.7. Key points
4. Pension scheme strategies
4.1. The director’s perspective
4.2. The tax-advantaged pension scheme
4.3. Corporation tax relief for your company
4.4. Salary sacrifice option
4.5. Contribution without earnings
4.6. Ownership of the company’s assets
4.7. Pension fund borrowings
4.8. Contribution for a spouse
4.9. Key points
5. Financing the company
5.1. The director’s perspective
5.2. Claiming interest on loans to buy shares
5.3. Company borrows to acquire assets for your use
5.4. Interest on shareholder loans to the company
5.5. Seed enterprise investment scheme
5.6. Key points
6. Capital allowances
6.1. A director’s perspective
6.2. Timing
6.3. Assets specifically qualifying for a 100% tax deduction
6.4. Key points
7. Buying another company
7.1. The director’s perspective
7.2. Assets or shares?
7.3. Allocation of purchase consideration
7.4. Hive-downs
7.5. Tax due diligence
7.6. Insist on a tax indemnity
7.7. Losses
7.8. Borrowing costs
7.9. Stamp duty
7.10. VAT
7.11. Buy-to-sell shares
7.12. Termination payments
7.13. Deferred consideration
7.14. Key points
8. Reorganising shares
8.1. The director’s perspective
8.2. Gifts of shares to spouse
8.3. Gifts of shares to family members, employees, etc.
8.4. Gift holdover relief
8.5. Preventing unnecessary employment tax charges
8.6. Purchase own shares
8.7. Key points
9. Succession planning
9.1. The director’s perspective
9.2. Preserving business property relief
9.3. Passing shares to the next generation
9.4. Pre-owned assets tax (POAT)
9.5. Business premises held by you
9.6. Key points
10. Selling your company
10.1. The director’s perspective
10.2. Timing
10.3. Sale of assets and trade
10.4. Sale of shares
10.5. Pre-sale tax planning strategies
10.6. Deferred consideration
10.7. Using a profit warranty
10.8. IHT
10.9. Warranties and indemnities
10.10. Anti-avoidance
10.11. Key points
11. Winding up your company
11.1. The director’s perspective
11.2. Capital distribution
11.3. Availability of entrepreneurs’ relief (now business asset disposal relief)
11.4. Last minute dividend?
11.5. Phoenix companies
11.6. Key points
12. Going offshore
12.1. The director’s perspective
12.2. Your own offshore accounts/assets
12.3. Your company’s offshore interests
12.4. Costs and compliance
12.5. Offshore jurisdictions
12.6. Offshore friends
12.7. Keeping secrets
12.8. Benefiting from the arrangement
12.9. When selling your UK company
12.10. Key points
13. Trusts
13.1. The director’s perspective
13.2. The trusts tax regime
13.3. Use of trusts
13.4. Tax implications of creating a trust
13.5. Types of trust
13.6. Key points
14. Income tax planning
14.1. Introduction
14.2. What’s tax free?
14.3. Getting your allowances
14.4. Avoiding the high income child benefit tax charge
14.5. Children’s income
14.6. Overseas income and offshore bonds
14.7. Independent taxation
15. Capital gains tax planning
15.1. Introduction
15.2. What is free from capital gains tax?
15.3. How it works
15.4. Entrepreneurs’ relief (now business asset disposal relief)
15.5. Losses and gains
15.6. How to avoid the bed and breakfasting rules
15.7. Flipping between your main residence and your second home
15.8. Selling your garden
15.9. CGT and death
15.10. Further timing issues
15.11. Enterprise investment scheme (EIS) and holdover (deferral) schemes
15.12. Seed enterprise investment scheme (SEIS)
16. Inheritance tax planning
16.1. Introduction
16.2. What is tax free?
16.3. The nil rate band
16.4. The seven-year rule and taper relief
16.5. Gifts with reservation
16.6. Keeping value outside your estate
16.7. Skipping a generation
16.8. Two nil rate bands for spouses
16.9. Properly drafted wills
16.10. Changing someone’s will after they have died
16.11. The use of trusts
16.12. Reduce your IHT bill by giving to charity
17. National Insurance planning
18. Year-end tax planning
19. Appendix
The Scottish tax rates
A Tips & Advice book about...
In a nutshell
This straightforward guide explains how to take care of your tax responsibilities as a director easily and safely, always with one clear goal in mind: to save you time and money. Whether it's to file your VAT return online or claim a corporation tax deduction, this book will show you the correct way to do it.
In detail
Running your own company means getting involved in a wide range of tax issues. You need to be up to speed with the current tax rules and be able to put them into practice. This book will help you handle day-to-day and more complex tax procedures. It explains how to:
- Make the best use of HMRC's many online services
- Claim tax reliefs in the right way and at the right time
- Enter information correctly on your personal and business tax returns
- Make various tax-saving elections
Plus, we've included a stack of ready-to-use elections and draft letters to speed up the process and make your life even easier.
We've created this Tips & Advice book especially for...
Company directors that want to:
- Handle their tax affairs in an efficient and legally secure way
- Cut their tax bill
- Save time
Tax advisors that want to:
- Help their clients handle their tax affairs in the most advantageous ways
You'll get the following free extras with this Tips & Advice Book...
An online service with ready-to-use documents
- To immediately apply our advice and solutions in practice
- That you can easily adapt to suit your own requirements
In this Tips & Advice book you'll read about...
Table of contents
Introduction
I. HMRC online services
1. How to sign up to HMRC online services for the first time
2. How to obtain a new activation code for HMRC’s online services
3. How to add a new HMRC online service to your company’s registration
4. How to sign up and use HMRC’s Business Tax Account
5. How to merge HMRC services on to a single Business Tax Account
II. Dividends, salary, benefits and employment expenses
6. How to pay a director’s bonus
7. How to claim a tax deduction for business expenses
8. How to elect for the alternative method of calculation of a beneficial loan
9. How to create a salary sacrifice arrangement
10. How to keep a mileage record
11. How to pay an interim dividend
12. How to pay a final dividend
13. How to waive a dividend
14. How to report a beneficial loan for directors and employees
III. PAYE and payroll and
construction industry schemes
15. How to register your company as an employer for PAYE
16. How to register as a CIS contractor
17. How to set up PAYE basic tools
18. How to set up a new employee without a P45
19. How to set up a new employee with a P45
20. How to make an RTI report without an NI number
21. How to make PAYE, CIS and NI deductions
22. How to pay HMRC advisory benchmark allowances for UK subsistence
23. How to pay scale rate expenses for overseas travel and subsistence
24. How to pay personal incidental overnight expenses relating to business travel
25. How to make a tax and NI-free advance of expenses
26. How to pay HMRC’s approved flat rate use-of-home allowance
27. How to report expenses and benefits for directors and Pay Class 1A NI
28. How to reclaim overpaid NI
29. How to apply the annual earnings period for directors
IV. VAT
30. How to register for VAT online
31. How to register for VAT offline
32. How to update your company’s VAT records with HMRC
33. How to change your company’s VAT status
34. How to apply for group VAT registration
35. How to apply for divisional VAT registration
36. How to apply to use the VAT flat rate scheme
37. How to opt out of the VAT flat rate scheme
38. How to join the VAT cash accounting scheme
39. How to use a VAT retail scheme
40. How to adopt the VAT annual accounting scheme
41. How to adopt a special method for VAT partial exemption
42. How to opt to tax a property (make rent etc. liable to VAT)
43. How to withdraw the option to tax
44. How to use the VAT flat rate fuel charge
V. Corporation tax
45. How to register a company with HMRC
46. How to notify HMRC that your company is dormant
47. How to notify HMRC that your company is active
48. How to file company accounts with HMRC
49. How to amend a corporation tax return
50. How to claim trading losses against trading income in later years
51. How to claim pre-incorporation losses against company income
52. How to claim a deduction for pre-trading expenses
53. How to claim trading losses against current year’s income
54. How to claim trading losses against total income of earlier years
55. How to claim losses when a business ceases - terminal loss relief
56. How to claim group relief for losses
VI. Capital allowances
57. How to make a short-life asset election
58. How to claim the annual investment allowance (AIA)
59. How to elect for capital allowances on equipment fixed to buildings
60. How to elect to use tax written down values on transfer of a business
VII. Directors’ personal tax
61. How to register for self-assessment as a director
62. How to amend your tax code
63. How to claim higher rate relief for pension contributions
64. How to reduce your self-assessment payments on account
65. How to claim an income tax refund
66. How to claim tax relief for homeworking expenses
67. How to claim interest on a business loan
68. How to defer Class 1 NI contributions
69. How to use unused pensions tax allowance from earlier years
70. How to declare and pay a pensions annual allowance charge
71. How to elect to be taxed on joint income
72. How to claim enterprise investment scheme (EIS) relief
73. How to carry back tax relief for the EIS
74. How to claim seed enterprise investment scheme (SEIS) relief
75. How to carry back tax relief for the SEIS
VIII. Buying and selling a business
76. How to claim entrepreneurs’ relief
77. How to claim negligible value CGT relief for your company’s shares
78. How to claim income tax relief for a capital loss
79. How to elect for entrepreneurs’ relief to apply to qualifying corporate bonds
80. How to defer (holdover) a capital gain on the transfer of shares in a company
81. How to roll over a capital gain following the sale of business assets
IX. Other claims and procedures
82. How to create a loan agreement with a director
83. How to challenge an HMRC assessment ruling or decision for direct tax
84. How to challenge an HMRC assessment ruling or decision for indirect tax
85. How to complain about HMRC’s services
86. How to obtain clearance for a transaction from HMRC
87. How to postpone payment of tax relating to an HMRC assessment or decision
88. How to pay tax bills without a payslip
89. How to apply to use HMRC’s alternative dispute resolution (ADR) process
90. How to appeal to the First-tier Tribunal