Friday, 5 September 2014

Q. I own several properties which I let out unfurnished, but they do contain carpets, curtains and white goods. I've been told I can no longer claim the cost of replacing those items against my rental income. Is that true?

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A. For periods before 6 April 2013 HMRC permitted a deduction for the cost of renewing carpets, curtains and white goods in all let residen...

Q. I was travelling abroad on business last month when I got terrible tooth ache. I sought emergency treatment at a local dentist and paid the bill using my company's debit card. Will I be taxed on the dentist's fee as a benefit in kind?

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A. If the dental cost had been incurred while you were in the UK, it would have been a taxable benefit for you. But as you were working out...

Q. Private school fees are so expensive, can I get my company to pay the fees directly and save myself a bit of tax?

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A. If the company pays a bill, such as the school fees, which you are personally liable to pay, the payment is treated for national insuran...
Monday, 4 August 2014

Q. My personal service company is about take on an IT servicing contract in Belgium. The customer will pay me a rate for every day I attend their premises, on top of my fee for the whole contract. This 'per diem' rate is less than HMRC's benchmark rate for expenses when working in Belgium. Can it be paid directly to me personally or should it be paid to my personal service company?

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A. The 'per diem' rate should be paid to your company and be included in its turnover for VAT purposes, so treat it as a gross rece...

Q. I work as a self-employed courier for a large courier company who operates self-billing for VAT purposes and pays me monthly. I have just registered for VAT which has been back-dated to 1 May 2014. What should I do to collect the VAT due for May, June and July?

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A. You should ask your customer if it is acceptable for you to issue a VAT only invoice to them. Calculate the VAT due as if the total amou...

Q. In July 2011 I sold a property which had been used for my business. I planned to reinvest the proceeds in another property, but that acquisition never happened. I know I should now pay Capital Gains Tax on the gain made in July 2011. How do I go about doing that?

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A. The period in which you should have reinvested the proceeds ran out in July 2014, so you do need to pay the CGT due for 2011/12 unless y...
Monday, 7 July 2014

Q. I do some educational consultancy work in Africa for a business based in Ireland. My UK-based company will issue the invoice for that work, but it's in the flat rate scheme for VAT. Should that invoice be included in the turnover I apply the flat rate to?

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A. The invoice your UK Company sends to Ireland for your work in Africa is outside the scope of VAT. You should not add VAT to that invoice...