Chartered Accountants of Poynton, Cheshire |
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Company VansThere has been a big change to the taxable benefit due on vans. Where an employer provides a van for an employee, which they can use for private journeys, the taxable benefit from 6 April 2007 becomes £3000 per annum. This taxable benefit is not levied if the private use is merely incidental. HMRC have given some guidance on what is incidental but this is not exhaustive so we will be pleased to advise on the situation if you are providing vans that can also be used for private journeys. Filing onlineEvery year, employers are required to send details of the salaries, tax and National Insurance deducted from their employees. These year-end returns have to be submitted by 19 May 2007 to avoid a fine. These documents can be submitted on-line via the internet. Appletons can assist you in this process. If you are a small business - defined by HMRC as having fewer than 50 employees - and you file your P35 online, HMRC will pay you £100 tax-free for doing so. You usually claim this back by reducing your next monthly PAYE payment. Tax TipWhen you buy new equipment for your business, ask whether it is energy or water efficient. Check the list on www.eca.gov.uk to see if you could get a 100% deduction fo the cost in the year of purchase. |
Buying a Business Property? Then don't forget the taxes!Buying a business property involves several important taxation decisions. In broad terms 'a business property' is one that is used by a business rather than for living in. Stamp DutyStamp duty is the first tax to consider since this is a major additional cost when buying a property. The current rates, due on the cost, are:
VATWhen buying a business property you might be charged VAT at 17.5% on the full cost of the building, which can be a significant extra cost. It might not be possible for you to claim all this back in one go because of the rules of the Capital Goods Scheme. Where VAT is charged you will need specialist help to work out how much VAT is due and if it can be claimed back. Capital gains taxThere is no capital gains tax to pay when you buy the property but you do need to consider it since it can be levied on the sale of the property. For most, the decision will be between whether a company or an individual will own the property. In the 2006/07 tax year an individual's first £8800 of capital gains are exempt from taxation which is not the case for a company. The ownership of the property is, therefore, an important aspect to cover. If the individual buys the property they will usually charge rent to the business, as any commercial landlord would do. In summary, you should never buy a business property without taking full and detailed tax advice since any error could be very expensive.
If you have any queries about any of the issues raised here or how Appletons Accountants can help on any other business issue, please call us on 01625 260990 and we will be pleased to help. |
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