Tax Free Earnings

Below is a list of tax free allowances that mean you can earn money without paying tax or even declaring it to the taxman. Trading Allowance You can earn income of £1,000 tax free, without even having to declare it to the taxman. If you earn more than £1,000, the allowance … [Read more...]

Salary v Dividend

A popular way for directors/shareholders of small companies to take money out of their company is to pay themselves a small salary and take the rest out in dividends. So for the next tax year (2019/20) what should the salary be set at to ensure a director pays the least amount of … [Read more...]

Expenses Landlords Can Deduct

Expenses Landlords Can Deduct Landlords must pay tax on any profit from their property rental business (although income from property of less than £1,000 a year can be ignored). In working out the profits, expenses are deducted from rental income. To ensure that the landlord … [Read more...]

Private Residence Relief

How Does Private Residence Relief Work? Private residence relief (also called main residence relief) prevents a liability from capital gains tax arising on any gain on the disposal of a property which has been the taxpayer’s only or main residence throughout the period of … [Read more...]

Paying Family Members

Many small businesses, whether incorporated or not, are paying family members for working for the business. However, as a recent case shows, it is easy to make mistakes which can prove costly. The case in question, Nicholson v HMRC, concerned the payment of wages by a sole … [Read more...]