At PD Tax Consultants, we recognise the approaching deadlines and believe it is essential to keep you informed. With that in mind, we have prepared a concise blog post to provide you with important updates on the upcoming deadlines. Failure to meet the deadlines, if applicable, may result in penalties and interest by HMRC.   P11D Deadline - 6th July 2023 A P11D form is where employers and directors of companies must declare benefits in kind to HMRC. You’ll need to declare these benefits every year by the 6th July following the tax year, for the previous tax year, and any taxes must be pai ..read more

Welcome to our blog, where we delve into the intriguing topic of setting up a company overseas and explore the complexities surrounding the UK tax obligations. Lately, we have noticed an increasing number of enquiries from both individuals and companies seeking information on establishing a business overseas, whilst aiming to minimise their UK tax liabilities. While the process may seem relatively straightforward in other countries, the scenario becomes more intricate when it comes to mitigating UK tax liabilities. Today, we embark on a journey to shed light on the recurring themes surrounding ..read more

What is Gift Holdover Relief and What is Eligible? This relief is a Capital Gains Tax (“CGT”) deferral and is a tool that can be valuable to any business owner. If correctly structured, you can create tax deferrals that you did not expect and mitigate a CGT liability. The eligibility for making a claim will depend on: The type of gift – whether it is ‘business asset’; The type of ‘business asset’; If shares are being gifted, the amount and type of shares; Whether consideration is being exchanged alongside the gift; and Whether any restrictions will apply. What Assets Qualify? Assets that quali ..read more

Historically, self-employment has been the default status for most dental associates in dental practices for many years, with both practice owners and associates preferring this model. This was based on the fact that there was a standard form of agreement for these dentists, approved by both the British Dental Association and the Dental Practitioners Association. HMRC previously accepted this model and even mentioned this agreement in their employment status manual ESM4030. From 6th April 2023, this has now changed. Associate dentists will no longer be automatically treated as self-employed by ..read more

What are Capital Allowances? When businesses/companies employ capital assets (e.g. plant and machinery) for use in their business, such costs are not deductible from trading profits because the expenditure will have an enduring benefit for the trade. Instead, relief is available through Capital Allowances which essentially allows relief for the fall in value of capital assets, providing a deduction when arriving at the taxable profits of the business. It is the equivalent for tax purposes to the depreciation charge that is often shown in business accounts. Capital Allowances are a form of tax ..read more

What is a Termination Payment(s)? If you're facing termination, you may be wondering what your entitlements are in terms of payment and how they are taxed. Understanding the tax implications of termination payments is crucial to ensure compliance with tax laws and regulations. In this blog, we will examine termination payments from a tax point of view. We will explore the different types of payments, how they are taxed, and the rules and regulations that govern them. These termination payments can either be fully taxable, partially taxable or fully exempt depending on the circumstances surroun ..read more

What is an Employee Ownership Trust (EOT)? EOTs were introduced by the Conservative – Liberal Democrat coalition government in 2014 to encourage employee ownership in companies throughout the UK. An EOT is a vehicle which acquires a controlling interest (51% or more) within a company and holds those shares on behalf of the employees of that particular company and allows the employees to become beneficiaries of the trust property. It can often assist with an exit or succession planning strategy for the business owners. Why would I choose to sell to an EOT? Capital Gains Tax relief is available ..read more

£1m Annual Investment Allowance Extension: The Immediate Practical Effect for Businesses What is the Annual Investment Allowance (AIA)? The annual investment allowance (AIA) is a type of capital allowance and is available for all businesses. The AIA is intended to ‘encourage greater levels of investment by reducing the costs of capital’ (CAA 2001, s.38A). The AIA gives 100% allowance (i.e., a tax deduction) for qualifying investment in plant & machinery (P&M) (excluding cars) up to a specified amount. In the 2021 Autumn Budget, Rishi Sunak announced that the temporary increase of the A ..read more

Generally, non-UK residents are not subject to UK Capital Gains Tax ("CGT") (with some notable exceptions such as the disposal of UK residential property). However, there is legislation in place whereby chargeable gains accruing to non-UK resident companies can be attributed to UK resident shareholders (TCGA 1992, S.3). Similar rules apply to beneficiaries of non-UK resident settlements, but this has not been considered in this article. Who do these rules apply to? These rules apply to non-UK resident companies which would be a ‘close company’ if it was in the UK. A close company can include a ..read more

What is the Administration Period? The administration of an estate involves the personal representatives "PRs" identifying and valuing the assets contained in the estate, settling liabilities, paying legacies and distributing the residue (if any).  The administration period starts on the day following the date of death of the deceased person. What is the relevance of the Administration Period for Capital Gains Tax "CGT"?  During the administration period of an estate, the PRs are liable to CGT on any chargeable gains made (i.e. the estate itself could be liable to CGT and an estate t ..read more