Tax and accountancy matters.

[gw_leics772]

After helping to kick the mahrez to man city thread off on a tangent, and realising I enjoyed it like the geeky accountant I am, I thought I'd start this thread and offer any help/advice I can.

 

I am a qualified accountant who now runs a general accountancy practice and have started moving toward specialising in tax efficiency planning.

 

I also spent 15 years running accounts departments in predominantly family owned businesses.

 

IR35

Sole trader, partnership accounts and personal tax.

Limited company accounts and tax planning.

Etc.

 

Promise I'm not touting for business. Just happy to help in the minefield that is difficult even for us who pay thousands of pounds a year in training seminars etc.

 

 

 

 

[Strokes]

8 minutes ago, gw_leics772 said:

After helping to kick the mahrez to man city thread off on a tangent, and realising I enjoyed it like the geeky accountant I am, I thought I'd start this thread and offer any help/advice I can.

 

I am a qualified accountant who now runs a general accountancy practice and have started moving toward specialising in tax efficiency planning.

 

I also spent 15 years running accounts departments in predominantly family owned businesses.

 

IR35

Sole trader, partnership accounts and personal tax.

Limited company accounts and tax planning.

Etc.

 

Promise I'm not touting for business. Just happy to help in the minefield that is difficult even for us who pay thousands of pounds a year in training seminars etc.

 

 

 

 

A tax dodge advisor?

[gw_leics772]

If it's legal, hell yeah. I don't work for the taxman ?

[Buce]

27 minutes ago, gw_leics772 said:

If it's legal, hell yeah. I don't work for the taxman ?

 

Meh.

 

We all work for the fvcking taxman...

[gw_leics772]

That's the spirit ?

 

See you back in depression  thread when that has sunk in.

[nnfox]

Thanks for starting this thread @gw_leics772

 

I should have studied accounting years ago but didn't. I've completed a couple of AAT qualifications over the past 12 months and find it really interesting stuff!

 

 

[gw_leics772]

26 minutes ago, nnfox said:

Thanks for starting this thread @gw_leics772

 

I should have studied accounting years ago but didn't. I've completed a couple of AAT qualifications over the past 12 months and find it really interesting stuff!

 

 

No problem,just hope I can lure some 'normal' people I  so it's not like an accounts departments Christmas party ?

 

Its an excellent qualification by the way. It's they way I started and really does teach you the bread and butter of the job and manually which is worth it's weight in gold with some of the problems.ive run into when the software falls over.

 

When I last took on a junior member of staff I went to the college to speak to the tutors of the aat classes, and it worked a treat.

 

Give me a shout if you need any help.

 

Think I might have to give out some general advice to tempt people in.

 

But where to begin, it's so exciting out there right now.

 

Making tax digital

IR35

tax efficient remuneration

Incorporating a business (going Limited)

 

Ooh I'm getting aroused just thinking about it ?

 

[YorkshireYellow]

I personally think that physical currency should be done away with and that the government should automatically take a transaction fee every time money moves from one digital account to another. The technology is there to do this now. 

Same whether you are paying for a round in the pub, or moving money to your bank account in the Isle of Man, or are a business paying somebodies wages..... same percentage, deducted from every transaction the moment it happens. 

 

No loopholes, no differing rates. Just a government transaction tax. 

 

Sorry.... I know that be catastrophic for the accounting profession and anybody who works for HMRC, but it is essentially a profession which exists purely to satisfy bureaucracy. 

Edited 28 June 2018 by YorkshireYellow

[Buce]

7 hours ago, YorkshireYellow said:

I personally think that physical currency should be done away with and that the government should automatically take a transaction fee every time money moves from one digital account to another. The technology is there to do this now. 

Same whether you are paying for a round in the pub, or moving money to your bank account in the Isle of Man, or are a business paying somebodies wages..... same percentage, deducted from every transaction the moment it happens. 

 

No loopholes, no differing rates. Just a government transaction tax. 

 

Sorry.... I know that be catastrophic for the accounting profession and anybody who works for HMRC, but it is essentially a profession which exists purely to satisfy bureaucracy. 

 

 

Nah, that's never going to work.

 

Digital technology is never going to be able to take the shirt off your back.

[Houdini Logic]

13 hours ago, gw_leics772 said:

 

But where to begin, it's so exciting out there right now.

 

Making tax digital

IR35

tax efficient remuneration

Incorporating a business (going Limited)

 

Ooh I'm getting aroused just thinking about it ?

 

I worked on this project at HMRC for over a year and in the end I walked away because it was the biggest shambles I've ever had to deal with! 

[davieG]

Not to hi-jack the thread but this always pops into my head when this subject crops up.

 

Taxman

The Beatles

Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman

Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman

If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.

Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman

Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me.

Songwriters: George Harrison

 

[gw_leics772]

16 minutes ago, Houdini Logic said:

I worked on this project at HMRC for over a year and in the end I walked away because it was the biggest shambles I've ever had to deal with! 

I got ahead of the curve and I castigated this and planned for it accordingly. Just bought in to another business who did nothing. With the changes announced, guess which one wasted his time.

 

I'm April 2019 it's going ahead they say. For the vastly reduced number of businesses affected, they will then have to do their vat return online (No change) in a slightly different way (still not decided on the final requirements), wait for it, on a completely different website that doesn't exist yet.

 

How do you plan for that one?

[nnfox]

So I have a question about buy to let investments. I have heard that certain tax advantages for land lords are being eroded away, around what can be classed as allowable expenses. A knock on effect is that more companies are being formed for the purpose of this type of investment, taking advantage of the corporate tax rate.  My understanding is that the company has to apply for a certain type of mortgage which can be slightly more expensive than a standard personal buy to let mortgage. 

 

I have a group of friends that wish to pool some money together and enter the buy to let mortgage, initially with a small town centre apartment but grow the portfolio over the next decade or two.

 

I'm a bit sceptical to be honest, but they are hoping to charge 650 - 750 pcm (which is market rate for a 120-150k property) with 25% down.

 

Any noteworthy upsides or downsides to this type of arrangement?  Company formation, or not? Go for it or don't bother? Best way to minimise tax bill?

 

The property would likely be managed by a local letting agent (family member) who says there is no shortage of waiting tenants.

[Rob1742]

58 minutes ago, nnfox said:

So I have a question about buy to let investments. I have heard that certain tax advantages for land lords are being eroded away, around what can be classed as allowable expenses. A knock on effect is that more companies are being formed for the purpose of this type of investment, taking advantage of the corporate tax rate.  My understanding is that the company has to apply for a certain type of mortgage which can be slightly more expensive than a standard personal buy to let mortgage. 

 

I have a group of friends that wish to pool some money together and enter the buy to let mortgage, initially with a small town centre apartment but grow the portfolio over the next decade or two.

 

I'm a bit sceptical to be honest, but they are hoping to charge 650 - 750 pcm (which is market rate for a 120-150k property) with 25% down.

 

Any noteworthy upsides or downsides to this type of arrangement?  Company formation, or not? Go for it or don't bother? Best way to minimise tax bill?

 

The property would likely be managed by a local letting agent (family member) who says there is no shortage of waiting tenants.

If you put it in a company you only pay corporation tax, whereas if you don’t, you have to pay your normal tax rate.

However, if you take the profit out you pay your tax on that, so at that point they would both be similar.

 

I am unsure if there is any decent money in this nowadays if you have to get a mortgage.

 

You might make 6%, but then there is mortgage costs and then management fees, so there isn’t much in it. And if there is quite a few of you involved, could be more bother than it’s worth 

[Bablemikey]

I’m in the 40% tax band & I would welcome any advice on ways to lessen the amount of tax I pay. Are there some fundamental strategies that I should be looking at?

[Milo]

On 01/07/2018 at 17:24, Rob1742 said:

If you put it in a company you only pay corporation tax, whereas if you don’t, you have to pay your normal tax rate.

However, if you take the profit out you pay your tax on that, so at that point they would both be similar.

 

I am unsure if there is any decent money in this nowadays if you have to get a mortgage.

 

You might make 6%, but then there is mortgage costs and then management fees, so there isn’t much in it. And if there is quite a few of you involved, could be more bother than it’s worth 

But you could @nnfox not take £11,850 tax free as a director?

 

[Rob1742]

4 hours ago, Milo said:

But you could @nnfox not take £11,850 tax free as a director?

 

Yeah, but if you are earning elsewhere your tax free allowance maybe used in that employment. They add it all together and so you only benefit the once from your tax free allowance. 

Think it’s a bit more complicated than that, but not much. The bones of it correct.

Where is the original tax advisor gone? He’s buggered off 

[Milo]

1 hour ago, Rob1742 said:

Yeah, but if you are earning elsewhere your tax free allowance maybe used in that employment. They add it all together and so you only benefit the once from your tax free allowance. 

Think it’s a bit more complicated than that, but not much. The bones of it correct.

Where is the original tax advisor gone? He’s buggered off 

Ah yes...fundamental flaw in my thinking!! 

[gw_leics772]

2 hours ago, Rob1742 said:

Yeah, but if you are earning elsewhere your tax free allowance maybe used in that employment. They add it all together and so you only benefit the once from your tax free allowance. 

Think it’s a bit more complicated than that, but not much. The bones of it correct.

Where is the original tax advisor gone? He’s buggered off 

He's at w9ork and there's a football match tonight so answer won't be this side of the England match.  ?

 

I started drafting a reply and it's a long one. (With lots of disclaimers ?)

The quick crux of which is that you escape the erosion of the higher rate tax relief, (but even that could screw you elsewhere by pushing other earnings I to higher rate)

 

Dividends would save some tax but even that is being eroded.