Ensure that you retain proper VAT invoices

A number of recent tax cases going through the courts have reinforced HM Revenue & Customs unsympathetic stance on accepting reclaims for input VAT in the absence of proper VAT invoices. Invoices that do not show a VAT registration number or miss other details are unlikely to be accepted by HM Revenue & Customs.  It is not only important to ensure that invoices are correct but also that they show all the required details for VAT purposes.

Parties can save tax

Around this time of year, people may be thinking about booking their Christmas party, if they haven’t done so already.  Even the smallest of businesses can provide annual tax free events for their employees.  The cost of the party itself will be allowed against business profits for tax purposes.  As long as the annual cost of all events per employee are less than £150, the employees are not taxed for having a good time.  In practice HM Revenue & Customs generously (there’s some words you don’t often see together “HM Revenue & Customs and generously”) define employees as including; current employees, retired employees and partners of existing and past employees.

Bank Inheritance Tax relief on selling your company

If you are looking to sell your company, then you may be able to preserve your current Inheritance Tax position, rather than lose a valuable relief.  You could settle your shares in trust and secure the business property relief available on the shares which could effectively wipe out the Inheritance Tax on their value.  As long as the shares are settled in trust prior to the sale of the shares, then it may be possible to preserve the relief, known as business property relief, so that the no Inheritance Tax would be due on the proceeds.