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As the days start to lengthen and the end of the tax year (5 April) approaches, it is a good time to consider whether any action should be taken to ensure that available tax reliefs and opportunities are maximised. 

Richard Curtis considers straightforward steps that might be taken before 5 April to save tax.

On the face of it, directors are free to vote on their remuneration as the board sees fit. However, directors should be aware that HMRC may challenge excessive salaries and benefits-in-kind on the basis that they are not 'wholly and exclusively' paid for the purposes of the trade. 

Jennifer Adams considers when HMRC may deem a director's remuneration as being 'excessive', denying deduction against corporation tax profits.

Businesses often have areas of uncertainty and write to HMRC to clarify the position; mostly, HMRC just refers the business to their published guidance. This policy is mostly unhelpful to businesses as they will have already read HMRC guidance but are still uncertain as to how it applies to their particular circumstances.

Andrew Needham looks at reaching agreements with HMRC and how much the taxpayer can rely on them.

There are many factors to consider when deciding whether to run a business as a sole trader or via a limited company, but tax has always been a key one. 

Kevin Read explains the impact of recent tax changes on profit withdrawal from small companies.

The Autumn Budget 2024 and the December 2024 Employer Bulletin states that for paydays on and after 6 April 2025:

•    the National Insurance Contribution (NICs) secondary (employer) threshold reduces from £9,100 to £5,000 per annum; and
•    the rate of secondary NICs on earnings above the secondary threshold increases from 13.8% to 15%.

Ian Holloway points out that claiming the employment allowance in 2025/26 needs some extra care because legislation and payroll software specifications are conflicting.

The Oxford English dictionary defines a gift as: ‘something, the possession of which is transferred to another without the expectation or receipt of an equivalent’. The gift of an asset is thus not an arm’s length sale in return for market value proceeds, nor a loan or investment – it is entirely unilateral. 

Chris Thorpe looks at what happens for tax purposes when making lifetime gifts.

It is not uncommon for the self-employed to enlist a family member (e.g., offspring studying at university and earning spending money at weekends) to help in the business occasionally. 

Mark McLaughlin looks at wages payments by the self-employed to their offspring, and whether claims for a tax deduction are allowable.

The employment-related securities legislation deals with arrangements involving shares and securities provided by reason of employment where the full value of the employment reward provided to the employee is not included in the salary package and is charged to tax.  

Jennifer Adams considers the tax implications of shares in a family company being awarded or gifted to family members of employees. 

A sole trader looking to expand their business might be weighing up the ‘pros’ and ‘cons’ of a partnership or a limited company. They are very different, with not only very different tax consequences, but functions as well. 

Chris Thorpe looks at partnerships and companies and considers which business model might be best.  

Under the loan relationships rules for companies, debits on loan arrangements are not deductible for corporation tax purposes in some circumstances.

Kevin Read highlights a recent case concerning the loan relationship rules for companies. 

When HM Revenue and Customs (HMRC) opens a tax return enquiry, the natural reaction of most taxpayers is to speculate about the reason why their tax return has been selected. In fact, HMRC does not need an excuse to open a tax return enquiry; a small proportion of tax returns are simply selected at random. . 

Mark McLaughlin looks at whether a taxpayer can find out if an HMRC enquiry has been opened as the result of an accusation made by a third party. 

When considering the tricky matter of remuneration planning, there are two things to consider; the amount of remuneration, and what form it takes. 

Chris Thorpe looks at what to watch out for with regard to paying employees and directors.

Despite the reduction in National Insurance contributions (NICs) in Spring Budget 2024, more employees are paying tax at higher rates on their earnings due to the freezing of tax thresholds. Some may find that any pay rise or bonus attracts additional tax and NICs such that the net pay increase is minimal.  

Jennifer Adams looks at some alternatives to rewarding an employee with a pay rise or a bonus. 

Mark McLaughlin looks at company purchases of own shares and warns not to become too focused on the more difficult rules for capital treatment. 

A company purchase of its own shares from a shareholder is a popular ‘exit’ strategy when an individual shareholder is retiring, or a dissenting shareholder is departing.