The April instalment of 'Any Answers Answered', featuring TAXtv hosts Giles Mooney and Tim Good, includes a question on trading losses.
The first question relates to trading losses and comes from taxiboy. He asked if can he offset the losses of his tax year and still pay £50,000 gross pension contribution and get tax relief. The point, according to Mooney, is when working out whether we have enough relevant income to pay a contribution to our pension, do we knock the losses off?
Good tackles the interesting question and mentions that the answer refers back to the old regime where the maximum pension contribution was a percentage of your net relevant earnings. Under the post-April 2006 pensions regime the concept of net relevant earnings has been replaced by relevant UK earnings.
Find out the full explanation in the video below.
The second question relates to IR35 and whether or not they have to pursue the company umbrella structure.
The question comes from AccountingWEB member Gone Sailing, whose client has told them that they are closing the PSC and is going into umbrella company.
The company is going to be caught by the recent public sector legislation and the public sector body said they’re not going to pay directly. The question is how is it possible that the umbrella arrangement will allow them to claim travel and subsistence.
Find out more in the video below:
For the latest episode of TAXtv visit PTP Interactive. TAXtv is a monthly tax update programme available as an annual subscription from £199, (11 issues plus special editions) to view online, download from the internet or watch on DVD.