Member Since: 28th Jul 2004
9th Nov 2015
Deducting income tax by a bank on interest paid to a limited company is an error. You have answered your own question and agree with me. Thank you.
9th Nov 2015
A company is liable to corporation tax. If interest is deducted from bank interest it is Income Tax - that cannot be set against a corporation tax liability.
The bank should not have deducted income tax on paying interest to a limited company.
The correct procedure seems to be;
Corporation Tax - pay corp tac on gross interest in the correct way.
Income Tax - get this refunded by the bank
We have had a few of these over the years and the bank shave always paid up eventually and if the sums are larger than "pennies" we have claimed our fees too.
5th Oct 2015
Contractor loan schemes
These have been around for years and, basically, are fraudulent. They used to involve an off shore company which made the loan and never wanted it repaid.
As for 2016/17 the, as many comments have said, the rules have not yet been announced and passed by Parliament so we just do not know.
HMRC went to great lengths to stop these in the past and now have access to full information from all compliant tax haven countries.
The agents selling these are profiteering on the back of the gullible.
29th Sep 2015
UK and China tax
As soletic is not sure who he is working for or who owns the agency company that he may work for I feel that the full text of the UK and China double tax treaty would be as much use to him as a chocolate teapot.
28th Sep 2015
Confucious say "free advice is worth the price you pay".
Confucious also say "what is my wife's is hers and what is mine is my wife's"
28th Sep 2015
Sounds like a lucrative contract. Do not let it become a tax nightmare.
There are a number of issues that you need to deal with which have been referred to already.
1- who is contract? We have some clients who have similarly had consultancy type positions in China and the Chinese insist of those being personal and are taxed in China. I do not see how the Chinese authorities would allow you to be in China for 44 weeks a year for the next 3 years without requiring very complicated Visas and collecting tax from you.
2- the position which you advise for your wife's company sounds very complicated indeed. Germany has a much higher consultancy supply in to China than UK and it may be better to obtain advice in Germany.
The obvious question is - what has she done before when supplying workers overseas?
3- If you want to do this yourself then ask the Chinese embassy in London what their position is.
4- Lastly, you do not need to worry about the Inland Revenue. That was disbanded on 18 April 2005! The current UK tax authority is HMRC.
In whatever way you and your wife's company very definitely need expert advice from all perspectives.
3rd Jul 2015
2015 Return penalty
What Return was it for? There are plenty of 2015 Returns that should have been filed by now.
19th Nov 2014
It seems unduly harsh of HMRC to demand a reply within 7 days. Have you been delaying sending replies previously?
I was once told that all HMRC outgoing mail is sorted by the Royal Mail is Inniskillin. That is where all undelivered mail is now sorted by Royal Mail for return to sender.
Surely you have better ways to spend your time than getting annoyed about HMRC mail being delivered a long time after its date?
9th Sep 2014
Goodwill on incorporation 1.11.2012
There are a lot of implications here but one that has not yet been mentioned is does this constitute an acceptable alteration to the personal Tax Return 2013? ( presumably that has been filed). Will that now create a tax liability? That should have been paid on 31.1.2014 so interest and 2 x 5% surcharges will be due.
21st Jul 2014
Why not issue new "alphabet"
Why not issue new "alphabet" shares to each shareholder and then have a shareholders agreement to cover future dividend policy?
The new shares can have subordinate rights to repayment etc. to differentiate them.
New Articles will definitely be required and all Company Law requirements generally complied with.
Issuing different cases of shares will require a copy of the new Articles to be filed at HMRC under the CT ref.
If this is all new to you then you should take comprehensive expert advice to avoid being tripped up by legal and taxation requirements.