One of the founding partners of The Professional Training Partnership, Tim is also a director of PTP, PTP Interactive and Absolute Accounting Software and is chairman of The Tax Club. He is the author of three chapters in Tolley’s Tax Planning and presenter of TAXtv.
Absolute Accounting Software has a range of planning software apps to allow advisers to check the accuracy of tax computations and the most efficient decisions for their clients. Full details can be found at www.absof.co.uk.
HMRC will reject calculations based on my analysis. I have this week instructed Counsel to give a written Opinion and anticipate that this will support my analysis. I know of one agent whose client is prepared to take this to Tribunal and I shall support such a case. In the meantime agents should identify clients for whom protective claims should be made and ask HMRC to keeps such claims open pending a hearing.
HMRC's reply to my article is posted on https://www.absolutetax.co.uk/products/topslicer-tool where you can also access my topslicer calculator.
Suppose there is share capital of £100,000. Consider converting some of that to loan capital at a commercial interest rate. Or suppose a director shareholder has a positive loan account of £100,000 but the company is not paying interest. Consider a formal agreement between the director and the company that from 6 April 2016 interest is paid at a commercial rate. I agree that it must all be commercial.
Yes it can. Many directors do not bother to take interest on their credit balances so it might be worth putting a formal agreement in place before 6 April 2016. For many the optimal salary will be £8,060 with up to £8,940 of gross interest then being tax free. The company would need to deduct tax and complete the CT61.
I have produced three apps to do the tax calculations; the salary v dividend analysis; and the incorporation analysis. Email my software company for details!
£120 plus VAT annual membership. Various benefits, but the online forum would be ideal for your needs. Expert members almost always post an answer to queries within 24 hours.
My answers
HMRC will reject calculations based on my analysis. I have this week instructed Counsel to give a written Opinion and anticipate that this will support my analysis. I know of one agent whose client is prepared to take this to Tribunal and I shall support such a case. In the meantime agents should identify clients for whom protective claims should be made and ask HMRC to keeps such claims open pending a hearing.
HMRC's reply to my article is posted on https://www.absolutetax.co.uk/products/topslicer-tool where you can also access my topslicer calculator.
We're interested in your product but can't get the link to work
I have just updated to https://www.dropbox.com/s/t16j0gm621ttcdr/Taxpert3.2.2demo.xlsm?dl=0
Call Dave on 01869 255796 or email [email protected] to order.
Try https://www.dropbox.com/s/t16j0gm621ttcdr/Taxpert3.2.2demo.xlsm?dl=0
It still does my head in!
I'm very relieved that my tax app came up with £6,905 not £6,805!
Demo at https://www.dropbox.com/s/t16j0gm621ttcdr/Taxpert3.2.2demo.xlsm?dl=0 or call Dave on 01869 255797 or email [email protected].
Convert share capital to loan capital?
Suppose there is share capital of £100,000. Consider converting some of that to loan capital at a commercial interest rate. Or suppose a director shareholder has a positive loan account of £100,000 but the company is not paying interest. Consider a formal agreement between the director and the company that from 6 April 2016 interest is paid at a commercial rate. I agree that it must all be commercial.
It's doing my head in!
The £8,940 is £2,940 of PA, £1,000 of PSA and £5,000 of SRB.
Download my app at https://www.dropbox.com/s/59u1mfgigoeawec/Taxpert3.1.4demo.zip?dl=0 or call 01869 255797 or email [email protected].
Thanks for the name check.
Demo can be downloaded at https://www.dropbox.com/s/e6rrb0y88vpsdqd/Taxpert3.1.3demo.zip?dl=0.
£99 +VAT for full version.
PSA and loan accounts
Yes it can. Many directors do not bother to take interest on their credit balances so it might be worth putting a formal agreement in place before 6 April 2016. For many the optimal salary will be £8,060 with up to £8,940 of gross interest then being tax free. The company would need to deduct tax and complete the CT61.
I have produced three apps to do the tax calculations; the salary v dividend analysis; and the incorporation analysis. Email my software company for details!
Call us!
Hi Lucille
You need a licenced version of our software.
Why not call us on 01869 255796.
Regards
Tim
Join The Tax Club
£120 plus VAT annual membership. Various benefits, but the online forum would be ideal for your needs. Expert members almost always post an answer to queries within 24 hours.
www.mytaxclub.co.uk.