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Reform of close company loans to participators rules – consultation response

1.  Do you agree these are the right primary objectives for rules governing the taxation of loans from close companies to their participators? Please explain your answer.

We do not consider that the majority of loans provided to participators to be a form of deliberate tax avoidance. Acting for predominantly Owner Managed Businesses (OMBs) you quite rightly state that many of these situations arise because such businesses used to be run as sole traders or partnerships, where the proprietor took drawings.

Hotels enjoying a bright summer

Hotels in the Lake District have enjoyed a busy summer, in stark comparison to the previous year. The average room rate achieved by hotels in the Lake District for June 2013 was £101 which compares with £61 for June 2012. This is a huge increase, but we must remember that last summer the Olympics and terrible weather led to many hotels reducing their room rates in a bid to increase occupancy levels. This information comes from a survey that was run by Armstrong Watson during July 2013, specifically for hotels in the Lake District.

Proposed changes to childcare support

In the 2013 Budget the government announced its intention to change the way child care support is provided.

The proposal will see the current salary sacrifice scheme of employer supported childcare being phased out when the new scheme is introduced.

Under the proposals parents will be able to claim back up to £1,200 per year in childcare costs provided they meet the following criteria:

10 things business owners can learn from The Dragons

It’s been our screens for nearly 10 years now and Dragons Den continues to give viewers an engaging insight into businesses operating in many different sectors and at different stages of their lifecycle. Whilst much of the show is simply good entertainment there are valuable lessons to be learnt for existing business owners and those thinking of starting a business. Here I take a look at 10 things you can learn from Peter Jones and co.

Advisory fuel rates for company cars

Many employers and employees make use of the advisory fuel rates published by HM Revenue & Customs. The rates apply where the employer:

• reimburses employees for business travel in company cars where the employer does not provide fuel, or,
• requires employees to reimburse the cost of employer provided fuel used for private travel, so potentially avoiding a private fuel benefit charge.

The advisory fuel rates are also acceptable for VAT purposes providing VAT receipts for fuel purchases are retained.

What does Mark Carney's interest rate announcement mean for me?

Interest rates look set to remain at record lows for perhaps another three years following the new Bank of England Governor Mark Carney's announcement that they will be linked to the rate of employment.

In a major shift in monetary policy, the new governor said rates will not rise until the employment rate drops to 7%, which he does not expect to happen until 2016. This "forward guidance" strategy is aimed at giving households and businesses clarity on the future of interest rates, which will remain low to bolster economic recovery.

Nepal expedition one step closer after helping out at accountancy practice

Richard Rose students Grace McLeod and Emma Watson are one step closer to raising the funds needed for their upcoming Nepal expedition after completing a week’s work experience at accountancy firm Armstrong Watson.

The two Richard Rose students spent a week at Armstrong Watson earlier this month gaining experience of the firm’s on-going data project. The work they carried out involved reviewing data to ensure it complied with certain quality criteria.

Innovative companies – are you missing out on a tax saving?

There is a misconception that research & development tax relief is only being available to companies that have scientists in laboratories. However, any company that has made an advance in science or technology could be able to make a claim. The relief offered is very generous and can often result in cash back from HM Revenue & Customs, rather than a company paying over Corporation Tax. Recently published statistics show that it is likely the relief is massively underutilised as only 12,190 claims were made in 2011/12.

10 top tips for Inheritance Tax planning

1. Work out the tax

The first step in any planning has to be to establish the size of the problem. Only then can you begin to think about what solutions might be suitable for you. Start by adding up the value of all of your assets. If you are worth more than £325000, then Inheritance Tax can be an issue.

Using vehicles for business and private purposes

There are a number of circumstances where care needs to be taken in the way in which claims are made for the business use of a vehicle, usually a car, which has duality of use – business and personal. We have listed below a few issues that businesses and private car owners should be aware of.