Tuesday, August 16, 2011

PMA Tax: The ten tax questions that are more complicated than you might think

This is my list of ten common tax questions where it is almost impossible to provide a simple answer that is of any value. And I say this as someone who has a reputation for providing clear, easy to understand and pragmatic advice!

Anyone tempted to think there are easy answers that apply in all situations has probably fallen for those Popular Misconceptions About (PMA) Tax I referenced in an earlier blog post.
  1. How do I become non-resident?
  2. More than 20% of the income of my company comes from letting an investment property, but the assets, time and expenses are all more than 80% trading. Will it qualify for entrepreneurs' relief?
  3. As a sole trader, can I claim the cost of my lunches back when I am out on business?
  4. I run a restaurant, and recently took a bottle of wine home to drink for my birthday. At what price do I have to account for it - the price on our wine list or the price in an off-licence?
  5. And what about the bottle of wine I took home last birthday - do I have to account for that at anything more than cost?
  6. My partner and I own a company in equal shares, but I have other income, I recently waived part of my dividend so that she could receive a larger one. Am I still taxable on it?
  7. Rather than do A which would have given me a tax liability, I did B C and D, which had the same combined effect but with no tax liability, on a literal reading of the tax legislation. Am I liable to tax anyway?
  8. How much tax will I save if I incorporate my business?
  9. How much of my car costs, mobile phone costs, home related expenses etc can I get off my tax?
  10. I'm not domiciled in the UK, is it worth me paying the £30k bung?
What other questions would you add to this list?

No comments:

Post a Comment