Q. Two years ago I invested £5,000 in a company under the EIS scheme, but now that company has gone into administration. How do I claim for the loss in value of my EIS investment? A. As the company has not been struck-off the Companies House register its shares still exist, although they are probably worthless. You can make a negligible value claim for those shares by writing to HMRC, or on your tax return. This will give you a capital loss worth £5,000, which can be set against capital gains made in the same year the claim relates to [...]

When a business incorporates and transfers its trade and assets to a company controlled by the seller, the assets must be transferred at open market value for tax purposes. The assets may include "goodwill" which is defined as the business reputation or customer relationships, including the value of continuing contracts. The transfer of the assets may generate a taxable capital gain in the hands of the seller, as the assets will have appreciated in value during the time they were used or created by the first business. Capital gains tax will arise on those gains, but there are various tax [...]

Where a child is due to be born (or adopted) on or after 5 April 2015, its parents will be entitled to share the 52 weeks of maternity leave and 39 weeks of maternity pay or maternity allowance which is currently available only to the mother. This ability to share parental leave and pay will not apply in Northern Ireland until the Northern Ireland Assembly passes the relevant regulations. As an employer you need to be ready to deal with claims from employees to share leave and pay, and to report details of shared statutory parental pay in your RTI [...]

On 1 January 2015 the VAT law changed for electronic services that are supplied digitally to non-business customers. Those customers must now pay VAT on the e-service at the rate that applies in the country where they receive the service. It's up to the supplier to work out the VAT due, and pay that VAT to the local tax authority. There is no minimum threshold of sales below which VAT is not due. The UK has set up the VAT-MOSS system to collect and pay over the overseas VAT payable by UK based suppliers. However, in order to use the [...]

Q. My company has some surplus cash which I would like to use to support a local charity. Can the company make the donation directly or do I have to make a personal donation so it qualifies for Gift Aid, and the charity can claim the tax back? A. Companies can make charitable donations under Gift Aid, but those gifts are made without deduction of tax, so the charity does not reclaim tax on the gift. The company's gift is treated as an expense and deductible from its profits as long as the company has profits for the accounting year [...]

From 6 April 2013 you can use two "simplifications" to make accounting easier for your unincorporated businesses: the cash basis and fixed rate deductions. If your business falls within the size criteria you can use one or both of these simplifications, or neither, the choice is yours. To start to use the cash basis your business must have annual turnover of less than the VAT registration threshold (currently £81,000). There are slightly different rules if you also claim the Universal Credit benefit (successor to tax credits). You must stop using the cash basis if your turnover reaches double the VAT [...]

Companies (not unincorporated businesses), can claim enhanced deductions for qualifying costs they incur on research and development (R&D) projects. For small companies the deduction can be 225% of the qualifying costs, and since April 2012 there is no minimum spend required in an accounting period. The major barrier to claiming this tax relief is working out whether your project qualifies as R&D. To qualify it must push the boundaries of scientific or technical knowledge. Ask yourself: a) Has anyone else done what we are trying to achieve with this project? b) If another business has achieved that goal, have they [...]

Repairs or improvements? If you let out residential property you need to know whether you can receive a tax deduction for the cost of replacing or repairing furniture and fittings provided inside that property. The cost of equipment used to maintain the outside of a property, or used in the communal areas of a building containing multiple dwellings, is always deductible. When you fit something for the first time to a property, such as a fitted kitchen, that cost will form part of the capital cost of the building and will only be deductible when you sell the property. If [...]

Q. HMRC has reminded me to claim the employment allowance for 2014/15 worth £2000. My company doesn't pay any employers' NI on my very low salary, so I thought I couldn't claim the employment allowance. But the Government website referred to in the HMRC letter says I can get a refund of my VAT, PAYE or corporation tax as I haven't used the full employment allowance for the year. How do I get my hands on this money? A. Unfortunately the GOV.UK website is wrong. The employment allowance can only be set against employer's class 1 national insurance contributions due [...]

Summary The Chancellor of the Exchequer pulled out a few surprises in his Autumn Statement. The most eye-catching is the reform of stamp duty land tax (SDLT), which is payable by purchasers of land and property. The changes should reduce the SDLT payable on 98% of transactions which complete from 4 December 2014 onwards. Small businesses should be pleased with the £1,500 business rate discount for small high street shops, cafes, pubs and restaurants. All employers will benefit from the zero rate of employers' national insurance for workers aged under 21, which is to be extended to apprentices aged under [...]