Monthly Archives: August 2014

When can gifts be omitted from your P11D?

Don’t declare a gift from a third party to one of your directors on a P11D unless your company was involved in arranging it. This applies even where the gift is either in the form of entertainment (e.g. a day out at the races), or where the cost of the gift is less than £250 (including VAT).
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Getting the most out of tax-free expenses

Paying the Taxman’s benchmark subsistence rates reduces your tax admin. Up to £25 per day can be paid (£5 for breakfast if the business journey starts before 6am; £5 if the employee spends more than five hours away and buys one meal; £10 if they’re out for more than ten hours and they buy two meals;…
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Getting your dividend documentation correct

Company law says that once you’ve established the availability of distributable profits you can pay a dividend.   The Taxman can challenge payments described as dividends if they have not been declared and paid in accordance with company law. Indeed, if  the directors allow dividends to be paid when there are not enough retained profits it…
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How to deal with illegal dividends

The Taxman will usually insist an incorrectly paid (i.e. illegal) dividend is treated as salary. This could trigger significant tax and NI bills. Counter this by referring him to his own guidance which says it cannot be salary unless approved by the Company. It will instead count as a loan to the director. This may…
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