020 8914 7835 or 07967 813065 info@stillnessroad.com

Tax-free party!

An annual function or party for employees is tax exempt, provided the cost isn’t over £150 per head.  The amount paid by the employer is tax deductible, and employees aren’t taxed on the benefit they’ve received in going to the party. To...

Give yourself a (tax) free gift

There is an exemption from tax and National Insurance for benefits with a value up to £50 each provided to employees and directors. There is no limit to the number of benefits which can be given to an employee, but there is a limit of £300 per year for directors or...

There is such a thing as a (tax) free lunch

There is no tax charge for the provision of meals for directors or employees, provided the meal is provided either in a canteen or on the employer’s premises, it’s on a reasonable scale, and it’s available to all employees. So, does that mean family companies without...

Travel for Directors

The cost of ordinary commuting is not tax deductible. Ordinary commuting is a journey made to or from home (or any other non-workplace) to a permanent workplace. A "permanent workplace" is one where either the whole duration of the employment contract is spent; or...

How to pay a dividend

A company can pay dividends to shareholders from its accumulated after-tax profits. These can be seen in the balance sheet of the accounts. Dividends can only legally be declared if the company has the profits available to pay them. Unlawful dividends are treated as a...

Director’s Salary

There is no need to register for PAYE if no employees (including directors) are paid above the Lower Earnings Limit for National Insurance, get expenses and benefits, have another job, or have a pension. The LEL is £116 per week, or £6,032 per year in 2018/19. If a...

Contractors

Contractors usually either operate through their own limited company, or through an umbrella company. An umbrella company is a standard UK limited company, operated by a third-party supplier, which contracts with employment agencies or clients on behalf of...

Income splitting

An IT consultant, Mr Jones, gave one of two shares in his company to his wife. He was appointed as the company's sole director, while his wife was appointed company secretary. Mrs Jones carried out some administrative work for the company, totalling about four or five...

Clothes

Ann Mallalieu was a practising barrister, and was required to wear clothes in court which satisfied the Bar Council's requirements. Her claim for a deduction for the amount spent on court clothes was denied because the expenditure on clothes was not wholly and...