It’s easy to see the appeal that many company directors working from home think, “Why not have the company pay for my new garden office, reclaim the VAT, and deduct the cost for tax?” On the surface, it looks like a good idea, the business gets a corporation tax deduction, you get a modern workspace, and the company can even reclaim VAT on the costs. But this apparent win-win can turn into a tangle of VAT, income tax and capital gains tax issues later on. Below we explore why

Companies are required to deduct basic rate income tax (currently 20%) at source and remit it directly to HMRC when making certain types of payment. CT61 payments typically include: Annual interest on debentures or loan stock to individuals Annual payments or patent royalties to individuals Royalties on certain intellectual property to overseas persons The tax deducted at source settles the income tax liability of the recipient, not that of the company making the payment. Inc

Understanding the corporation tax treatment of goodwill and other customer-related intangibles is essential when preparing accounts and tax computations. The UK rules have been revised several times since 2002, so the date of acquisition determines what relief (if any) is available. General Rules for IFAs Under CTA 2009, ss.721–728, income and expenses relating to intangible fixed assets (IFAs) — such as royalty receipts or payments for patents and copyrights — are brought in

The Substantial Shareholdings Exemption (SSE) is a key UK corporate tax relief that allows companies to dispose of shares in trading companies without incurring corporation tax on chargeable gains. Introduced by the Finance Act 2002, SSE was designed to promote investment, facilitate corporate restructuring, and remove tax barriers to commercial transactions. Conditions for SSE SSE exempts qualifying gains from corporation tax when a company disposes of shares in another comp

Child Benefit remains one of the most valuable family benefits in the UK, but if your income is above a certain level, you may face the High Income Child Benefit Charge (HICBC). This guide explains the latest 2025 rules, thresholds, and planning opportunities so you can keep more of your Child Benefit. What is Child Benefit? Child Benefit is a tax-free payment for parents or guardians responsible for a child. It is calculated weekly and normally paid every four weeks. You can

The Structures and Buildings Allowance (SBA) provides tax relief for the construction costs of non-residential buildings and structures used for business purposes. It applies where construction began on or after 29 October 2018, and the first use of the building is non-residential. Typical qualifying assets include offices, retail premises, factories, and warehouses. Relief is not available for residential properties such as dwellings, student or school accommodation etc. Amo

Stamp Duty Land Tax (SDLT) is a tax on land transactions in England and Northern Ireland. It is typically paid by the purchaser and forms part of the overall cost of acquiring a property. SDLT is paid by completing a land transaction return, self-assessing the duty, and making payment electronically to HMRC. Solicitors or conveyancers usually handle this process on behalf of the purchaser. What is a Land Transaction? A land transaction usually involves acquiring an interest i

Members of a Limited Liability Partnership (LLP) are generally treated as self-employed for tax purposes. However, HMRC has long been concerned that some members, particularly those with a fixed profit share, are not truly partners but are instead working in a way that closely resembles employment. This situation is often referred to as “disguised employment”. Before the relevant “anti-avoidance” rules were introduced, members of an LLP were always taxed as self-employed, eve

Corporation tax compliance is a key responsibility for every company by helping to ensure that businesses contribute fairly while also encouraging proper record keeping and accountability. The rules are complex and can feel onerous for many business owners however, especially when accounting periods don’t align neatly, or when HMRC raises questions about a return. Professional guidance is essential to ensure your corporation tax compliance is managed smoothly and efficiently.

In business, there are often situations where future costs are likely, but the exact amount or timing is uncertain. These are recognised in the accounts as provisions. A provision is an estimate set aside in the accounts to cover an obligation that has already arisen but has not yet been settled. For example, this could be a warranty on goods sold, an expected legal claim, or a debt that is unlikely to be recovered. Are provisions deductible for tax purposes? Tax authorities