My mate says you can’t change 12 days of Christmas into a tax song…
On the 12th day of Christmas my accountant gave to me:
In India, drummers play an important role in assisting tax enforcement. Sometimes the local government officials send drum bands to businesses to shame the business owners into paying their tax arrears. Apparently, tax revenue went up 20% in Mumbai when they started sending drummers after tax evaders. Could this approach be used by HMRC in the future?
HMRC could consider reselling concert tickets online to be a trading business. Selling the odd tickets due to you or a friend not making the event won’t be a trading business however if you buy tickets in bulk with the sole purpose to making a profit, it could be classified as taxable income.
Some artists are starting to fight back against concert tickets being sold at inflated prices; for example, Ed Sheeran cancelled 10,000 concert tickets he found on resale websites at high prices.
If you leapt out of the country i.e; moved, there may be tax implications depending on why you are leaving and for how long you’ll be gone.
This festive season, don’t forget to utilise your staff entertainment allowance of £150 per head per accounting year. Your Christmas party and drinks could be tax exempt if you fall within the criteria.
You can also treat your staff using the trivial benefits allowance, which allows you to give your staff a present up to £50, full details can be found here.
Milkmaids must get up early in the morning to do the morning milking so it wouldn’t be practical for them to commute. Therefore accommodation is necessary for them to do their job properly. Ultimately a farmer can provide tied-housing for their milking maids without it incurring a taxable benefit in kind.
SWAN UK is a charity that supports syndromes without a name (SWAN), they are registered under Genetic Alliance UK as a charity and provides support for families of children and young adults with undiagnosed genetic conditions in the UK.
By utilising the gift aid on your charitable donations, you can claim tax relief back from your generous donations. Don’t forget to discuss your tax planning with your accountant before the end of the tax year (5th April).
Geese are VAT free if they are being kept for meat or eggs, rather than ornamental purposes. There are different VAT rules depending upon the breed.
Buying jewellery from overseas and bringing it into the UK could have some tax implications. In 2014 George Clooney was in the news for a potential import Tax and VAT on his fiancé’s engagement ring, the taxes due were estimated between £90,000 – £100,000.
HMRC will never call you to tell you about a tax rebate or penalty. Nor will they ask for your personal or payment information. Recent scams include threatening a lawsuit and requesting for payment of taxes via digital vouchers and gift cards, including iTunes vouchers. HMRC have reported that a vast majority of victims are aged over 65 with the average financial loss of £1,150. This Christmas, please remind your friends and family of this scam.
Farmers are required to keep a list of all their livestock at the end of each accounting period to form part of their accounting records and their annual accounts. Valuing livestock can be complex, the normal basis is the lower of cost or net realisable value. However, if the animals are purchased, they are valued as cost plus the cost of food and forage consumed by the animal since it arrived on the farm.
2 Turtle Doves
There are tax reliefs for couples such as:
Income Tax: There is a married couple allowance for couples born before 06/04/1935 or marriage allowance for couples born on or after 06/04/1935.
Capital Gains Tax: Married couples can transfer assets between themselves at a no gain/no loss transfer until you separate (divorce blog). It is advisable to speak with your accountant first before transferring assets as it may have other tax implications. For example, transferring EIS shares may lose you some tax relief and Stamp Duty may apply for property transfers. For inheritance tax married couples can transfer any unused threshold to their partner’s threshold when they die.
Fermenting pear juice to make pear cider (perry) to sell could be subject to Cider Duty. However, if the Cider has more than 8.5% ABV and contains any ingredient that isn’t on the permitted cider or perry ingredient list, it is classified as “made-wine” and is subject to Wine Duty.
Merry Christmas from all of us at Ad Valorem!
Posted in: My Mate Says