LOANS TO PARTICIPATORS

Inland Revenue does not want participators in a company to receive “tax-free” loans instead of taxable salaries or dividends. If a loan is made and not repaid to the company within nine months of the end of that accounting period, the company must pay 25% of the loan amount to Inland Revenue (ICTA88/S419) as further tax.

In addition, any loan in excess of £5,000 made to a director or an employee is also a benefit in kind unless the recipient pays the official rate of interest on the loan. The benefit will be taxed in the participator’s personal capacity.

For more information please contact us on 0208 241 3495 or info@sailsolutions.co.uk

HMRC Podcasts

August 2009

New Disclosure Opportunity (NDO)
HMRC's Dave Hartnett talks about the latest opportunity for offshore account holders to come forward to HMRC and declare their untaxed offshore income and interest.

Listen to the NDO podcast mp3
View transcript of the NDO podcast (PDF 37K)

February 2009

Compliance Checks
What HMRC's new compliance checks regime, coming into effect this April, means for tax advisors, individuals and businesses.

Listen to the Compliance Checks podcast mp3
View transcript of the Compliance Checks podcast (PDF 29K)

TAX HELP

HMRC has recently launched a quick bite-size video library to get the basics on tax from real small business owners. We definately recommend having a look if you are thinking about setting up in business or if you need a general overview on a particular subject.

HMRC video library

Welcome - setting up in business
Find out about the different types of business you can set up - a self employed stunts man and a mountain bike limited company explain more.Play video (Flash video) - Opens in a new window


Income Tax - for the self employed
What happens with income tax when you work for yourself? A self employed web designer goes through the basics.Play video (Flash video) - Opens in a new window


Corporation Tax
If you decide to set up a limited company you need to know about corporation tax. A hair extension business owner discusses the lengths she went to...Play video (Flash video) - Opens in a new window

Keeping Records
A performance artist tells us why keeping good records is key to being in control of your business.Play video (Flash video) - Opens in a new window

VAT
An intriguing company talks us through the basics of VAT.Play video (Flash video) - Opens in a new window


National Insurance
What do you do about national insurance if you work for yourself? A tattoo artist and a uniforms supplier explain it.Play video (Flash video) - Opens in a new window

Employing Other People
Want to grow your business and take on staff? A gardening business sums up what you need to know about the tax side of it.Play video (Flash video) - Opens in a new window

Importing and Exporting
Buying or selling products outside the European Union? A flower importer explains about import duty and VAT.Play video (Flash video) - Opens in a new window

Business Allowances
An introduction to deductions, reliefs and allowances that can help reduce how much tax you pay.Play video (Flash video) - Opens in a new window

Construction Industry Scheme
Find out what work falls under this scheme and the special tax rules and regulations for contractors and subcontractors.Play video (Flash video) - Opens in a new window