Tax Breaks
Five powerful Tax Breaks every month. See how much they could save you

December 2008

  • Two homes
    If you own two residential properties, for example your family home and a holiday cottage, you have a right to elect which one of these will benefit from the CGT principal private residence exemption which is an important tax saving tool. But the election must be made within two years of having both residences. However, even if you have owned both properties for several years, and not made an election, there is still a chance of doing so.
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  • Who pays all the bills?

    Is it best to have a company car or is it more tax efficient to buy your own car and get the company to pay the running costs? The company car benefit-in-kind is calculated by reference to CO2 emissions, with high emissions cars having a higher percentage tax charge based on up to 35% of their list price. If you run your own car, you can charge the company a tax-free flat rate for each business mile you travel, even if you don't incur that much in running expenses. That could leave you smiling all the way to the bank!

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  • Advertising your hobby

    Advertising the products or services your business provides in a newspaper or journal should be a tax allowable expense. But what about promoting your business name through an involvement in motor or even horse racing, or on a lesser scale point-to-point or karting? If you include the running costs of your hobby (or those of a family member) in your accounts as "advertising sponsorship", what can you do to increase your chances of getting tax relief?

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  • Going for a medical

    There are very few perks that your company can provide on which the Taxman won't demand his pound of flesh in both tax and NI. Medical insurance is such a taxable benefit-in-kind. But are there some medical costs the company can pay that would escape the Taxman's clutches?

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  • Fitting expenditure

    Capital allowances may be claimed on equipment ranging from the office photocopier to a forklift truck. But they can also be claimed on some less obvious items. Assets that you may consider as just part of the building, such as electrical or cold water systems may actually qualify for capital allowances. Don't overlook important tax reliefs!

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Tax Breaks Directory

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