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  • S455 tax

    Is Company A, a UK-incorporated entity fully owned by non-UK Company B, obligated to pay S455 tax on an outstanding loan provided to an individual who, although not a director or shareholder of Company A, holds shares in Company B? The loan remains unpaid beyond 9 months from the end of the financial year, and it's important to note that lending money is not the primary focus of Company A's operations.
  • VAT Registration Query for Two Companies with Different Activities

    I'm seeking some guidance regarding the VAT registration for two limited companies with distinct activities. Company A, established a while ago, is involved in construction works for private clients and is VAT registered. Company B, founded two years ago by the same shareholder/director, focuses on manufacturing shelves and sells them online. Company B is currently not VAT registered. Both companies maintain separate business bank accounts. It's worth noting that the customer bases for these companies are entirely different. Additionally, both companies are registered under the same address. My primary question is: considering the different business activities, the separate customer bases do you think it is necessary to register Company B for VAT, or can it be treated as a separate entity with a different activity? I am also curious about how HMRC might view this arrangement. Could this be considered as VAT disaggregation, given the shared address, even though the companies have distinct activities and customer bases?
  • Lorry driver expenses

    If a company pays a lorry driver, who is an employee, an industry scale rate payment of £26.20 for overnight stays, can they also provide tax-free benchmark scale rate payments for other days based on journey time, ranging from £5 for 5 hours to £25 for 15 hours (and ongoing at 8 pm)? Additionally, is it permissible for the company to pay benchmark scale rate payments in addition to the industry scale rate payment?
  • Reverse charge-freight services

    Does the UK company need to apply reverse charge for VAT when receiving an invoice from the EU shipping company for shipping services with 0% VAT on imported goods into the UK?
  • Sole trader's motor expenses - VAT

    Hi. I have a question regarding a sole trader's motor expenses. The sole trader uses a van for business trips and claims 80% of fuel receipts on their tax return. They recently registered for VAT and want to claim VAT on their van service, maintenance costs, and fuel receipts. What is the best way to do that? Can this example be used for a sole trader as well? For example, records show that the total mileage is 4,290, of which 3,165 is business mileage. The total cost of the fuel was £368. The cost of the business mileage is £368 x 3,165 / 4,290 = £271.49 The input tax is £271.49 x (VAT fraction) = £54.30 (assuming a VAT rate of 20%) The cost of the private mileage is £368 x 1,125 / 4,290 = £96.51. Or any other method? Thank you