Clients Q & A
What are the tax rules on billing an electric car?
If an employer allows cars to be charged from a vehicle charging point at the workplace, this is tax-free. If the car is a company car made available for exclusive usage, then even if the employer spends for a vehicle billing indicate be installed at the employee’s home, or the employer spends for a charge card to permit accessibility to public charging factors, this is tax- cost-free. See HMRC’s Employment Income Manual at EIM23900.
What are the tax regulations around property pre-trading expense?
The corporation tax regulation (at CTA 2009, s 61) allows a company to claim pre-trading expenditure. However that is just when the company really exists. If the company does not exist.
when the expense is sustained, it is hard to see how the company can claim this expenditure. Additionally, it is unclear from your inquiry whether the company really possesses the property. However, pre-trading expenditure is generally permitted a property investment business; see HMRC’s Property Income Manual at PIM2505.
What is the setting on countering employment expenses against CGT for supplies and shares marketing?
If you check out HMRC’s Business Income Manual at BIM56860, you can see HMRC states, based on videotaped court cases, that an activity of purchasing and marketing shares and various other monetary instruments carried out by an individual will normally amount to investment or speculation falling short of trading. So, it is not a trading task yet rather a CGT task. Permitted expenses can be seen on HMRC’s Capital Gains Manual at CG15160, where the pertinent expenses are:
(a) obtaining the possession; and
(b) incidental costs of procurement and disposal. Regarding this last classification, see CG15250 where it specifies that the expenditure should have been incurred wholly and exclusively for the objectives of the procurement or disposal.
Resources
Resources & Articles For Managing Your Finances On Your Own
The Pitfalls of VAT Deregistration for Local Business
Let's consider some possible traps a business can fall under when deregistering from VAT that can lead to an unexpected bill from HMRC. Businesses have been undergoing tough times lately, and some smaller-sized businesses selling to the public, particularly solutions,...
Self-Employed? Is Incorporation Worthwhile?
It can still be beneficial to incorporate and draw out funds by taking a small salary and removing more revenues in the form of dividends (see Tips 25, 26 and 27). However, increases in the rates of corporation tax, employer's National Insurance and dividend tax a cut...
Uncollectable Bills and Tax: What Happens When Invoices Go Unpaid?
The tax implications for a business if billings are not paid. Uncollectable bills position a considerable challenge for every business. Dive Funding's 2025 UK business debt report (April 2025) exposed that the average financial obligation per company stands at ₤...
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