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As the tax year draws to a close, it is prudent to review one’s 2023/24 tax allowances and consider whether there is scope for utilising any unused allowances so they are not lost. 

Sarah Bradford explores options for using 2023/24 tax allowances.

Consider the following scenario:

'On a wintry sunny morning, Alan was reviewing his company’s January 2024 management accounts. Alan was the sole director and 100% shareholder of Llandudno Hotels Ltd, which operated two large hotels in Llandudno. The business was on course to healthy pre-tax profit of around £650,000 for the year ended 31 March 2024. Alan had been planning to pay himself a substantial ‘bonus’ before the year-end'. 

What does Alan do?

Peter Rayney examines an owner-manager’s cash extraction following the numerous tax and National Insurance contributions changes.

Lee Sharpe looks at taxpayers’ record-keeping obligations in light of HMRC’s inexorable march to digital everything (almost).

Historically, HMRC has been quite relaxed about whether original records must be maintained or digital facsimiles (scans, etc.). 

HM Revenue and Customs (HMRC) recently commenced a ‘One to Many’ campaign, targeting taxpayers who incorporated property businesses in the tax year 2017/18 but reported no capital gains tax (CGT) liability in their tax returns on the basis that ‘incorporation relief’ applied in full. 

Mark McLaughlin highlights a potential trap for business owners seeking capital gains tax incorporation relief.

There is no ‘one size fits all’ as far as National Insurance contributions (NICs) are concerned. Different types of contributors pay different classes of NICs. Some classes secure entitlement to the state pension and contributory benefits; others are more akin to a tax. Some classes are earnings-related, whereas other classes of contribution are payable at a flat rate.  

Sarah Bradford outlines National Insurance contributions changes affecting the self-employed from April 2024. 

Many company owners wish to incentivise and retain key employees by offering share option schemes through the company, or simply by arranging for the company to issue shares to those employees.  

Mark McLaughlin outlines an arrangement allowing a company’s employees to benefit from the growth and success of the business without owning part of it. 

The cash basis for unincorporated trading entities was originally introduced by FA 2013 to apply from 2013/14 (FA 2013, Sch 4).  

Lee Sharpe considers how the cash basis has developed and why HMRC is so keen on the cash basis for landlords, the self-employed and partnerships.  

Making pension contributions is a tax-efficient way of saving for retirement. The planning and timing of pension contributions can also contribute to a tax-efficient remuneration strategy for owner-managed businesses.  

Joe Brough outlines the tax relief available when making pension contributions.