Q. My company has been trading since 1 March 2013, but my first sales invoices haven't been paid yet, so there is no cash available to reimburse me for the expenses I've incurred personally. Do I have to complete a P11D for 2012/13?A. The annual form P11D reports expenses reimbursed to, and benefits in kind made available to the employees and...

Q. I have put my hairdressing salon up for sale as I can't face the hassle and cost of RTI. I am self-employed and not VAT registered, but the proceeds from the business sale will take me over the VAT threshold. Do I have to register for VAT and charge VAT on the sale of the business?A. If you sell the business assets and goodwill together, so ...

Q. The Taxman has sent me a new PAYE code for 2013/14, which includes about £1000 of savings income taxed at 40%. I don't know how he got that figure as I don't have any savings, and I only draw dividends from my company up to the limit of the 20% tax band.A. The Taxman has looked at the income reported on your tax return for 2011/12, of...

Q. My company designs websites. If my customer is a business in the Republic of Ireland can I apply zero rate VAT to the sales invoice? Do I need their VAT number before I can do this? Is the situation different if my customer is a private individual?A. Website design is a service, so the VAT treatment depends on whether your customer is a bus...

Q. If I purchase a Land Rover Defender for use in my partnership business can I reclaim the VAT paid on the purchase? I will use the Land Rover 75% for business and 25% for private journeys.A. You first need to check that the specific model of Land Rover Defender is regarded as a commercial vehicle for VAT purposes by HMRC. You can do this by ...

Q. I registered as self-employed in 2005, but as I didn't have any income I ignored the tax returns the tax office sent me. When they demanded £1000 tax for each year I got my act together and sent in the completed tax returns which showed no tax due. Now the Taxman won't cancel the tax demands issued for the years before 2008/09. What c...

Q. My business needs to move to smaller cheaper premises, but my current landlord wants me to pay a fee to surrender the property lease earlier than the next break point. Can I claim that lease-surrender payment as a business expense?A. Unfortunately you can't get a tax deduction for this payment to your landlord, as a fee to release you from...

Q. I am employed by a charity that provides me with a Skoda Yeti car as my work involves transporting disabled people. I pay for all the petrol, but the charity reimburses me for work-related journeys at 15p per mile. This rate has not changed since June 2011, although the price of petrol has increased. Can I claim back any more of my petrol c...

Q. I run my own company from an office in a spare bedroom at home, and my wife runs a separate company from a downstairs office in the same house. Can we both claim £3 per week expenses for use of home from our companies? Would the situation be different if we both worked full time for the same company? A. Yes, you can both claim the us...

Q. Our company is owned jointly by myself and my wife, and we are both directors of the company. I do most of the work and draw a lot of funds out of the business, so my director's account with the company is often overdrawn. My wife has another paid position, so doesn't draw so much from the company. Her director's account with the company i...

Q. I'm worried about the Granny tax. Is this going to affect me? I'm aged 64 with an annual income of around £16,000.A. The so-called Granny tax is actually a change in entitlement to allowances from 6 April 2013. You are currently entitled to a personal allowance (tax free amount) to set against your income, of £8,105. From 6 April...

Q. I'm an IT contractor currently working for a government department through my own company, for £300 per day. I've heard that all contractors will have to go on the department payroll. I don't want to be a wage-slave, so what should I do?A. The government has announced that all senior appointments in government departments, such as exe...

Q. I'm thinking of starting a new company. Will it qualify for the NIC exemption?A. It depends where your business is based. Businesses in the east and south east of England, or London don't qualify for the so-called NIC holiday. The south-east region stretches all the way up to Northamptonshire border, so you need to be quite clear where your ...

Q. I am about to move abroad, for what I hope will be a permanent relocation. Can I continue to contribute to my tax-free ISAs in the UK?A. To open an ISA you must be resident and ordinarily resident in the UK for tax purposes. This broadly means that you normally live in the UK. There are exceptions for members of the military and government ...

Q. I've received a £100 fine for not submitting my tax return, but I don't remember receiving a form to complete. All my income is taxed under PAYE, so surely I don't need to complete a tax form, do I?A. You should first ring the Self Assessment helpline on 0845 900 0444. Have to hand your NI number and your unique taxpayer reference numb...

Q. What records do I need to keep to claim travelling expenses? Do I also need to keep receipts for petrol?A. You should record the date, destination and distance of each business journey you drive in your own car. It is good practice to record the total on your car's milometer at the start and end of each journey. Your employer can pay you up t...

Q. I want to close down my consultancy company and pay the funds it holds to me as the only shareholder. Should I wait until the new tax year or start the process now?A. If permission is granted from the Taxman in advance (called a C16 clearance), the funds the company distributes to the shareholders during the winding-up process will be trea...

Q. I own a number of rental properties; a mixture of self-contained flats and houses. I've received an email from a property expert that says I can claim capital allowances as a percentage of the cost of these properties, which will produce a guaranteed tax refund for me. Is that true? A. No, this is not true. Capital allowances cannot be cla...

Q. I left London on 5 May 2010 to work full time for a Danish company in Copenhagen. My own UK-based company ceased at that time, and I received a capital payment on 30 November 2010. As I received that money after I left the UK permanently, do I have to pay UK tax on the pay-out?A. Unfortunately yes. Although you may be regarded as not residen...

Q. My cafe was badly damaged in the recent riots, but my loyal customers have collected £3,000 to help me open the business as quickly as possible. How should I treat this sum for tax purposes? Is it a personal gift, or a contribution to be set against my repair costs? A. This gift from your customers should be treated as income for your busi...

Q. I received my self-assessment statement and payslip on 17 August 2011, which shows tax due to be paid by 31 July 2011. I paid the tax due as soon as I could, but I am now worried that I will get charged interest and a penalty for late payment.A. The late issuing of these statements was due to a lack of paper at HMRC's printers! As the delay was ...

Q. I've heard I could reduce inheritance tax by leaving money to charities in my Will. How does this work? Do I have to leave a minimum amount?A. Any bequests to charities in your Will are free of inheritance tax (IHT). This means the executors of your estate will only pay IHT at 40% on the value of your estate after deducting the following: -...

Q. I've always prepared the accounts for my own company and submitted them to Companies House and the Tax Office with no problems. However, this year the Taxman sent back my company's accounts and tax return saying they were in the wrong format. I'm confused. What have I done wrong?A. Company accounts for periods ending after 31 March 2010 that are...

Q. In 2009 my family and I moved out of the home I owned and rented a house near my daughter's school. I have recently sold the original home. Do I qualify for the capital gains tax exemption on that property, even though I wasn't living in it when it was sold?A. Yes you do qualify for the tax exemption. As you sold your former home within three ye...