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Exclusive Markel tax

Markel Tax FAQs

List of frequently asked questions published by Markel Tax.
Displaying 1-50 of 68 results
Exclusive Effect on NI of October 2024 budget for lone-director company
  • 04 Nov 2024
FAQ on how the director of a single-director company, who pays himself a small salary, in order to receive a qualifying NI year towards state pension, is impacted by the October 2024 budget.
Exclusive VAT on payments generated by business gained by an associated company following a referral
  • 04 Nov 2024
FAQ on the VAT liability on payments to a vehicle sales company, received from an insurance company, when clients referred by the vehicle seller take out a policy.
Exclusive Base cost of UK property sale by overseas owner
  • 04 Oct 2024
FAQ on the base cost of the sale of a UK property bought in 2010, by a client who has been living overseas since 2014.
Exclusive VAT on sale to and rent back of property to a holding company
  • 04 Oct 2024
FAQ on whether a client firm, who will be renting its premises back from a newly formed holding company that it has recently sold the property to, will need to charge VAT on the sale of that property.
Exclusive Tax relief on shares in a dormant company
  • 03 Sep 2024
FAQ on whether a dormant company needs to issue new shares, and whether tax relief would be available on those shares, as an individual looking to invest a large sum of money for 25% equity stake.
Exclusive Claiming VAT on private school fees through a business
  • 03 Sep 2024
FAQ on whether a VAT-registered business client can claim back VAT on his children's school fees, through his company, with the forthcoming changes to the VAT treatment of private school fees from 1 January 2025.
Exclusive Salary sacrifice for company car
  • 01 Aug 2024
FAQ on whether a client, who has made an agreement with his employer to contribute towards the cost of an electric company car via salary sacrifice, can include the salary sacrifice on P11D as a payment for private use.
Exclusive VAT and single/mixed supply of goods and services
  • 01 Aug 2024
FAQ on how a vehicle hire firm should treat VAT liability on the lease of a car (which attracts standard rate), where an additional service of child seat hire incurs a lower VAT rate.
Exclusive Treatment of interest for tax return where the lender has died
  • 15 Jul 2024
FAQ on whether interest on a loan made by a director to his company, needs to be split to go on the deceased return and the rest to go on estate tax return, as the director has died during the loan term.
Exclusive VAT status of pickup vehicle
  • 15 Jul 2024
FAQ on whether a client can claim 90% VAT on a pickup truck used as a commercial vehicle to transport staff and materials, even when there is some incidental private use of the truck, for non-commercial purposes.
Exclusive Taxation of pay in lieu of notice
  • 05 Jun 2024
FAQ on whether three-months’ pay in lieu of notice, for an employee whose role a company is planning to terminate, will be free of Income Tax PAYE and national insurance contributions, if the employee involved is simply dismissed or put on “gardening leave”.
Exclusive Option to tax on land for development
  • 05 Jun 2024
FAQ on whether a building company can display the vendor's option to tax on land they are purchasing, on which they intent to build residential dwellings.
Exclusive VAT liability for supply of locum services
  • 09 Apr 2024
FAQ on what is the VAT liability of an opthalmologist's own Ltd company, when her services as a locum are supplied to another UK high street chain of opticians on a contractual basis.
Exclusive Treatment of benefits in kind granted to a business owner's dependant
  • 09 Apr 2024
FAQ on the treatment of benefits in kind, where a business owner makes a company car, and company fuel card, available for the private use of his wife.
Exclusive UK VAT treatment for goods sourced from overseas
  • 04 Mar 2024
FAQ about a company selling goods within the UK, who has won a contract to sell goods to another UK company, and whether goods sent from an overseas source, direct to the company's customer in another overseas country, count as exports for UK VAT purposes.
Exclusive Qualifying period for Business Asset Disposal Relief
  • 04 Mar 2024
FAQ on whether a client who incorporated his sole trade into a limited company, of which he was the sole shareholder and director, would qualify for Business Asset Disposal Relief on the sale of shares, as he has not owned the shares for 2 years.
Exclusive VAT on cost of a company celebration event
  • 07 Feb 2024
FAQ on whether a VAT-registered company can reclaim the VAT incurred on the cost of throwing a party for select customers and suppliers to mark the company's 25th anniversary.
Exclusive How end of class 2 NIC rate will affect self-employed people paying voluntary contributions
  • 07 Feb 2024
FAQ on whether a self-employed client who has paid voluntary class 2 NIC, to get access to contributory benefits and state pension credit, must pay the higher Class 3 NIC voluntary rates when class 2 is abolished in April 24.
Exclusive Correcting an overclaim of VAT
  • 04 Jan 2024
FAQ on how a business owner can correct an overclaim of VAT on the purchase of vehicles used for both private and business purposes.
Exclusive NIC rate reduction
  • 04 Jan 2024
FAQ on the January 2024 reduction in the rate of National Insurance Contributions (NIC).
Exclusive VAT reclaim and football kit sponsorship
  • 05 Dec 2023
FAQ on whether a client can reclaim the VAT incurred on the purchase of football kit for a local team, in exchange for shirt sponsorship publicity for the client's trading name and logo.
Exclusive SDLT and sole ownership
  • 05 Dec 2023
FAQ on whether a married couple, who live jointly in a house owned solely in the wife's name, can avoid paying the higher rates of stamp duty land tax, if they buy their new property solely in the husbands name, whilst keeping the original property to rent out.
Exclusive VAT registration of provider of furnished holiday lets
  • 02 Nov 2023
FAQ on whether agent and cleaner services supplied to two holiday cottages, can be considered to be a sole trader making taxable supplies, and need a backdated VAT registration applied.
Exclusive Spouse transfer and private residence relief
  • 02 Nov 2023
FAQ onthe new rules regarding disposals made between married or divorced couples who are no longer living together on or after 6 April 2023.
Exclusive Tax treatment of computer software and website costs
  • 09 Oct 2023
FAQ on whether there are any tax reliefs that can be claimed by a client company, which incurred significant costs on the building of a website and online shopping portal.
Exclusive VAT on import and sale of collectors item vehicle
  • 09 Oct 2023
FAQ on what rate of VAT should be charged when selling on a classic car to a UK buyer. When the car was bought as an import, the dealer was charged reduced-rate VAT at 5 per cent.
Exclusive SDLT and non-UK company shareholders
  • 01 Sep 2023
FAQ about whether the additional 2% rate of stamp duty land tax for non-residents will apply to a limited, UK-registered property letting company, whose shareholders moved out of the UK in the previous tax year and are now non-residents for tax purposes.
Exclusive Cash accounting scheme
  • 01 Sep 2023
FAQ about how to calculate turnover when a company is looking to leave the the cash accounting scheme.
Exclusive VAT registration threshold
  • 07 Aug 2023
FAQ about a client with a house clearance business, whose regular trading income is normally below the VAT registration threshold, who wonders whether he can claim VAT exemption if a one-off sale of a find takes his income over the threshold.
Exclusive Capital allowances and disposal of assets
  • 07 Aug 2023
FAQ about the effect on capital allowances, when a business sold some plant and machinery at a higher price than originally paid.
Exclusive Pensions saving limits 2023 increase
  • 06 Jul 2023
FAQ about a client wishing to benefit from increased pension savings limits announced in the 2023 Spring Budget.
Exclusive VAT treatment of competition entry fees
  • 06 Jul 2023
FAQ about the VAT liability of the entry fees charged by a company which runs competitions where participants pay to enter and have to answer some questions to get entered in to a draw.
Exclusive VAT treatment of vouchers
  • 05 Jun 2023
FAQ on a small bookshop/café business whose owner wants to encourage custom by selling vouchers which can then be redeemed in the shop and café. The owner wants to know how to treat VAT on the sale and redemption of these vouchers.
Exclusive Retrospectively claiming unused nil rate band of inheritance tax
  • 05 Jun 2023
FAQ on a whether the spouse of a client who died 10 years ago can claim the unused nil rate band (NRB) on his death, having been sole benefactor.
Exclusive Cash Accounting Scheme
  • 05 May 2023
FAQ on whether a decorator client, using the Cash Accounting Scheme, will have to account for VAT on payment for a job that was invoiced for, and completed, before the client registered for VAT.
Exclusive Tax relief and gifting of commercial property
  • 05 May 2023
FAQ on what tax relief might be available on business properties to be gifted to a garage owner's son. The properties have been rented out to third properties to generate an income.
Exclusive Construction DRC and the flat rate scheme
  • 12 Apr 2023
FAQ on how to report supplies made and received which fall under the construction domestic reverse charge (DRC) and whether and whether flat Rate VAT should be paid.
Exclusive Deferring CGT payments
  • 12 Apr 2023
FAQ on whether it is possible to defer payment of the Capital Gains Tax (CGT) liability arising from an asset sold, which the buyer is paying for in instalments.
Exclusive Pension payments in a property company
  • 10 Mar 2023
FAQ on whether a property investment company can receive tax relief on their employer contributions to a registered pension scheme on the same basis as all their other business expenditure.
Exclusive Recharges
  • 10 Mar 2023
FAQ on whether VAT can be charged on travel expenses reclaimed by a management consultant from is customer, who has agreed to reimburse these costs.
Exclusive Written-off directors’ loans and NIC
  • 06 Feb 2023
FAQ about whether a client becomes liable to Class 1 National Insurance Contributions (NIC) on the write-off of a loan or advance to a participator.
Exclusive Flat Rate Scheme and Outside the Scope services
  • 06 Feb 2023
FAQ about a client who is on the Flat Rate Scheme (FRS), who supplies services to the UK and other countries, considering how they should Outside the Scope (OTS) supplies when calculating VAT using their FRS percentage.
Exclusive New penalty system for late VAT returns
  • 18 Jan 2023
FAQ on a client who is behind with both submitting and paying his VAT returns and not able to pay VAT due for the 12/22 VAT period, thus incurring a default surcharge. It looks at what will happen if he does not submit and/or pay his VAT return for 03/23 on time.
Exclusive Salary sacrifice - cycle to work scheme
  • 18 Jan 2023
FAQ questioning whether a salary sacrifice arrangement needs to be set up for a director who is provided with a company bicycle under a cycle to work scheme.
Exclusive Loans to traders
  • 06 Dec 2022
FAQ on whether tax relief be claimed on a loan which a client made to his company, but which cannot now be reclaimed.
Exclusive Place of supply of repair services
  • 06 Dec 2022
FAQ on whether VAT is chargeable on a vehicle repair carried out by a UK-based UK VAT registered car garage. The vehicle is insured by a Netherlands-based insurer, but is used for transporting goods from its UK supplier to customers all over the UK.
Exclusive TOGC relevant date
  • 01 Nov 2022
FAQ on whether a client buying a commercial property rental business by way of an outside-the-scope of VAT Tranfer of Business as a Going Concern (TOGC) needs to notify HMRC of his Option to Tax (OTT) on the property.
Exclusive Trading allowance
  • 01 Nov 2022
FAQ on how to account for trading income in a tax return.
Exclusive Construction Industry Scheme
  • 04 Oct 2022
FAQ on whether CIS deductions be applicable on boiler installation work, carried out by a sub-contractor for a plumbing company.
Exclusive Claiming VAT back as input tax
  • 04 Oct 2022
FAQ on whether a client's company can claim the VAT back as input tax on a motorhome, which will be used instead of hotels when the client is on business trips (although there will also be a small percentage of leisure use).
Displaying 1-50 of 68 results

Note these FAQs were correct at the time of going to press and should be considered as principles based guidance. To check current validity, call the Markel Tax helpline.