Financial advice
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Financial advice from John Kerr, 0151 228 8977
Financial Advice from John Kerr
To tax or not to tax?
Q. I am the director of a newly established Limited Company. This has been set up to hold the freehold of the building I live in which has been divided into 7 flats. All the company does is own the freehold, collect service charges from the flat owners and pay expenses. I understand that the company will need to file accounts at Companies House every year but I keep receiving letters from the tax office about Corporation Tax – will we need to pay this?
A welcome change of heart for the self employed!
Q. I am self employed consultant and I carry out work for my business at home (I do not have office premises). Can I claim part of my property running costs to save tax?
The new Annual Investment Allowance - good news for the self-employed!
Q. I am a self employed plumber, earning about £30,000 a year of profit. My wife helps me in the business for a small salary, and we have 2 children. I am thinking about buying a new van, which will cost £20,000. Can you tell me how I get tax relief for this now – didn’t the rules change in the last budget?
A Family Arrangement
Q. I own, together with my two sisters, a property which we inherited when our parents died. We are joint tenants, with all three names on the deeds. We have split the house into flats and rent them out. We divide the profits equally but because it is me that does all the paperwork, I put all the income and expenses on my Tax Return – is this OK?
Taxman has been given new powers to track down buy-to-let landlords
Q. I have received a letter from the tax office asking me to give them details of a buy to let property which I own. I have never bothered to fill in a tax return, because I don’t make a profit. How did they find out?
VAT problems for developers in the credit crunch
Q. I own a small property company and have recently finished building a couple of new houses for sale. I’m finding it hard to sell the houses on, so I’m considering renting them out for a short time. I am registered for VAT and I reclaimed the VAT on the materials etc used in building the houses. I’ve read somewhere that renting the houses out could cause VAT problems have you anything to suggest?
Making ends meet!
Q. I have my own house, and I am considering getting a couple of lodgers to help with my finances. Do I have to pay tax on the rent I receive?
A business at the end of its life
Q. I am a builder with a small limited company. I am coming up to retirement age and have decided to cease trading. How do I go about closing the company? Will I need to appoint a liquidator?
