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Tax Motivated Incorporation

TAX MOTIVATED INCORPORATION There is an inequality in the tax system that affects businesses. The owner of a business operated through a limited company who draws all of his profits in the form of a low salary and dividends will pay less in tax overall than a person operating a similar business as a self […]

The Summer Budget

THE SUMMER BUDGET   George Osbourne presented his first budget under a majority conservative government on 8th July 2015. We focus in this blog on some of the key measures that we believe will be of interest to our clients. TAX RATES AND ALLOWANCES Most of these for the 2016/17 year were announced in the […]

The 2015 Budget report

THE 2015 BUDGET   George Osborne delivered his pre election budget on 18 March 2015.  Many of his proposals are not due to take effect until 2016/17 and depending on the result of the forthcoming general election there may be a second budget in 2015 which may result in changes to some of the proposals. […]

Contractor tax planning case studies

TAX PLANNING CASE STUDIES In this blog I will look at how contractors can receive some spectacular returns by using tax planning rather than tax avoidance. Three fictitious case studies follow: 1. ERIC Eric is 61 and widowed. He has just started receiving an occupational pension of £10,000 per annum. He has savings of £50,000, […]

Chess Moves

1. e4 e5  2. Nf3 Nc6  3. Bb5  a6  4. Ba4 Nf6   The opening moves of a game of chess form the title of this blog.   Anyone who plays chess regularly will immediately recognise these particular moves as the first 4 moves of the Ruy Lopez opening.   This opening will have been […]


Over many millions of years the rotation of the moon has been slowed down so that only one hemisphere is ever visible from the Earth the invisible hemisphere is known as the Dark Side. If you’re a contractor you may be approached by companies promoting tax planning solutions which will make you just as invisible […]

Just for the rich?

Tax avoidance schemes have been around for many years, but until about 20 years ago these were used by rich individuals and large companies to shelter very large sums (typically £1m +) from the taxman.  They were usually designed by the very large firms of accountants with the help of senior counsel and high fees […]

Auto Enrolment

The law on workplace pensions has changed.  All employers are legally required to automatically enrol certain staff into a pension scheme and make contributions.  This is “Auto Enrolment”.  But how many know what it means for them?   The Pensions Regulator has set staging dates for employers based largely on the number of employees each […]

Pension tax planning opportunities

TAX ANGLES ON PENSION CHANGES The Chancellor announced in the 2014 budget that the requirement to purchase an annuity to access pension funds was to be abolished from 6th April 2015.   This provides a number of tax planning opportunities for those over 50 who are still working, particular those over 55 with above average […]

The 2014 Budget

THE 2014 BUDGET George Osborne delivered his fifth budget on 19th March 2014. Many of his proposals will not take effect until 2015/16. 1. Personal Allowance and Tax Bands The increase in the personal allowance to £10,000 was announced in the 2013 Autumn Statement. A further increase to £10,500 will apply from 6th April 2015. […]


There will be few employers who don’t know what PAYE stands for. But what about RTI, FPS, EAS, EPS and EYU? These are terms that many employers are not familiar with, but over the next year or so these terms will come into common usage in what will be the biggest single change ever introduced […]

Directors loan accounts

NEW RULES ON DIRECTOR’S LOANS Section 455 Corporation Taxes Act 2010 imposes a 25% tax charge on any close company which makes a loan to a participator. Relief is available under Section 458 when the loan is repaid. A close company is one that is controlled by 5 or fewer persons and their associates. Most […]

Members Voluntary Liquidation

From 1 March 2012 the rules concerning closing a company have changed. Historically it was possible to close the company and take the balance of reserves as a capital gain however now a formal liquidation must be performed where reserves are in excess of £25,000. So if you are involved with a company where perhaps […]

Client Satisfaction Survey 2013

As part of our commitment to provide great client service, we have recently taken part in the AccountingWeb Client Satisfaction Survey 2013. Were delighted to announce that a resounding 93% of responses were advocates of Warr & Co and willing to recommend us. We’d like to thank you for completing the survey and watch this […]

Budget summary

George Osborne delivered his 2013 budget on 20th March 2013. Many of his proposals will not take effect until 2014/15.  Personal Allowance and Tax Bands The increase in the personal allowance to £9,440 was announced in the 2012 Autumn Statement. A further increase to £10,000 will apply from 6th April 2014. The additional rate reduces […]

Autumn statement 2012

THE AUTUMN STATEMENT   In the past the Chancellor would use the Autumn Statement to set spending plans and to announce changes to benefits.  In recent years, tax changes have increasingly featured and the 2012 Autumn Statement was no exception.   Set out below are the main tax changes introduced which take effect between now […]

Payroll RTI “Real Time Information”

Changes to Payroll from 6th April 2013 HMRC are making one of the biggest changes to payroll in history by overhauling the PAYE system. From 6th April 2013, whenever you make a salary payment, irrespective of the amount, HMRC must be informed via a RTI submission. The benefits that HMRC believe this will bring are: […]

Christmas party allowance

As Christmas approaches thoughts turns to office parties. So what view does the tax man take when an employer arranges a Christmas party for their staff? Well, subject to meeting certain conditions the employer will be entitled to claim the cost of the function as a tax deductible expense without any liability crystallising on his […]

Child benefit changes

CHANGES TO CHILD BENEFIT   From 7 January 2013 universal entitlement to child benefit will cease.  Couples receiving child benefit will see their entitlement reduced if one of them has taxable income in excess of £50,000 per annum.  If one of them has taxable income in excess of £60,000 per annum they will lose the […]

The benefits of joining the VAT flat rate scheme

If you are operating your own contractor company and your income is less than £150K, generally it’s a no brainier not to join the vat flat rate scheme. Briefly, you charge 20% VAT on your fees and expenses to your customer and for ignoring all vat on purchases the VAT flat rate scheme allows you […]

Can my partner be a shareholder in my freelance company?

A common question asked when setting up a freelance contracting company is how can I legitimately save tax? This all depends on your personal circumstances but if your spouse is not a higher rate tax payer, they may have unused allowances available each tax year. One tax planning suggestion is to pass shares in your […]

Companies House accounts late filing penalties

Companies House impose strict filing penalties for the late filing of accounts. Companies House may not remind you of a filing penalty until it is too late! The requirement for the submission of your accounts is usually nine months after your year end. Failure to submit the accounts can result in the following penalties: Penalty […]

Company closure and tax treatment of distributions

From 1 March 2012 the rules concerning closing a company have changed. Should you have reserves in excess of £25,000, it will not be possible to close the company and take the balance of reserves as a capital gain unless a formal liquidation is performed. The cost of a formal liquidation depends on how complex […]

HMRC have increased the allowance that contractors can claim for working at home.

From the tax year 2012-2013 and onwards the allowance had been increased from £3 to £4 each week. If claiming this allowance, no supporting evidence of household expenses such as gas or electricity costs need be provided. Higher amounts can still be claimed but these would need to be supported by evidence/records. For more information […]

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