The document outlines ten essential tax tips presented in autumn seminars of 2010, covering topics such as VAT flat rate schemes, business mileage claims, and tax relief on property. It emphasizes the importance of professional advice and compliance with current regulations, while detailing various expense claims eligible for tax benefits. Key highlights include personal allowances for children, Principal Private Residence relief, and the advantages of ISAs for tax-free investments.

1. Top Ten Tax Tips Autumn Seminars 2010

2. Tax is taxing – take careDisclaimer: The contents of this presentation and handouts provide only an overview of the regulations in place at the time, and no action should be taken without consulting with the detailed legislation or taking professional advice.2www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060

3. 3www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060Tax Evasion

4. 4www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060Tax Avoidance

5. 5www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060#1: VAT – Flat Rate Scheme

6. 6www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060VAT taxable turnover less than £150,000 to joinOnce in can stay in until it reaches £225,000Charge VAT to customers at normal VAT ratesPay HMRC a flat % of revenue, different by trade e.g.;Range 4% to 14.5%Catering & restaurants 12.5% Management consultancy 14% Includes CAPEX – unless single items > £2k eachNo need to do VAT accounting on purchases and salesGood where purchase costs are low and predictable1% reduction in first year of VAT registrationSee www.hmrc.gov.uk/vat #1: VAT – Flat Rate Scheme

7. 7www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060#2: Business mileage

8. 8www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 06040p / mile for first 10,000 miles25p / mile thereafterMust be valid business milesCan’t include to and from workIf employer pays lower, the employee can claim the difference in their tax returnKeep mileage records and diary / receipts#2: Business mileage

9. 9www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060A business expense is any expenditure that is claimable through the business as long as it is a “wholly, exclusively and necessary” expense that was incurred by the business for its performance of day to day duties and there is no duality of purpose for mixed business and personal usage.#3: Expenses

10. 10www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060Use of home for business – apportionmentProfessional fees – on approved HMRC listPension & life insurance – take adviceHealth check & Eye test (VDU usage)Charitable donationsMobile phonehttp://www.hmrc.gov.uk/paye/exb/a-z/a/index.htm#3: Business expenses – a long list

11. 11www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060#4: The ball & chain£6,475 eachTransfers tax freeDon’t forget IHT

12. 12www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060#5: The chimney sweep£6,475 personal allowance13 Year olds +<16 no National Minimum Wage7am to 7pm only2hrs SundayBut can’t send down the mine or put in the factory anymore!Check the rules

13. #5: Employing childrenIf you are under compulsory school leaving age you can only be employed in certain permitted occupations:delivering newspapers, milk, groceries, foodstuffs, flowers or drapery goodsoffice work, except in premises licensed for the sale of intoxicating liquor, betting or gaminghotel and catering work except in the kitchen or portions of premises licensed for the sale of intoxicating liquorwork as a shop assistant, excluding any premises licensed for the sale of intoxicating liquor, betting or gamingdomestic worklight agricultural work or horticultural work for your parents.www.piperhulse.com Piper Hulse – Accountancy & Business Advisory Tel: 01785 850 06013

14. 14www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060Principal Private Residence relief (PPR) on the family home, whether the sole property or elected to be the main residence.#6: MP’s Flipper – Principal Private Residence

15. 15www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060Certain periods are deemed to be occupation;Any non occupation in first yr due to building or renovationThe last 3 yrs of ownership provided that at sometime the house has been the PPRUp to 4 years where the absence is due to employment elsewhere in the UKAny period where the absence is due to employment outside the UKIf let the gain is apportioned between PPR and letting, with the latter qualifying for £40k letting relief#6: PPR conditions

16. 16www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 06020% Off for cash

17. 17www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060#7 & #8: Incorporation & DividendsExample scenario, savings vary according to circumstances.* The NI rates quoted are the starting rates, they reduce as incomes increase

18. 18www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 06010% rate of Capital Gains Tax for qualifying salesMain rate = 18% or 28% (in take above income tax threshold)£5m lifetime limitApplies to Sole Trader, Partnerships & Ltd CompaniesMust own the business for the 12 months prior to the saleAvailable for associated disposalsE.g. Sell Limited company & privately owned business property together in the same transaction#9: Entrepreneurs Relief

19. 19www.piperhulse.com Piper Hulse - Accountancy & Business Advisory Tel: 01785 850 060#10: ISAsISA - £10,200 – Annual Limit per person£5,100 maximum for cash ISAInvested from post tax earningsTax free one inside ISA (Income & CGT)Can transfer between fund managers and retain ISA statusCan take money out when you likeCan invest in a wide variety of investments