Tax ruling hits small businesses - papers 28 April

clock

Thousands of small business owners comprising husband/wife teams face back taxes averaging £9,000 following a High Court ruling reports The Daily Telegraph.

Accountants estimate some 200,000 such firms face the tax claim after the court rejected an appeal by West Sussex IT firm Artic Systems, although the Inland Revenue estimate puts the figure at about 30,000 businesses. ”Mr Justice Park said family firms could not reduce their joint tax bill by paying a depressed salary to the main breadwinner and then distributing profits in dividends equally between the spouses,” the paper writes. ”Mrs Jones, the company secretary who worked four hours a week, acquired her £1 share. But the judge said that even if Mr Jones, the company's chief fee ear...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •