Monthly Archives: July 2016

Free Money – or is it?

Bursary, Scholarship & Prize Money for Musicians & Performers

 

 

This is a topic that I have been asked about this year on my tour round music & drama colleges, so I thought it would seem appropriate to jot down a few lines.

At some stage in your musical or performing career, you may be lucky enough to be awarded a bursary, scholarship or win performing prize money. But are you sure you understand the tax implications of these?

Bursaries and scholarships are usually tax-exempt provided the person is in full-time education at a recognised university, technical college or similar education establishments that are open to the public at large and offer a range of courses – both practical & academic. This is part of S331 of the Income & Corporation Tax Act 1988.

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What VAT Schemes Are Available?

Oh – such a fun topic this is – I am sure you will be riveted to your computer screen.

 

Flat Rate

Using the standard rate scheme, you need to record the vat on every purchase and every sale that is made in the business. However, a flat rate scheme allows you to just account for the VAT on the taxable supplies you make and not make a return for the VAT you have incurred. A lower amount is remitted to HMRC which takes into account VAT you may have suffered.

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Rental Property Allowances – The U-Turn

Back in April 2013, the government withdrew the allowance for renewals of furnishings in rental properties, so only the 10% wear & tear allowance was available for furnished property rentals.

The summer budget of 2015, the government announced that from April 2016, the 10% wear & tear allowance was being scrapped and replaced with a new “replacement allowance”.  As an overview, the new allowance enables all landlords of residential lettings to deduct the costs incurred on replacing furnishings in that property. It applies to landlords of unfurnished, fully furnished and part furnished property but not to furnished holiday lets or commercial property.

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