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Boost for UK taxpayers and professionals

An exciting new partnership between leading tax information website TaxationWeb (www.taxationweb.co.uk) and major tax publishers LexisNexis was announced earlier today.

TaxationWeb currently attracts up to 20,000 visitors a month, comprising UK taxpayers, accountants and tax advisers. The website offers free tax newsletters and features a tax forum, giving taxpayers an opportunity to discuss their tax problems with professionals. The addition of LexisNexis on TaxationWeb as major sponsors will raise awareness of numerous publications and conferences for those wishing to expand their tax knowledge.

TaxationWeb Director Mark McLaughlin believes that the partnership could help taxpayers. "LexisNexis is renowned and respected in the professional world for its publications, but very few taxpayers seem to be aware of its highly accessible publications. TaxationWeb's visitors include taxpayers wishing to understand and take control of their tax affairs. They will greatly benefit from the tax books that LexisNexis produces. TaxationWeb will bring taxpayers and LexisNexis together in a unique way."

Martin Casimir, UK Channel Director for LexisNexis, says: "TaxationWeb is a fast-growing online community, providing its customers with access to a wide range of tax information. This online data is backed up by more detailed commentaries and guidance on tax matters contained in LexisNexis books and training courses, which can be ordered from the site at special prices. Our partnership with TaxationWeb ensures that its customers receive up-to-date and comprehensive information."

In a unique special offer to mark the launch of LexisNexis on TaxationWeb, LexisNexis is offering tax professionals the 'Busy Practitioner' package at a 10% discount off the normal price and receive 4 free copies with a subscription Taxation magazine.

The first £10,000 a company makes is TAX FREE!

The main factor driving incorporations over the last twelve months has nothing to do with limited liability etc. Instead the growth in company formations has been sparked by the introduction of the £10,000 starting band for corporation tax when tax is charged at 0%.

However, Ian McTernan, Chartered Tax Adviser and one of the Property Tax experts on www.taxationweb.co.uk, warns: "Admittedly, at first glance this rate of tax looks very attractive compared to personal tax rates. However, basing a decision solely on this would be very short sighted as there are a number of other factors involved which should be considered when deciding whether to use a company. For example, the corporation tax savings may well be outweighed over the longer term by problems extracting gains from the company."

In his e-book 'How to use companies to cut your property tax bills' Ian notes that any decision must be carefully weighed up after examining your own circumstances, goals and aspirations. If, for example, you want to gift a property to your son, then this will incur a capital gains tax liability if held outside the company. However, if you have the property inside a limited company, your son can subscribe for some shares. If this is done then the ownership can pass to your son tax-free, as the value of the transfer can be held over for capital gains tax purposes.

As a higher rate taxpayer, you pay 40% on your profit and gains. For a limited company, the tax rates are between 0% and 30%, a considerable saving! Also, a limited company can pay out profits in the form of dividends, which attract under present legislation no National Insurance Contributions. You can use this to determine the income you receive in a particular year. So, some years you may take money and some years you may not. You only pay tax on the amounts you take. As an individual you are taxed on all your income whether you want it or not!

And finally, imagine you buy a buy to let property, and your tenant has an accident, falling down the stairs of the property as one of the steps was not properly maintained. He successfully sues you and not only do you lose the property to pay for the settlement, but you have to sell your own residence as well! This can be avoided by owning the property in the limited company, where the company has LIMITED LIABILITY!

If you have any questions on property tax, visit www.taxationweb.co.uk, where you will find a host of articles, news updates, and you can participate in the free property tax forum, where taxpayers and tax professionals exchange questions and answers. For Ian's e-book, visit www.taxationweb.co.uk/propertytax/ebook.