You may be able to reduce your tax bill by deducting capital allowances on equipment or assets that you've got to provide to do your job. You can only get an allowance for an item that you have to use in doing your job, but which your employer doesn't provide.

Tax relief

You deduct capital allowances from your taxable income - so you pay less tax. The allowances cover items that you have to provide so that you can do your work. They're to recognise that assets or equipment lose value as a r...

If your business is run as a partnership you'll have to complete an individual Self Assessment tax return (SA100). You'll also have to fill in the partnership supplementary pages (SA104). The nominated partner must also complete a Partnership Return (SA800) - showing each partner's share of the profits or losses. This might include supplementary pages too, depending on what types of income the partnership has.

The nominated partner is responsible for sending in the partnership return but you...

VAT

VAT is a tax that's charged on most goods and services that VAT-registered businesses provide in the UK. It's also charged on goods and some services that are imported from countries outside the European Union (EU), and brought into the UK from other EU countries.

VAT is charged when a VAT-registered business sells to either another business or to a non-business customer.

When VAT-registered businesses buy goods or services they can generally reclaim the VAT they've paid.

There are three rate...

What is Inheritance Tax?

Inheritance Tax is usually paid on an estate when somebody dies. It's also sometimes payable on trusts or gifts made during someone's lifetime. Most estates don't have to pay Inheritance Tax because they're valued at less than the threshold (£325,000 in 2012-13). The tax is payable at 40 per cent on the amount over this threshold or 36 per cent if the estate qualifies for a reduced rate as a result of a charitable donation.

Increased threshold for married couples a...

Discretionary income payments to beneficiaries

When trustees make a discretionary payment of income it carries a tax credit at the trust rate (currently 50 per cent). This means it is treated in the hands of the beneficiary as if Income Tax has been already paid at 50 per cent. The beneficiary might be able to claim some or all of the tax back if they're a non-taxpayer or a 20 or 40 per cent taxpayer.

Trustees of a discretionary trust - or an accumulation trust where they also have the power to...

What is a bare trust?

A bare trust is one where the beneficiary has an immediate and absolute right to both the capital and income held in the trust. Bare trusts are sometimes known as 'simple trusts.'

Someone who sets up a bare trust can be certain that the assets (such as money, land or buildings) they set aside will go directly to the beneficiaries they intend. These assets are known as 'trust property'. Once the trust has been set up, the beneficiaries can’t be changed.

The assets are held...

A trust is a legal arrangement where one or more 'trustees' are made legally responsible for holding assets. The assets - such as land, money, buildings, shares or even antiques - are placed in trust for the benefit of one or more 'beneficiaries'

The trustees are responsible for managing the trust and carrying out the wishes of the person who has put the assets into trust (the 'settlor'). The settlor's wishes for the trust are usually written in their will or set out in a legal document called...