Pensionable pay and taxable pay are not always the same. Pensionable pay is the amount of your earnings that your employer uses to calculate your pension contributions. Taxable pay is the amount of your earnings that is subject to income tax and National Insurance contributions. In most cases, your pensionable pay will be the same … Read more
Subsistence allowance is a tax-free reimbursement for reasonable expenses incurred for lodging, meals, and other necessary expenses while traveling away from home on business. It is important to note that the allowance must be substantiated with receipts or other documentation to support the expenses claimed. Failure to substantiate the expenses may result in the allowance … Read more
Subsistence is typically nontaxable. Subsistence is usually food, lodging, or other payments in kind. The place of employment usually controls the expenses. You’re usually not taxed on these payments if they’re for your employer’s convenience. If you can control your work expenses, such as travel and entertainment, they’re typically not excluded from your income. These … Read more
When a company creates a spinoff, a new company is formed that is separate from the parent company. If the parent company distributes the spinoff shares to its shareholders, tax consequences may arise. In the United States, the spinoff may be considered a taxable transaction if it does not meet certain requirements. Generally, the spinoff … Read more
When completing your taxes, you can choose to itemize deductions instead of taking the standard deduction. Itemizing means listing specific expenses that you are allowed to deduct from your income. Some common itemized deductions include mortgage interest, charitable donations, and state and local taxes. By itemizing, you can potentially reduce your taxable income and save … Read more
When operating as a sole proprietor, determining whether PPP (Paycheck Protection Program) loan proceeds are included in taxable income can be confusing. The taxability of PPP funds differs from traditional business income. Initially, PPP proceeds were considered tax-free. However, subsequent legislation made expenses paid with PPP funds non-deductible. This means that although the loan proceeds … Read more
Tbd or To Be Determined is a term commonly used in taxation to indicate that a specific value or information is not yet known or has not been finalized. It’s a placeholder used when preparing tax returns or documents, indicating that the exact amount or detail will be provided or known at a later date. … Read more
If you suspect someone is avoiding paying their taxes, you can report them to HMRC anonymously. You can do this by calling the HMRC Fraud Hotline on 0800 788 887 or by completing an online form. When you report someone anonymously, HMRC will investigate the matter and take appropriate action. This may include launching an … Read more
Taxidermy, the act of preserving and preparing animal skins and bodies for display, has a verb associated with it: to taxidermize. This verb encapsulates the process of transforming a deceased animal into a realistic and lifelike specimen. It involves various techniques such as skinning, flesh removal, and meticulous reconstruction using materials like cotton and wire. … Read more
When you cash in an endowment policy, you may need to pay tax on the gains. The tax you owe will depend on the type of policy you have and how long you’ve held it. If you’ve held the policy for more than two years, you may be eligible for a tax-free lump sum. However, … Read more