Cowboy’ is a term often used to describe a tradesperson who is poor at their work and potentially untrustworthy. Similar to other trades and professions, a small minority of tax agents are cowboys – lacking the necessary tax knowledge, and incompetent in carrying out their work. Worse still, some tax agents are dishonest in their
Many small businesses will start out as sole traders – the owner and the business are one and the same. Personal and business assets are kept apart only by a set of accounts and a balance sheet; and for tax purposes, the sole trader is taxed on the profit, not withdrawals. In effect, they are the business.
To Incorporate or Not to Incorporate – That is The Question! Read More »
Whilst having a large bank balance represents financial security and flexibility, leaving significant sums of cash sitting idle in the company’s bank account (i.e., more than a contingency or ‘rainy day fund’, or more than needed for expansion or investment) is not always the best long-term strategy. For example, low bank interest rates can lead to inflation eroding the
Too Much Cash in the Company? Read More »
As well as being the two certainties in life, death and taxes often go hand in hand. This article highlights how they interact in certain instances. Tax-Free Uplift There is no capital gains tax (CGT) on death. Assets owned at the time of death are uplifted to market value, ‘washing out’ any gains generated during one’s
A ‘Deadly’ Combination! Death and Taxes Read More »
The ‘nominated partner’ of a partnership is responsible for: filing the partnership tax return; dealing with matters arising from an enquiry; and keeping the other partners informed of the progress of any enquiry. Crucially (for the other partners), any appeal rights relating to the partnership are conferred only on the nominated partner. Kelly v HMRC In
Nominate your Partner Carefully! Read More »
HMRC once had a generous policy on misdirection – although it was not necessarily generously applied! In Notice 48 (March 2002) Extra-Statutory Concessions, it stated: ‘If a Customs & Excise officer, with the full facts before him, has given a clear and unequivocal ruling on VAT in writing or, knowing the full facts, has misled a registered
What Happens When HMRC Gives Incorrect Advice? Read More »
A significant development will reshape the way small businesses in the UK manage their tax affairs from 6 April 2026. VAT-registered businesses are already using Making Tax Digital (MTD) for VAT reporting, which was introduced in 2019; but MTD for income tax self-assessment (MTD for ITSA) is a major change to the reporting and recording
MTD for Income Tax: What Small Businesses Need to Know Read More »
Artificial intelligence (AI) apps like ChatGPT and Copilot have become very popular in recent years. AI apps are versatile, and can help with a wide range of tasks, from writing reports to language translation. AI can also be helpful when it comes to tax. For example, AI can be a useful tax research tool. However, it is
Don’t Believe Everything you Read! Read More »
With the growth of a business will come the need for more people to service the growing number of clients and customers. When it comes to employees, a plethora of employment laws needs to be considered (especially once the Employment Rights Bill becomes law later in 2025), but the tax consequences also need to be considered.
Spending £150 per head (inclusive of VAT) on an annual staff function is quite common these days. However, by combining this exemption with the ‘trivial benefits’ exemption, it is possible to exceed the £150 per head limit without triggering any tax implications. The limit may also be surpassed if the event is combined with a promotional event
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