Advertising or promotion verses entertainment or hospitality – Which is allowable?
To be allowable as a tax deduction whether under the corporation tax or income tax rules, most expenses must be incurred ‘wholly and exclusively for …
The confusion surrounding the VAT reverse charge
VAT can be confusing at the best of times, with the reverse charge being arguably one of the more complex applications. It does not help …
Splitting a company – Tax efficiently
Most private companies start as sole owner-managers; roll on a few years and some will have grown such that family members may also work for …
Work clothes – Can they be claimed against tax?
Whether a claim for the cost of work clothes is tax deductible is covered by the general rule for deduction of any expenses incurred by …
Incidental overnight expenses – A little known tax break
Expenses incurred by an employee on behalf of a company can only be reimbursed under the ‘wholly, exclusively and necessarily’ rules for work undertaken ‘in …
HMRC’s use of artificial intelligence – How AI is assessing the risk of tax evasion by businesses
We are increasingly hearing more and more about artificial intelligence (AI) and how its use can change our way of working both now and in …
Working for an umbrella company – Be aware of the risks
Recruitment agencies often use umbrella companies to pay temporary workers. HMRC confirms that there is no statutory definition of an umbrella company and currently describes …
Pre-trading expenses – Be aware of the rules
People set up in business for a variety of reasons. For some it is a dream that becomes a reality some years later. In working …
What to do if you receive one of HMRC’s nudge letters
HMRC believes that not everyone is paying the correct amount of tax, estimating what it terms as ‘the tax gap’ as being ‘4.8% of total …
Tax implications of buying a customer list
Many businesses begin by buying a customer list from another similar business, sending out marketing adverts rather than waiting to build their own client base …
Marriage allowance – A possible tax break for married couples or civil partnerships
Despite 4.2 million couples being eligible for the tax break, only 1.8 million are claiming the marriage allowance (MA) – a benefit worth £252 a …
PAYE settlement agreements – What are they and how do you set one up?
The usual method of declaring employees’ benefits in kind and taxable expenses is via the annual P11D form submission. Employers can also ‘payroll’ these benefits …
