Pre-trading loan trap – sole trader v company tax reliefÂ
Many start-up businesses take out loans to get going, e.g. to purchase stock needed to sell, or to make the first rent payment or rent …
Impact of remote work on travel claimsÂ
Post-pandemic, remote work and homeworking have become the norm, especially with the increase in ‘hybrid’ working, i.e., spending part of the week at home and …
ADR – is it worth using? Â
HMRC’s Alternative Dispute Resolution (ADR) process was introduced over a decade ago, the intention being to provide an ‘alternative’ cost-effective method for dealing with disputes …
Making Tax Digital – latest update
Nearly ten years ago in March 2015 the then-Chancellor George Osborne announced a government initiative setting out a vision for the ‘end of the tax …
Can you have too much cash?
While having more money in your bank account than is needed may seem ideal, for director shareholders of a company with surplus cash, it could …
VAT – the partial exemption ‘trap’
If a VAT-registered business has taxable income only (including zero-rated sales), it is entitled to full input tax recovery on its expenses, subject to the …
Tax implications on home office
Following the pandemic, flexible working hours are on the increase. This shift has provided many employees with the legal right to request flexible working from …
Tax relief for trading losses
A sole trader or partnership business may make a loss for several reasons – not necessarily because it is not doing well. A business can …
Should you dispose of old documents?
Over the past few years, tax enquiries aimed at identifying and correcting errors or deliberate under-reporting in tax returns have increased. HMRC generates substantial revenue …
Are professional fees tax deductible?
As ever, the answer to this question depends on what type of professional fees have been incurred. Professional fees are income and corporation tax deductible …
Company makes loss – can dividend be paid? Â
Anyone who invests in a company is taking a chance, hoping that the directors, as representatives of the company, will use the money to increase …
Be aware of VAT bad debt relief
Despite the improving economy, bad debts are still a fact of life for many businesses. HMRC is aware that not all invoices are paid on …
