VAT reclaim – When things don’t go to plan
Even the best laid plans are liable to change. The ‘payback and clawback rules‘ for VAT reflect this reality. These rules only relate to input …
Directors’ loan accounts – The 30-day rule
Interest rates are coming down, but HMRC’s official rate of interest (ORI) for employee loans has increased to 3.75% per annum (6 April 2025), and, …
Credit notes or VAT bad debt relief claim – which?
Bad debts pose a significant challenge for every business. Staying on top of non-payments is essential for maintaining a healthy cash flow and ensuring the …
The tax consequences of not repaying an ‘illegal dividend’
Dividends can only be declared out of a company’s available undistributed profits and even if the bank account is in credit as at the date …
The tax position when partners do not receive the profit share they are allocated
In a partnership, the activities are considered to be conducted by the individual partners rather than the partnership itself, as a partnership is not a …
Too much cash in the company?
Although many companies are facing difficult times, some have managed to accumulate a sizeable amount of cash in their business’s current account. Leaving this cash …
HMRC has methods of collecting outstanding taxes
Tax bills need to be paid on time; otherwise, interest and possibly penalties will accrue. HMRC is amenable to payment by instalments under the Time …
Can any expenses be claimed if you visit a client on business during holiday?
The hot weather often brings thoughts of holidays, but for those in business, work is always on the mind. So, what is the tax position …
The benefits or otherwise of voluntary VAT registration
Many businesses strive to keep their turnover under the VAT registration limit (currently £90,000) because not only are they wary of the additional administrative costs …
Calculating a director’s National Insurance contributions
For most employees, director’s National Insurance contributions (NIC) earnings periods are calculated based on their regular pay intervals. In contrast, all directors have an annual …
Is it worth making a formal complaint about HMRC? The role of the Adjudicator’s Office Â
For many of HMRC’s ‘customers’ who have spent more than 30 minutes trying to get through on the phone, the thought of making a formal …
Post-cessation expenses – When are they allowable and how?
Sometimes a business may have ceased trading but then receives income that has not been included in the final cessation accounts, e.g. an insurance payment …
