Many parents who fell within the ambit of the High Income Child Benefit Charge (HICBC) opted not to receive child benefit, rather than to receive it and pay it back in full in the form of the charge. However, changes to the HICBC which came into effect from April this year mean that some parents […]
Restarting child benefit claims Read More »
Scammers are becoming increasingly adept at fooling people and a favoured tactic is a letter, a text or an email purporting to be from HMRC, often promising a tax refund in exchange for personal and financial data. During the summer, many taxpayers received a very convincing scam letter which appeared to be from HMRC, seemingly
Realistic scam letters – how to check if a letter purporting to be from HMRC is genuine Read More »
There are various reasons why a person may not have told HMRC about the tax that they owe, ranging from a simple oversight to the deliberate evasion of tax. Regardless of the reason, if you have failed to declare income and gains on which tax is due, it is always better to take action to
Making a voluntary disclosure if you have not told HMRC about tax that you owe Read More »
Following the pandemic, flexible working hours are on the increase. This shift has provided employees with the legal right to request flexible working from the first day of their employment. However, there is no statutory right for employees to work from home as yet. Homeworking is already the norm for many self-employed. Where existing space
Tax implications of building an office for home working Read More »
A sole trader or partnership business may make a loss for several reasons – not necessarily because it is not doing well. A business can be operationally successful but still report losses due to various strategic, financial or external factors. There are several options available to gain tax relief for a loss. The default position
Tax planning for trading losses Read More »
The answer to this question depends on what type of professional fees have been incurred. Professional fees are income and corporation tax deductible if incurred ‘wholly and exclusively’ for the purpose of the trade, profession or business. However, they must not be capital in nature or losses not connected with/ arising out of the trade.
Are professional fees tax deductible? Read More »
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 from all compliance activities and although the exact proportion relating to tax enquiries is not always separately reported, the latest figures show that for 2023-24 the amount secured from all
Should you dispose of old documents? Read More »
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 the company’s profit. In return for taking this chance, a shareholder receives ‘payback’ usually as a share in the distribution of profits in the form of a dividend, however. payment
The company makes a loss – can a dividend be paid? Read More »
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 time and allows bad debt relief to be claimed by businesses that have already paid VAT to HMRC on sales invoices that remain unpaid. How bad debt relief is allowed
Be aware of VAT bad debt relief Read More »
There are three ways in which former students with student or post-graduate loans can make loan repayments: • from deduction from their wages or salary through the PAYE system; • to HMRC through the Self Assessment system; or • direct to the Student Loans Company (SLC).
Making student loan repayments through Self Assessment Read More »