UK Tax Specialist’s Blog

Accountant’s Small Business Debt Recovery Advice

Posted by on Jan 18, 2018 in Accounts, Business Start-up, Opinion | Comments Off on Accountant’s Small Business Debt Recovery Advice

However tight you believe your credit control system to be, however you invoice – monthly, quarterly or by Direct Debit, there is always the possibility of customer default. Many businesses believe that by agreeing invoices in advance, ensuring that the terms of agreement letter confirms the method and date of payment (with monthly payments being the norm) that default is kept to a minimum. However, there will always be one customer that proves to be a debtor too far. Taking a customer to court is a relatively straightforward process,...

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Poacher turned Gamekeeper Honoured

Posted by on Jan 12, 2018 in Opinion | Comments Off on Poacher turned Gamekeeper Honoured

Having cast my eye over the 2018 New Year’s Honours list a couple of days ago, I noticed that Edward Troup, who until recently, served as HMRC’s executive chairman and permanent secretary, had been awarded for his service to HMRC with a knighthood. Troup a tax lawyer by profession had advised Gordon Brown for a number of years on corporate tax policy before joining HMRC in 2012, initially as tax assurance commissioner. His many critics including the redoubtable Margaret Hodge MP, then chair of the influential Public Accounts...

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Splitting your business to avoid VAT registration

Posted by on Jan 4, 2018 in Business Tax, VAT | Comments Off on Splitting your business to avoid VAT registration

In the recent Budget the Chancellor announced that the VAT registration threshold is to be frozen at £85,000, until at least April 2020. However business splitting is a controversial topic and you may have to decide whether this is a solution to the VAT threshold not moving with inflation, as in recent years, or will it create further problems for your business. The view of small businesses Many of my accountancy colleagues take the view that the VAT registration threshold should remain at £85,000 for many years to come, ie gradually...

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Entrepreneurs’ Relief: When is zero not a number?

Posted by on Dec 29, 2017 in Business Tax, Corporate Tax Planning | Comments Off on Entrepreneurs’ Relief: When is zero not a number?

To qualify for Entrepreneurs’ Relief (ER) on a share disposal, you must hold at least 5% of the company’s ordinary share capital. But what exactly is the “ordinary share capital” of the company? This is a subject that thousands of small company directors and shareholders need certainty on when they dispose of their shares on retirement. Entrepreneurs’ Relief Basic Rules When you dispose of shares in a trading company, ER should apply to that gain if you have been an officer or employee of the company for a year prior to the disposal....

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Spurs Score Injury Time Winner Against HMRC

Posted by on Dec 22, 2017 in Payroll Services, Tax Investigations | Comments Off on Spurs Score Injury Time Winner Against HMRC

This Blog concerns the long running case of HMRC v Tottenham Hotspur Football Club. The case concerns the tax treatment of payments to players for their contacts being terminated early, the most notable example being former England international Peter Crouch. Background On transfer deadline day, August 2011, Peter Crouch and Wilson Palacios were told by Tottenham that they were surplus to requirements as the club sought to reduce its wage bill. Both players agreed to move to Stoke City and received lump sum payments for the early termination...

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Disguised Remuneration: Where do you stand now?

Posted by on Dec 14, 2017 in Business Tax, Self Assessment, Tax Investigations | Comments Off on Disguised Remuneration: Where do you stand now?

With the benefit of 20/20 hindsight, most people would agree that at least some employment/contractor structures created in the past never passed the smell test. However, it is also true that HMRC’s obsession with DR (Disguised Remuneration) crosses the line between legitimately tackling abuse of the tax system and unfairly punishing individuals who entered into arrangements in good faith. Unfortunately the current reality is that HMRC now has a set of very powerful tools with which to challenge any arrangements between contractors and the...

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Latest Finance Bill Packs A Punch

Posted by on Dec 7, 2017 in Business Tax, Personal Finance | Comments Off on Latest Finance Bill Packs A Punch

Since Gordon Brown was Chancellor, accountants have become used to hefty Finance Bills, many running to 500+ pages, arriving at least once a year. If MPs are getting a bit fed-up of sitting through yet another round of committee deliberations on tax matters, imagine what members of the accountancy profession feel like, at least MPs get paid for the time they spend (or don’t spend) scrutinising the draft tax legislation, members of the accounting bodies technical committees are largely volunteers. The new draft Finance Bill, the result of the...

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2018 Budget Summary

Posted by on Dec 1, 2017 in Business Tax, Personal Finance | Comments Off on 2018 Budget Summary

Whilst last week’s Budget was a tad short on big announcements, the Chancellor’s Autumn Budget was full of small changes; but as always the devil is in the detail. So now that all of the finer details have been published, it’s now time for an updated 2018 budget summary of the main business and personal tax measures. Business Tax The changes in business tax roughly fall into six categories: New IR35 regime for private sector The Chancellor said that early indications are that public sector compliance is increasing as a result of...

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Self Assessment Payment: HMRC will soon not accept Credit Cards

Posted by on Nov 24, 2017 in Business Tax, Self Assessment | Comments Off on Self Assessment Payment: HMRC will soon not accept Credit Cards

HMRC recently wrote to all accountants to suggest that we tell our clients that from 13th January 2018, it will no longer be possible for them to settle a self-assessment bill with a personal credit card. The credit card ban is has come as a response to a government ban on credit and debit surcharges in the UK, which is itself a reaction to EU directive PSDII, which bans surcharges on Visa and Mastercard payments. From 13th January both small businesses and individual traders will no longer be able to pass on charges to users for spending via...

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All bets are off with HMRC

Posted by on Nov 9, 2017 in Tax Investigations | Comments Off on All bets are off with HMRC

  The latest tax avoidance scheme to come under the HMRC spotlight was one aimed to extract profits from owner-managed companies (and also Employee Benefit Trusts or EBTs) by betting on the stock market. Under the scheme, the individual would place a bet with a betting company that a stock’s value would increase. Simultaneously, the individual’s company would place a mirror bet: that the same share’s value would decrease. If the individual lost the bet, then the parties simply went through numerous further mirrored bets until the ‘right’...

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