HMRC is currently contacting certain sole traders by email to reiterate the importance of adjusting business expenses for personal use.The email explains:why personal use must be adjusted on your
Category: Business
Focusing on all things business related: business tax, financial business tips and tricks and how to find the best bookkeeper or accountant in London for your business.
Why increasing an overdraft to fund losses is a dangerous game
Many business owners see their bank overdraft as a flexible safety net. When cash runs short, the temptation is to ask the bank for a higher limit to keep things moving. While this can provide
Building value in your business
For many small business owners, the focus is on day-to-day operations. However, building long-term value is just as important, whether your aim is to sell in the future, attract investors, or secure
The Security Question: Is Cloud Bookkeeping Really Safe for Your Financial Data?
The Security Question: Is Cloud Bookkeeping Really Safe for Your Financial Data? Many businesses today rely on cloud bookkeeping because it offers flexibility and easy access to financial data. However, security remains a top concern for those handling sensitive information like bank statements and transaction records. Cloud bookkeeping can be safe, but its security depends … Continue reading The Security Question: Is Cloud Bookkeeping Really Safe for Your Financial Data?
Why a Real Accountant Still Beats AI for Company Tax Returns
Why a Real Accountant Still Beats AI for Company Tax Returns AI has become a common tool in accounting, helping to speed up routine tasks like data entry and error checking. However, when it comes to company tax returns, relying solely on AI can be risky. A real accountant still beats AI because they offer … Continue reading Why a Real Accountant Still Beats AI for Company Tax Returns
Maternity Leave and Payroll: How to Handle Payments Without Errors for Accurate Compliance
Maternity Leave and Payroll: How to Handle Payments Without Errors for Accurate Compliance Handling maternity leave and payroll can be tricky, but getting payments right is essential to avoid costly mistakes. You need to understand the rules around statutory maternity pay and how to update payroll correctly when an employee goes on leave. Errors can … Continue reading Maternity Leave and Payroll: How to Handle Payments Without Errors for Accurate Compliance
Taxation of entertainment expenses
Many business gifts and hospitality costs are not tax-deductible under current rules.
Entertainment expenses including providing hospitality and business gifts are common, but the taxation of these
Director-s Loans: What They Are and How to Use Them Legally for Effective Business Management
Director-s Loans: What They Are and How to Use Them Legally for Effective Business Management A director-s loan is money you take from or lend to your company outside of your salary, dividends, or expenses. It is important to keep clear records of these loans and repay them on time to avoid extra tax and … Continue reading Director-s Loans: What They Are and How to Use Them Legally for Effective Business Management
Top 5 Bookkeeping Mistakes UK Business Owners Make and How to Fix Them for Better Financial Management
Top 5 Bookkeeping Mistakes UK Business Owners Make and How to Fix Them for Better Financial Management Bookkeeping is a vital part of running a small business, but many UK business owners make common mistakes that affect their financial health. These errors can lead to inaccurate records, cash flow problems, and even costly compliance issues. … Continue reading Top 5 Bookkeeping Mistakes UK Business Owners Make and How to Fix Them for Better Financial Management
The 32.5% Tax Trap: Consequences of Failing to Repay a Director-s Loan on Time
The 32.5% Tax Trap: Consequences of Failing to Repay a Director-s Loan on Time If you have taken a director-s loan from your company, it is crucial to repay it on time. If you don-t repay the loan within nine months and one day after your company-s year-end, a 32.5% tax charge will be applied … Continue reading The 32.5% Tax Trap: Consequences of Failing to Repay a Director-s Loan on Time
How to Maintain a Clear Director-s Loan Ledger: Essential Templates and Practical Tips for Accuracy
How to Maintain a Clear Director-s Loan Ledger: Essential Templates and Practical Tips for Accuracy Maintaining a clear director-s loan ledger is essential for managing your company-s finances accurately and avoiding tax issues. The key to keeping a clean loan account is to record every transaction clearly, whether money is borrowed from or lent to … Continue reading How to Maintain a Clear Director-s Loan Ledger: Essential Templates and Practical Tips for Accuracy
Selling Your Home: How to Avoid Capital Gains Tax Using PRR – A Practical Guide
Selling Your Home: How to Avoid Capital Gains Tax Using PRR - A Practical Guide When you sell your home, you might have to pay Capital Gains Tax (CGT) on the profit you make. However, if your property has been your main residence, you can often avoid this tax by using Private Residence Relief (PRR). … Continue reading Selling Your Home: How to Avoid Capital Gains Tax Using PRR – A Practical Guide
The Connect System: How HMRC Uses Data to Decide Who to Investigate Explained
The Connect System: How HMRC Uses Data to Decide Who to Investigate Explained If you-re wondering how HMRC decides who to investigate for tax issues, the answer lies in a powerful data system called Connect. Connect collects and analyses huge amounts of information from banks, government records, and even social media to spot unusual activity … Continue reading The Connect System: How HMRC Uses Data to Decide Who to Investigate Explained
Five Common Filing Mistakes That Could Land You in HMRC-s Crosshairs and How to Avoid Them
Five Common Filing Mistakes That Could Land You in HMRC-s Crosshairs and How to Avoid Them Filing your tax return accurately is essential to avoid unnecessary trouble with HMRC. Many people make simple mistakes that could trigger investigations or penalties. Understanding the most common errors you might make can help you keep your tax affairs … Continue reading Five Common Filing Mistakes That Could Land You in HMRC-s Crosshairs and How to Avoid Them
Letting Out Your Home? How PRR Works with Lettings Relief Explained
Letting Out Your Home? How PRR Works with Lettings Relief Explained If you let out part or all of your home, understanding how Private Residence Relief (PRR) works alongside Lettings Relief is key to managing your tax when you sell. PRR reduces the Capital Gains Tax (CGT) you pay by covering the time you lived … Continue reading Letting Out Your Home? How PRR Works with Lettings Relief Explained
Director-s Loan Accounts: Best Practices to Stay Compliant and Avoid HMRC Issues Efficiently
Director-s Loan Accounts: Best Practices to Stay Compliant and Avoid HMRC Issues Efficiently Managing a director-s loan account (DLA) in your UK limited company requires careful attention to avoid problems with HMRC. The key to staying compliant is keeping accurate records of every transaction between you and your company and understanding the tax rules that … Continue reading Director-s Loan Accounts: Best Practices to Stay Compliant and Avoid HMRC Issues Efficiently
When Does Private Residence Relief Apply - and When Doesn-t It? Clear Criteria and Common Exceptions Explained
When Does Private Residence Relief Apply - and When Doesn-t It? Clear Criteria and Common Exceptions Explained Private Residence Relief (PRR) applies when you sell your main home, helping you avoid paying Capital Gains Tax on any profit made. You can claim this relief if the property has been your only or main residence during … Continue reading When Does Private Residence Relief Apply - and When Doesn-t It? Clear Criteria and Common Exceptions Explained
Private Residence Relief Mistakes That Can Cost You Thousands and How to Avoid Them
Private Residence Relief Mistakes That Can Cost You Thousands and How to Avoid Them If you are selling your main home, Private Residence Relief (PRR) can help you avoid paying Capital Gains Tax on any profit you make. However, mistakes when claiming this relief can lead to unexpected tax bills that cost you thousands. Understanding … Continue reading Private Residence Relief Mistakes That Can Cost You Thousands and How to Avoid Them
Are You a Target? The Industries Most Likely to Face HMRC Investigations Explained
Are You a Target? The Industries Most Likely to Face HMRC Investigations Explained If you run a business, you might wonder if HMRC has you in its sights. Certain industries are more likely to face investigations because HMRC compares your figures to typical profit margins and income levels in your sector. Businesses that report numbers … Continue reading Are You a Target? The Industries Most Likely to Face HMRC Investigations Explained
What Happens if You Get It Wrong? Director-s Loans and Section 455 Tax Explained Clearly
What Happens if You Get It Wrong? Director-s Loans and Section 455 Tax Explained Clearly If you get director-s loans wrong, the company could face a significant tax charge under Section 455. This means you may have to pay Corporation Tax at a rate of 33.75% on any overdrawn loan that isn-t repaid within nine … Continue reading What Happens if You Get It Wrong? Director-s Loans and Section 455 Tax Explained Clearly
The Tax Traps of Directors- Loans: Essential Insights for Company Owners to Avoid Costly Mistakes
The Tax Traps of Directors- Loans: Essential Insights for Company Owners to Avoid Costly Mistakes Directors- loans can be a useful way for company owners to access money when needed. However, if not managed carefully, these loans can create unexpected tax problems that may be costly to fix. The most important point is that if … Continue reading The Tax Traps of Directors- Loans: Essential Insights for Company Owners to Avoid Costly Mistakes
How to Properly Document Directors- and Shareholder Loans to Avoid HMRC Penalties: Essential Compliance and Record-Keeping Tips
How to Properly Document Directors- and Shareholder Loans to Avoid HMRC Penalties: Essential Compliance and Record-Keeping Tips Directors- and shareholder loans can be useful for managing company finances, but improper documentation risks serious penalties from HMRC. Keeping accurate records of loan amounts, repayments, and shareholder approvals is essential to stay compliant and avoid fines. Clear … Continue reading How to Properly Document Directors- and Shareholder Loans to Avoid HMRC Penalties: Essential Compliance and Record-Keeping Tips
When Can a Shareholder Loan Be Safer Than a Directors- Loan? Key Considerations for Business Financing
When Can a Shareholder Loan Be Safer Than a Directors- Loan? Key Considerations for Business Financing A shareholder loan can be safer than a directors- loan when the terms are more clearly defined and the risks of tax penalties are lower. Unlike directors- loans, shareholder loans often come with fewer restrictions and can offer better … Continue reading When Can a Shareholder Loan Be Safer Than a Directors- Loan? Key Considerations for Business Financing
Pulling Money from Your Company: Salary, Dividends, or Loan - Choosing the Best Method
HMRC Investigations: What Triggers a Business vs Personal Tax Check and How to Prepare Many directors wonder how best to take money out of their business. The main options are salary, dividends, or loans. Choosing the right method depends on the company-s profits, tax rules, and the director-s personal financial situation.Paying a salary means the … Continue reading Pulling Money from Your Company: Salary, Dividends, or Loan - Choosing the Best Method
HMRC Investigations: What Triggers a Business vs Personal Tax Check and How to Prepare
HMRC Investigations: What Triggers a Business vs Personal Tax Check and How to Prepare When HMRC decides to investigate, the triggers for business and personal tax checks can be quite different. For businesses, common causes include late filing, errors in tax returns, or unusual variations between accounts. For individuals, missed tax payments or discrepancies in … Continue reading HMRC Investigations: What Triggers a Business vs Personal Tax Check and How to Prepare
The Do-s and Don-ts of Recording a Director-s Loan: Essential Guidelines for Accurate Financial Management
The Do-s and Don-ts of Recording a Director-s Loan: Essential Guidelines for Accurate Financial Management When you take money out of your company or put it in for personal use, it-s important to keep accurate records in your director-s loan account (DLA). This account acts as a clear record of every transaction you make with … Continue reading The Do-s and Don-ts of Recording a Director-s Loan: Essential Guidelines for Accurate Financial Management
Top 10 Red Flags That Prompt an HMRC Tax Investigation and How to Avoid Them
Top 10 Red Flags That Prompt an HMRC Tax Investigation and How to Avoid Them If you are worried about an HMRC tax investigation, knowing the common warning signs can help you avoid unwanted attention. HM Revenue and Customs looks for certain red flags when reviewing tax returns and financial records. Understanding these triggers gives … Continue reading Top 10 Red Flags That Prompt an HMRC Tax Investigation and How to Avoid Them
Director-s Loan Accounts: How to Keep Yours Bulletproof with Essential Compliance Tips
Director-s Loan Accounts: How to Keep Yours Bulletproof with Essential Compliance Tips A director-s loan account (DLA) is a key part of managing your company-s finances, but it can cause problems if not handled correctly. Keeping your director-s loan account bulletproof means accurately recording every transaction, repaying loans on time, and understanding the tax rules … Continue reading Director-s Loan Accounts: How to Keep Yours Bulletproof with Essential Compliance Tips
Common Mistakes in Director-s Loan Accounts and How to Fix Them Efficiently and Compliantly
Common Mistakes in Director-s Loan Accounts and How to Fix Them Efficiently and Compliantly Managing a director-s loan account can be tricky, and many businesses make avoidable errors that lead to tax issues or complicated repayments. The most common mistakes include mixing personal and business expenses, failing to keep clear records, and missing critical repayment … Continue reading Common Mistakes in Director-s Loan Accounts and How to Fix Them Efficiently and Compliantly
Director-s Loans and Dividends: How to Document Each Correctly for Accurate Financial Records
Director-s Loans and Dividends: How to Document Each Correctly for Accurate Financial Records When dealing with director-s loans and dividends, proper documentation is essential to keep your company-s finances clear and compliant. You must have formal agreements, keep detailed records, and hold board meetings to approve any loans or dividends. This ensures transparency and helps … Continue reading Director-s Loans and Dividends: How to Document Each Correctly for Accurate Financial Records