The Badges of Trade used by HMRC

The ‘badges of trade’ tests, are used by HMRC to help determine whether an activity is a trading activity (business). Careful consideration needs to be given when deciding if a hobby has become a taxable activity. If that happens, your trading activities will be subject to Income Tax and National Insurance. This post will provide basic information on badges of …

High Income Child Benefit Tax Charge helpful information

Issues around Child Benefit and the High Income Child Benefit Tax Charge require careful consideration. They involve money paid to parents or guardians who are responsible for bringing up a child in their care. Who is eligible to claim Child Benefit? You can claim child benefit if you are responsible for looking after a child who is under 16 or …

Charity Donations and Waiving Income tax rules

Charity donations and waiving income during the Coronavirus (Covid-19) pandemic has been more prevalent in order to support others and their business. HMRC are keen to support these moves and tax implications need to be considered. This applies whether you are self employed, a director, an employee or a shareholder. What does waiving mean? A director or employee can choose …

Types of Partnership

Partnership Types There are 3 different Partnership Types, which can suit differing business scenarios: General Partnership Act 1890 (GP) Limited Partnership Act 1907 (LP) Limited Liability Partnership Act 2000 (LLP) There is another type of partnership for tax purposes known as a mixed partnership.  These are when there are non-individual members (typically companies).   Type Limited Liability Tax Compliance GP …

2020 Budget and Coronavirus Government Assistance

With the recent 2020 Budget and now daily announcements regarding Coronavirus Government assistance, we want to take a proactive approach by providing you with a useful resource of links to assist you and your business. LAST UPDATE 06/05/20 – Bounce Back Loan is live and SEISS (Self-employed support) RPP and Coronavirus In these uncertain times we wanted to let all …

Capital Gains Tax on a Residential Property

Capital Gains Tax on a Residential Property New HMRC laws regarding how Capital Gains Tax is reported and paid when disposing of a (residential) property could potentially lead to property chains collapsing.  We believe that it is important that the following understand the issues that can arise: Buyers Sellers Estate Agents Solicitors Recommendation From 6 April 2020 it will be …

Off-Payroll Working Rules (IR35)

The new Off-Payroll Working Rules were set to be introduced from 6 April 2020, but have now been delayed to 2021.  These follow the rules that were introduced for the public sector in 6 April 2017.  The public sector rules can be found here. What is the major difference to the new Rules? The old rules placed the onus on …

Changes in Lettings Relief

Taxpayers can currently obtain a rather generous tax relief (known as ‘Lettings Relief’) on sales of buy-to-let properties. This applies if they have been rented out a property which has been their main residence. However, changes in Lettings Relief will be coming into effect in the near future. The lettings relief is currently the lowest of: The Principal Private Residence …

Benefits of Outsourcing Bookkeeping

Many business owners choose to carry out their own bookkeeping; with the main benefit being the cost savings paying a bookkeeper. However, when you look at the benefits of outsourcing bookkeeping, you may find the cost is well worth it. If the bookkeeping is relatively straightforward and the owner is content to spend their own time, away from the principal business activity, …

What are the Rental Expenses for Buy-to-Let Properties?

Ensuring you claim the correct rental expenses against your income for buy-to-let properties is not always obvious.  The HMRC Property Income Manual can be found here. This article written by  RPP Accountants explains what can and can’t be claimed as a revenue expense for buy-to-let properties.  HMRC have also produced other guidance for landlords here. The starting point for any …