For several years now the lack of availability of Business Property Relief (‘BPR’) for furnished holiday lets (‘FHLs’) has been well known and established through cases such as Pawson, Green and Ross. The courts in these cases ruled that the holiday lets were too much of a passive investment to qualify as a business, even though the owners were providing varying degrees of service it was often held to be no more than would be expected from self-catering (i.e. investment) properties. The boundary between a mere investment and an active business (not “trade”, the legislation says “business”!) is a hard one to cross with the level of other services provided to guests needing to be more akin to a hotel than a self-catering holiday let. (more…)
If you’re running a business, it’s as important to understand the type of business expenses you cannot claim against tax as those you can. Deductible expenses are those where making a purchase is essential for your business operation. Non-tax-deductible expenses on the other hand, are those that are not necessary for the operation of your company. (more…)
The Making Tax Digital (MTD) reforms represent a fundamental and unprecedented change to the UK tax system, which will ultimately impact all UK tax payers.
MTD has been delayed for all other taxes until at least 2020 but it is a requirement for all VAT-registered businesses with a turnover above £85,000 per annum to submit their VAT returns digitally, using MTD-compatible software, from April 2019. (more…)
When you’re looking for a new accountant, there are a number of business benefits to choosing a local firm. We have many clients in and around our Hoddesdon office, which helps us form great relationships with them.
Here are our top reasons why you need to look for a local accountant:
You may have used the same accountant for a number of years, and you may well be happy with them – we hope you are! But it’s always a very useful exercise to review your accountant from time-to-time just to check that you’re getting the most appropriate service for your business.
When you do your review, it encourages you to think about the service you’re getting and assess whether or not you’re getting what you need from your accountant. Here are the questions we think you need to ask yourself in order to make an informed assessment.
Until recently, an HMRC investigation usually meant one of two things. Either someone, possibly disgruntled business partner or spurned spouse, had tipped off the taxman or you were unlucky enough to have had your tax return picked at random.
All that changed with the advent of HMRC Connect, an £80m software system designed to join billions of dots to create a picture of who may not be entirely honest when it comes to assessing their tax liabilities. (more…)
Doing the payroll is more than just having the bank account details of the people you employ and making sure they’re paid what they’re owed on a regular basis.
Meeting legal requirements is a huge part of the payroll process and the recent introduction of GDPR has made things more complex for most companies when it comes to record keeping, requiring them to protect their data securely and prevent unauthorised access, especially when it comes to transferring sensitive personal information.
If an employee is provided with a car by their employer, tax is payable on the cash equivalent of the of car provided.
The cash equivalent of the company car provided is calculated by taking the list price of the car, multiplied by a certain percentage, this percentage depends on the amount of carbon dioxide emitted by the car.
The list price of the car is calculated using the following formula: (more…)
The Criminal Finances Act came into force on 30 September 2017. Part of the Act means that companies and partnerships can be criminally liable where they fail to prevent those who act for, or on behalf of, the business from criminally facilitating tax evasion.
There is, however, a potential defence against this offence by the business putting into place a system of reasonable prevention measures. The penalties for the offence include unlimited financial penalties and ancillary orders such as confiscation orders. The Act doesn’t change what tax fraud is, just who may be liable. (more…)
You’ve made the decision to set up your own business. It’s an exciting time and you’re keen to get going, but you need more startup cash than you have savings, so you’ll have to find an external source of finance to help you with your startup funding. Going to visit your bank manager is probably the first place you think of for a business loan, but it’s a good idea to look at other options available before you apply for any kind of business investment. (more…)