Income Shifting – Are You Paying Your Partner
The tax rules seek to PREVENT someone gaining a tax advantage by arranging to divert his/ her income to family or friends taxable at a lower or nil rate. For example where a husband and wife own equal shares in their own company but the husband is the only earner. This piece of legislation is […]
Closing a Business
There is an important piece of legislation called ESC 16 which basically states that what’s left in a company on closure can be distributed to the shareholders as a capital distribution rather than as a revenue distribution as long as the amount does not exceed £25,000 without the company going through a formal dissolution process. […]
IR35 Personal Service Companies
Anyone that provides their services through a Limited Company needs to consider the legislation known as IR35 which was brought in by the government to prevent people paying substantially less tax and national insurance by operating through an intermediary such as a Limited Company instead of being employed directly by the client. Separate rules were […]
Don’t Mix Business & Personal Expenses
If  you run a small owner managed business it is not a good idea to mix your business and personal expenses. There is a very important principle and that is: A company is a separate legal entity in law even if you own all the shares This means that it is governed by company law. […]
Tax & Closing A Business
There is an important piece of legislation called ESC 16 which basically states that what’s left in a company on closure can be distributed to the shareholders as a capital distribution rather than as a revenue distribution as long as the amount does not exceed £25,000 without the company going through a formal dissolution process. […]
Income Shifting – Are You Paying Your Partner A Dividend?
The tax rules seek to PREVENT someone gaining a tax advantage by arranging to divert his/ her income to family or friends taxable at a lower or nil rate. For example where a husband and wife own equal shares in their own company but the husband is the only earner. This piece of legislation is […]
Dividend Or Salary
If you run a small family run business you can pay yourself either via remuneration or via dividends. The freedom to use the company profits in the most tax-effective way has long been the goal of many owners. HMRC have sought to challenge this in some circumstances such as under the ‘settlement legislation’ and special […]
Do Small Sole Traders Need An Accountant
If you are sole trader and your service is fairly simple and there are no complicated tax issues you could probably do it all yourself. There is plenty of information online at HMRC’s website and elsewhere, however the question I would ask you is this. Is it good use of your time? Accountants […]
VAT on Rental Property: When You Pay It and When You Don’t – UK Guide
Note: This article covers VAT on rental income from letting properties. VAT on property development, construction, new builds, renovations, and property sales is covered separately – those rules are completely different. VAT on Rental Property: When You Pay It and When You Don’t – UK Guide 2025/26 VAT on property confuses most landlords. The rules […]
Your Home & Tax
The general rule is that your Principal Private Residence is exempt from Capital Gains Tax. Moving Home – The law allows you a certain period when you have bought a second home to live in but are still living in your old home (for instance when your new home needs to be renovated). This is covered […]
