More timely payment of ITSA
Over the summer, HMRC consulted on proposals for the timelier payment of income tax due under Self-Assessment (ITSA). Currently, taxpayers within Self-Assessment must pay their income tax and any Class…
Incorporation relief – Remember to claim it
When a sole trader transfers their business to a limited company, a chargeable gain may arise on the assets transferred. As the connected person rules apply, the gain is calculated…
The Property 118 Tribunal decision
The Property 118 Tribunal case concerned whether Scheme Reference Numbers (SRNs) issued in respect of two sets of arrangements were validly issued. The arrangements in question – the SIS and…
Corporation tax penalties
A company tax return must be filed no later than 12 months after the end of the accounting period to which it relates. However, the corporation tax for that period…
Do I need to pay tax on income from my side hustle?
Many people are taking on a side hustle to make ends meet. This can take various forms, such as selling items online, providing services or creating content. You may need…
Interest relief – Mixed portfolios and mixed-use properties
The way in which an unincorporated landlord receives tax relief for interest and finance costs depends on whether or not the property is a residential property. Relief for interest and…
Ensuring VAT is charged correctly
VAT is often thought of as a relatively simple tax; if a business is VAT registered, 20% VAT is usually charged. However, in practice, the VAT system is more complicated.…
Rent received from your personal company
Where a personal company is run from the director’s home, the payment of rent by the company for the use of the space can be a handy way of extracting…
Simple assessments – What are they?
In the last few months, some taxpayers who possibly have had no dealings with HMRC previously have been receiving letters headed ‘Simple Assessment’. The letters are being sent to those…
When an incomplete VAT invoice is issued
VAT-registered businesses can generally reclaim VAT on goods and services purchased for business purposes. However, for a claim to succeed HMRC requires valid evidence to support those claims. In most…
Contacting HMRC
Contacting HMRC A taxpayer may need to contact HMRC if they have a query about their tax affairs. There are various ways in which this can be done. HMRC’s digital…
Registering late for self-employment – The tax implications
Having made the big decision to start a self-employed business, there will be countless decisions and administrative tasks to attend to. Informing HMRC of the new venture may not be…
Alternative dispute resolution
The first indication a taxpayer may receive that they are the subject of a tax enquiry or investigation is a letter from HMRC, often headed ‘Notice of enquiry under Section…
Community Infrastructure Levy – Beware!
The Community Infrastructure Levy (CIL) is a charge which can be levied by local authorities on new development in their area. The levy will only apply in an area where…
Is incorporation relief available to landlords?
Incorporation relief is a valuable relief that allows landlords to postpone the capital gains tax bill that may otherwise arise when transferring an unincorporated property business to a limited company.…
Self-Assessment after bankruptcy
Where a taxpayer has been made bankrupt, their Unique Taxpayer Reference (UTR) expires at the end of the tax year in which they were made bankrupt. They cannot use that…
SDLT and inter-spouse transfers
Different taxes have different rules, and it is important to consider the full picture. Looking at one tax in isolation may lead to an unexpected bill. Most people are aware…
How to claim relief for excess interest
Landlords running an unincorporated property business obtain relief for interest and finance costs incurred in relation to residential lets (including holiday lets) as a tax reduction. The tax reduction is…
Should your company buy your bike?
Getting around a city by bus, car or taxi can be frustrating, with traffic congestion often making journeys slow and unpredictable. Travelling by bicycle can be quicker, cheaper and better…
Phoenix companies: HMRC’s tougher approach to contrived insolvencies
In November 2025, the government announced a joint strategy involving HMRC, the Insolvency Service and Companies House to crack down on what is termed ‘contrived insolvencies’ i.e. company closures engineered…
Temporary reduction in VAT on children’s meals and certain attractions
On 21 May 2026, the Chancellor announced a temporary reduction in the rate of VAT applied to children’s meals and admission to certain attractions. It does not apply to sporting…
Side hustles, online selling and the trading allowance: What you need to know
Whether you sell unwanted items on eBay or Vinted, rent out a property on Airbnb, freelance through online platforms, drive for a delivery app, earn money as a content creator,…
Capital expenditure and the cash basis
The cash basis is the default basis of accounts preparation for landlords with annual rental income of £150,000 or less running unincorporated property businesses. Under the cash basis, income is…
VAT on gifts and samples
Businesses which give away free gifts or samples need to be aware of the VAT implications to ensure that they account for VAT correctly. Gifts Where a business makes a…
How to reduce your employer’s Class 1 National Insurance bill
Employer’s Class 1 National Insurance is a significant cost for employers, being charged at 15% on earnings over the relevant threshold. However, there are some steps that employers can take…
Contact from HMRC – Is it genuine?
HMRC use a range of communication methods, as do fraudsters. Consequently, it can be difficult to be certain that a call, email, letter or text which seems to come from…
Phased introduction of mandatory payrolling
Mandatory payrolling was due to come into effect from 6 April 2027. However, it has now been announced that the introduction will be phased in, with mandatory payrolling only applying…
Passing on the investment property
A landlord will need to consider whether it is better to pass on an investment property during their lifetime or on their death. Here, we look at the associated tax…
How is relief given for pension contributions?
Pension contributions benefit from tax relief. However, the amount of the relief is capped at the lower of 100% of earnings (or £3,600 where this is higher) and the available…
Approved mileage allowance payments
The approved mileage allowance payments (AMAP) system allows employers to make tax-free mileage allowance payments to employees who use their own vehicles for work. The payment is tax-free as long…
Cash basis for landlords
As for unincorporated trading businesses, the cash basis is the default basis of accounts preparation for landlords running an unincorporated property business. However, unlike traders, landlords can only use the…
Extracting profits as rent
Where a business is run through a personal or family company, the directors/shareholders will need to extract profits if they are to be used personally. There are various ways in…
Utilising the property allowance
The property allowance is essentially an additional personal allowance for income from property. It allows individuals to enjoy property income of up to £1,000 each tax year free of tax…
Working From Home Tax Relief Changes from April 2026: What You Need to Know
Working From Home Tax Relief Changes from April 2026 Working from home is now a normal part of working life across the UK. However, significant tax changes coming into force…
Key Changes & Deadlines Post Budget
As the end of the 2025/26 tax year approaches, individuals and businesses should take advantage of available tax reliefs and prepare for upcoming changes from April 2026 onwards and into…
Making Tax Digital (MTD) for Income Tax: What You Need to Know from April 2026
Making Tax Digital (MTD) for Income Tax is being phased in from 6 April 2026 and will significantly change how self-employed individuals and landlords report their income to HMRC. HMRC…
Online platforms to share sales data with HMRC
While information about individuals’ earnings is now being shared with HMRC, tax rules around online selling have not changed Online platforms, including eBay, AirBnB and Amazon, have started sharing information…