Autumn Budget 2021 – the tax Budget that never was!

You can never truly know the content of the Budget until the Chancellor has sat down and you get to grips with all of the publications generated by HM Treasury, even in this day and age, when numerous announcements are leaked to the press in the run up to the big day. Often those publications […]

Budget 2021 – tax thresholds frozen but are fundamental changes on the horizon?

Rather than the much anticipated increase in capital gains tax rates, or even changes to business assets disposal relief (previously known as entrepreneurs’ relief), the Chancellor has instead decided to freeze income tax, capital gains tax and inheritance tax thresholds. The Chancellor acknowledged that the fairest route was to have the highest earning households contribute […]

Suspended Penalties: You’ve Had Your Chance!

Appealing against HMRC assessments or notices to correct errors in tax returns might have an unfortunate knock-on effect when it comes to penalties in some cases. If an error is made in a tax return, it does not necessarily follow that a penalty will be incurred if additional tax becomes due as a result of […]

Director’s Loan Accounts: No Turning Back!

Many company owners have director’s loan accounts (DLAs), and generally understand how they operate. However, there are pitfalls for the unwary. These can sometimes result in tax and National Insurance contributions (NICs) liabilities for the company and/or themselves. For example, an overdrawn DLA can give rise to a tax charge for a closely-controlled company under […]

Spouses’ Wages – Legitimate Expense Or Tax Dodge?

A common element in the accounts of many self-employed individuals (and partnerships) is a deduction for the wages of family members, particularly a spouse (or civil partner). For example, in over 30 years as a tax practitioner I have seen countless claims for ‘wife’s wages’. Most claims for deductions of this nature are valid and […]