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Recharged expenses, disbursements, and VAT thereon

Q. My client is an IT consultant, operating through a VAT registered UK company. He is supplying consultancy services to another UK IT business. He has incurred hotel, travel and meal expenses, and is charging these on to the company he is supplying. Can he treat these as disbursements, and therefore not charge any VAT[…] Read more »

Class 2 was about to be abolished but this has now changed

Class 2 national insurance contributions are payable by the self-employed. Contributions are payable at a flat weekly rate and entitle the contributor to short-term contributions based employment and support allowance, maternity allowance, widowed parent’s allowance, state pension, and bereavement benefits. The current weekly for 2018/19 is £2.95 and is based on whether profits are at[…] Read more »

Carelessness and tax avoidance: the new rules

If HMRC find that your tax return understates your tax liability, you can expect them to raise the question of penalties:  but only if the inaccuracy was either deliberate or due to your carelessness.  To put it another way, if you take “reasonable care” to get your tax right, you cannot become liable to pay[…] Read more »

Tax Question – Non Resident Capital Gains Tax

My client is a non-UK resident, having left the UK in April 2016. His main home which he purchased in July 2014 has been let out since he left. He is now planning to sell the property and is wondering whether he is liable to capital gains tax in the UK and whether there are any[…] Read more »

Understanding Tax on Overdrawn Directors’ Loan Accounts

For sole traders or partnerships, taking money from a business is a straightforward process, but withdrawing money from a company by a director is a different matter. An overdrawn DLA is where a director has taken money out of the company that is not classed as a dividend or salary and the figure exceeds any[…] Read more »

New VAT Rules for Building Trade in 2019

Under new rules due to come in on 1 October 2019 builders, subcontractors and other trades associated with the construction industry will have to start using a new method of accounting for VAT. The measure is designed to combat VAT fraud in the construction sector labour supply chain which HMRC argue presents a significant tax[…] Read more »

Gold Sponsors at the SME Bedfordshire Business Awards

We were delighted and proud to be Gold Sponsors at the SME Bedfordshire Business Awards 2018 of the Best Customer Service Category last Thursday evening.  The winning place going to Subway, Biggleswade, and runner up to AllenDay Recruitment – Congratulations to both.     

Marriage Allowance

Marriage Allowance is a way for couples to transfer a proportion of their individual Personal Allowance between them in a tax-efficient manner. For 2018/19, the maximum amount that can be transferred from one partner to the other is £1,190, which means that the spouse or civil partner receiving the transferred allowance will be entitled to[…] Read more »

Tax refund scams still a problem

HMRC has published statistics for March 2018 which show that it requested that more than 2,600 phishing websites be removed and that it received over 84,000 reports of suspicious e-mails, phone calls and texts. Claim your refund! The usual format for phishing e-mails and texts is to suggest that you’re entitled to a refund and then[…] Read more »

Tax and VAT Investigations

HMRC are chasing an estimated £33bn tax gap between what it should collect and what it does collect.  Over half of this is attributed to Small Businesses (£14bn) and Individuals (£3bn). Tax and VAT Investigations are a key tool in reducing this deficit. HMRC use sophisticated software to cross match a wide range of data[…] Read more »


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