Blog

30 Aug 2025

Credit notes or VAT bad debt relief claim – which?

Bad debts pose a significant challenge for every business. Staying on top of non-payments is essential for maintaining a healthy cash flow and ensuring the financial stability of a business, but what is the VAT situation if an invoice is not paid?

27 Aug 2025

The tax consequences of not repaying an 'illegal dividend'

Dividends can only be declared out of a company’s available undistributed profits and even if the bank account is in credit as at the date of withdrawal, it does not necessarily mean that sufficient profit has been made to cover the payment.

24 Aug 2025

The tax position when partners do not receive the profit share they are allocated

In a partnership, the activities are considered to be conducted by the individual partners rather than the partnership itself, as a partnership is not a separate legal entity. Consequently, the partnership does not pay tax or National Insurance contributions (NIC). Instead, each partner pays tax separately on their allocated share of profits or losses, similar to a sole trader. If one partner is a company, it is taxed on its share of profits and capital gains according to corporation tax rules.

21 Aug 2025

Using former FHL losses

From 6 April 2025, furnished holiday lets are treated in the same way as other lets for tax purposes. Landlords letting both holiday accommodation and other properties (whether residential or commercial) calculate the profit for their property business as a whole, taking into account the income and expenses from all properties. It is only the total income and total expenses that are relevant – there is no need to calculate the profit and loss for each property or each type of property separately for tax purposes (although the landlord may wish to do so in order to monitor the performance of each property).

19 Aug 2025

Holiday lets and business rates

Although the end of the tax regime for furnished holiday lettings relieved landlords of the need to keep track of the number of days for which the holiday let was available for letting and actually let, some day counting is still needed for business rate purposes. Depending on the lettings profile, the landlord may be eligible for business rates rather than council tax, and this may be very advantageous. The tests that need to be met depend on whether the property is in England or in Wales. Different rules apply in Scotland and Northern Ireland.

16 Aug 2025

Earn tax-free income from renting out your garage

There is a demand for garage space, particularly from tradespeople who want somewhere to store their tools safely rather than leaving them in their van overnight and vulnerable to theft. If you have a garage that you are not using, you could potentially earn money from renting it out. Even better, you may be able to enjoy rental income of up to £1,000 a year tax-free.

13 Aug 2025

Temporary staff and auto-enrolment

Employers have a duty to enrol eligible staff in a pension scheme. Staff are eligible if they are aged between 22 and state pension age and earn more than £192 per week (£833 per month).

10 Aug 2025

What happens to your estate if you die intestate?

In an ideal world, everyone’s estate would be distributed according to their wishes. However, where someone dies without making a will, who gets what is determined by the intestacy provisions. The way in which the estate is distributed depends on the value of the estate and whether the deceased is married or in a civil partnership and whether they have children. The rules explained below apply in England and Wales; different rules apply in Scotland and Northern Ireland.

07 Aug 2025

Tax-free trivial benefits

The tax exemption for trivial benefits is a useful one as it allows employers to provide certain low-cost benefits to employees without an associated tax or National Insurance liability, such as Christmas or birthday gifts. However, not all benefits qualify, and there are some pitfalls to be wary of.

04 Aug 2025

Correcting errors in your VAT return

It is easy to make mistakes when completing your VAT return. However, where mistakes are made, it is important to correct them. This is fairly straightforward to do.

01 Aug 2025

Tax implications of writing off a director’s loan

Personal and family companies often make loans to directors. However, there can be tax and National Insurance implications of doing so. Where the loan remains outstanding nine months and one day after the end of the accounting period in which it is made, a tax charge arises on the company. Tax charges may also arise if the loan is written off.

31 Jul 2025

Too much cash in the company?

Although many companies are facing difficult times, some have managed to accumulate a sizeable amount of cash in their business's current account.

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