Entrepreneurs’ Relief, what is it? And has it changed recently?

Entrepreneurs’ Relief is a reduced rate of Capital Gains Tax that applies when ones sells certain business assets; or all/part of a business; or more than 5% of shares in a small company in which you work or hold office.  It does not apply to non-business assets such...

Common mistakes made in Self-Assessment Tax Returns

First of all, I would say read the guidance notes – and if you still need help, see an accountant.  Under-declaring income can cost you penalties and interest! Here are some mistakes I have seen. Buy-to-let property – Anyone who sells an investment property, and...

How much can I earn before paying income tax?

Every person who is resident in the UK is given a personal allowance each tax year. It operates as follows: The personal allowance is the amount of income you can receive before paying tax – and it generally increases each tax year.  For the 2019/20 tax year, it is...

Do you need to submit a Tax Return?

You need to submit an Income Tax return if HMRC send you a Tax Return to complete or, if you know that you have income tax or capital gains tax to pay. However, HMRC have a list of further circumstances where a Tax Return should be prepared, including: Your income...

Tax avoidance? Tax evasion? What to say? What to think?

The ongoing controversy about avoidance and evasion continues to create a lot of heat but nothing constructive seems come out of the debate. Since the 1920’s the law has stated that we all have the right to order our affairs in a tax efficient way. We have the right...

Overdrawn Director’s Loan account s.455 tax explained

This tax is the result of an overdrawn Director’s Loan Account (DLA).  Here is a brief explanation of how they can arise; the implications, and what to do. An overdrawn Director’s Loan Account (DLA) can often arise accidentally when a Director/shareholder takes money...