I took someone out for a cuppa recently and snapped a picture of the receipt for my records. They asked what I was doing. I explained my business accounts are on Xero so naturally I snap pictures of my receipts to save time. This chap has been using Xero for many many years but had […]
Category Archives: Accounting
Episode 1 of this newsletter referenced a conversation I had with a pal where he mentioned “Tax Invasion”. I loved it. A little slip of the tongue that radically changed the meaning of the sentence. Once you look at tax for more than a few minute you realise that evasion is completely illegal. Always. This […]
I’ve covered the allocation of income before here and also the importance of getting the right help with your taxes. I might not have mentioned I’ve been giving tax advice for over 30 years. I have an as you would imagine I’ve seen a lot. I mean, A LOT! I have never seen anything […]
This is a great question that was asked this week. Before it can be answered we need to separate investors from traders. This is a huge topic but loosely, for property, Investors generate their income from rent. Traders generate their income from flipping and developing for sale. Let’s deal with investors in the first instance […]
No. But also yes. The tax return basically lumps everything in to relative few boxes with whole loads of things combined in to boxes together. Box 24 on the property page for instance is the total of “Rent, rates, insurances and ground rents”. That covers a lot and HMRC only need to have a single figure. […]
HMRC are trying to do something huge. They want everyone with self employed income and property income to report their earnings quarterly. Considering the difficulties of collecting the information annually this is an interesting and very ambitious plan. They recently updated their guidance on who can do what. Three-line accounts If your turnover (income before […]
It’s not always obvious that even one company is a good thing but for those where it is the next question is often how many? In no particular order think about the following: – lenders sometimes insist that a lender is in a company on its own to protect their risk – you should do risky things […]
Another from Ten Things… I get asked a LOT how long someone has to live in a house before it will be tax free. It will surprise you to hear there is no minimum length of time you have to live in a house. Really. That’s because time isn’t really what is considered. It’s the […]
As I said sophisticated investors will build the SDLT increase in to their figures but others will get a surprise. Those surprised people will either swallow it or fall for online scammers promising refunds. I ask a question on this in my Ten Tax Things presentation. “A house is riddled with asbestos and […]
I mentioned recently that I did an interactive webinar on Ten Things All Landlords Should Know About Tax. One question was ” You replace the kitchen in a new AST purchase BEFORE it is let. Is it a repair or capital?” Out of the people asked 59% got this wrong and said it […]
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