PARTNERSHIPS - 23.11.2023
Do clients need to apply the salaried member rules?
Your client, a limited liability partnership (LLP) that provides investment management services, has asked whether one of its members meets the conditions of the salaried member rules. What are these rules, and what guidance does recent case law provide?
TRADING INCOME - 26.10.2023
Is your side-hustle taxable?
HMRC is getting cannier at detecting and penalising people who make extra income but don’t declare it. With that in mind if you start a small side venture to make some extra cash, is it always necessary to declare it to HMRC?
LOSSES - 17.10.2023
How to get tax relief for transition year losses
Basis periods have now been abolished for working out tax for unincorporated businesses. Whilst there’s lots of guidance about making the transition from the old to the new rules for profitable businesses, what’s the position if there’s a loss?
ACCOUNTS - 05.09.2023
Discover the overlap relief you’re entitled to
Basis period abolition. HMRC recently published new guidance on the abolition of tax basis periods ( yr.23, iss.21, pg.1 , see The next step ). This will affect you if you’re a sole trader or partner and your business accounting year doesn’t end between 31 March and 5 April (inclusive). One aspect that isn’t covered in HMRC’s guidance is so-called “overlap relief”. However, an important element is already clear. Many business owners don’t know if or how much overlap relief they are entitled to. If they don’t claim it against their 2023/24 tax liability they will permanently lose their entitlement to the relief. ...
PARTNERSHIPS - 23.04.2023
CGT on dissolving partnership
One of your clients (a partnership) has decided to demerge with each partner taking half the business. What’s the capital gains tax (CGT) treatment on the dissolution and is there a better alternative you could suggest?
LOSS RELIEF - 21.03.2023
Tax and financing a potentially risky business
A friend has asked you to back her new business. She has the expertise and you have the money. She wants you to buy a share of her company or lend it money. Each type of investment has different tax consequences, but which is better?