We are often asked by self-employed clients to explain why their tax bills are high in proportion to the amount they withdraw from their business as “wages”. In truth, the self-employed do not take a wage, this would imply that the cost of their “wages”…
Month: August 2017
Pension scams
The government has proposed a wide-ranging ban to prevent pension scams. The consultation listed the sorts of phone conversations that the government intends to fall within the scope of the ban. These included: offers of a ‘free pension review’, or other free financial advice or…
Where is my profit, it is not in the bank
This is a question we are regularly asked by clients. Usually, the conversation is triggered when we discuss the end of year accounts. Before we explain why profits are not always represented by cash in the bank, we need to define the term “profits”. Profits…
Rent a room at home tax free
On the face of it, the rent-a-room relief is straight forward: if your gross rents from letting are not more than £7,500 in the current tax year, there is nothing you need to do, this income is free of tax; but beware the small print.…