Tax Insider Newsletter Bundle

‘Tax Rebate’ Cowboys: When Refund Promises Don’t Add Up

‘Cowboy’ is a term often used to describe a tradesperson who is poor at their work and potentially untrustworthy. Similar to other trades and professions, a small minority of tax agents are cowboys – lacking the necessary tax knowledge, and incompetent in carrying out their work. Worse still, some tax agents are dishonest in their dealings with their clients and HM Revenue and Customs (HMRC).

Mark McLaughlin warns that some ‘tax rebate’ agents promise tax refunds which are inaccurate and lacking in foundation.

Dividends are payments by companies to their shareholders as a way of distributing profits. Because those profits are subject to corporation tax, dividends have been taxed at different rates than interest income and capital gains and are subject to their own tax rules.

Richard Curtis reviews the taxation of dividend income for individuals in for the coming year.

Recovering VAT on Motoring Costs: Choosing the Right Method

The basic systems for recovering VAT on motoring expenses are:
•    Claim all the VAT back on road fuel and pay the motoring scale charge.
•    Keep a detailed mileage record and calculate the proportion of VAT relating to business mileage.
•    Pay a mileage allowance and keep the fuel receipts.
•    Do not claim back the VAT on road fuel.

Andrew Needham looks at the rules for recovering VAT on motoring costs.

BADR: Is the Benefit Still Worth It After the Rate Rise?

The maximum capital gains tax (CGT) saving on a gain of £1m with the current rate of business asset disposal relief (BADR) of 14% (for 2025/26) is £100,000. 
When the rate increases to 18% from 6 April 2026, the maximum saving reduces to £60,000. 

Ken Moody considers the dwindling benefit of capital gains tax business asset disposal relief and suggests that it may be worth considering other strategies. 

New Year, New You: Can Tax Help With Health and Fitness Costs?

The New Year is typically a month for planning ahead and focussing on our health. The gym is always busier, and the pubs and restaurants are quieter. But are there any tax savings available that can help shed the pounds? 

Tristan Noyes looks at how tax might help with the heavy lifting when it comes to health and fitness, which is often a focus for January as we cling on to our New Year’s resolutions! 

Loss Relief for Ongoing Businesses: Choosing the Right Tax Treatment

One of the ‘badges of trade' used by HMRC to determine if a trade is being conducted is the presence of a 'profit motive' where the “object of acquiring an asset was to re-sell it at a profit, without any intention of holding it as an investment.” 
However, for various reasons, a business may incur losses instead of profits. The method of loss relief depends on several factors and scenarios.

Jennifer Adams reviews the tax reliefs available to businesses that continue to operate even when making a loss.

Wasting Assets and CGT: The Chattels Rules Explained

When capital assets are disposed of, capital gains tax (CGT) must be considered, but when assets other than ‘real property’ and intangibles like shares are sold, there is the possibility that no tax is payable at all. 

Chris Thorpe outlines the tax rules surrounding chattels upon disposal, in particular wasting assets.

Q&As with Arthur Weller

Dividends or bonuses? We can work it out!

Consider the following scenario:

'On a wintry sunny morning, Alan was reviewing his company’s January 2024 management accounts. Alan was the sole director and 100% shareholder of Llandudno Hotels Ltd, which operated two large hotels in Llandudno. The business was on course to healthy pre-tax profit of around £650,000 for the year ended 31 March 2024. Alan had been planning to pay himself a substantial ‘bonus’ before the year-end'. 

What does Alan do?

Peter Rayney examines an owner-manager’s cash extraction following the numerous tax and National Insurance contributions changes.

Use them or lose them: 2023/24 tax allowances

As the tax year draws to a close, it is prudent to review one’s 2023/24 tax allowances and consider whether there is scope for utilising any unused allowances so they are not lost. 

Sarah Bradford explores options for using 2023/24 tax allowances so they are not wasted.

Record-keeping in a digital age

Lee Sharpe looks at taxpayers’ record-keeping obligations in light of HMRC’s inexorable march to digital everything (almost).

Historically, HMRC has been quite relaxed about whether original records must be maintained or digital facsimiles (scans, etc.). 

Trap for business owners seeking CGT incorporation relief

HM Revenue and Customs (HMRC) recently commenced a ‘One to Many’ campaign, targeting taxpayers who incorporated property businesses in the tax year 2017/18 but reported no capital gains tax (CGT) liability in their tax returns on the basis that ‘incorporation relief’ applied in full. 

Mark McLaughlin highlights a potential trap for business owners seeking capital gains tax incorporation relief.

Q&As with Arthur Weller