What is the trading allowance?

What is the trading allowance? In April 2017 HMRC introduced a ‘trading allowance’ for people with side hobbies or other sources of casual or miscellaneous income.  The allowance exempts up to £1,000 of gross income per tax year for hobby activities such as cake sales, dog walking, photography, arts and crafts or earnings from semi-professional activities like sporting appearances or… Read More

Restructuring Your Business

Many growing businesses start out operating from one sole entity: a single limited company with one or more family members or business partners as shareholders. The owners may have incorporated separate entities to manage different trading businesses or have setup investment companies to hold property or other investments. In the above scenarios, the shareholders may find that if they restructure… Read More

Family investment companies

For many people, a trust is the most tax favourable vehicle that enable them to pass assets out of their estate for Inheritance tax (“IHT”) purposes, but with unfavourable changes to the trust tax rules, this has made trusts less attractive nowadays. The alternative is family investment companies (“FICs”). FICs are private limited companies whose shareholders are family members. A FIC structure… Read More

Cryptic Currency

If you are one of the (reportedly) millions of people in the UK investing in various types of crypto like Bitcoin, Ethereum, Litecoin, Dogecoin then you may be wondering what is your UK tax position? Currency or not?  Back in 2012, HMRC changed the UK taxation reporting rules on traditional foreign currency like dollars & euros. No longer was exchanging… Read More