Medics travel expenses

In what might be a landmark decision in the interpretation of ‘wholly and exclusively’ expenditure, Dr Samadian has lost his protracted battle with HM Revenue & Customs (HMRC) over his claim for business mileage. Dr Samadian has 56 days to appeal against the ruling made on 28 January 2013. Dr Samadian has endured an enquiry which started…

HMRC destroy a family company and 32 jobs !

The Daily Telegraph has described how HMRC applied to a Judge for the right to liquidate a company, saying that fraud was being comitted, when actually, there was no evidence of fraud. The application was granted, and HMRC liquidated the company. Thirty two people lost there jobs as the liquidator made them redundant. It was…

Business records checks

HMRC relaunched its Business Record Check (BRC) initiative on 1 November 2012. HMRC has the power to impose penalties where records are deficient. When the program was first unveiled in January 2011, HMRC intended to visit 50,000 small businesses across the UK. A year later the whole process was reviewed and subsequently suspended following concerns…

Tax and the Christmas Party

It is possible to write off the costs of the annual Christmas bash against tax, however, it is important to keep the expenditure within certain limits. Here’s what you need to do: The cost of a staff party or other annual entertainment is allowed as a deduction for tax purposes. Also, as long as the…

Tax return penalties

The filing deadline for paper copies of your Self Assessment tax return for 2012 was 31 October 2012. If you file a paper return after this date penalties will apply. Would readers note that, if we prepare your return it will be filed electronically, the deadline for electronic filing of 2012 Self Assessment returns is…

HMRC Advisory Fuel Rates

Where an employer reimburses an employee for fuel only, the employer can choose to reimburse using the ‘advisory rates’ issued by HMRC. If  different rates are used, the employer would need to be able to justify this with some supporting evidence. New advisory fuel rates have been issued by HMRC that took effect from 1…