Monthly Archives: January 2017

HMRC Crack Down On Entrepreneurs Relief Claims On Cessation Of Business

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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HMRC have been dealing with a lot of cases challenging Entrepreneurs Relief claims on ‘Phoenix Companies’. The practice of ‘Phoenixing’ involves Directors setting up a company for a contract, then subsequently closing it down when the contract ends enabling them to claim ER tax on the business assets above the Capital Gains Tax allowance.

The directors then open up another company when they get a new contract and repeat the process. Unfortunately, poor advice has led some company Directors to carry out this practice without being aware of the negative light it is seen in by UK Company Law or for UK Tax.

In this blog, we look at ‘phoenixing’ and the new targeted anti-avoidance rules (TAAR) set in place to prevent people taking advantage of this practice and thus benefiting from lower tax rates.

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Business Owners – Are You Prepared For Digital Tax?

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Steph

Steph is a Chartered Accountant with many years’ experience working in audit compliance and general accountancy. She is a Fellow of the ICAEW and has extensive knowledge of accountancy and tax for the self employed.
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HMRC rolling out digital taxIf you’re a business owner, you should be aware of the big changes coming to the tax system –
with the HMRC aiming for a completely digital tax system by 2020.

This change is designed to make it quicker and easier for businesses and individuals to manage their taxes. The switch will require business owners to change their approach to tax slightly, with the biggest difference being the quarterly updating of their details to HMRC.

In this blog, we will cover what the changes to the tax system will mean for businesses, and what you can do as a business owner to ensure you are prepared for digital tax.

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