Accountants for Traders Articles

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Residence, domicile and the remittance basis

If you are UK born and bred, then unless you have taken alternative action you will be treated as a UK resident and domiciled and therefore taxable on all your worldwide income. Read more...

Moving to cloud accounting software

Over an incredibly short period of time, technology has changed the way we interact and live in our day to day lives and especially how we do business and store data. Read more...

Invest your money using the right investment vehicle

Imagine yourself at retirement age. You’re preparing to take that round-the-world trip to see those countries you always said you’d see. The kids are set up, the Grandkids are doing well. You can almost taste the gelato… Read more...

Tax year-end planning: Things to consider

The end of the tax year, 5th April, is fast approaching. It’s important you take time now to review your finances and ensure you are making the most of your money and don’t miss out on valuable tax-efficiencies and allowances that your future self will thank you for. Read more...

Letter from HMRC regarding Cryptocurrency – What should I do?

Have you received a letter from HMRC encouraging you to consider your capital gains tax position for the cryptoassets you hold, whether it be BitCoin, Ethereum or Ripple? Read more...

Could you be eligible for thousands of pounds in tax relief?

Research and Development tax credits can transform your business by rewarding innovation and refuelling growth, so why aren’t you making a claim? Read more...

What structure should I use for trading?

One of the very first things you need to consider when you’re setting up a new business, is which business structure you’re going to choose. Read more...

How do I take money out of my Limited Company?

For many years, the majority of owner-managed limited companies have used dividends as their main method of drawing income from the business, which allows the company and the individuals within it to minimise their overall tax liabilities. A ‘dividend’ is the distribution of profits made by a company to its shareholders. Read more...

Trading or investing – how is the income taxed?

Once you’ve established whether you are trading or investing, your thoughts will inevitably turn to how the income is going to be taxed. Read more...

Am I a Trader or an Investor?

One of most frequent questions that we are asked as advisors is whether the financial trading activity that is being carried out is trading or investing.

In order to provide an answer to this question, we need to look at the 'badges of trade' to determine whether the activity is trading or investment in nature. In some cases, it’s quite obvious but, in many cases, (as is what usually happens in this industry), there is no straight answer and there are several different points that need to be considered. Read more...

Trade or spread betting?

Once you’ve established whether you are trading or investing, your thoughts will inevitably turn to how the income is going to be taxed.

The two types of income have quite different tax treatments and it’s important that you consider which approach to take based on your circumstances. If you don’t, you may find that HMRC challenge this in the event of an enquiry and if they disagree with your approach, you may receive a hefty tax bill! read more..

Thinking about investing in Cryptocurrencies?

With stories spreading of sizeable gains being made relatively easily on short-term investments, it’s not surprising we’re seeing far more queries come in about this kind of investment option, and how profits made will be taxed. Read more...

A simple tax tip for investments

Have you ever considered whether you are the best person to hold on to all of your investments within your household?

Did you know that by transferring some of these investments (particularly the income producing assets) to your spouse of another family member, you may be able to make instant tax savings?

Find out more by reading our A simple tax tip for investments article 

Investments which can bring 30% tax relief

If you are a higher or additional rate tax payer, have you considered making investments that could provide you with tax relief of 30% on the amount invested?

By using the Enterprise Investment Scheme (EIS) or Venture Capital Trust (VCT) investments, you may claim this tax relief in the year of investment, receive tax free proceeds in the event of selling these shares and in the case of VCT investments, receive tax-free income during the time you hold the shares.

To find out more read our Investments with up front tax relief article

Claiming your household expenses

If you work from home either on a part-time or full-time basis, are you claiming for all of your expenses possible?

You may claim for a proportional amount of your household expenses dependent upon the time and space that your trading activities use, but be careful not to fall foul of the potential capital gains tax and business rates more..

Using offshore companies

If you are considering attempting to move some of your trading activity offshore, you should consider the potential pitfalls as this is an area closely monitored by HM Revenue & Customs.

However, if you are able to ensure that the offshore trading is controlled and managed offshore, and you are considering relocating away from the UK in the future, then such a structure may be a useful addition to your financial more..

Simple tax planning tip for non-doms

If you are not originally from the UK, but are currently resident or are thinking of becoming a resident in the UK and your stay is likely to be less than seven years, you will be subject to tax in the UK based on any remittances that you make from overseas in addition to any income you actually earn in the UK. Read more..

Are you missing out on tax allowances for holiday accommodation?

If you own (or plan to own) a second (third, fourth, etc) property in the UK or within the boundaries of the EU, which is let furnished as holiday accommodation, you could be missing out on additional allowances available against your tax bill, and may even be eligible for a beneficial rate of tax upon sale. Read more..

HM Revenue and Customs targeting multiple property owners

If you do own more than one property (whether it is let or not), you should be aware that HM Revenue and Customs have made recent announcements that they are setting up a special taskforce to investigate individuals who appear to own more than one property, their reasoning being that they suspect some taxpayers are not declaring income received on let investment properties. Read more..

Planning your Family’s Wealth

Writing a will is often one of those things that everyone says they will get around to doing, but often never becomes a top priority.

However, keeping an up to date will could be incredibly valuable to your surviving family. When it is drawn up properly, it will not only ensure that your family will receive the assets that you wish for them to receive, but can also help to minimise any Inheritance Tax that the government may try to claw from your estate. Read more..

Investing for your Children

If you have children, grandchildren or even younger siblings such as nephews or nieces, you may consider making small investments for them so that they are more financially prepared in the future for school or university fees, or even for buying their first home.

There are many ways in which you can invest on their behalf. In some cases, income arising which would have been taxable to you may also directly benefit you in the form of tax savings. Read more..

Did you know that you could trade through your pension fund?

Often we find that traders are not particularly interested in using pension schemes to invest for their retirement and many would rather remain as liquid as possible in order to fund either current trading activities or to cover any particular lean periods that they may have. Read more...

Claim Your Expenses!

One of the most regular questions that we are asked from traders is about the expenses that they can claim against taxable income? Read more...

Using Family Members To Reduce Tax

A common form of tax planning if you are self employed is to employ family members effectively shifting some of the profits from you to them and potentially paying a lower rate of tax on this proportion. Read more...

Calculating your Taxable Profits

Whilst we would always recommend that you should obtain professional advice in preparing your accounts and calculating your taxes, we are aware of several occasions where the taxable profits have been misstated. Read more...