When you cash in a life insurance bond or certain investment policies, you might face something called a “chargeable event gain.” This is the profit built up inside the policy, which HMRC treats as income in the year you cash it in. The problem? The whole gain is added to your income for that year,
Author Archives: Gillian French
I was recently asked a really good question by a client. This husband and wife couple had been running their company together for many years. The husband started the business, and over time his wife became more and more involved, eventually taking on the admin and day-to-day running. At the start, some alphabet shares were
Allowable Limited Company Expenses, Changes to Tax Rates & Thresholds, Director’s Pay vs Dividends, P11D's, Tax Planning & Saving Tips
Should You Have a Company Car? The most asked Question we get!
If I were to create a hit list of questions asked by clients, the one that would be in our top 3 would be around company cars and company car tax implications. A company car is often seen as a desirable perk — but in reality, whether it’s a good idea depends on who you
Government Support & Reliefs, Pensions, Tax Planning & Saving Tips
Busting the Myths About Taking Your Pension Tax-Free
Over the years, many of us end up with several pensions from different jobs — some large, some small, and sometimes a bit forgotten about until retirement looms. When it comes time to draw from them, one question comes up again and again: “Can I take the whole thing tax-free?” The rules around pensions can
Allowable Limited Company Expenses, Tax Planning & Saving Tips
Not All That Glitters Is R&D: Why HMRC Is Clamping Down on Dodgy Claims
At DNA Accountants, we’ve seen a worrying pattern lately: clients who were encouraged by so-called Research & Development (R&D) “specialist” firms to make claims they never should have submitted. The result? HMRC is now knocking on the door, asking for the money back – and in some cases, charging penalties on top. R&D tax relief
Allowable Limited Company Expenses, Self-Assessment Tips for Sole Traders, Tax Planning & Saving Tips
Buying or Leasing a Van: What’s Best for Your Business?
If you’re a business owner, choosing between buying or leasing a van can feel like a big decision. In this guide, we break down the pros, cons, and tax advantages of buying or leasing a van, so you can make a choice that suits your business needs and budget. What’s the Difference When Buying or
Director’s Pay vs Dividends, Tax Planning & Saving Tips
Why Alphabet Shares Could Be a Smart Move for Your Business
If you run a limited company, you might assume all shares are created equal. But that doesn’t have to be the case — and in many small businesses, it shouldn’t be. Creating different types of shares, known as alphabet shares (like A shares, B shares, C shares etc), can offer you flexibility, control, and some
Many business owners set up a limited company to work as a contractor or consultant. But what if things change? Maybe you’ve landed a full-time job and no longer need to invoice through your company. Instead of shutting it down straight away, you have a few options. Let’s go through them step by step. 1.
HMRC Updates & Changes, Self-Assessment Tips for Sole Traders, Self-Assessment/ Personal Tax
The Death of SA302s: Why Are We Still Being Asked for Them?
Introduction For many years, the SA302 was the go-to document for self-employed individuals applying for mortgages. Accountants were frequently asked to provide these forms to verify a client’s income. However, in 2017, HMRC stopped issuing SA302s directly to accountants, instead providing alternative ways for taxpayers to prove their income. Yet, eight years later, mortgage advisors
If you’re a director of a limited company, you probably pay yourself a mix of salary and dividends to keep taxes low. For the last few years, the best salary for tax efficiency has been £9,096 per year, because it gave you maximum Corporation Tax relief while avoiding PAYE tax, National Insurance, and still qualifying