I can recommend beekeeping as an absorbing hobby and a complete antidote to the stresses of tax & accounting. It won't make you rich but the rewards on so many other levels are immeasurable. Contact your local association, you won't regret it !
Simple question. One-man construction company paid for a site radio. Cost £110. Would you consider this to be an allowable business expense for CT purposes ?
Some in our office say yes, others say no. Looking to AW to settle the debate.
s15 (SSCBA 1992) relates to Class 4 NIC which is not applicable in my client's case, but in directing me to SSCBA 1992 I think I can rely on the wording in S11(4) to exempt my client from Class 2 NIC.
Yes, it is a continuation of the same business, and that is my whole point. Her total profit from this one business is below the Class 2 threshold.
But following the death of her husband my client was left as the sole-surviving business partner, and so from the date of his death her trading activity can no longer be reported on the partnership pages of her tax return.
This, together with the seasonal nature of the business has caused the anomoly of a profit being reported for the partnership period of this business and a loss being reported for the sole-trader period, which in total is below the Class 2 threshold, but the partnership element of the profit is above the threshold and I am unsure as to whether or not this triggers a class 2 liability.
Thank you , but this doesn't help as it relates to a situation where the tax payer had two separate self-employments one profitable & the other loss making.
In my client's case her self-employment relates to one single continuous business which has had to be split into two parts on her tax return because her husband died leaving her as a sole-surviving partner in the business.
My answers
I can recommend beekeeping as an absorbing hobby and a complete antidote to the stresses of tax & accounting. It won't make you rich but the rewards on so many other levels are immeasurable. Contact your local association, you won't regret it !
Simple question. One-man construction company paid for a site radio. Cost £110. Would you consider this to be an allowable business expense for CT purposes ?
Some in our office say yes, others say no. Looking to AW to settle the debate.
What are you hoping to achieve from this smug remark Daze ?
Thank you for your advice.
s15 (SSCBA 1992) relates to Class 4 NIC which is not applicable in my client's case, but in directing me to SSCBA 1992 I think I can rely on the wording in S11(4) to exempt my client from Class 2 NIC.
To make ends meet she also has a job for which she pays Class 1 contributions that clocked a qualifying year in 2019/20
Yes, it is a continuation of the same business, and that is my whole point. Her total profit from this one business is below the Class 2 threshold.
But following the death of her husband my client was left as the sole-surviving business partner, and so from the date of his death her trading activity can no longer be reported on the partnership pages of her tax return.
This, together with the seasonal nature of the business has caused the anomoly of a profit being reported for the partnership period of this business and a loss being reported for the sole-trader period, which in total is below the Class 2 threshold, but the partnership element of the profit is above the threshold and I am unsure as to whether or not this triggers a class 2 liability.
Thank you , but this doesn't help as it relates to a situation where the tax payer had two separate self-employments one profitable & the other loss making.
In my client's case her self-employment relates to one single continuous business which has had to be split into two parts on her tax return because her husband died leaving her as a sole-surviving partner in the business.
Yes, we are in Scotland, and I think you have nailed it.
It's the only logical (illogical given the rules !!) explanation.
Thank you for your help.
Thank you everyone for taking the time to reply.
A great example of Accounting Web at its best.
Thank you to both respondents for your advice