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Santa Claus was tired under stress with a headache
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Santa Claus ends up on the tax naughty list

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Tax worries have plagued Santa Claus this year, with elves working off-payroll, UK residence, HICBC, and VAT, then to cap it all: MTD is forcing him to file quarterly.

22nd Dec 2021
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For years, Santa got his accountancy and tax advice from a random selection of internet sites. He’d often received advice to engage an accountant, but that wasn’t the advice he’d followed.

Instead, he’d taken the advice he thought more to his liking, but unfortunately, this view of the law seemed to be at odds with opinions held by HMRC. Penalties and surcharge notices followed.

Lessons learned, he’d thrown out the computer and wasn’t taking any more dubious internet advice. Living in such a remote location, his internet connection had never been that good anyway.

Elf employed

Santa’s first confrontation with HMRC was a result of the elves’ request to be treated as self- employed.

Some of the elves had helpfully set up limited companies and offered Santa their toy-making work via these. On the basis that Santa had previously agreed to flexitime, this new arrangement seemed a natural next step, and of course the national insurance saving was welcome.

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Replies (8)

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By SteveHa
22nd Dec 2021 10:35

Surely the Elves all work off-shore, and so outside of HMRC's grasp.

Thanks (1)
Replying to SteveHa:
Chris Caspell CTA TEP
By ccaspell
22nd Dec 2021 11:32

I think the elves work for the gnome-office and so, as Crown servants, they pay their taxes as if they lived in the UK.

Thanks (2)
Replying to SteveHa:
Caroline
By accountantccole
22nd Dec 2021 11:39

I struggled with this place in Scotland - everyone knows he lives at the North Pole ....

Thanks (1)
Replying to accountantccole:
paddle steamer
By DJKL
22nd Dec 2021 15:34

It may be true.

Rumour has it that the Nats have done a deal with him over Prestwick, this is on its wiki entry,

"In February 2021, the Scottish government announced that a preferred bidder had been selected to buy the airport. The unnamed bidder is believed to be a European transport infrastructure investor.[32]"

It is a great airport for him as it has a good long runway and little other air traffic.

Thanks (2)
Replying to DJKL:
Caroline
By accountantccole
23rd Dec 2021 07:57

LOL

Thanks (0)
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By Dib
22nd Dec 2021 12:50

Shame about the dodgy claus(es) in the elves' contracts

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paddle steamer
By DJKL
22nd Dec 2021 15:35

Santa will never stop keeping his records using lists.

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By Dib
22nd Dec 2021 16:55

But at least he checks them twice!

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