Santa Claus ends up on the tax naughty list

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.