How to correct VAT errors I have a question about VAT errors – I recently filed my own VAT return but I have realised I made an error on it and have underpaid VAT by £250. How do I correct this and are there penalties?     Answer, March 2018 We all make mistakes from… Read More

Distributable profits and cash I’m a contractor and a sole shareholder/director of my own limited company. There is currently £20,000 in my limited company bank account but distributable profits in my accounting software are showing as a completely different figure. Can you please explain to me how this could be the case?     Answer,… Read More

Contracting vs employment 2018-19 I am currently an IT contractor working on a day rate of £450 + VAT, working full time, 230 days per year. I have been offered a full time employed role on £85,000 and I’d like to understand the tax impact of this compared to my current contracting work. In my… Read More

What is the Annual Investment Allowance? I am a freelance web developer working through my own limited company. I am about to purchase some expensive computer equipment for my business – I believe this will be treated as a capital asset but I am unsure of the tax treatment, I have heard of something called… Read More

Rental income tax 2017-18 I am a director shareholder of a limited company extracting salary and dividends to a total of £50,000 per year and also have (from the start of the 2017/18 tax year) acquired a rental property – I receive £1,500 rent per month from my tenants and have an interest only mortgage… Read More