Here’s the impact assets have on whether or not you’re trading
BADGES OF TRADE – WHAT SORT OF ASSET IS IT? The type of asset you’re dealing in can have a bearing on whether or not HMRC consider the transactions to be trading. Now this may come as a surprise, because it would be easy to assume that either...
How many times do you have to sell something for it to be a business trade?
In an earlier blog, I looked at the profit-seeking motive as a badge of trade, and one of the points I made was that over a period of time your motive can change from being purely a hobby to seeking opportunities to making sales and profits. Another factor allied to...
I’m not looking to make a profit – do I still need to register my business with HMRC for tax purposes?
Leading on from my recent blog on the badges of trade, I want to look at the way in which HMRC interprets some of these badges and I’m starting with one of the most obvious – is your intention to make a profit? Now you may be thinking that if you...
When does a hobby become a taxable business entity?
The basics As you know, if you make a profit, HM Revenue & Customs want to know. Actually, they’re not really bothered about the legality or morality of what you’re doing – they just want to know if they can tax you on it! But what about those...
What the election means for your finances
The result The public have finally spoken (depending on your view of our current system, anyway) and that means we are now facing another five years under the Conservative government and David Cameron. Of course, different individuals will be affected in very unique...Get your FREE report
7 Costly Mistakes Small Business Owners are Unknowingly Making!