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Tax Tips

Don’t Be Tempted To Deduct Personal Items

There is something of a myth that if you have your own business you can ‘put’ expenses through the business (and if the business is VAT registered, reclaim the input tax). This is very dangerous. Not only does it create extra work as these items need to be disallowed in the accounts, further, if they are left in as deductions, it may trigger enquiries into the accounts and possibly an investigation. Only expenses that relate wholly and exclusively to the business are allowable as a deduction against profits. Under no circumstances should private expenditure be treated as a business expense. The temptation to put private expenses through the business should be resisted at all costs. (from Tax Insider)

The Taxman's more relaxed approach to vans

The annual taxable benefit-in-kind (BiK) for private use of a van is currently fixed at £3,000, irrespective of value and CO2 emissions. And, unlike a car, driving to and from your place of work won't usually count as private mileage. If private travel is insignificant and it's used mainly for work, the BiK is reduced to zero.

A Tax Free Perk

If you receive a gift of entertainment, e.g. tickets to a sporting event, from a third party, such as supplier or customer, you won't have to pay tax on this, although some conditions apply. This tax break extends to your family and friends so if you're lucky enough to receive more than one ticket, they can come along too.

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