HMRC enquiries – Undisclosed company profits taxed as loans to participators

HMRC enquiries – Undisclosed company profits taxed as loans to participators

It is not uncommon for HMRC enquiries into the business accounts of an individual or company to result in additions to turnover and profits. For example, unexplained lodgements into a private bank account will probably result in HMRC seeking to assess them as undeclared takings. HMRC will more than likely contend that the accounting double. Read more

What is a ‘trade’? – A possible further badge of trade to consider

What is a ‘trade’? – A possible further badge of trade to consider

It will generally be clear whether a person is carrying on a trade, although there will always be grey areas of uncertainty. There is little help to be found in the tax legislation, which merely defines ‘trade’ as ‘any venture in the nature of trade’ (ITA 2007, s 989; CTA 2010, s 1119). It is. Read more

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