Graham Carson from Inca Accounting reflects on memorable clients over the Christmas period.......
"It also made me think about a recent meeting with a prospective client and how we try to help with tax saving and peace of mind. Joe runs a small carpentry business but had left his tax affairs so late that he ws required to go in person to visit the tax office and file his return. We file client returns online meaning he didn't need to worry about travelling at a busy time of year and especially in difficult weather conditions. We were able to advise that he keep records of mileage on his journey as business trips qualify for tax relief.
Joe is married and his wife Mary helps him in the business. We suggested he consider paying Mary a salary to reflect the work undertaken which could save him over £2300 per annum in tax and class 4 national insurance. He was delighted at learming this as it would help buy clothes and equipment for their first baby Mary was expecting shortly. Had Mary been on the payroll earlier in the year, she would have qualified for statutory maternity pay which would additionally have helped the household.
Joe was delighted, though he has left us with a considerable challenge as he advised the new baby would "inherit his father's kingdom" and we are finding it difficult to calculate the value of the estate and therefore the potential inheritance tax liability"
If you have more down to earth tax problems to sort before the end of January Inca Accounting can help!
