Capital Allowances

14th May 2026

Wind farm CAs claim blown off course

In a landmark decision, the Supreme Court has found in HMRC’s favour and denied capital allowances (CAs) claims for wind farm companies’ expenditure on preliminary surveys. Why didn’t the cost of necessary studies and surveys qualify for CAs?

Compensation

14th May 2026

Is motor finance compensation taxable?

You’ve submitted a claim for compensation for mis-sold car finance. A colleague says that because you used the vehicle in question for business journeys you’ll have to pay tax on any money you get. What do HMRC’s rules say?

Profit Extraction

14th May 2026

Selling spare items to your company

You’re short of cash but if you use the traditional methods to take more money out of your company you’ll pay higher rate taxes. Is there another way to extract profits without paying income tax or NI?

Benefits

14th May 2026

No such thing as a (tax) free lunch?

You run a small consultancy company and treat your staff to lunch in the office once a week. Your bookkeeper says it’s a taxable benefit in kind because staff lunches are only exempt if they are provided in a workplace canteen. Is this correct?

Corporation Tax

14th May 2026

Is property investment a corporation tax trap?

You’re thinking of using your trading company to buy a residential property to produce letting income and hopefully capital growth. Might this trigger the higher rate corporation tax (CT) that applies to investment companies?

Benefits

14th May 2026

Dodging tax and NI on 2025/26 benefits

If you had taxable benefits in kind in 2025/26 then you’ll have to pay income tax on the value. Your company also has to pay 15% NI. Now the tax year has passed is there any way you can reduce or eliminate this tax liability?

VAT

14th May 2026

Must you charge VAT on deposits?

Our subscriber is about to complete his first VAT return based on reports provided by his bookkeeper. These include VAT on deposits received from customers even though the corresponding sales won’t occur until the next VAT quarter. Is this correct?