All posts by keith
Are any crypto activities tax free?
Buying crypto with fiat currency is tax-free.
Holding crypto is tax-free.
Transferring crypto between your own wallets is tax-free.
Donating crypto to charity is tax-free.
Gifting crypto to your spouse is tax-free (take advantage of unused capital gains allowances).
Did you know all about these? And do you know what type of crypto transactions are taxable in the UK? Let us know in the comments!
Can HMRC Track Your Crypto? You Might Be Surprised!
- HMRC has a data sharing program with all UK exchanges.
- HMRC has transaction data from as far back as 2014.
- HMRC has access to the KYC information you provided to exchanges or wallets.
- HMRC has been working with large crypto exchanges to share customer information.
- HMRC uses this information to send reminders to report crypto and pay taxes.
- Coinbase began contacting customers with more than £3,000 in crypto in January 2022 to inform them of information sharing with HMRC.
How do you feel about HMRC tracking your crypto transactions? Let us know in the comments!
Avoid the UK’s 60% Tax Rate
In the UK, earning over £150K means you’ll face a 45% tax rate on your salary.
But, did you know there’s a sneaky 60% tax trap for those earning between £100K and £125K? That’s right, the £25K in that range is taxed at a whopping 60%.
Every £2 you earn over £100K means your personal allowance decreases by £1, making your tax rate soar.
So, smart earners in this bracket boost their pension contributions to lower their taxable salary and keep more of their hard-earned cash.
Don’t get caught in the 60% tax trap – plan your finances wisely!
Do not give the HMRC a red flag to investigate you – play safe!
It’s absolutely essential to be aware of the common triggers that can prompt an HMRC investigation. These investigations can waste a lot of your time, incur a lot of cost in getting someone to help you, and can also lead to a substantial penalty. So it is very important to know these 5 triggers and make sure you avoid them at all costs.
- Failure to Include Income on Self-Assessment Tax Return
The first thing HMRC looks for is if you have failed to include any sources of income on your tax return. This could include rental properties, foreign income, foreign gains, crypto gains and more.
- Undeclared Bank Accounts and Investments
HMRC has access to vast amounts of information and can easily cross-check if you have undeclared bank accounts, even if they only have small amounts of interest. The same goes for foreign accounts and investment portfolios.
- Overstated Expenses for Self-Employed or Property Business
If you’re self-employed or have a property business, HMRC can compare the expenses you’ve claimed in one year against other years. If there’s a significant difference or a loss, this could trigger an investigation.
- Incorrect Claims for Business Asset Disposal Relief
Claiming business asset disposal relief in the wrong way, such as not including the necessary notes or ticking the right boxes, can also prompt an investigation.
- Late Tax Returns or Reclaiming Refunds
Finally, if your tax returns are late or you’re reclaiming a refund, this can open up an investigation. HMRC typically starts with one area and uses that as a basis to examine the rest of the year.
In conclusion, it’s crucial to stay on top of your tax affairs and have a good accountant helping you. Please follow and like this video to get my latest tax tips, and get in touch with me via the website in my profile if you have any questions
Have you ever received a nudge letter or investigation from the HMRC? How did you handle it? Please share your experience in the comments!
Take Advantage of Mortgage Interest Relief in UK Tax Filing
Hi everyone, I’m Keith Griggs, a Deloitte trained chartered accountant . I want to help you understand better the mortgage interest tax deduction relief for investment properties in the UK whether owned personally or by a company.
When you own a rental property personally, the mortgage interest is not deductible in the initial calculation of your taxable rental income. But you would get up to 20% relief on your interest payments. But you would be taxed at 40% or 45% if you are a higher rate tax payer. So this is not good.
However, if you own the same property through a company, the mortgage interest is fully deductible as a business expense, lowering your company’s taxable income. This is much better.
This is why many property owners opt for owning properties through companies as it reduces their tax liability. But it’s important to keep in mind that owning a property through a company also comes with its own set of complexities and regulations.
For most but not all people, it is best to buy investment property through a limited company.
So, which one is better for you? It all comes down to your individual financial situation and goals. Generally, the more property you have, the better off you will be if you invest through a company.
Do you own a rental property? Are you considering changing the ownership structure to a company? This is problematic because of capital gains tax and stamp duty. There are some reliefs available, but you need to have good advice to navigate this, as it can get very complicated. Share your thoughts in the comments below!
Hire me by the hour to be your part time CFO
Hire me by the hour to be your part time CFO, financial controller. You would also have access to my team so we could provide any accounts dept services that are needed.
I am a Deloitte trained chartered accountant with 20 years experience working in the accounts departments of SMEs as financial controller and CFO
Business insolvencies are at the highest level for 13 years, so it is very important to have a very solid finance department advising you with a high level of analytics, systems and automation in place.
I also have many years experience as an internet entrepreneur, and marketer, and have appeared on the BBC and Sky News seven times as an expert.
My tiktok videos get up to 327k views, and I have 22k followers on Linkedin.
With my team I can manage your finance function, improve your financial monthly reporting, and provide a full outsourced accounts department if required which would be much cheaper and much more efficient than hiring full time staff that are not needed.
I can help you with business development, implement anything and be a business advisor and sounding board for anything you want.
Contact me for a free brainstorming session to explore how I could help you.
Let’s Take Your Business To The Next Level
Do you want to take your business to the next level? Then consider a part time CFO.
Here are some of the benefits:
Financial expertise: brings a high level of financial expertise to the company, which can help the business make better financial decisions and improve overall financial performance.
Information: can set up dashboards and KPIs that help systematise and track how your business and departments are functioning
Cost-effective: can be a cost-effective solution for businesses that may not have the resources to hire a full-time CFO.
Flexibility: can be hired on a project basis, which allows the business to have access to a CFO’s expertise when it is needed, rather than having a full-time CFO on staff.
Increased efficiency: can help streamline financial processes and procedures, which can lead to greater efficiency and cost savings for the business.
Strategic planning: can provide valuable input and guidance on strategic planning and decision-making, which can help the business achieve its goals and objectives.
Access to a network: they may have a network of contacts and resources that can be beneficial for the business, such as access to financing, investment opportunities, and other industry experts.
Risk management: can help the business identify and mitigate financial risks, which can help protect the company’s assets and reputation.
Compliance: can help ensure that the business is in compliance with financial regulations and laws, which can help the business avoid costly penalties and legal issues.
Overall, if an SME wants to grow to the next level, then they need to get a CFO, and a part time CFO is a very cost effective way of doing this. Companies without proper accounting support are taking massive risk especially at a time when the ONS says company insolvencies are hitting a 13 year high in England and Wales.
Get in touch with me for a brainstorming session. If we are a good fit, you can hire me and my team by the hour.
The Dark Side of Energy Subsidies: Small Businesses Speak Out
I’m going to be discussing the impact of energy subsidies on small businesses in the UK.
- Small businesses have warned that the government’s plans to cut energy subsidies will cause them severe financial hardship.
- The Federation of Small Businesses lobby group estimates that one in four small businesses will have to close, downsize, or restructure their operations due to the subsidy cuts.
- Many small business owners have reported mistreatment from energy suppliers, which has left them exposed to higher costs.
- Some small business owners have even had to consider moving their operations to other countries because of the unaffordability of running costs in the UK.
- Many small business owners feel that the reduced support from the government and mistreatment from energy suppliers will ultimately lead to higher prices for consumers.
Should the government help small businesses in the face of these challenges? Or should it just let them sink or swim in the free market? Share your thoughts in the comments.
Building Wealth One Habit at a Time: The Power of Million Dollar Habits
Today, I want to share with you some of the key points from the book “Million Dollar Habits” by Brian Tracy.
1. Habits are powerful tools that can help us achieve our goals and improve our lives.
2. We need to develop habits that align with our values and aspirations.
3. Setting goals, being organised, and having a positive attitude are some examples of good habits.
4. Incorporating these habits into our daily routine can make significant progress towards achieving success.
5. Habits are the compound interest of self-improvement, the longer you do them the more they pay off.
So what do you think? What are some of the habits you have that helped you to achieve your goals? Leave a comment with your thoughts.
Navigating the Chaos of Big Bang Disruption: Strategies for Success
Today, I want to share with you some of the key points from the book “Big Bang Disruption”
1. Technology is creating new opportunities for companies.
2. Rapid and unexpected destruction of established businesses is happening.
3. Businesses need to be agile to survive in today’s fast-paced technological landscape.
4. Identifying and capitalising on new opportunities is key to success.
5. Embrace change and be open to new ideas for business growth.
These points are vitally important insights on how technology is impacting the way we do business and how it could help businesses to grow in the future. Make sure you have good people in your team who can help you navigate this disruption, so you can be at the cutting edge of new technology and the opportunities it brings
Now, I’m curious to know, do you agree with this? And how do you think technology is changing the way you do business in your industry? Leave a comment with your thoughts.