Author Archives: accounts

Sharing income from jointly held property

The standard tax treatment for couples living together, whether married or in a civil partnership, is that income from jointly held property is split equally (50:50) between them, regardless of their actual ownership shares.

However, if the ownership is unequal and the couple wishes to have the income taxed in proportion to their respective beneficial interests, they must formally notify HMRC. This is done by submitting HMRC’s Form 17, which declares the true beneficial ownership split of the property and the associated income.

A Form 17 declaration can only be submitted by spouses or civil partners who are living together and jointly own property in unequal shares. It does not apply to unmarried couples, those who are separated, or other relationship types.

The declaration must be agreed upon and signed by both parties. If one partner does not consent, the income will continue to be taxed on a 50:50 basis, regardless of how the property is actually owned.

Once accepted by HMRC, a Form 17 declaration remains effective until there is a change in the couple’s relationship status (e.g., separation or divorce) or in the ownership structure of the property. In such cases, the default 50:50 split will be reinstated.

It is important to note that Form 17 cannot be used in certain situations—for example, when property is owned as beneficial joint tenants, or where the income derives from shares in a close company or a business partnership.

Where applicable, submitting Form 17 can provide valuable tax advantages by aligning the taxation of property income with the actual economic ownership.

We would be happy to help you ensure you are making the most of your property income structure, please call if you would like to discuss your options.

Source:HM Revenue & Customs | 21-09-2025

What is the recent £150bn tech investment deal?

During the State Visit by President Trump, the UK secured a record-breaking £150 billion of inward investment from US firms. The package is intended to boost jobs, support growth, and advance the UK’s key industrial sectors, especially life sciences, advanced manufacturing, clean energy, biotech, AI and other future-facing industries under the UK’s Modern Industrial Strategy.

Key components of the deal

Here are some of the flagship commitments:

  • Blackstone pledged around £100 billion over the next decade into the UK.
  • Prologis will invest £3.9 billion, including use in the Cambridge Biomedical Campus and upgrading Daventry Rail Freight Terminal.
  • Palantir agreed to invest up to £1.5 billion to help make the UK a defence innovation leader and create up to 350 jobs.
  • Amentum will invest £150 million, creating over 3,000 jobs across areas like Glasgow, the Midlands and Warrington.
  • Boeing committed to converting two 737 aircraft in Birmingham for the USAF, bringing about 150 high-skilled jobs.
  • STAX, a US engineering firm, will commit around £37 million to expand UK operations, especially in emissions-reducing technology at ports.

Where the jobs and benefits are headed

The investment is forecast to create more than 7,600 high-quality jobs throughout the UK, covering not just London and the South East, but also Belfast, Glasgow, the Midlands and the North East. It includes major commitments in research and development and support for start-ups, particularly in biotech, AI and clean energy sectors.

Why it matters

This is the biggest commercial investment package ever secured during a UK state visit. It signals confidence from US firms in the UK’s economic strategy and global competitiveness. For business, tax, infrastructure, jobs, and innovation policy, it gives strong backing to the government’s plans.

Source:Other | 21-09-2025

Choosing the right way to buy a vehicle for your business

For many business owners, a vehicle is an essential tool. Whether it is for visiting clients, delivering goods, or simply keeping things moving, choosing how to finance a vehicle can have a big impact on cash flow and tax planning. There are several routes to consider, each with its own advantages.

Buying outright

The simplest option is to purchase the vehicle in full. This means your business owns it from day one. Buying outright avoids ongoing finance costs, but it does tie up capital. The tax advantage is that you may be able to claim capital allowances on the cost, reducing taxable profits. Cars with low CO₂ emissions attract more generous allowances, while commercial vehicles such as vans can often qualify for the full Annual Investment Allowance.

Hire purchase

Hire purchase spreads the cost of the vehicle over a fixed term. You make monthly instalments and become the legal owner once the final payment is made. Interest will be payable, but this option gives certainty over repayments and allows you to claim capital allowances on the vehicle as if you had bought it outright.

Finance lease

With a finance lease, your business pays to use the vehicle but never actually owns it. Instead, you may be able to extend the lease at a reduced cost or sell the vehicle on behalf of the finance company and keep part of the sale proceeds. The rentals are tax deductible, which helps to reduce taxable profits.

Contract hire

Contract hire is often called leasing. You agree to use the vehicle for a set period and mileage, paying fixed monthly rentals. At the end of the agreement, the vehicle is returned. This option keeps vehicles off your balance sheet and helps with budgeting, as servicing and maintenance can be included. The rentals are usually deductible for Corporation Tax, but restrictions apply if the car has high emissions.

Personal contract purchase (PCP)

Some directors use PCP agreements through the company. These combine monthly payments with the option to buy the vehicle at the end for a lump sum. The tax treatment is similar to hire purchase if the business owns the agreement, but careful thought is needed if it is held personally.

Final thought

There is no one best option. The right choice depends on cash flow, tax position, and how long you intend to keep the vehicle. Speaking with your accountant before committing can ensure the vehicle is financed in the most efficient way for your business.

Source:Other | 21-09-2025

Unauthorised issue of a VAT invoice

Issuing a VAT invoice without registration or authorisation can lead to HMRC penalties, even if it is done by mistake.

A penalty may be charged by HMRC when an individual or business issues an unauthorised VAT invoice showing or including VAT without being allowed to do so. The invoice does not need to be a formal VAT invoice; it only needs to show an amount that is shown as VAT or includes an amount attributable to VAT.

An unauthorised person is anyone who is not registered for VAT, not part of a VAT group, or not otherwise authorised to act on behalf of a taxable person, such as an insolvency practitioner or an auctioneer selling goods to recover a debt. Common examples include businesses operating below the VAT registration threshold, individuals who issue VAT invoices after deregistration or businesses who begin charging VAT before being VAT registered. Farmers who are not certified to use the VAT agricultural flat rate scheme, but issue flat rate invoices may also face penalties.

A penalty may be avoided if the person has a reasonable excuse for the error. However, unauthorised issuing of VAT-related invoices is treated seriously and may result in financial penalties.

Source:HM Revenue & Customs | 15-09-2025

Beware scams pretending to be HMRC

Fraudsters are continuing to target taxpayers with scam emails as the deadline for submission of self-assessment returns for the 2024-25 tax year gets ever closer. In the 12 months to 31 July 2025, HMRC received more than 170,000 reports of suspicious contact from the public, of which more than 45,000 related to fake tax refund claims.

A number of these scams purport to tell taxpayers they are due a rebate / refund of tax from HMRC and ask for bank or credit card details in order to send the fake tax refund. The fraudsters use various means to try and scam people including making contact by phone calls, texts or emails. In fact, fraudsters have been known to threaten victims with arrest or imprisonment if a bogus tax bill is not paid immediately.

HMRC’s Chief Security Officer, said:

‘Scammers target individuals when they know Self Assessment customers will be preparing to file their tax returns. We’re urging everyone to stay alert to scam emails and texts offering fake tax refunds.

Taking a moment to pause and check can make all the difference. Report any suspicious activity to us before the fraudsters do any more harm. Search ‘HMRC scams advice’ and refer to the scams guidance on GOV.UK to stay informed and protect yourself.’

If you think you have received a suspicious email claiming to be from HMRC you are asked to forward the details to phishing@hmrc.gov.uk, suspicious texts to 60599 and suspicious calls can be reported on GOV.UK. If you have suffered an actual financial loss you should contact Action Fraud on 0300 123 2040 or use their online fraud reporting tool (or Police Scotland via 101).

Source:HM Revenue & Customs | 15-09-2025