Massey Accounting Company

making your business less taxing


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Can you insure against a tax investigation?

Can you insure against a tax investigation?

If you’ve ever received that dreaded letter through the door you’ll know that a tax investigation is costly in at least two ways:

1. Additional tax, tax penalties and interest levied on the taxpayer.
2. Accountancy fees for their time spent defending your case.

Whist you can’t insure against HMRC penalties or what they might discover to be unpaid tax you can insure against your accountants’ time in defending your case; ensuring that the final cost of tax and penalties is as low as possible.

Why is Massey Accounting Company now offering a business protection service?

If you do receive that dreaded letter your first port-of-call should be your accountant. However, in our experience tax investigation fees cause strain on our relationship with uninsured clients. The alternative might be to accept the assertions of HMRC and prematurely settle the enquiry. We would feel much more comfortable having the freedom to defend your case to the hilt!

How much does it cost?

Our business protection service, in partnership with Croner-Taxwise, can be paid monthly or annually in advance and have £ZERO excess. There will be no difference in cost.

  • Personal Tax clients – £3 per month (£zero excess)
  • Sole Traders – £8 per month (£zero excess)
  • Partnerships – £9 per month (£zero excess)
  • Limited companies – £10 per month (£zero excess)

All levels of service includes free telephone access to specialists in:

  • Employment Law
  • Commercial Legal (including contract, corporate, property and landlord & tenant)
  • Health & Safety
  • Tax Investigation Service. Your business will receive representation from us in the event of an HMRC investigation. This service has a zero excess. We will deal directly with HMRC on your behalf giving you the peace of mind to focus on your business without the concern over unknown additional fees.

More info here: https://www.cronertaxwise.com/hr-support/telephone-advice/

What should you do next?

We believe that this product will benefit you and us alike – as such, we’re offering to provide free cover from now until the end of the year. Sign up now for immediate cover and payments won’t start until  January 2021. Simply send us an email. We’ll reply with your quote and sign-up forms.

RELATED POSTS

Enjoy saving tax?

We have two videos to help on our YouTube-logo-full_color channel; and for regular tax-tips follow our blog on  or click +Follow at the bottom of this page.


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Entertaining and Meals Out – What is the correct tax treatment?

Entertaining and Meals Out – What is the correct tax treatment?

Entertaining clients & staffCan your company pay for the occasional meal out? Maybe. You might be surprised at how much entertainment is allowable if you play within the rules.

Let’s have a look at a few scenarios:

Two directors enjoy a meal out to discuss business
Not allowable for corporation tax. In fact if the company does pay for the meal then the benefit should be reported and National Insurance paid on form P11D. To avoid this needless complication either the company should not pay for such meals or they should be posted against the directors’ loan accounts.

A director or employee takes a client out for a meal
Unfortunately, as above, business entertainment is not allowable against taxable profits. HMRC Guidance found here.

Annual staff function (usually annual xmas party)
Annual staff functions are an allowable expense provided the following criteria are met: The cost of the event does not exceed £150 (inc VAT) per head. The function is annual and not a one-off. Such staff entertaining is allowable for corporation tax and no benefit in kind will arise on staff members thanks to the exemption given by Section 264 ITEPA 2003.

In fact if there is more than one function or party within a tax year, as long as the cost does not exceed £150.00 per person for both functions, it will remain exempt from Income Tax. But, importantly both functions should be regular / annual, not one-off events.

Finally, two company directors (husband and wife) enjoy a meal out together which they hold as their annual staff function. The company has no other employees. Is this tax deductible?

Yes, presuming the function costs no more than £150 per head, all staff are invited and the function is held annually.

Nb: This guidance is not to be confused with costs of travel and subsistence (i.e. modest lunches in the normal course of business travel). See my previous post here.

Enjoy saving tax?

We have two videos to help on our YouTube-logo-full_color channel; and for regular tax-tips follow our blog on  or click +Follow at the bottom of this page.


Leave a comment

Entertaining and Meals Out – What is the correct tax treatment?

Entertaining and Meals Out – What is the correct tax treatment?

Entertaining clients & staffCan your company pay for the occasional meal out? Maybe. You might be surprised at how much entertainment is allowable if you play within the rules.

Let’s have a look at a few scenarios:

Two directors enjoy a meal out to discuss business
Not allowable for corporation tax. In fact if the company does pay for the meal then the benefit should be reported and National Insurance paid on form P11D. To avoid this needless complication either the company should not pay for such meals or they should be posted against the directors’ loan accounts.

A director or employee takes a client out for a meal
Unfortunately, as above, business entertainment is not allowable against taxable profits. HMRC Guidance found here.

Annual staff function (usually annual xmas party)
Annual staff functions are an allowable expense provided the following criteria are met: The cost of the event does not exceed £150 (inc VAT) per head. The function is annual and not a one-off. Such staff entertaining is allowable for corporation tax and no benefit in kind will arise on staff members thanks to the exemption given by Section 264 ITEPA 2003.

In fact if there is more than one function or party within a tax year, as long as the cost does not exceed £150.00 per person for both functions, it will remain exempt from Income Tax. But, importantly both functions should be regular annual, not one-off events.

Finally, two company directors (husband and wife) enjoy a meal out together which they hold as their annual staff function. The company has no other employees. Is this tax deductible?

Yes, presuming the function costs no more than £150 per head, all staff are invited and the function is held annually.

Nb: This guidance is not to be confused with costs of travel and subsistence (i.e. modest lunches in the normal course of business travel). See my previous post here.

Enjoy saving tax?

View our video: How to Save Tax YouTube-logo-full_color; and follow our blog on Google+ or click +Follow at the bottom of this page.