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As a business owner it is important to be aware of your companies tax obligations and liabilities. There are a number of taxes that small businesses are required to pay. Below is our breakdown of the taxes you should know about as a business owner:

Corporation tax 

If you are the owner of a limited company and your profit is above a set threshold it is likely that you are required to pay corporation tax.  Corporation tax is self assessed- meaning that the company is required to calculate how much Corporation tax they owe. This should be paid nine months after the businesses tax year-end. 

VAT  

If your business sells products and services, then- depending on your company’s income- you may be required to start charging clients Value Added Tax (VAT). VAT is chargeable on the majority of products and services sold in the UK. VAT is usually charged at a rate of 20% of the price of the product or service. 

National Insurance 

If you employ staff then you are required to pay National Insurance Contributions (NIC). These payments should  be made directly to the HMRC when you run payroll. 

Income tax 

If you are a sole trader, you are required to pay income tax based off of the income of your company. You must start paying income tax once your income exceeds the personal tax allowance.

Business rates

The business rates you are required to pay depend on the location of you company and the type of company you run. There work the same as council tax.

Contact us for expert tax advice for business owners

A confirmation statement is a form that was introduced to replace the annual return (AR01) in June 2016. The purpose of an annual confirmation statement is to verify important company data registered on Companies House to ensure it is correct and up to date.

Compared to the statements predecessor, the Companies House form AR01, a confirmation statement (CS01) is more straightforward as it is not necessary to enter previously filed information if there have been no changes in the past 12 months.  A confirmation statement gives you simple ‘check and confirms’ option that allows you to move last year’s details forward.

What is included on an annual confirmation statement?

Below we have put together some of the information that is included on a confirmation statement:

·       Company name and registration number

·       Registered office address

·       Single alternative inspection location (SAIL address)

·       Location of the company’s statutory registers (i.e. registered office or SAIL address)

·       Information about each director

·       Full name

·       Former names used for business purposes within the past 20 years

·       Usual residential address

·       Service address

·       Date of birth

·       Nationality

·       Occupation

·       Information about each company secretary (if applicable)

·       Name

·       Former names

·       Service address

·       Principal business activities (Standard Industrial Classification (SIC) codes)

·       Name of each shareholder

·       Shares held by each shareholder – class, quantity, and details of any transfers

·       Statement of capital

·       total number of shares of the company

·       aggregate nominal value of those shares

·       aggregate amount (if any) unpaid on those shares (whether on account of their nominal value or by way of premium)

·       For each class of shares, you’ll also need to provide the:

·       prescribed particulars of the rights attached to the shares

·       total number of shares of that class

·       aggregate nominal value of shares of that class

·       Trading status of shares

·       Information about people with significant control (PSCs)

·       Name

·       Month and year of birth

·       Nationality

·       Country, state or part of the UK where the PSC usually lives

·       Service address

·       Usual residential address (this must not be disclosed when making your register available for inspection or providing copies of the PSC register)

·       Date he or she became a PSC in relation to the company (for existing companies the 6 April 2016 should be used)

·       Which conditions for being a PSC are met

Confirmation statement deadline

Your confirmation statement deadline, otherwise known as a confirmation date, is due on the anniversary of your company’s formation. You can find out this date by accessing public records.

Set Design by Andrezj Goulding 

The UK’s decision to withdraw from the European Union will have ramifications for all people and organizations in one form or another; whether that be through the cost of material or shipping tariffs.

One industry that is likely to be massively affected by Brexit is the creative industry.

As one of the UK’s fastest growing sectors, the creative industry is generally more anti-Brexit than the rest of the country. Reasons for this include the concerns surrounding the free movement of talent, funding and Britain’s reputation throughout the world.

The likely limits to free-movement that will result from Brexit could cause problems for travelling creative professionals i.e. performers touring Europe. Visas may be required in the future which can be expensive and timely.

Already-established acts are likely to feel the brunt of the changes less, however, there are fears it will be counterproductive for up-and-coming creative professionals.

Michael Dugher, former Labor MP, has called on the government to introduce a ‘touring passport’ to get around any limitations to travel.

Foreign studios spent £1.7billion in the UK in 2017- almost double the amount spent four years previously. The majority of this money was sourced from the U.S.A., spurred on by the fall in the value of the pound after the vote to leave the EU, which made it more attractive for U.S. studios of film in the UK. If a wide-ranging free trade deal is established with the US, this trend would be likely to continue.

Contact us for more expert tax advice for creative industry professionals and companies in the UK

Rinat Ashenazi Motion Design https://www.behance.net/hrinat

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Written by Alistair Bambridge
Partner & Founder
About Alistair

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Updated: 24/08/2022

If you are considering withdrawing from your pension early it is important to understand the different components of your pension that may lead to hefty fines. 

A rise in 'Early Pension Release' offerings from companies have been found in recent years. Anybody considering taking advantage of this offering should do so with caution and seek the appropriate advise. Early Release Pensions, some times called 'Pension Unlocking' involves withdrawing money from your pension before the minimum age of 55 (57 from 2028). 

Although not illegal, Early Release Pensions, have often been employed by scammers and sadly many innocent people have lost their savings as a result. Unless you meet specific conditions, you’ll be charged a substantial amount of tax on your early pension withdrawal.

Pension providers may charge you up to 30% on the total sum you withdraw which is a considerable chunk of money to miss out on. Further to this, the pension provider is then required (by law) to notify HMRC that you have withdrawn money from your account. This will be followed by a hefty 55% tax on the remaining amount you're left with after the previous 30% cost was incurred. Whether you felt you were aware of the potential costs or not, HMRC will require you to pay up. You can offer to pay the money back into your pension fund if you are yet to spend it but under certain circumstances, you will not be allowed to do so. 

EXCEPTIONS WHERE YOU MAY AVOID FINES:

There are some early pension tax exceptions that the HMRC allows where you may be able to access your pension pot early. It is important that this be done through certified professionals to ensure that you are eligible and avoid unnecessary expenses. 

1) You are severely ill and need to retire early for health reasons. 

2) Your life expectancy is less than a year

3) you had previously declared a 'protected retirement date' which brought the date of withdrawal forward. This had to have been created before 06/04/2006. This pension privilege is reserved for those in professions that are unrealistic to be in until the standard retirement age. 

In both these cases, your money would be released to your directly from your pension provider. 

Pension release at 55 

Once you have reached the age of 55 you can release money from your personal or work pension. 

Up to 25% can be withdrawn from your pension pot tax-free. This can be done as a lump sum or in smaller instalments.  

For more information on pension tax planning contact us 

Bibliography

• HMRC Pension Exceptions

Retirement planning doesn't have to be complicated but can often be neglected because we like to prioritise our current spending. Failing to pay into a pension or disregarding retirement saving might make your bank account a little fuller in the short-term, but when you reach an age where generating an income isn't as easy as it once was, you'll find yourself high and dry if you don't plan ahead. According to a study by Which? the average household needs £18,000 a year to cover household essentials and this doesn't include costs of any bucket-list items you might have been saving for your wonder years - keep reading to find out if you're doing enough to save for your retirement.

You might want to start by finding out how much you already have saved. While household essentials came in under £20,000, the figure rises to an average of £26,000 when you take into consideration 'luxury' additions like leisure activities (what retirements are made for!). If you check up on your funds and they're underperforming, having a reshuffle and seeing what other plans are available will help maximise your assets.

According to the Bureau of Labor Statistics, the average worker will hold 10 different jobs before the age of 40 and this can make keeping up with your work pension schemes difficult. You may have funds saved you've forgotten about entirely and you wouldn't be alone - at the last count, there was £3 billion of unclaimed savings. Workplace pensions can be traced using 'Pension Tracing Service' and for Personal plans give 'The Pensions Advisory Service' a call. This will make sure you are getting all the funds you're entitled to. You may then wish to place all your funds under the same scheme to make keeping track of your savings easier. While this might not be possible with some savings due to penalties or complex clauses, modern schemes can often be cheaper and more tax-savvy, so explore all your options.

Pensions are tax-friendly so if you can afford to pay more each month into a retirement fund it can really pay off. You will tend to find increasing the amount you pay into a Workplace pension scheme will prompt your employer to match your contributions. With Personal pension plans, savings are from untaxed earnings resulting in a 25% increase on savings where you would have normally paid 20% income tax on any earnings. If you're a higher rate taxpayer, filing your annual tax return will enable you to claim back additional tax you paid on your contributions. 

If you haven't yet started paying into a pension plan, whether it be through work or a personal alternative, it's never too late to start. When taking into consideration tax breaks, even if you haven't accumulated much you'll have dropped into a lower tax band at retirement age and therefore pay less in taxes when you choose to cash out. By law, 25% of the money you take out upon retiring is tax free regardless. 

Contact us for expert tax advice

SO... What is it?

The Museum and Galleries tax relief was introduced in November 2017 as an opportunity to claim back money on the production of Exhibitions. 

The premise of the tax relief is to allow museums and galleries which are charities to claim back some of the cost they incurred to put on their exhibitions, which the government hopes will make promoting the work of creative industries more sustainable. 

Non-touring exhibitions rates of 20% and touring rates of 25% will be applied to the equivalent of £500,000 of qualifying expenditure per exhibition. Current calculations are based on 80% of qualifying expenditure but must be incurred on and after 1 April 2017 but before the 31st March 2022. 

Do I qualify?

Even if you don't currently pay corporation tax, you can apply for the relief as long as you claim through a company that could potentially pay corporation tax. HMRC will cover the tax relief for the company if they don't infect pay corporation tax. Claiming as an individual is not allowed unless you are constituted as a company.

Is my exhibition eligible?

Exhibitions are defined as any scientific, historic, cultural or artistically-related objects, works or artefacts that are displayed. They must be accessible to the general public, but there may not necessarily be a charge to see the items. Your exhibition will not qualify if it for competition purposes or if your main purpose is to sell the products displayed. 

The exhibitions should take place in a building such as a gallery or museum however libraries or exhibiting outside can also qualify. It should be planned, curated and there should be a clear understanding of what your exhibition is set out to achieve. 

Touring exhibitions will qualify is shown in two or more venues and at least 25% of the pieces are shown at every  subsequent venue after the first. A tour is also defined as a series of dates where you exhibit your work, and therefore the time gap between each location cannot exceed 6 months.

So how do I make a claim?

Incurring costs is inevitable when filing a claim due to the administration and resources used but it's important you seek advice prior to ensure you follow correct procedure. Claims go directly through the tax system so you will need to complete a full corporation tax return (CT600) as well as providing a breakdown of your exhibition costs. You will also be asked to provide accounts, tax computations and any evidence of other expenditure that you feel is relevant. You will not receive tax relief for marketing strategies, legal services, or running costs from the day of opening. 

Contact us for more expert creative industry tax advice

Our client Anna Rhodes (Rhodes Studio) work with One Direction

We have worked with both start-ups and established businesses in the creative industry for over 10 years. Our wealth of knowledge in creative industry business tax allows start ups to access all of the exclusive tax breaks they are entitled to, that will enable them comfortably make it through their first year.

 

New Creative Industry Start Up Venture

Cash flow is often the make or break factor of any business. Prompt invoicing and good credit control are essential to you businesses success and survival.

There are a number of tax reliefs that exist to support companies that are just starting out.

 

Pre-Trading Expenditure Relief

Many creative industry entrepreneurs spend years preparing for their businesses launch- buying equipment, such as camera equipment, bit by bit. Whether the purchases were consciously towards your launch or an unconscious contribution towards your unforeseen business, the expenditure is often claimable.

Pre-trading expenditure can be deducted from the turnover of your businesses first accounting period- as if it has been incurred during the first year of trading.

Please note there are some items that do not qualify as a claimable pre-trade expense, such as capital expenses.

 

VAT

Whether you need to register for VAT is likely to be an early consideration.  There are a number of compulsory registration requirements that may well mean that you do not have an option.

If you are likely to be incurring work-related expenses on a regular basis we often recommend you register for VAT from the get go. For instance, if you are a filmmaker and are going to have to upgrade your camera and editing equipment regularly.

 

Pre-registration VAT

If you have decided to register for VAT, you should first consider whether any work related VAT has occurred prior to registration. Pre-registration input VAT may be reclaimed on goods acquired within four years of the effective registration date (EDR), provided the goods are still in use at the EDR, and for services within six months.

 

EDR

If you register for VAT after beginning trade, it is important to ensure the optimum date for recovery of the maximum pre-registration input tax. For voluntary registration, the EDR can be backdated to upto four years.

Early year Losses

It is perfectly normal to make slight losses within your first year of business. To aid start-up losses, the normal one-year carry back facility is extended to the three years preceding the loss. This extension applies to losses incurred in the first four years of trade.

This can be extremely useful for entrepreneurs who were previously employed, as sideways loss claims can lead to a tax refund- providing a cash injection for the your business.

 

Sideways loss Relief

In order to claim sideways loss relief you will need to prepare your accounts and tax return on the accruals basis. The HMRC will deny relief if it determined that the trade is not being pursued on a commercial basis, i.e. it’s actually a hobby.

 

Contact us for expert creative industry tax advice for start ups.

As a UK business considering expanding to the US it is essential that you understand that tax obligations and implications you will incur as a foreign business in the US. 

EIN and Form 8832

Before any forms are completed, the firm must obtain an Employee Identification Number (EIN) from the IRS.  When this happens, the IRS will automatically designate the company as either a corporation, partnership, or disregarded entity with one owner.  From there, the foreign company should fill out form 8832 to either confirm this classification or elect a different one. 

W-8 Forms

The most important step in this process is filling out one of the W-8 forms.  This type of form acknowledges that the foreign company intends to take advantage of the tax treaty they have with the US, and therefore will see the 30% withholding tax reduced.  For UK businesses, this rate is reduced to 0%, so they should not have to pay any withholding taxes on payments received from US businesses.  This applies to a wide variety of income types, including interest, dividends, rents, royalties, premiums, annuities, and compensation for services.  In most cases, the company making the payment or the IRS will tell the firm which form to fill out.   Usually, foreign entities will fill out W-8BEN-E while partnerships will use W-8IMY. 

Setting a business up in a physical location of the US

If the UK company decides to set up a physical location in the US, they will be subject to US corporate tax.  The firm should file form 1120 and pay the tax to the IRS.  This income should also be reported on the UK tax return.  However, they may file for double tax relief under the UK/US tax treaty and reduce their UK tax liability by the amount of US tax paid.  If the company does not have a physical location in the US, they do not have to pay US Corporate Tax. 

Form 1065

Additionally, the IRS may request that a company entering the US provide records of their income and expenses for past years.  This is commonly done using Form 1065, and is strictly for reporting, not tax, purposes. 

By following these steps, any UK business can efficiently begin operating in the US while minimizing their tax burden and remain in accordance with all US tax laws.    

Contact us for expert US Corporation tax advice

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Written by Alistail Bambridge
Partner & Founder
About Alistair

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Updated 21st September 2022

As accountants specialists in UK and US investments,  we have experienced increased demand from both clients and our article readers for more information on UK tax on cryptocurrency. 

This article will break down how cryptocurrency is taxed in the U.K and tax planning considerations for cryptocurrency in the future. 

We will update this article as the UK tax treatment of cryptocurrency develops. 

For an explanation of how cryptocurrency is taxed in the US and  how to reduce US tax on cryptocurrency- go to this article 

Disclaimer:

Please note: Recommendations and obligations for crypto investors will vary depending on the circumstance. This article offers a general overview of the topic.

We recommend always consulting a certified UK tax adviser for cryptocurrency to ensure your investments are treated in line with UK tax law and for maximum savings against tax.

Skip to different questions in the articly by selecting from the list below

How is cryptocurrency taxed in the UK?

How Capital Gains Tax is applied to Cryptocurrency 

What can I deduct when calculating my crypto gain/ losses?

Do you pay tax on all crypto gains?

How to pay capital gains tax on cryptocurrency in the UK?

UK Income Tax on cryptocurrency 

What should you know about Paying Employees in crypto-assets

What you should know about Trading (buying and selling) Cryptocurrency?

UK Inheritance Tax on cryptocurrency 

Are gifts of cryptocurrency taxable in the UK?

Tailored advice for UK tax on cryptocurrency

What is Cryptrocurrency?

'Cryptocurrency' is a term often used when referring to ‘virtual currencies. 

Cryptoassets or cryptocurrency- sometimes called “tokens”-are defined by HMRC as “cryptographically secured digital representations of value or contractual rights that can be transferred, stored and traded electronically”. 

Bitcoin is by far the most popular and well-known cryptocurrency. However, there is a wide range of cryptocurrencies available both to invest in and purchase. Some examples of cryptocurrency include

• Bitcoin
• Ethereum
• Tether
• USD Coin
• BNB

Access to all cryptocurrencies in rank order can be found on Coin Market Gap

The value of some types of cryptocurrency has risen at such a rate that ‘bitcoin millionaires’ are becoming a norm. The surge in cryptocurrency income has been followed by an increased interest in how virtual income is taxed in the UK

How is Cryptocurrency Taxed in the United Kingdom?

As with any other currency, there is no specific crypto tax in the UK. Instead, your crypto will be subject to either income tax or capital gains tax.

 Whether you pay income tax or capital gains tax will depend on how you're using crypto and the particular transactions you’re making.

The treatment of cryptocurrency in the UK tax system is an evolving area, we will keep this article up to date with all the latest UK cryptocurrency tax changes.

Save this article to your bookmarks so you always have it to hand when handling UK taxes on your cryptocurrency

How Capital Gains Tax is Applied to Cryptocurrency

In the majority of cases, you will hold crypto assets as a personal investment, usually for capital appreciation or to make particular purchases. In these instances, you will be liable to pay Capital Gains Tax when you dispose of the crypto. 

A ‘disposal’ is a broad concept and includes: 

·      Selling crypto for money

·      Exchanging crypto for a different type of crypto

·      Using crypto to pay for goods or services

·      Giving away crypto to another person (unless it’s a gift to your spouse or civil partner)

View the capital gains thresholds

What Can I deduct When Calculating my Crypto Gain/ Losses?

There are certain allowable expenses/deductions that can be claimed when claiming a loss on your cryptocurrency against tax. These include, but are not limited to: 

·      Transaction fees paid

·      Advertising costs for a purchaser

·      Professional costs eg. to draw up a contract for acquisition or disposal

·      Costs of making a valuation or apportionment to be able to calculate gains or losses

·      Exchange fees

Speak to one of our chartered crypto tax accountants for more information on what you can claim

Help on calculating your crypto gain/loss:

This can be complex, however, with a want for providing you with as much information about UK tax on crypto as possible we have included. If any questions come up just drop us an email. 

Feel free to skip to “Do you pay tax on all crypto gains?” if you would like to avoid technical jargon.

The gain/loss is equal to the disposal proceeds less the base cost of the cryptocurrency.

The base cost is determined by applying specific ordering rules on a cryptocurrency by cryptocurrency basis to acquisitions:

1. On the same day.

2. Within the following 30 days.

3. From the ‘pool’, which effectively means that gains on disposal are calculated using the average cost of the cryptocurrency.

Do You Pay Tax On ALl Crypto Gains?

No, HMRC gives every UK taxpayer a Capital Gains Tax Allowance of £12,300 in the 2021-22 tax year. This means you'll only pay Capital Gains Tax on any capital gains over your £12,300 allowance. 

However, this allowance is not just for cryptocurrency, it includes all capital gains within a tax year eg. gains on shares, securities, property etc.

The rate of tax you will pay for any gain over the allowance will depend on your level of income (10% for basic rate taxpayers and 20% for everyone else).

How to Pay Captial Gains Tax On cryptocurrency in the UK?

You report cryptocurrency gains on the Capital Gains Summary (SA108) pages in your annual Self-Assessment tax return.

As cryptocurrency is neither a listed nor unlisted share, information on any capital gains or losses should be detailed in the section ‘Other property, assets and gains’ in boxes 14 to 22.

In some instances, you may want to declare your ‘buying and selling’ crypto transactions even if you didn’t make a taxable gain. Why? If you made a loss by 'buying and selling cryptocurrency, you have two options. 

1) Your crypto loss can be offset against capital gains of the same tax year. 

2) Your crypto loss can be carried forward indefinitely against gains of future years. 

All UK residents are required to declare taxable cryptocurrency gains on their UK tax return. If you’re a US expatriate living in the UK and have declared crypto gains on your US return, you will still be required to report the gain on a UK tax return. 

For US expatriated holding cryptocurrency the article “us crypto article*title” may also be helpful

For more information on how to report cryptocurrency gains, book an initial consultation with a member of our team today.

How does the UK handle Income Tax On Cryptocurrency?

If you fall into any of circumstances below, you are eligible to pay income tax on your crypto assets: 

• Payment for Work
• Staking Rewards
• Tokens recieved from Mining Crypto
• Airdrop

If you receive cryptocurrency as a form of payment then it will be regarded as taxable income, thus you should pay income tax on your crypto assets.

There are circumstances where the rules and regulations around the taxation of cryptocurrency/ crypto assets remain unclear in the U.K. as the HMRC has little guidance on the matter. These include engage-to-earn or play-to-earn platforms and include: 

• Referral Rewards like Binance Referral

• Learn to earn campaigns, like Coinbase Learning Center 

• Watch to Earn platforms like Odysee

• Browse to Earn platforms like Premission.io browser extension

• Play to Earn games like Axie Infinity

• Shop to Earn through browser extensions like Lolli

• Share Public addresses to earn on platforms like Moon Faucet

However, it can be inferred that earning tokens and coins in this manner can be classed in the same bracket as Mining crypto and Staking Rewards which leaves them eligible for taxation. 

If you do have to pay income tax on your crypto-assets the earnings will fall into the U.K. income tax brackets for the year that you are filing based on the economic worth at the time. 

For complete clarity on whether you owe income tax on any of these earnings, we advise that you speak to a tax professional who is familiar with the taxation of cryptocurrency

What Should you know about paying employees in crypto-assets?

Where you are seen to be making an income from crypto, you will pay income tax. 

Cryptocurrency received as employment income count as ‘money’s worth’ and are subject to Income Tax and National Insurance contributions on the value of the asset.

Cryptocurrencies are readily convertible assets if trading arrangements exist or are likely to come into existence.

Accordingly, employer and employee, NICs will be payable when employees are paid in exchange tokens. The employer must collect the income tax and NICs due and pay it to HMRC through Pay As You Earn (PAYE). This applies even if an employee does not have a cash salary, in which case the employee must “make good” the tax the employer has paid on their behalf within 90 days of the end of the tax year in which the asset was received, otherwise additional income tax and NICs will apply.

If you retain crypto assets that were subject to income tax on the acquisition, CGT may apply on a future disposal.

What Should You know about trading (buying and selling) Cryptocurrency?

Trade in cryptocurrency is very similar in nature to trade in shares, securities and other financial products.

 If your crypto activity is considered to be trading then Income tax will take priority over Capital Gains Tax and will apply to profits (or losses). 

However, it is only in exceptional circumstances would HMRC expect you to buy and sell crypto with such frequency, level of organisation and sophistication that the activity would constitute a financial trade in itself. It’s often the case that you would describe buying and selling crypto as ‘trades’, however, the use of the term ‘trade’ is not sufficient to be regarded as a financial trade for tax purposes.

For most, the activity will not amount to trading but will be regarded as an investment where Capital Gains Tax will apply.

UK Inheritance Tax on cryptocurrency

The HMRC considers cryptocurrency property of the deceased for the purposes of inheritance tax and their value will be calculated at the date of death.

As part of the estate, crypto-assets are treated according to the normal rules on inheritance tax. 

For example:

A total estate of less than £325,000 is currently tax free and over that amount the tax rate will be 40 per cent. 

Estates left wholly to spouses are normally exempt from tax regardless of their value, and donations to charity are always tax-free.

Cryptocurrency can fluctuate in value and a sudden drop could result in beneficiaries paying disproportionate taxes. 

For example:

 Assets could be valued at a certain amount for inheritance tax purposes but could be worth half of that a week later if the market crashes. 

Unlike with other assets, at present, there is no tax relief for this situation.

This means the amount of tax payable would not be updated to reflect a fall in value of crypto-assets after death.

Are gifts of cryptocurrency taxable in the UK?

Gifting crypto in the UK is taxed. 

A gift of cryptocurrency is seen as disposal and is therefore subject to Capital Gains Tax.

The proceeds are considered to be the value of the crypto on the date of the transfer. 

For inheritance tax purposes, the gift will be considered as a ‘potentially exempt transfer’ (PET) and no IHT will apply unless the ‘transferor’ dies within 7 years of the transfer. 

How the UK treats cryptocurrency compared to how cryptocurrency is taxed in the EU?

When comparing the UK’s tax treatment of cryptocurrency to how some countries in the EU we can see major variations. 

There is not currently one set rule for tax on cryptocurrency between EU countries.

In general, members of the EU "charge capital gains tax on cryptocurrency-derived profits at rates of 0-50%", which is very similar to the UK.

However, in the UK, taxation on crypto assets and future developments are seen as less defined than in some European countries. 

“Some countries like Malta and Portugal have gone as far as creating crypto havens.”

Tailiored Advice for UK tax on Cryptocurrency

Recommendations and obligations for crypto investors will vary depending on circumstance. This article offers a general overview of the topic.

We recommend always consulting a certified UK tax adviser for cryptocurrency to ensure your investments are treated in line with UK tax law and for maximum savings against tax.
To speak to one of our certified UK tax advisors drop us a message or book an appointment

Bibliography

• HMRC on cryptoassets
• Notes about Bitcoin
• Notes about Ethereum
• Notes about Tether
• Notes about USD Coin
• Notes about BNB
• View a list of known Cryptocurrencies
• What is cryptocurrency staking?
• HMRC captial gains allowances
• The Financial Times on taxation of cryptocurrency and inheritance tax
• Binance on Crypto tax havens
• Coinbase on non-taxable crypto actions

 

Band DNCE photographed by Henry Dean, www.HenryDean.co.uk

One of the first steps that we will take when looking at your accounts is ensuring that you are claiming absolutely every expense you are eligible to as a musician. 

MUSICIANS HAVE A NUMBER OF TAX DEDUCTIONS THAT ARE UNIQUE TO ANY OTHER INDUSTRY.

Below we have put together a list of some of the expense you are entitled to as a musician. 

CLOTHING

Clothing can be an extremely useful expense to claim on your tax return. As a musician you almost definitely spend some of your income on work-related clothing, whether it be clothing for auditions, shoots or rehearsals.

Clothing is definitely one of the more obvious expenses to claim. However for a smooth and painless tax-filing season every year, it is vital that you are aware of your entitlements when claiming this expense. Many musicians are subject to penalties and hold-backs due to over claiming. 

USE OF HOME AS AN OFFICE

Use of home as an office is an expense that all too often missed out by musicians. If you use your home to apply for auditions, rehearse or any other work-related uses you are entitled to claim this expense.

You are able to claim a percentage of your household bills for your use of home as an office.

TRAVEL TICKETS

Part of the nature of being a musician is constantly performing and practicing at different locations. All travel that is work-related is claimable against tax. Therefore flights, train-tickets and bus-rides to photography shoots are claimable. 

It is important to note that if your travel was partly personal-related, i.e. 5 days of your travel were taken as holiday, you must apportion the expense.

Work-related petrol and other motor costs are also claimable.

EQUIPMENT 

Perhaps on of the most obvious expenses to claim for a musician is work-related equipment i.e. your instrument or microphone! This expense can, however, be stretched much further. For example, the equipment need to maintain your instrument. 

Make sure you are identifying all work-related expenses on equipment. Equipment is defined as items that you intend to use for a prolonged period. Your do not include this in your business expenses but instead in an AIA (Annual Investment Allowance), which works to reduce the tax you pay. 

Find out more expenses and deductions you are entitled to as a musician. Contact us now.

 

Our client, Sylvia Flote, Model, Nevs Models

One of the first steps that we will take when looking at your accounts is ensuring that you are claiming absolutely every expense you are eligible to as a make-up artists. 

Make-up artists HAVE A NUMBER OF TAX DEDUCTIONS THAT ARE UNIQUE TO ANY OTHER INDUSTRY.

Below we have put together a list of some of the expense you are entitled to as a make-up artist. 

USE OF HOME AS AN OFFICE

As a make-up artist, it is not unusual to work with clients from your home or for other work-related activities. Use of home is a claimable expense that is all too often missed out, or inaccurately claimed.

You are able to claim a percentage of your household bills for your use of home as an office. This includes expenses on bills such as your mortgage/rent, electricity, heating and wifi

CLOTHING

Clothing can be an extremely useful expense to claim on your tax return. As a make-up artist you almost definitely spend some of your income on work-related clothing, whether it be clothing for meetings or comfy shoes to help you stand all day behind while working behind the scenes.

Clothing is definitely one of the more obvious expenses to claim. However for a smooth and painless tax-filing season every year, it is vital that you are aware of your entitlements when claiming this expense. Many make-up are subject to penalties and hold-backs due to over claiming. 

TRAVEL TICKETS

Part of the nature of being a make-up artist is moving from location to locations, working behind the scenes. All travel that is work-related is claimable against tax. Therefore flights, train-tickets and bus-rides to events are claimable. 

It is important to note that if your travel was partly personal-related, i.e. 5 days of your travel were taken as holiday, you must apportion the expense.

Work-related petrol and other motor costs are also claimable.

EQUIPMENT 

Perhaps on of the most obvious expenses to claim as a make-up artist is work-related equipment i.e. your make-up! This expense can, however, be stretched much further. For example, the equipment need to take a picture of your work for your portfolio.

Make sure you are identifying all work-related expenses on equipment. Equipment is defined as items that you intend to use for a prolonged period. Your do not include this in your business expenses but instead in an AIA (Annual Investment Allowance), which works to reduce the tax you pay. 

ADVERTISING

Getting your name seen and heard is a major part of being a successful make-up artist. Any methods you use to promote yourself in an effort to get ahead in your career is claimable. Whether you pay to be mentioned in an article or directory, run an ad campaign on your make-up blog or any other forms of promotion- it's claimable. 

Contact us to find out the many more expenses, deductions and reliefs you are entitled to as a make up artist

 

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