Common Questions
Frequently Asked Questions
I'm a Clapham finance professional with a contractor Ltd company. IR35 - inside or outside?
Depends on the client and working practices. Medium/large clients assess your status under the off-payroll rules, usually with CEST. Small clients: you self-assess. The substantive test is your working relationship - control, mutuality of obligation, substitution rights, financial risk, integration. For genuinely independent contractors with multiple short engagements, IR35 is usually outside; for long-term embedded engagements with one client, often inside. We'll review your contracts and working practices.
I host my Clapham flat on Airbnb when I travel. Tax treatment?
Depends on the pattern. If it qualifies as a Furnished Holiday Letting (available 210+ days, let 105+ days, no tenancy over 31 days, commercial basis) you get better treatment than standard rental: full mortgage interest deduction, capital allowances, and BADR potentially on sale. If it doesn't qualify it's standard rental with the Section 24 restriction. The FHL regime is being abolished from April 2025 with transitional rules. We'll review your pattern.
My Clapham bar uses tronc for tips. How does it work?
The tronc must be run by an independent tronc master (not the owner), with payments through a separate payroll. Tronc payments are subject to income tax but exempt from employer and employee Class 1 NIC. For a venue distributing £30,000-£60,000 of tips a year the NIC saving is substantial. The Tipping Act (October 2024) requires 100% of tips reach staff with no employer deduction. We'll structure your tronc properly.
I'm a Clapham contractor through my Ltd company. Year-end tax planning?
Director salary at the NIC optimum (typically £12,570). Dividend allowance use. Employer pension contribution up to £60,000 (tax-deductible). Equipment capitalised with capital allowances if over £1,000. Dividend timing across tax years. Spousal involvement if economically real. We run through the full checklist 2-3 months before year-end.
My Clapham restaurant has 12 staff including 3 students. National Minimum Wage?
NMW rates depend on age (apprentice, under 18, 18-20, 21+ National Living Wage). All staff must be paid at least their rate for all hours worked. HMRC are active in hospitality enforcement. Common issues: unpaid uniform, training time, travel between sites, deductions below NMW. Penalties can be 200% of underpayment plus name-and-shame. We'll review your payroll for compliance.
I run a Clapham High Street shop with one employee. Auto-enrolment?
If your employee is aged 22 to State Pension Age earning over £10,000, they must be auto-enrolled into a qualifying pension. Minimum contributions: 3% employer, 5% employee on qualifying earnings. NEST is the free government scheme. We'll set it up, assess each pay period and submit declarations.
I'm a Clapham landlord considering selling one of three properties. CGT planning?
Options to model: transfer to spouse before sale (uses both annual exempt amounts), pension contribution in the disposal year to extend the basic-rate band so more gain is taxed at 18% not 24%, timing across tax years for two exempt amounts, and capital improvements properly claimed. We'll minimise the CGT on the sale.
How do I get started?
Book a free 15-minute call via Calendly or ring 07478 645331. We work with Clapham clients fully online, we're experienced with contractor Ltd companies, hospitality venues and the SW4 landlord scene including short-let/Airbnb specifics.