Accountants in Martin's Corner

New companies often have a long first accounting period, which can mean two corporation tax returns for one set of accounts. It's normal, but it's exactly the kind of thing that's cheaper to get right first time than to unpick.

Receipts win arguments. HMRC doesn't demand a shoebox of paper any more — photos in an app are fine — but every deduction needs evidence behind it. A ten-minute weekly habit beats a January archaeology dig, every time.

The trading allowance means up to £1,000 of gross side income per year can be tax-free with no return needed. Above that, registration and reporting kick in — and platforms now report seller data to HMRC, so "under the radar" isn't a strategy any more.

Every tax bill is predictable months in advance — which makes tax the most plannable cost a business has. A separate tax savings account, fed a fixed percentage of every sale, converts January from a crisis into a transfer.

Disposing of crypto — selling, swapping one coin for another, spending it — is a capital gains event, and staking or mining income is usually income. Exchanges share data with HMRC, so the tax position exists whether or not it's been calculated.

Timing disposals across tax years, using losses properly, and the spousal transfer rules can all legitimately reduce capital gains bills — but only before the sale. CGT planning after completion is just arithmetic.

Status under IR35 turns on the reality of the engagement: control, substitution, mutuality of obligation. Contracts matter, but working practices matter more. A written status assessment for each engagement is cheap insurance.

People stay with the wrong accountant for years because switching feels disruptive. In practice the profession has a standard handover process — clearance letters, copies of prior returns and working papers — and the new firm drives it, not you.