Lawyer Destroyer This is a common question and the short answer is yes, you generally can claim business expenses even if you paid for them from your personal bank account. The key issue is not which account the money came from but whether the expense itself qualifies as a legitimate business expense. The legal and tax position: … Read more
This is a question that touches on several areas of law and practice, so I will set out the main consequences and risks of mixing personal and business spending, depending on the structure of your business. If you are a sole trader: There is no legal separation between you and your business, so mixing personal … Read more
This is a common question and the answer depends on several factors, so let me walk through the key points. Basic position: If you are VAT registered, you can generally reclaim the VAT you have been charged on goods and services purchased for your business. This is done through your VAT return by deducting the … Read more
Whether you need to charge VAT depends on several factors. Let me walk through the key considerations. VAT registration threshold: You are required to register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period (this threshold was updated from £85,000 to £90,000 from 1 April 2024). You must also register if … Read more
Yes, HMRC can impose penalties for errors in VAT returns, but the nature and severity of the penalty depends heavily on the type of error and your behaviour when the error was made. The legal framework: The main provisions are found in Schedule 24 to the Finance Act 2007, which covers penalties for errors in … Read more
Late VAT registration is a common issue and HMRC takes it seriously. Here is what happens and what you can do about it. When you are required to register: You must register for VAT when your taxable turnover exceeds the VAT registration threshold, which is currently £90,000 (from 1 April 2024). There are two tests. … Read more
This is a very common question and the answer depends on a few key factors. Let me walk you through the legal position and practical considerations. Compulsory registration: You must register for VAT if your VAT taxable turnover in the previous 12 months (on a rolling basis, not just by tax year) exceeds the current … Read more
This is a broad question and the answer depends heavily on what type of trade or business activity you are carrying on and what licence or authorisation is required. There are many different licensing regimes in England and Wales, and the consequences of trading without the correct licence vary significantly depending on which one applies. … Read more
That is a really important question, but the answer depends entirely on the type of business you are running. There is no single licensing requirement that applies to all businesses in England and Wales. Some businesses need no licence at all, while others need one or more licences, registrations, or permits before they can lawfully … Read more
Yes, you can challenge your business rates bill, and there are several routes depending on what exactly you are disputing. It is worth understanding the distinction between challenging the rateable value of your property and challenging the bill itself, as these are handled by different bodies. Challenging the rateable value: The rateable value is set … Read more
This is a common question and the answer depends on a few things, so let me walk through the key points. Who is liable for business rates: Business rates (formally known as non-domestic rates) are payable by the "ratepayer," which is the person or company in occupation of the property. If you are renting a … Read more
This is a question that comes up frequently and the answer is yes, in many circumstances a commercial landlord can lock you out, but the legal position is quite different from residential tenancies and there are important details to understand. The legal mechanism: Commercial Rent Arrears Recovery (CRAR) and peaceable re-entry For commercial premises, landlords … Read more
This is an important question and the answer depends on the type of lease you have, whether you are a sole trader or a company, how much you owe, and what your landlord decides to do. I will set out the legal position and practical options. Legal position: If you fail to pay rent on … Read more
Getting out of a commercial lease early is one of the most common problems in commercial property and there is no single answer. It depends entirely on the terms of your lease, the circumstances, and what your landlord is willing to agree to. Let me walk you through the main routes. The starting point: A … Read more
This is one of the most common and important questions in commercial property law, and the answer depends heavily on the specific terms of your lease. That said, I can explain the general framework and what to watch out for. The starting point: what does the lease say? In a commercial lease, the repairing obligations … Read more
This is a common concern for commercial tenants and the answer depends on several key factors, principally the terms of your lease and whether you have security of tenure under the Landlord and Tenant Act 1954. The main scenarios: 1. Where your lease contains a rent review clause Most commercial leases include a rent review … Read more
This is one of the most important documents a business will ever sign, so it deserves careful scrutiny. Here is a structured overview of the key areas to check before committing. The demise and plans: Make sure the lease clearly defines exactly what you are taking. Check whether the demise includes common parts, car parking … Read more
This is an important area of law and one that every business owner should understand. The short answer is yes, a customer can bring a claim against you if they are injured on your premises, but whether they would succeed depends on the circumstances. Legal framework: The main legal basis for such a claim is … Read more
This is a broad but important question, and the answer depends on the type of premises, the nature of the visitors, and the activities being carried out. Here is a structured overview of the main legal duties you owe to customers visiting your premises in England and Wales. Occupiers' liability: The primary statute is the … Read more
This depends on the size of your business and the nature of the work, but in almost all cases the answer is that you need to carry out risk assessments, and in many cases they must be in writing. Legal position: The Management of Health and Safety at Work Regulations 1999 (Regulation 3) require every … Read more
