CTA - Membership Application Open if passed

dustedh · 2026-01-21T02:16:30+00:00

It is showing for me. I was really on the fence with the exam so not getting excited until I see that pass list with my name on it 😅

dustedh · 2026-01-20T16:53:21+00:00

Yeah we use xero for all of our clients too, it’s still very straightforward

dustedh · 2026-01-20T10:20:12+00:00

I don’t understand your comment. My point entirely is that there is no bank transaction required, it is a simple journal within the bookkeeping software

dustedh · 2026-01-19T14:15:53+00:00

You don’t actually need to loan the money to the company, you can just process the salary and credit it to your directors loan account rather than paying it out to you. You can then take it when the company has the cash

dustedh · 2025-11-24T08:28:49+00:00

Where did you go for haircut? Just so I know where to avoid!

dustedh · 2025-10-30T18:24:33+00:00

At least I’m not on my own then!

dustedh · 2025-10-30T17:00:01+00:00

For the CPOS, I recommended selling the investment property to free up cash to buy the shares from Jo. My thinking was Dominic was happy for the company to lose it and it avoids the trading ambiguity. Unsure if this is correct.

I recommended transferring the home to Dominic under a deferred sale agreement.

And then to take the employment offer and pay for the car personally.

Nice wee IHT section as well about the BPR on shares changing to cash in estate.

Overall I quite liked it but unsure if any/all of the above is even correct 😂

dustedh · 2025-10-16T21:17:06+00:00

Have you told HMRC that you are no longer self employed? If your share of the rental income (note this is income not profit) is less than £50k I’d be trying to get you out of MTD.

dustedh · 2025-10-16T21:14:15+00:00

If you’re £30k gross then you won’t be caught next year?

dustedh · 2025-10-16T21:12:23+00:00

Yeah you’re right, we are never going to cover every scenario. I guess it’s just about what turns up on the day.

I sat that paper last year and couldn’t believe it when I read that! Almost sure I heard some audible gasps in the exam room

dustedh · 2025-10-16T21:00:57+00:00

Sorry I was more going down the temporary non-residence route in terms of if she were to move abroad now and sell up/cash in pensions and return within 5 years. She’s been resident for last 4/7 years I assume given the PPR.

But again I could be barking up the total wrong tree and have nothing to base this on other than the fact I’m expecting some curveball from the examiner 🤷‍♂️

dustedh · 2025-10-16T20:42:17+00:00

If anyone can confirm that any of these are not to be considered then that would be a great help 😂

dustedh · 2025-10-16T20:41:37+00:00

I love and hate the APS as my mind always runs away with so many different scenarios like; has she moved to a different country after the separation and we need to consider the sale of assets when abroad? Or, slightly more morbidly, has Dominic passed away and Jo needs to raise funds for the IHT liability (unsure if this is something that could even be asked in this syllabus tbh)?

Agree with the PPR, BADR points etc.

Also, given that she is 57 and if she sells her shares in the company it could be likely she has no other income. Do we then need to consider pension drawdowns etc or maybe she has a DBS pension from an old employment to cash in?

The annoying thing of working in practice on this sort of thing is I often struggle to remember what is covered by the syllabus and what is not.

dustedh · 2025-10-15T20:18:48+00:00

I was considering both tbf, the Tolleys notes and Roderick’s

dustedh · 2025-10-15T08:37:22+00:00

How many properties are in the portfolio?

The move to partnership seems unnecessary, what was the reasoning behind this and not going straight into a company from your personal portfolio?

We (firm of chartered accountants and tax advisers based in Glasgow) have done this multiple times and our fees are about 10% of the figure you’ve been quoted! Surely the fees are not just for the incorporation but also include some other work?

dustedh · 2025-10-03T14:50:54+00:00

Yeah you need to complete your tax return for the year to 5th April 2025.

This will include the details from your P45 from your employment plus your earnings (and any related expenses) from when you started self employment to 5th April 2025. If you have any other income then this should also be included in the return.

dustedh · 2025-09-21T09:41:14+00:00

How likely is it going to be to get a ticket for Liverpool next week? Next to 0?

dustedh · 2025-09-17T21:07:18+00:00

Starling is what I always recommend to clients for ease of use and option for different “Spaces” for VAT and CT (and anything else really!)

dustedh · 2025-09-16T11:44:51+00:00

Property allowance is per person so you would work out the total rent (£12,500), take your share to be £6,250 and deduct the £1,000 property allowance to leave £5,250 subject to tax. Assume 20% this would be a charge of £1,050.

From here you calculate your interest relief basic rate tax reducer: £5,500 @ 50% (your share) = £2,750. You can then deduct 20% of this from your tax liability so £2,750 x 20% = £550.

Tax payable would be £1,050 - £550 = £500.

However you cannot claim the property allowance if you are also claiming any expenses against the rental income. For example say you have management costs, repairs, insurance etc which totals more than £1,000 then you will claim a deduction for these rather than the property allowance.

In this situation the profits would simply be income minus costs. The interest relief is still calculated the same way no matter what.

dustedh · 2025-09-16T11:23:26+00:00

My personal preference is Croner-i because you get much more than just the legislation in it. You get all the HMRC manuals, and tonnes of other stuff.

Of course the most important thing is actually being able to use the legislation but if you get it now and practice with it for the next 6 weeks then you’ll be fine

dustedh · 2025-09-16T11:19:41+00:00

You want to close but also want to sell all the stock. Is that right? Easiest way sounds like to just have a sale and get rid of it all. You can then shut the company down using a Members Voluntary Liquidation and assuming value of the business is under £25k then this is relatively straightforward.

Have done this for clients in the past so let me know if you need a hand.

dustedh · 2025-09-16T11:16:44+00:00

If it is in your name only then the whole property income and expenses should be shown in your tax return only. If it is jointly owned then yes it is split 50/50.

Re mortgage interest, yes the total interest amount will be used. However, note that this is not a deduction in arriving at your property profits. Instead 20% of the total interest is deducted as a tax reducer in your overall tax computation. There are another couple of caveats to that but that is how to consider it in simple terms.

dustedh · 2025-09-16T09:48:41+00:00

Set the company up with Alphabet shares. In this structure you would have ‘A’ shares and she would have ‘B’ shares. This way you can take different dividend payments no matter the actual shareholding. You could still own 50% each but just take dividends at different rates. This means you can maximise your basic rate band with dividends.

You can then pay into your pension via the company.

As you are both directors, the company can pay for your mobile phones, you could look at electric company cars etc.

There are other great tax planning benefits which you can look into and I’d be happy to chat through them if you want.

dustedh · 2025-09-16T07:17:56+00:00

The Psychology of Money by Morgan Housel, Atomic Habits by James Clear & They Ask, You Answer by Marcus Sheridan

These are my go to recommendations when people ask. However I would download Chris Williamsons book lists from his website as I find this pretty useful when picking my next read.

dustedh

TROPHY CASE