Jim Mellor

Your Tax Return Says One Thing. Your Instagram Says Another. Guess Who Notices? Your accounts show £14,000 of profit. Your Instagram shows a £75k Audi, a week in Dubai, and dinner at The Ivy. Spot the problem? So does HMRC. HMRC now uses AI to cross-check lifestyle against declared income. Social media, online ads, even tagged photos - it’s all data. If the maths doesn’t add up, the algorithm flags it. Sometimes it’s innocent - the Rolex was borrowed, the car was leased, the trip was business. But AI doesn’t care about context. It just kicks off an enquiry. So what should you do? • Make sure your declared income matches reality • Remember: social media is public and permanent • Be ready to explain if the lifestyle looks bigger than the numbers Tax isn’t just about receipts anymore. It’s about the story your digital footprint tells. ⸻ If you’d like a free copy of my full 89 Tax Tips guide, just send me a PM and I’ll get it over to you. #TaxTips #HMRC #DigitalTax

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𝗛𝗼𝘄 𝘁𝗼 𝗚𝗶𝗳𝘁 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗪𝗶𝘁𝗵 𝗠𝗶𝗻𝗶𝗺𝗮𝗹 𝗜𝗻𝗵𝗲𝗿𝗶𝘁𝗮𝗻𝗰𝗲 𝗧𝗮𝘅 Thinking of gifting property to your children or other family members? 1. It’s not just a matter of transferring ownership - there are tax implications you MUST understand. Especially around Inheritance Tax (IHT). Here’s where the 7-Year Rule and Potentially Exempt Transfers (PETs) come in 👇 ✔ 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹𝗹𝘆 𝗘𝘅𝗲𝗺𝗽𝘁 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 (𝗣𝗘𝗧) ? A PET is a gift that may become exempt from IHT, if you survive 7 years after making it. This includes gifts of property (either entire or part ownership) given to individuals - not to trusts or companies. ✔ 𝗧𝗵𝗲 𝟳-𝗬𝗲𝗮𝗿 𝗥𝘂𝗹𝗲: 𝗧𝗶𝗺𝗲 𝗠𝗮𝗸𝗲𝘀 𝗧𝗵𝗲 𝗧𝗮𝘅 𝗙𝗮𝗱𝗲 If you gift a property and live for: ↳ Less than 3 years = Up to 40% IHT ↳ 3–7 years = Taper relief applies (gradually reduces IHT) ↳ 7+ years = No IHT on the gift (completely exempt) However, the gift may still trigger Capital Gains Tax (CGT) at the time of the transfer, even if no cash is exchanged. ✔ ️ 𝗪𝗵𝗮𝘁 𝗜𝗳 𝗬𝗼𝘂 𝗦𝘁𝗶𝗹𝗹 𝗟𝗶𝘃𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆? (𝗚𝗶𝗳𝘁 𝗪𝗶𝘁𝗵 𝗥𝗲𝘀𝗲𝗿𝘃𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗕𝗲𝗻𝗲𝗳𝗶𝘁) If you give away a property but still live in it rent-free, HMRC can treat it as if it’s still part of your estate. To make the gift effective for IHT, you must pay market rent to the new owner or vacate the property entirely. ✔ 𝗥𝗲𝗰𝗼𝗿𝗱-𝗞𝗲𝗲𝗽𝗶𝗻𝗴 𝗜𝘀 𝗖𝗿𝘂𝗰𝗶𝗮𝗹 HMRC may review these gifts years later. Clear documentation, valuations, and timelines are essential to prove the PET and avoid future disputes. 𝗪𝗵𝘆 𝗣𝗹𝗮𝗻 𝗘𝗮𝗿𝗹𝘆? Property values are high, and many estates creep above the IHT threshold quickly. Gifting early - strategically - can reduce your estate’s tax burden and ensure more of your wealth passes on to loved ones. 📅 Need help gifting property without paying more than you need to? 💻 If you’re unsure what HMRC expects from you under MTD, join me on the free webinar on September 4th - I’ll make it simple for you. DM me to register today! 💬 Have you thought about using the 7-Year Rule for your property gifts? 👤 Follow me, Usman Butt, for real-world tax strategies UK landlords can actually use.

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MTD IT IS COMING 😱 Making Tax Digital for Income Tax (MTD IT) is the biggest change to the UK tax system in decades 🤒 From April 2026, sole traders and landlords earning over £50,000 must keep digital records and submit quarterly updates to HMRC using compliant software ✅ (PS Dext have one of those compliant softwares called Dext Solo 😂 ) As an accountant or bookkeeper, MTD IT is going to change how you price services, engage clients and manage workflows, its a lot! 🤯 But MTD IT is also about opportunities, not just obligations 🫡 The MTD Oracle (AKA Paul L.) has produced a top tier guide for free for you to use to get your head around whats to come 🤩 Interested? Link in comments! 🥳 PS Nick Charnley my good pal also works in tax and is my pal in the picture 🥸 #mtd #mtdit #hmrc

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The one and only Chris Downing joined me to breakdown everything you need to know about preparing for HMRC's Making Tax Digital (MTD)… What You'll Learn: ✅ Key MTD deadlines and compliance requirements ✅ Step-by-step preparation strategies for businesses ✅ Common pitfalls to avoid during the transition ✅ Expert tips for seamless HMRC integration ✅ Real-world implementation best practices for business owners and accountants! Watch it now! https://lnkd.in/ebPdah_Y

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The High Court ruling on Liberty Steel’s Speciality Steel is a reminder of the challenges facing UK manufacturing. Nearly 1,500 jobs are now supported by temporary government stewardship, giving the business some breathing space. In situations like these, the immediate priority is stability, making sure employees are paid and operations continue. The bigger question is what comes next: securing the right buyer and ensuring a sustainable future for UK steel. Restructuring is never just financial; it’s about people, communities and the industries that matter to them. Steelmaking remains a vital part of Britain’s backbone, and it will take clear leadership and collaboration to move things forward. Read more in the Financial Times: https://lnkd.in/eg5G3hck? Robert Smith Laith Al-Khalaf #Restructuring #UKIndustry #Steel

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As expected, the high court have now appointed an administrator to the R&D advisor Counting King. As seems to be normal, those behind Counting King started another R&D advisory company earlier this year, called Orbit Tax Incentives Limited, and now appear to be trading via this. It's unknown if Counting King will be providing support to clients during their administration, but if not any with an open compliance check may need to seek assistance from a different advisor.

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Accountancy and advisory firm Dains Accountants & Advisers, which has a major office in Derby, has acquired Castle Donington-based TBAT Innovation Ltd Innovation, its third deal since securing private equity backing from @IK Partners. More expansion for Richard McNeilly and team. https://lnkd.in/ec6AqypR

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