Clear House Accountants

Clear House Accountants Clear House are Accountants, Tax Advisers and Business consultants in London. We specialise in working with Small to Medium sized businesses.

Repaying your Director’s Loan Account? Make sure it’s a real repayment.An overdrawn Director’s Loan Account can create a...
03/09/2026

Repaying your Director’s Loan Account? Make sure it’s a real repayment.

An overdrawn Director’s Loan Account can create a significant tax charge for a close company under Section 455.

While repaying the loan can prevent or recover that charge, simply creating a transaction that looks like a repayment may not be enough.

A GAAR Advisory Panel case considered arrangements where a director owed his company around £1.77 million. A new company was created, shares were structured to have a claimed value of £2 million, and those shares were then transferred to the original company to clear the director’s loan account.

On paper, the loan had been repaid.

Economically, however, the director still had the cash originally extracted and remained effectively indebted within the wider company group.

The GAAR Advisory Panel considered the arrangements contrived and abnormal, concluding that they were not a reasonable course of action and were inconsistent with the purpose of the Section 455 rules.

The wider lesson is important for owner-managed businesses: clearing a Director’s Loan Account is not just an accounting exercise.

If you are approaching the nine-month deadline after your company’s year-end with an overdrawn loan account, consider your repayment options early. Dividends, salary or bonus, genuine cash repayment and transfers of assets can have very different tax consequences and arrangements designed purely to sidestep the Section 455 charge can attract HMRC scrutiny.

A business owner chose an accountant based on price alone.For a while, everything seemed fine.Accounts were filed, tax r...
03/09/2026

A business owner chose an accountant based on price alone.

For a while, everything seemed fine.

Accounts were filed, tax returns were submitted, and deadlines were met.

Later, a review uncovered missed tax reliefs, poor record-keeping, and opportunities that had never been discussed.

Nothing illegal had happened.

But the business had quietly paid more tax than necessary and missed opportunities to improve its financial position.

Good accounting isn't just about filing paperwork.

It's about asking the right questions before decisions become expensive.

The lesson isn't to pay more for the sake of it.

It's to choose advice based on value, experience and proactive support, not just cost.

When was the last time your accountant suggested a way to save tax or improve your business?

We're happy to have that conversation:
https://chacc.co.uk/

Buying something for your business doesn't automatically make it tax deductible.HMRC looks at whether an expense was inc...
02/09/2026

Buying something for your business doesn't automatically make it tax deductible.

HMRC looks at whether an expense was incurred wholly and exclusively for business purposes. A receipt helps support your claim, but it's only part of the picture.

Keeping a short note explaining why the purchase was business related can make future bookkeeping much easier, especially months later when you no longer remember the reason for the expense.

Good records don't just help at tax return time. They make it easier to support legitimate claims and reduce unnecessary stress if HMRC ever asks questions.

What's one business expense you always keep a receipt for?

Many business owners think VAT registration only matters once they reach the threshold. In reality, some choose to regis...
31/08/2026

Many business owners think VAT registration only matters once they reach the threshold. In reality, some choose to register voluntarily because it suits their business model, while for others it simply creates extra administration.

The right decision depends on factors like your customers, suppliers, industry, and future growth plans. Registering too early isn't always beneficial, but leaving it too late can create unnecessary complications.

The best choice is the one that supports your business, not just today's turnover.

💬 We'd love your opinion.
If you could choose, would you register for VAT early or wait until it became compulsory? Tell us why.

Have another accounting question? Leave it in the comments and we may answer it in our next post.

👉 Explore more practical advice for UK businesses:
https://chacc.co.uk/

Small expenses often don't feel important on their own, which is why they're easy to overlook.Fact: Over the course of a...
28/08/2026

Small expenses often don't feel important on their own, which is why they're easy to overlook.

Fact: Over the course of a year, those smaller allowable expenses can add up to a meaningful reduction in your taxable profit. Missing legitimate claims could mean paying more tax than necessary.

Good record keeping isn't just about staying organised. It's about making sure you claim everything you're entitled to.
Every pound you fail to claim is money your business doesn't get to keep.

Do you regularly review your business expenses, or only when it's time to prepare your tax return?

Find out how we can help:
https://chacc.co.uk/

Is your property sitting close to an ATED threshold? The valuation could make all the difference. 🏠ATED charges are dete...
27/08/2026

Is your property sitting close to an ATED threshold? The valuation could make all the difference. 🏠

ATED charges are determined by the value of residential property held within a company, and crossing into the next valuation band can increase the annual tax charge.

But property valuation isn’t always straightforward.

A recent Upper Tribunal decision involving a prime London property showed just how significant the difference can be. The owner argued for a valuation of £9.325 million, while the Tribunal ultimately determined the value at £11.75 million, putting the property firmly into the higher ATED band.

The case is a useful reminder that an ATED valuation needs to be properly supportable. Comparable properties, market movements, refurbishment, condition, location and even the choice of property index can influence the final figure.

This becomes particularly important when the valuation is close to an ATED threshold. A relatively small movement in value could change the property's tax treatment.

If you own high-value residential property through a company, it is worth making sure your ATED position and the valuation supporting it can withstand scrutiny.

Revenue is exciting. Cash flow is what keeps your business alive.It's easy to celebrate a month filled with new customer...
24/08/2026

Revenue is exciting. Cash flow is what keeps your business alive.

It's easy to celebrate a month filled with new customers, record sales, or signed contracts.

But none of those guarantee your business is financially healthy.

A business can be profitable on paper and still struggle to pay suppliers, salaries, or tax bills if cash isn't available when it's needed.

That's why successful businesses don't just monitor revenue. They regularly review:

- How much cash is actually available today
- Which customers still haven't paid
- Upcoming VAT and tax obligations
- Whether growth is creating profit or simply increasing costs

Growth should strengthen your business, not put it under financial pressure.

Question for business owners:

When was the last time you reviewed your cash flow forecast instead of just checking your bank balance?

Business owners usually budget for rent, salaries and software.The surprises often come from somewhere else.Bank charges...
22/08/2026

Business owners usually budget for rent, salaries and software.

The surprises often come from somewhere else.

Bank charges, insurance increases, licence renewals, compliance costs and forgotten subscriptions can quietly reduce profits without attracting much attention.

👇 Which unexpected cost caught you off guard?
🟢 Insurance
🔵 Banking fees
🟠 Software subscriptions
🟣 Compliance costs

What expense did you never expect to become a regular cost?

It's one of the most common misunderstandings in business.Fact: Profit doesn't always mean cash is available when you ne...
21/08/2026

It's one of the most common misunderstandings in business.

Fact: Profit doesn't always mean cash is available when you need it.

You can be making sales and showing healthy profits while still struggling to pay suppliers, wages, or tax bills because invoices haven't been paid or expenses arrive before income.

Understanding your cash flow gives you the confidence to make better decisions and avoid unexpected financial pressure.

Which do you monitor more often in your business, profit or cash flow?

Tell us in the comments, or if you'd like support planning ahead:
https://chacc.co.uk/

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207 Regent Street
London
W1B3HH

Telephone

+442071172639

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