#Tax law is set up by different politicians at different times to achieve different aims, so we often end up with a strange mix of outcomes.

You may know what your Income is for income tax & national insurance purposes, but what about pension purposes? Child benefit high income charge? Childcare vouchers?

Here's a list of the main sources of income and when they're applicable when dealing with #HMRC:

Now or later....For example, you're probably aware that when an invoice is raised it's usual to include it in Turnover. If the invoice is not paid by your year end, it will increase your Profits for tax purposes. Hopefully by the time the tax is due, normally 9 or 10 months after the year end, you've been paid so you're not losing out on cash flow.

However, you may not be aware that if as a shareholder in your SME company you rearrange your shareholdings by giving away shares to family non-spouse members or employees, tax can be due on you.

That doesn't make sense!

Here are the main questions we ask our clients before making a recommendation:

1. ARE YOU MAKING TAX LOSSES?

Yes - If you are a Sole Trader in your first 4 tax years of trading you can offset these losses against other taxable income from the previous 3 tax years.

1. 4 Years - If you are in the first 4 years of your business and make a loss, you can use this loss to reduce your tax bill in the previous 3 years, such as from the job you had before you set up your business. You will receive a tax refund.

2. £5,725 - If your profits are lower than £5,725, you don't have to pay the annual £140 Class 2 NI, unless you need a credit towards your state pension. Ask for a repayment for earlier years.

3. £7,755 - If your profits are higher than £7,755, you will pay 9% Class 4 NI. This gets you no state benefits and effectively increases your tax rate from the 20% income tax rate to a total 29% tax rate.