The Five Tax Traps (and what to do about them)

In this episode of The UltimateFD Podcast, I am joined by Tej Gill, a tax specialist who works with entrepreneurs across the UK, to go through five live tax traps that are hitting SME owners right now.

The tax environment for UK entrepreneurs has shifted materially over the past two years, and most business owners have not fully adjusted their approach. Tej and I recorded this episode because too many people are absorbing tax hits that could have been planned around with the right advice at the right time.

We work through each trap in detail.

Making Tax Digital is already live for sole traders earning over £50k in revenue, with quarterly digital submissions now mandatory and the threshold dropping to £20k within two years. Dividend tax rates have crept up across all bands, and Business Asset Disposal Relief has gone from 10% to 18% since April, for anyone planning to sell a business in the next few years, the cumulative tax cost is real and worth understanding now.

We also examine Substantial Shareholding Exemption, a corporate-level relief that can reduce the tax rate on a business sale to zero if the right structure is in place early enough. I share a personal example too: one proactive meeting with Tej's team saved me around 33% of my own tax bill this year, through entirely legitimate planning that I simply had not spotted until we sat down together.

This episode is for entrepreneurs who are serious about protecting their profits and positioning their business for a clean exit. If your current tax strategy amounts to hoping your accountant sorts it out at year end, the practical steps Tej shares here could save you a meaningful amount of money.

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