An unexpected enquiry arrived in the Tax Advice Network's inbox this week.
“I am becoming increasingly concerned about my potential liability to UK taxes.
I am non-domiciled and non-resident (I think) – certainly no permanent home here – but each December I work temporarily in the UK for a very intensive 24-hour period.
The work is unpaid, but I do receive millions of unsolicited (though habitual) benefits in kind such as glasses of port, mince pies and assorted festive treats.
I am worried I should have declared these to HMRC.
Their total value must be substantial, but I have no idea how to measure it. Is there an annual tax liability… and if so, how on earth would I value a mince pie in Aberdeen versus one in Acton?
I’m also getting anxious about Making Tax Digital.
As a sole trader, must I start filing quarterly updates in 2026? I genuinely don’t know whether my turnover exceeds the £50,000 threshold.
Do I count the notional value of billions of gifts delivered worldwide? And what about barter transactions — a carrot for a reindeer surely isn’t taxable… is it?
If I am subject to tax, I’d like to offset my travel costs and the expense of my vehicle and support team — none of whom are on my payroll.
Can I also deduct the cost of customer gifts? They’re not food or drink, but they don’t carry my business logo either.
I like to think I’m being nice… but am I actually naughty? Should I seek proper advice or can I safely ignore my self assessment and MTD filing obligations?
The message was signed “S. Claus”.
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