Tax Terrapin has now answered 30k questions. What were the quirkiest queries?

So, how did Terrapin get so brainy?

Over the last 18 months we fed it more than 100,000 official HMRC tax guides, so it has a comprehensive understanding of UK tax issues, and Terrapin has actually passed seven mock professional accountancy and tax exams (they wouldn't let it take the actual exams because it's not human!)

What’s more, Terrapin is free to use and instantly answers in a simple, jargon-free way with a link back to the specific HMRC page that's relevant to the query. So not only do you get the answer, you can see where it came from.

Terrapin is answering even more of your questions

And we’re delighted that you seem to like it! In April 2024 and at the end of January this year - when self assessments are due - Tax Terrapin saw a 130% surge in questions (37% up on January 2024) and ANNA expects to see the same ahead of the end of the tax year on 5 April.

So what are people asking? To make you smile we thought we’d share…..

The 7 quirkiest questions

• Can I claim driving lessons for a cleaner as an expense?
• How to do Sex?
• Can I expense my take-away coffees if I am self-employed?
• How many Diet Cokes can an accountant drink per day?
• If I sell a cow, do I need to charge VAT?
• Is ice cream a variable supply in all circumstances?
• I own a Limited Company breeding horses. I need to invest in growing the horses for the first few years before they can be sold. Are the horses classified as assets on my accounts?

On a serious note, most questions focused on these topics

• Expenses and allowable Deductions
• VAT
• Limited Company Tax
• Self assessment
• Tax rates, thresholds, and allowances

So we can see that most businesses are still wrestling with the everyday issues of expenses, VAT and tax.

The 10 most common questions overall are

1. What expenses can be included in a self-employed tax return?
2. Do I need to register Ltd or be a sole trader?
3. Do I need to register for VAT?
4. How much Corporation Tax will I pay?
5. Is dividend or salary better?
6. What expenses are allowable for self employment?
7. What’s the tax-free dividend amount this year?
8. What is the personal allowance for 2023/24?
9. Can the mortgage on a property be deducted as an expense for a limited company?
10. Is the use of a mobile phone by a director an allowable expense for Corporation Tax if the contract is in the company’s name but the director uses the phone mainly for private calls?

We're not surprised by no.1! It must be one of the most common questions that sole traders face, but with many sole traders not using an accountant, it's left to Terrapin to give them some peace of mind.