2026 Form 1099-NEC: split payment channels before testing $2,000
In a hypothetical $3,400 contractor file, only $1,800 counts toward the 2026 federal Form 1099-NEC test. Split direct payments from card and network payments first.
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Annual investment allowance: prove the tax date before claiming
A machine delivered on 20 December and paid for on 19 January can sit in the earlier year's claim. The contract, delivery record and due date decide it.
Canceled business debt: measure insolvency before the cancellation
A hypothetical $15,000 loan release splits into $10,000 excluded and $5,000 taxable. Compare all personal and business assets and liabilities at the right moment.
Company charitable donations: the tax deduction stops at available profits
A £3,000 cash gift is already expensed in the accounts. Add it back, deduct it once as a qualifying donation, and stop the relief when profits reach nil.
Company trading losses: map the previous 12 months before claiming
A hypothetical £30,000 tax loss meets two earlier returns with £46,600 of profit, yet only £28,400 falls inside the ordinary 12-month carryback window.
Dividends: prove available profits before preparing the voucher
The bank holds £45,000 and the directors want a £20,000 dividend, but the relevant accounts support £17,000. Check profits before the voucher is written.
PAYE payments: reconcile the HMRC charge and the payment allocation
A hypothetical £3,900 late PAYE payment leaves the bank while HMRC shows the month unpaid. Rebuild the charge, check the reference and leave correct payroll alone.
Sole proprietor draws: personal spending does not reduce profit
A $5,000 transfer and $300 of groceries are draws, while $400 of supplies paid personally stays a business cost. In this hypothetical, profit is $17,600.
Sole proprietor insurance: separate business cover from owner health
In a hypothetical 2025 return, $1,200 of liability cover reduces Schedule C profit while $4,500 of owner health premiums does not. Keep the two routes apart.
Worker classification: keep the evidence behind the contract
A contractor agreement cannot settle federal worker status. Keep evidence of who directs the work, who carries the risk and how the relationship runs.
Annual VAT accounting: reconcile instalments to the final return
How UK businesses on the VAT Annual Accounting Scheme can keep box 5, paid instalments and the balancing payment separate.
Cash-method inventory: keep the cost-of-goods trail
What a small US reseller should check before treating a December stock payment as a 2026 cost.