Has client confidentiality been breached?

[EveryonesMother]

(Back info). I run a small holiday business from a rented property. I am sole proprietor. No employees although i do have hired help who invoice me.
My partner owns and runs a larger business with his son. They have approx 35 employees.
The property I run my business from is in my partners son and daughters name but is annexed to our home. This was done for inheritance tax avoidance. I pay them a peppercorn rent so all is legal.
We have the same accountant for both businesses, who is a personal friend of theirs.

My partner returned from an accountant meeting re his business and informed me they had discussed my business.
I was informed that due to new tax rules my landlord (S@D) is now responsible for paying my tax? (AS IF)
And that his D will set up an an account for my business income to be paid into. She will give me a CC/Cheque book to use, I will get a management fee and any monies left at year end after they have paid the tax.

In my mind this is practically taking my business away from me in all but name and I become an employee?

I am sat here thinking I am being stitched up for some reason. His business is going through a troubled patch, redundancies have been made etc.

Im pretty livid that it has been discussed and decisions made behind my back without consultation or authority.
Im sure there is a code of conduct for accountants and client confidentiality and this has been broken
I have arranged my own meeting with him eto discuss but AIBU?

Hmm. Well if you feel you can't question further or say no, it's an abusive relationship. Can you leave and take your business with you?
They obviously can't force you to start using this account or give them any information about your business.

Bollocks does your LL pay your tax and if the Business is solely yours your Accountant has no business discussing it with anyone else.
I have a Business and when DH had one with the same Accountant he had to give permission for me to speak to the Accountant about his business and vice versa.

Don’t make an appt with the same guy!! See an independent solicitor and accountant. Or you could contact Inland Revenue and ask their advice. They are helpful.

Your partner sounds dodgy as hell. Move your business elsewhere and get rid.

It doesn't sound right.

I'm wondering if it's relevant that it's a "holiday business". I might have totally got the wrong end of the stick but do you mean you use the annexe building for Airbnb type lets? Even though it's owned by someone else and you pay just a peppercorn rent. No idea though if there are rules to restrict that. If the annexe is leased to you and there is no restriction on subletting it then I still can't see the problem.

Maybe someone with accountancy experience can help?

Why on earth would you out your business to someone else’s name ffs. Very vey stupid.

Ask him to send you an email with his request and all the details so you have a record if you need to refer to it in future, and proof of his intent.

It may be that the accountant has a different version of events

Sad but sounds partly true.

HMRC are fairly strict about this sort of thing, but since it’s an inheritance issue you are unlikely to be affected by it.
If it was set up by the accountant that is now giving out batshit advice then it wouldn’t surprise me.
Are you a sole trader and do you pay your own tax? I can only assume that the accountant is looking to reduce the other businesses tax bill using your allowances.
You can check online with HMRC on your individual tax account how your income is being taxed. I would do this straight away just to make sure that the accountant hasn’t been taking liberties.

Rather unfair. One is quite acceptable and legal tax planning. The other is a blatant attempt to steal the OP’s business by spinning preposterous lies, and is a criminal offence.

OP, I can assure you that there is no such “new scheme”, it is an outrageous lie..

No change of name has been suggested. It is in m sole name.
Only the income he is requiring to be redirected.

However, on reflection, if you run your business and the money is fed into one big pot then the accountant may be worried that it will be seen as a loophole that may have been tax efficient in the past but may not be “legal” anymore. HMRC may have picked up on the fact it is a peppercorn rent and be investigating.
Obviously they are missing out on taxable income from the market rent. If it is run through the main business under their names this wouldn’t be the case and they can offset tax by paying you a salary and claiming the expenses.

I am not a tax specialist but because you indicate that your business is letting the property out (holiday rental?), rather than using the property to (for example) make pottery and sell it, I wonder is it the case that the accountant is saying that HMRC would DEEM that the rental income (and therefore the tax liability) belongs to the owners of the property?

In other words, maybe they are saying that the payment of a peppercorn rent is not sufficient to allow the rental income to be treated as yours. Because if it were sufficient, then realistically, landlord property owners who are in 40% tax bracket could arrange for their 20% tax bracket family member to pay them a peppercorn rent, so that the rental income from tenants is taxed on them, at their lower rate.

As I say I’m not an expert, but is it possible that, even if rules haven’t changed, HMRC are looking at the overall business / property etc and accountant has realised this could be an issue?

And you carried it on. So you went along with it.

And if you didn't even start the business yourself, then of course they see you as an employee.

You can't just say you had nothing to do with any of it, that's not going to wash legally.

Your lack of responsibility is astounding when you call yourself the proprietor of a business.

Yes I think pps have it . The business is the property itself rather than being a location to run it from.
who owns it?

Cross posted with @Angrymum22 but we are both thinking along the same lines I think

They are using you as a pawn in a game where they can be the only winners.

I used to work for a Property Letting company. They would seem to be setting you up as what they're suggesting just wouldn't happen. As for GDPR I don't think this would be classed as a breach.

This is what I’m thinking too.

Yes, having been self employed for all my working life you have to think differently. It’s actually very difficult to avoid inheritance tax legally and peppercorn rents are a nightmare. My BIL is going to have a big surprise when my MIL dies since he bought his mother’s home and charges her a peppercorn rent. I did voice my concerns but MIL gets what MIL wants. We will not be liable since she gifted the rest of us inheritance and it’s well over 7 yrs.

How is your relationship?

are you living in his home or do you own it too?

because my first thought was it sounds like he is disentangling things before making the final chop and dumping you…

Yes I started the business myself. It had been standing empty and falling into disrepair the council were then going to charge empty property tax rates which were unaffordable. I have run the business successfully for 3 years. I am very proud of it. I just dont see why my entire income should be diverted to my landlords account as my OP

Thank you.

The business is in my sole name. It is my income and I am taxed accordingly