The flat rate scheme is one of the simplified ways HMRC offers for calculating VAT. While you still have to charge VAT on sales, you do not have to record VAT on all of the individual entries. You may well be able to save money by registering. read more
The VAT increase from 17.5 to 20% has been well publicised and everyone should be updating their software or calculations to account for VAT at 20% from 4 January. There are however various reasons why VAT may still be charged at 17.5%: read more
As we move into party season there are a number of issues which are pitfalls in planning the Christmas party. Some of the facts follow:
Associated Company rules
Small companies benefit from paying a lower rate of corporation tax on profits upto £300k so there is a danger that a wily director could set up a number of companies under his control to make the maximum benefit from this tax band. For this reason the associated company rules were introduced to block this loophole read more
Following on from some advice given by Traditional painter on their website about choosing a contractor and what questions to ask, we have added some tips which may save you some money on VAT
VAT registration is not obligatory until a company turns over more than £70,000 in a year (the 2010 threshold).
A VAT number is definitely a sign of credibility, but many top craftsmen work alone, and don’t need to register.
Be suspicious if a VAT registered company offers to do a job cheaper by not charging VAT. Not being alarmist, but the VAT man is omniscient and has great powers to act against both parties acting fraudulently!
AW Accounting http://awaccs.co.uk/tax-advice/vat-tips-for-building-projects have provided some tips relating to VAT on building work: read more
This post will be of interest to anyone likely to pay capital gains tax (CGT) as a result of a sale of an asset in the 2010/11 tax year. The June Budget introduced an overnight change to the CGT regime and HMRC have produced a fairly readable Budget Note 20 and a copy of the Example 1 from that release is reproduced at the foot of this article. The example uses a taxpayer whose income is taxed at the basic rate but in adding capital gains the inclusive income will be in the higher rate band. read more
We have been complimented on the updates posted on Twitter live during the Budget and hope to continue this by summarising the main points of interest to small business owners and individuals in the street.
The Chancellor George Osborne started by painting the picture of the poor state of the economy and among various political comments stated that due a cautious approach fiscal goals would be met one year earlier than expected in 2014. The inflation target will remain at 2% which has already been exceeded, this will peak at 2.7% later in the year and then reduce. In terms of the approach to the deficit a lower spending rather than higher tax route is being taken, read more
I was speaking to a client yesterday regarding the options of having a company car and coming from a carbon reduction background he was keen to have a low emission car and wanted to know the tax effect. This is an area where the government are encouraging growth using the taxation system as a carrot, to encourage lower emissions, the arguments regarding the costs and environmental impact of battery materials and technology we will leave to other forums. read more
A tax code or what HMRC call a PAYE Coding Notice is the means by which your tax free allowance is allocated to the pay for your job if you are an employee. Every month a portion of your income will not be taxed, and the rest will be taxed at the basic rate of 20% for the next £37k then 40% and 50% thereafter (for 2010/11) depending on how high your income is. Many employees and employers will be aware of the number of tax code notices issued early in 2010 and with many of these being incorrect many people are concerned as to whether this is correct. read more
There is a significant difference between the rights of an employed person as opposed to a self employed person, and this is most clearly reflected in their tax treatment. An employee has many more rights such as holidays and maternity leave but at the expense of higher taxes. It is therefore necessary to have an understanding of the differences.
One of the major tests is the degree of control exercised by the employer read more