Badges of trade – HMRC targeting Ebayers

HMRC target Ebayers

You may have heard about HMRC targeting people carrying on a business on Ebay, or bootsales.  HMRC are always keen to collect additional tax read more

Will I pay more or less tax next year?

While everyone will have heard about the increases in NI coming up, there have been other changes which may mean you pay less tax and NI next year. read more

Associated Company rules

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

VAT tips for building projects

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

Capital gains tax new rules 2010

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

June Budget 2010 Highlights for individuals and SME Business Owners

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

Green company car – is there such a thing?

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

Twitter Tax Advice week 2010-05-24

• RT @efficiencycoach: considering whether to go LLP, Ltd or sole trader? http://bit.ly/17KZb8 //good understandable blog #
• Is may tax code right, how many time have we heard that in 2010? Some guidance from AW Accounting http://bit.ly/dcHDeG #
• RT @britstockphoto: UK pro/am photogs – want to be a #BritstockPhoto contributor? Visit the web site and let us know! http://bit.ly/681Urz #
• Off to potential elderly client to assist with tax codes on state and other pension, taking MG Midget as it is sunny #
• RT @wavecrestglen we ship stuff to Africa for some UK charities. Pls DM with more info & I may be able to make intros -for @falconforge #
• @corksnob Although they are behind it is a great job, good price + tidy + friendly guys, come and look. http://tweetphoto.com/23301418 in reply to corksnob #
• Office moved temporarily to son’s bedroom desk to escape distraction of builders http://tweetphoto.com/23299543 #
• RT @AngliaSolutions: @alastairwood – ‘builders’ and ‘on time’ in the same sentence? Are builders ever on time? ) //3 weeks lare already! #
• Helping out client with PAYE underpayment, awaiting their figures from #Moneysoft and #Quickbooks so see if HMRC correct # read more

Is my tax code right?

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

Twitter Tax Advice week 2010-05-17

• RT @chapperscounts: HMRC have a new Agent Dedicated Line (ADL): 0845 366 7855 for SA and Employee PAYE queries. Live already apparently. #
• RT @ir35advice: Self-employed IT analyst wins ‘borderline’ IR35 appeal http://bit.ly/99caXx //Balance was “in favour of self employment” # read more