VQOTW: DISTANCE SELLING IN THE EU

VQOTW: DISTANCE SELLING IN THE EU

VAT l

My client is a small retailer specialising in bespoke leather goods, and all sales to date have been within the UK. In order to expand her customer base, she is launching a website and planning to sell through Amazon. Are there any VAT consequences she needs to consider?

New rules for payslips… Do you know what they are?

Payroll l

“New legislation around providing payslips came into effect in April 2019. We asked Martin Poole from Morrell Middleton, Chartered Certified Accountants on Clifton Moor, to shed some more light on the subject.”

HR EXPERT: VOLUNTARY OVERTIME & HOLIDAY PAY

HR l

My client had heard in the news about a recent “landmark” case on voluntary overtime and holiday pay. They want to know how this will impact their current business practices?

INSIDER JUNE 2019

Tax Insider l

Included in this month’s issue:

– SMALL BUSINESS OWNERS HIT OUT AT ‘UNFAIR’ UK TAX SYSTEM
– RETIREES TAXED £4BN MORE THAN PREVIOUSLY THOUGHT
– GOVT. URGED TO INTRODUCE STAMP DUTY TAX BREAK FOR DOWNSIZING
– CBI: ‘UNSUSTAINABLE’ BUSINESS RATES SYSTEM IN NEED OF REFORM

Click here for the full article.

TAX IMPLICATIONS OF WORKING FROM HOME

Tax l

Working from home offers all kinds of benefits, from the opportunity to create the perfect environment in which you can be most productive, to the improvements to work-life balance that come with ditching the commute.

THE SCOURGE OF LATE PAYMENTS

Budgets, Businesses l

When you supply goods and services, you expect to be paid, and promptly, but Britain has a deeply embedded culture of late payments. Indeed, for some businesses, delaying payment is an essential part of the business model.

MTD and Using Supplier Statements as Invoices

Accounting l

Digital record keeping requirements: Treatment of supplier statements or individual invoices

The Croner Taxwise VAT Advice line has received numerous calls from accountants whose clients receive large numbers of invoices from single suppliers, such as builder’s merchants or drugs companies.

VAT returns for those clients have historically been prepared based on the supplier statements ( often a monthly summary), rather than the individual invoices. However, the concern until now has been that the MTD requirement relating to digital record keeping of supplies received required each supply received to be recorded individually – an exceptionally onerous task.

The good news is that HMRC have recently updated the MTD VAT Notice 700/22, and this point is now specifically covered in paragraph 4.3.3.1. The update advises that while it remains HMRC’s view that best practice would be to digitally record the individual supplies, to manage risk of missed or duplicated entries, they accept that additional work for a business in capturing individual supplies digitally could in itself lead to data entry errors. On this basis, HMRC advise they can accept the recording of totals from a supplier statement where all the supplies on the statement relate to the same VAT period and the total VAT charged at each rate is shown. If a business does choose this option, they are also required to cross-reference all supplies on the supplier statement to invoices received, but HMRC go on to confirm this can be done outside of the digital records.

Link to Notice 700/22

VQOTW: DEREGISTERING WHERE THE TRADING PREMISES HAS BEEN OPTED UNNECESSARILY

VAT l

My client is a small independent retailer selling mobile phones and accessories, with turnover below the VAT registration threshold. Last year, in September 2018, they bought the premises they were occupying from their landlord. The landlord had opted to tax and the purchase price was £100,000 plus VAT. In order to recover the VAT, the client VAT registered and notified their own option to tax. The client’s turnover has remained below the threshold, and they have asked me whether they can deregister, and what the consequences of that would be.

TQOTW: CAPITAL GAINS

Tax l

My client owns a joint share in the freehold of a building which consists of five flats. One of the flats is occupied by my client under a 999-year lease.
The freeholders are to grant a new long lease over another flat in the building. My client understands that this will be a capital gains disposal event, but has queried whether a measure of principal private residence relief would be due to him, given that the disposal is out of the freehold interest he owns that includes his main residence.

Can you please confirm how to approach my client’s capital gains position, whether any main residence relief would be due to him in these circumstances and how this would be calculated?

VQOTW: PRIVATE TUITION

VAT l

My client is a Limited Company and runs a swim school, teaching children. The client’s turnover is close to £85,000. I would like to confirm that my client is making exempt supplies of education and therefore does not need to VAT register.

TQOTW: PROFESSIONAL FEES

Tax l

My clients have inquired about the possibility of claiming relief for expenses incurred in connection with closing down their company. In particular, they would like to know whether they could get tax relief for professional advice that they have taken and whether they can arrange for the company to make pension contributions on behalf of employees.

HR EXPERT: JURY SERVICE

HR l

My client has been informed by an employee that they have been summoned to attend jury service, what are the rules around this?

VQOTW: HOME OFFICE

VAT l

My client is the director of an interior design company. The company rents a small unit for storing stock, but this space is not really suitable for use as an office. She is exploring the possibility of having a home-office erected in her garden. Could you please advise on the VAT recoverability of such a project?

VQOTW: FLAT RATE PRE-REGISTRATION VAT

VAT l

My client is about to register for VAT and wants to use the flat rate scheme as she meets the conditions and it would be beneficial to her. However, her intention is to register for normal VAT initially, in order to recover pre-registration input tax, and then after the first return has been filed, switch to the flat rate scheme. Is this acceptable or will HMRC challenge it?