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 22.214.171.124. 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
If you’re in charge of running a charity, you’ll know how it differs from operating a business and how its motives and goals vary.
Non-profit organisations are treated very differently under the law, and managing a charity’s accounts can offer some unique challenges as a result.
Read the full article here.
From April 2019, some estates in England and Wales could be required to pay almost £6,000 for a service that currently costs less than 4% of that amount.
This is because of a proposed change to the fees families must pay to administer the estate of someone who has died.
As the deadline approaches for submitting returns and paying tax for 2017 to 2018, HMRC reveals some of the most bizarre excuses it has received for not paying on time.
Read the full article here.
Going into Budget 2018, between leaks and political instability, few expected Chancellor Philip Hammond would have surprises left to spring.
How wrong we were.
Read the Full Article Here.
Hopefully you should all have now received the tax packs we sent earlier this month and an invitation to complete your checklist online at our website. Remember you also need to complete the tax return supplementary questionnaire online (Click Here). This replaces the paper ones we used to send – reception will send you a paper copy if you prefer.
This year we are trying to get everybody’s tax returns and accounts produced quicker so please complete the forms and send in your books.
HMRC have announced a consultation on Inheritance Tax and are welcoming views. I’ve included a link to a good article in the Telegraph which talks about peoples confusion and fear over the tax (Click Here) and the actual HMRC site if you would like to take part (Click Here).
This months edition includes:
– Smallest firms hit by higher pension costs
– Late payments affect almost half of small businesses
– Selected businesses begin Making Tax Digital testing
– Lack of funding holds back 1 in 4 SMEs
Downlaod the Full PDF Here
This Months Edition includes:
– Thinktank wants major reform of ‘inefficient’ tax system
– More workers aim to become self-employed
– Small firms not ready for data protection shake-up
– Small businesses ‘hugely’ embrace apprenticeships
With a new tax year almost upon us, many sole traders will be reviewing their business structure and considering whether it’s worth switching to a limited company.
There’s no denying that incorporating a business proved popular in 2017, with Companies House reporting a 7% rise in the number of actively trading companies – bringing the UK total to 1.9 million.
Last year’s statistics also showed this trend is no flash in the pan as the number of actively trading companies increased by around 610,000 since 2010.
If you’re a sole trader who has weighed up the pros and cons and decided to form a limited company, here’s what you need to know to complete the transition.
Companies can fail for several reasons and, for the most part, these aren’t the result of wrongdoing by the directors. For this reason, it’s perfectly legal to start a new company after an old one has become insolvent.
However, there are a number of rules that surround carrying on a similar business through a new company after the original company has gone into insolvency.
Known as ‘phoenixing’, this practice transfers the business, but not the debts, of the insolvent company to a new company.
But what is the problem with phoenixing, and what does the law say about it?
Traders have been able to prepare their accounts using the cash basis since April 2013, as long as they meet certain eligibility conditions.
This option was extended to landlords running unincorporated property businesses from 6 April 2017.
However, while traders must elect for the cash basis, it applies by default to landlords who meet the qualifying conditions.
Click Here to Downlaod
Bedtime reading for things to know about before and after the tax year end.
This month edition covers:
SME Borrowing rise
Retired income is up 13%
Small firms pay above 1% minimum Pension
This months copy covers:
Self Assessment Reminder
2017 Tax changes
Changes proposed for Flat Rate VAT
This months guide covers:
Small business finance
Business rates changes
This months insider guide covers:
- Pension reforms to cost £5b
- Lack of export ambition
- Flexible working/parenting
Last year 608,110 businesses were incorporated, here are a few things for you to consider when starting your own business. Click here to download
You may think that 31 January 2017 is months away but completing your self-assessment tax return is something many people fail to do straight away, and often it is not completed until quite late in the year. There are many reasons why completing your tax return NOW may benefit you;
We are proud to announce that we are supporting the DCS Autumn IT Showcase at the National railway Museum in York on the 22 November 2016.
Visit us and other vendors face to face between 10am and 4pm. Entry is free, just register here.
Welcome to Jemma Jones, Accountant
Jemma has joined us in October 2016 following a move to Yorkshire, and is studying towards her ACCA qualification.
Prior to joining the team Jemma has over 5 years of accounting experience supporting a range of businesses on areas including VAT, payroll, book keeping, taxation and year end accounts.
This months issue covers:
- EU workers uncertainty;
- Tax free childcare;
- Tax return deadline, and;
- £22billion paid in Corporation tax
Click to download
What will VAT look like after Brexit
– here are a few thoughts!
Click Here to download your copy
Everything explained about audits, accounts, penalties and why you actually need them. If you can stay awake!