VAT

VQOTW: WHAT DO HMRC MEAN BY TAXABLE TURNOVER FOR MAKING TAX DIGITAL

VAT l

My client works through her own limited company, providing public relations and marketing consultancy to businesses in the UK and all over the world. The business is VAT registered in the UK on a voluntary basis; is she going to be affected by Making Tax Digital?

VQOTW: AGRICULTURAL FLAT-RATE SCHEME

VAT l

We have a client who runs a plant nursery and claims that he is exempt from registering for VAT as the business falls under market gardening. I have searched HMRC’s website but can find nothing on this subject. Is he correct?

VAT Question of the Week: Input VAT – Too Late to Claim?

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My client has been approached by a builder, who carried out repair work to the client’s factory some years ago. The builder was late registering for VAT and is now looking to issue VAT only invoices to my client for the supplies in question. I have several concerns: is the supplier liable to account for the VAT if the supplies were made more than 4 years ago? Is my client obliged to pay and if so can he now recover the VAT given that the original invoices were dated more than 4 years ago?

Vat Question of the Week: Sale of Trading Premises

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My client, a small owner-managed company, purchased five-year-old freehold premises to trade from in June 2017. The total cost of the premises and refurbishment was 180K + VAT, which the company reclaimed in full in the 06/17 period, and the company has occupied it since for its engineering business. The business has always been fully taxable.

VAT Question of the Week: Hotel Deposits

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My client frequently has to stay in hotels for business. The hotel takes a deposit at the time of booking with the balance of the cost paid over when the stay takes place. Sometimes my client’s plans, or those of his customer, change and he cancels the booking and the hotel keeps the deposit paid. Some hotels send a VAT invoice covering the amount of the deposit they retain after the cancellation and some say that they cannot issue a VAT invoice because VAT is not applicable to the amount they have retained. Which is correct for VAT purposes?

MTD for VAT-registered businesses

VAT l

Obligations from 1 April 2019 onwards.

Although the Making Tax Digital (MTD) regime has suffered several setbacks and delays, MTD for VAT remains on course to take effect from its planned implementation date of 1 April 2019.

Under the scheme, VAT-registered businesses are required to maintain digital records, complete the VAT return from the digital records and send it electronically to HMRC.

Read the full article here.

FREE AUTO ENROLMENT & XERO ACCOUNTS SEMINAR (AND LUNCH)

About Us, Accounting, Businesses, National Insurance, Payroll, Pensions, Personal Tax, VAT, Xero l

xero-logo-hires-RGBPension-PeopleAuto Enrolment – everything you need to know about it and the lack of time you have to implement it!

Xero Online Account – How to keep your books sitting on a beach in Hawai whilst drinking cocktails!

Morrell Middleton have teamed up with Ardent Financial advisers to discuss the in’s and out’s of implementing the Governments solution to the pensions crisis – Auto Enrolment.

The rules will apply even to individuals who employ just one person, such as a nanny or gardener. Employers will have to enrol workers who are classified into 3 areas, Entitled Worker, Non-Eligible Jobholder and a Jobholder. Who is which and what you have to do for them is all in our notes!

HMRC announces £45m to improve customer service

Businesses, Corporation Tax, National Insurance, Personal Tax, Tax/VAT Cases, VAT l

angry-Homer-phoneHMRC has announced today that it is allocating £45m to improve customer service, as it released statistics  indicating a prolonged decline in the quality of its call handling.

The allocation will pay for around 3,000 additional staff to join customer service teams, alongside around 2,000 staff who are being moved over from other parts of HMRC to help with the tax credits deadline and letters and forms.

Why is an accountant needed?

Accounting, Corporation Tax, Growth, Tax/VAT Cases, VAT l

HectorWe are often asked “why is an accountant needed?” and “how do you provide value for money?”.

In the age of computerised accounting packages and online platforms for completing returns this is a reasonable question.

A big part of the answer is our knowledge of legislation, and how we can apply our knowledge to benefit those who we work with. A great example of this has been highlighted recently by Accountingweb, where HMRC have changed an interpretation of long standing VAT legislation which could have a significant impact on businesses who don’t take alternative advice, costing them £’000’s.

3 Months Free with Xero accounts and Morrell Middleton

About Us, Accounting, Businesses, National Insurance, Payroll, VAT, Xero l

xero-logo-hires-RGBAs one of Yorks leading Xero accountants we have teamed up with them to offer your first 3 months subscription FREE to existing and new clients of our accountancy practices.

Xero is the UK’s best Online accounting solution so for those people who operate on the move, have different locations for staff or just want less hassle in their book keeping lives then this may be a solution for you.

#VATMoss goes live from 1st January 2015 – does this impact on your business?

Accounting, Businesses, Growth, Law, Uncategorized, VAT l

MossSmall businesses trading online are up in arms about a new EU regulation, which states that from 1 January 2015, VAT on digital products will be chargeable in the place of purchase rather than place of supply in the EU.

The regulatory tweak – known as #VATMOSS – is being introduced to stop multinational corporations that trade online from diverting all their European sales through low-VAT countries, but is being predicted to hit smaller businesses in this sector hard.

UPDATE – HMR&C have provided some useful assistance which can be found at

https://www.gov.uk/government/publications/vat-supplying-digital-services-to-private-consumers

Let them eat . . . . CAKE!

Tax/VAT Cases, VAT l

afiSnowballsSilly VAT fact of the day: Snowballs are cakes (the tax tribunal says so).

Jaffa cakes are cakes because that was also tried and tested in the court.

Cakes are zero-rated because they are food stuffs for VAT, that is unless you are selling them as supplies in the course of catering (as in from a restaurant) when they become standard rated.

Biscuits are confectionary, confectionary is not a food stuff and so it is standard rated for VAT.

Key dates for your diary

About Us, Accounting, Businesses, Clients News, Corporation Tax, Growth, National Insurance, Payroll, Personal Tax, Tax/VAT Cases, VAT l

DiaryAs a self-employed person, or someone who is running a business every day is important. However, some dates should be in your diary to ensure that you don’t fall foul of HM Revenue & Customs or Companies House.

We’d recommend having the following dates in your business diary as reminders of tasks which need to be done.

Are you next on the taxman’s hitlist?

Accounting, Auditing, Businesses, CGT, Corporation Tax, IHT, Investments, National Insurance, Payroll, Pensions, Personal Tax, Property, Shares, Tax/VAT Cases, VAT l

Arthur DaleyTax crackdowns have arrived thick and fast in the past three years. Officials have targeted everyone from doctors to Avon ladies to claw back £35bn lost in unpaid tax each year – and more inquiries are in the pipeline.

Accountants claim that HM Revenue & Customs focuses on “soft targets” through special task forces that investigate specific job sectors.