About ehr

Ewart is a chartered accountant in St Austell with 30 years' experience in the business. He values independence and enjoys meeting with people and helping them progress.

Author Archive | ehr

Making Tax Digital

Making Tax Digital

Making Tax Digital is a step towards government tax collection in real time. That may sound fanciful, but we’ve heard ministers and commentators talk about taxing internet transactions as they happen – maybe just wishful thinking. In 2010 the Treasury put forward the idea that employers might pay gross salaries to a government agency, which […]

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Looking through the invoices

When reviewing a set of accounts, it’s sensible to thumb through the purchase invoices in particular – even if someone has already done that in preparing the accounts – because it really does matter that your adviser understands your business. You don’t spend money unless there’s a good reason, and the goods or services you […]

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Email

Communications – Inbox Zero

  Communications forms a large part of our work.  It’s surprising how much time is spent not on traditional tasks like preparing accounts and tax returns, but simply communicating by phone and email.  It’s not often we receive a letter from a client now, in fact most paper letters are from HMRC. The more progressive […]

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MTD

HMRC’s “Making Tax Digital”

MTD is an acronym for Making Tax Digital, HMRC’s proposed way forward. It makes perfect sense – if HMRC could get taxpayers to report their income sooner, let’s say monthly, it leads to the possibility of collecting tax monthly.  This would be a huge improvement over the current system of collecting tax some 9-10 months […]

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Pennies

Saving the pennies

We know the saying “if you look after the pennies, the pounds will look after themselves”.  This might be a principle for every business. I was surprised to hear a client saying she usually throws away pennies and two-pennies, because it wasn’t worth the effort of keeping them.  “You can’t buy anything with a penny” […]

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Internet Purchase

Internet Purchases and Record-keeping

It’s about evidence.  If you get a tax enquiry, HMRC could ask a question like this: “Please provide supporting invoices for the expenditure listed in Repairs and totalling £3,567.” So you bought the office equipment via Ebay.  You know what it’s for, you know it’s genuinely tax-deductible, but can you find the paperwork? You see […]

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Brexit

Brexit, Imports and Exports

Besides the political upheaval and volatility that will follow the decision to leave the European Union, what direct effect will this have on a UK business? Import Duty and VAT Let’s look at a business importing plastic toys from China and then selling these direct to UK consumers.  When the goods arrive in the UK, […]

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Dividends – new tax rules from 1 April 2016

Through the smoke of the March 2016 budget, here is a change which was announced last year.  From 1 April 2016, a new tax will apply to company dividends, with the first £5,000 being tax-free, but above that a 7.5% tax rate will apply for the remainder of the basic-rate tax band.  For higher-rate taxpayers, […]

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Post box

Post & carriage – is it VATable?

  This is an example of one of those simple questions we are asked from time to time, but where the answer is not as simple as we would want. For an internet retailer it represents a more considerable amount.     Summary As it affects your SALES, the VAT treatment follows what you sell: […]

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Fairness?

Exceeding the VAT threshold – you forgot to tell HMRC

HMRC should not let taxpayers think that “cover up” costs less than “own up”… Recently a client  – quite accidentally  – didn’t notify HMRC when their income rose above the VAT threshold (currently £81,000) until about six months later. The general rule is that you have to tell HMRC within 30 days from the end […]

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