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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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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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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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Building your own Home – 2

This is the second of two articles about VAT and residential property.  The first article looked at the question we are sometimes asked, “I’m VAT registered, so if I build my own house, can I just put the invoices through my business VAT returns?” This second article looks at whether you should charge (or be […]

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Christmas parties – tax deductible or taxable?

Is it tax-deductible for the Employer? Yes.  The general rule is that entertaining is not tax-deductible, no matter how essential it is to winning business, but by exception, staff entertaining IS tax-deductible. “Staff”: in practice, the definition of ‘employees’ is extended to include retired members of staff and the partners of existing and past employees. […]

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Incentives

Incentives

Yesterday we received a letter from a firm of independent financial advisers (one we had not known before) which invited us to introduce our clients to this firm.  The letter said “we will initially share 33% of our fixed percentage fees and a further 10% of our fixed percentage fees for the time they are […]

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VAT-registered Trader – Building your own Home – 1

VAT-Registered Trader – reclaiming VAT on building own dwelling If you are a VAT-registered trader – a CCTV installer let’s say – and you start converting an old barn to live in yourself, you “know” that dwellings are not VATable and so you reclaim VAT on the costs in your normal trading VAT returns.  Is […]

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