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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Cement mixer image

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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Cement mixer image

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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HMRC – is your pumpkin smiling?

It is near Halloween time, which now seems recognised in the UK as a festive occasion by many, including HMRC.  HMRC is using this spooky stare (see left) to publicise its reduce tax evasion and avoidance campaign. HMRC has a view on other Halloween matters … In HMRC publication TN 07/07 (Uniform application of the […]

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Squeezing blood from a stone

Are you paying 46% tax on your salary?

  Many employees don’t realise just how much tax the government collects from employees. Let’s take an employee earning about £15k.  She has used up all her personal allowance, and so is in the basic rate tax band.   For each additional £100 of gross pay, this employee sees a deduction of: £20 tax £12 […]

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Credit Search

Your Credit Rating

    HOW TO GET YOUR CREDIT RATING I used Equifax to get my own information, partly to write this post, and partly to make sure there was nothing that should not be there. Only authorised bodies that hold a licence to do credit searches are allowed to do searches on other people, and for […]

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Progress of RTI

Employers, payroll bureaux and accountants should now be conversant in submitting monthly or weekly payroll returns under HMRC’s new “Real Time Information” system.  From our point of view, it is easy enough and for HMRC it’s the obvious way to go.  The controversial issue is the deadline for online filing, in that the online return […]

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