If you took the opportunity to defer your vat payment between March and June 2020, then you must act before 21st June 2021 to either pay in full or set up a payment plan with HMRC otherwise you will incur 5% penalty. Last year at the start of the covid pandemic, the government allowed businesses…Read More
The VAT Margin scheme is when you charge your customers VAT on your sales, without incurringunfair VAT liabilities on the sales that are eligible for a margin scheme. This is because HMRC hasintroduced a fairer way to declare the VAT on sales for businesses that do not incur VAT on theirpurchases. How it works Usually,…Read More
The economy and headline figures The 2021 Budget took place on 3 March 2021. Chancellor Rishi Sunak announced that, as a result of the Covid-19 crisis, GDP shrank by 9.9% in 2020, the largest annual fall in 300 years according to a Bank of England report, albeit lower than the 11.3% forecast in November. However,…Read More
Supply of services The two basic rules for services will remain unchanged post-transition: Business-to-business (B2B) services The basic place of supply of B2B services will be where the customer belongs. If the business customer belongs outside the UK, the supply is outside the scope of UK VAT. The UK service provider must include the sale…Read More
Firstly what is a reverse charge? The reverse charge is described by HMRC as an Anti-fraud measure. It is a mechanism that shifts the liability for accounting for the output VAT from the supplier onto the customer. For chains with multiple contractors, this will transfer the liability to the final contractor in the chain who…Read More
International Goods From 1st January 2021 goods entering the UK will be an import and postponed accounting will be introduced for worldwide imports. This will be better for cash flow as it will mean that VAT is not payable by a VAT registered business at the time goods arrive in the UK. This will mean…Read More
International goods From 1st January 2021 all goods leaving the UK will be a zero-rated export. If you use QuickBooks to keep your records, the VAT code to use is 0.00% Z – Zero rate VAT. It is expected that the customer will be the importer of record in the destination country and therefore the…Read More
Extra Help for Small Business Owners Here are 5 extra support offerings for small business owners announced on 24th September 2020 The Government has extended the 15% VAT cut for the tourism and hospitality sectors to the end of March next year. Businesses who deferred their VAT between March & June 2020 will no longer…Read More
With the VAT flat rate scheme, you pay a fixed amount of VAT on yourgross turnover, the actual percentage you use will depend on the typeof business.To start using the Flat Rate Scheme your business taxable turnoverhas to be £150,000 or less.You must leave the scheme if your turnover is over £230,000 includingVAT.You will then…Read More
It’s a digital world – The next step for MTD We have already had the first big move in Making Tax Digital, with the transition of nearly all VAT registered companies with a turnover of over £85,000 being forced onto digital software such as QuickBooks or being made to use bridging software, keeping an online…Read More
What has happened? On the 8th July 2020, the UK government announced that it would be introducing a temporary reduction in the rate of VAT for certain supplies of hospitality, holiday & hotel accommodation and admissions to certain attractions. They will be slicing the rate of VAT payable from the normal standard rate of 20%…Read More
As you might have seen, HMRC has now ended their deferral of VAT payments and as such, you may now wish to reinstate your direct debit payments. Unfortunately, HMRC has removed the ability for us to set this up on your behalf, however, it is relatively straightforward for you to do now. Firstly, you will…Read More
Look after your cash flow and it will look after your business More so now than ever, cash is extremely important to the success of your business. As we slowly come out of COVID 19, it will be vital to make sure you are making the most of your cash reserves, support loans and managing…Read More
How to complete a stock transfer form and get it processed, including new measures put in place because of Coronavirus (COVID-19). Due to measures put in place to stop the spread of coronavirus (COVID-19) HMRC have temporarily changed the way they deal with Stamp Duty. You should not post stock transfer forms to HMRC –…Read More
With the vast majority of the country practising ‘social isolation’ during the outbreak of the Coronavirus, we are seeing that more money is remaining in pockets and out of the cash flow of small businesses. We look at some of the solutions available to help businesses protect themselves through this potentially difficult time financially. Government…Read More
I have no use for bodyguards, but I have very specific use for two highly trained certified public accountants.
Elvis Presley
