There are a number of ways to account for VAT. While standard VAT accounting is used by many firms, small business owners may wish to consider the alternative schemes that are available. Choosing the most suitable option could save you a considerable amount of time and money. Annual accounting scheme Under the annual accounting scheme, … Continue reading Choosing the Right VAT Scheme for Your Business
To make accounting for private use of fuel simpler, you can choose to apply the VAT fuel scale charge. This scale charge adds back a fixed sum each VAT period to account for the private use of fuel, making redundant any need to split the mileage between business and private use. The scale charge for … Continue reading VAT Fuel Scale Charge
From 1 April 2017 HMRC are changing the rules for using the VAT Flat Rate Scheme (FRS). In an attempt to wipe out what HMRC has seen as abuse of the flat rate scheme, businesses will now need to determine whether they fall into a “limited cost trader” category, by comparing the percentage of goods … Continue reading Concerns for small businesses using the VAT flat rate scheme
Ed Gooderham of Green & Co speaks to the Insider magazine in the latest printed edition on VAT. Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
Here we are again - can ‘yule’ believe it’s that time of year when businesses like to ‘present’ their staff with a reward for all their hard work? Did you know that certain gifts can be tax efficient? The VAT man won’t entirely ‘reindeer’ on your parade. First off, we have employee gifts. It doesn’t … Continue reading ‘Tis The Season Of Giving – Some Christmas Cheer From The VAT Man
As announced in the Autumn Statement, there are significant changes ahead for companies using the Flat Rate Scheme (FRS) for VAT. The FRS will continue to run, however many businesses will find it is no longer economical to use. Under the FRS, a business ignores VAT incurred on purchases when reporting VAT, with the exception … Continue reading Changes to the VAT Flat Rate Scheme
If you sell goods or services to customers, it’s likely that you’ll also have to invoice those customers for the work you’ve done. But what information are you actually required to include on your invoices? You must clearly display the word ‘invoice’ A unique identification number Your company name, address and contact information. If you … Continue reading What is an invoice and what should it include?
If you own your own business or are considering such a move, keeping accurate records not only benefits you for tax compliance, but it could also benefit your business. Keeping accurate records may: Reduce your accountancy fees make filling in your tax return more straightforward help you with budgeting and cashflow help your business grow … Continue reading Bookkeeping Tips for Small Businesses
According to new plans currently being considered by the government, adult colouring books could soon be subject to VAT. Currently both children’s and adult colouring books are exempt from VAT, however adult colouring and dot to dot books could soon be classed as ‘uncompleted’ books and attract the full 20% VAT. Adult colouring books have … Continue reading Have HMRC Crossed The Line?
If you notice you have submitted an incorrect VAT return, you can adjust your next return as long as certain conditions are met. The adjustment must be below the reporting threshold, not a deliberate error and for a period within the last 4 years. You can adjust your next VAT return if the net value … Continue reading Correcting VAT Return Errors