HMRC has succeeded after a decade-long battle with department store, Littlewoods over compound interest. Between 1973 and 2004, Littlewoods overpaid millions in VAT and, although they were refunded the sum plus simple interest, they took legal action seeking compound interest for the “mistake in law”. The law states that ‘where a taxable person has overpaid … Continue reading HMRC Victorious in VAT Dispute Over Compound Interest
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
The Treasury have delivered what is potentially good news for many (yes, you have read that correctly). Making Tax Digital, or MTD to give it its affectionate moniker, has been both delayed and reduced in terms of requirement. For businesses that are VAT registered, VAT returns will still have to be submitted via MTD compatible … Continue reading Making Tax Digital Delayed until 2020
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
Following on from the Chancellor's first and last Spring Budget, we are pleased to provide you with our summary of the key announcements, along with our tax tables for the 2017/18 tax year: The main changes include: The tax-free dividend allowance will be reduced from £5,000 to £2,000 from April 2018. Class 4 national insurance contributions … Continue reading 2017 Budget Review
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?