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VAT ON DISBURSEMENTS

2018-07-05T22:07:03+00:00March 30th, 2018|Categories: VAT|Tags: , , |

VAT ON DISBURSEMENTS I am a marketing consultant and I have a question about VAT on disbursements. I am incurring some travel expenses which my client has agreed to pay so I will be recharging these expenses to them, I am VAT registered but there is no VAT on my travel costs – do I need to charge VAT to the client when I recharge them? If you are VAT registered and make a purchase on your customers’ behalf you may be able to invoice your customer without charging VAT. This treatment is called ‘disbursements’ for VAT. This can be advantageous [...]

AUTUMN BUDGET 2017

2018-07-05T22:23:02+00:00November 25th, 2017|Categories: Budget Reports|Tags: , , , , , , , |

AUTUMN BUDGET 2017 Chancellor Philip Hammond has delivered his first Autumn Budget under the new system he announced this time last year. The aim of the new system is for the Finance Bill, which is normally published after the annual Budget, to reach Royal Assent stage in the spring of each year, before the start of the following tax year. This change in the annual timetable is designed to help Parliament to scrutinise tax changes before the tax year where most take effect. The Finance Bill should be published on 1 December 2017. By the end of March 2018, [...]

Personal Tax Account

2018-07-05T22:29:37+00:00August 18th, 2017|Categories: Articles & Guides, HMRC, Taxation|Tags: , , , |

Personal Tax Account (PTA) What is a Personal Tax Account? How do I get one? What can I do with it? HMRC launched this account in December 2015 It is intended to make it easier for individuals to review and manage their tax affairs online, together with other interactions with HMRC such as tax credits or child benefit. See below for a list of features and services available through the account By December 2016, 7 million people had accessed their account. Setting up a PTA Before you can set up your account you will need to verify your identity with HMRC [...]

CGT annual exemption: use it or lose it!

2017-06-17T14:21:51+00:00June 17th, 2017|Categories: Taxation|Tags: , |

Capital gains tax (CGT) is normally paid when an item is either sold or given away. It is usually paid on profits made by selling various types of assets including properties (but generally not a main residence), stocks and shares, paintings, and other works of art, but it may also be payable in certain circumstances when a gift is made. The most common method for minimising a liability to capital gains tax is to ensure that the annual exemption is fully utilised wherever possible. Whilst this is relatively straight-forward where only capital gains are in question, the computation can be [...]

Managing your Mileage Claims with Tripcatcher

2018-06-28T01:30:35+00:00June 16th, 2017|Categories: Cloud Accounting|Tags: , , , |

Managing your Mileage Claims with Tripcatcher Tripcatcher is the mileage app that helps you keep an accurate record of your business miles. You can log your business miles, create expense reports and update your online accounts. Tripcatcher can save you time and money. Advantages of Using Tripcatcher instead of manual spreadsheets: Tripcatcher is the only UK based mileage expense app that claims back the VAT on your fuel. Tripcatcher is built specifically for the UK and complies with HMRC requirements. It supports the 10,000 mile threshold and deals if you do more miles than that per annum. It [...]

Reform of Landlords’ Taxation

2017-06-13T14:18:08+00:00June 13th, 2017|Categories: Taxation|Tags: , , , |

The government's plans to allow landlords to use the cash basis for tax purposes were confirmed in the 2017 Spring Budget, but although the proposed legislation was included in Finance Bill 2017, it did not appear in the much reduced Finance Act 2017, which received Royal Assent on 27 April 2017. It is likely that the proposals have been temporarily shelved, pending the outcome of the General Election, and are expected to reappear in a second Finance Bill later this year. If the provisions are subsequently enacted, they are expected to apply retrospectively from 6 April 2017, i.e. for the [...]

IHT: Main Residence Nil-Rate Band

2017-06-08T14:07:17+00:00June 8th, 2017|Categories: Taxation|Tags: , |

From April 2017, each individual spouse or civil partner will be offered a residence nil rate band (RNRB), which is designed to help pass on a home to 'direct descendants', including children or grandchildren, tax-free after their death. The rules governing the inheritance tax (IHT) nil rate band are complex and it is always recommended that prior professional advice is considered. Phasing in of RNRB The RNRB is being phased in over a four-year period as follows: - £100,000 in 2017-2018 - £125,000 in 2018-2019 - £150,000 in 2019-2020 - £175,000 in 2020-2021 Broadly, the new RNRB will be added [...]

VAT Flat Rate Scheme: changes take effect

2017-05-15T16:00:14+00:00May 15th, 2017|Categories: VAT|Tags: , , , |

The VAT flat rate scheme (FRS) is used by many small businesses to help simplify their VAT reporting obligations. Businesses could often gain a cash advantage from using the scheme, but this advantage has been significantly curtailed from 1 April 2017, particularly in relation to service-related businesses. Whilst the FRS continues to operate, many businesses will no longer find it economical to use. Broadly, the FRS is a simplified VAT accounting scheme for small businesses, which allows users to calculate VAT using a flat rate percentage by reference to their particular trade sector. When using the FRS, the business ignores [...]

HMRC launch consultation on employee expenses

2017-05-10T15:54:03+00:00May 10th, 2017|Categories: HMRC|Tags: , , |

As confirmed the Spring Budget 2017, HMRC have launched a consultation on the use of the income tax relief for employees' business expenses, including those that are not reimbursed by their employer. The main objectives of the consultation, which will run until 12 June 2017, are to understand: - if the current rules or their administration can be clearer and simpler; - whether the tax rules for expenses are fit for purpose in the modern economy; and - why the cost to the exchequer of the tax relief for expenses which are not reimbursed has increased. Expenses form an integral [...]

HMRC launch MTD pilot

2017-05-05T15:50:20+00:00May 5th, 2017|Categories: HMRC|Tags: , , |

HMRC have already confirmed that they are committed to having Making Tax Digital (MTD) fully operational by 2020, and recently announced that they would be running a pilot scheme from April 2017 until April 2018. The pilot has now been launched, with customers (both businesses and agents) being invited to sign up for a new way to report income and expenses online. At different stages of the pilot, customers will help HMRC develop and improve the service by: - using accounting software to record their business income and expenses; - sending summary reports of their income and expenses direct from [...]

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