November questions and answers

November Questions and Answers Q. Are there any advantages to registering voluntarily for VAT even if my taxable turnover is less than the registration threshold? A. A business can register for VAT even if its turnover (total sales) is below the threshold and it may actually save tax by doing so, particularly if its main clients or customers are organisations that can reclaim VAT themselves. Say you want to purchase a new office printer for your business which costs £100 plus VAT, i.e. £120. You set the £120 paid out against your profits for income tax purposes. If you [...]

2018-11-09T23:33:14+00:00November 26th, 2018|Categories: Questions & Answers|Tags: , , , , |0 Comments

How to get the most out of Xero right from the start

How to get the most out of Xero right from the start When you start using Xero, you’ll wonder how you ever managed without it. We’re big fans here at PMA Accountants and know how happy clients are when they can see their cash flow situation whenever they want, send online invoices, pay bills and run their businesses more effectively. While we set up the basics for all new Xero clients, there are key features you’ll want to know about from the very beginning so you can spend more time on your business and less time on your [...]

2018-11-23T20:57:59+00:00November 23rd, 2018|Categories: Cloud Accounting, Support|Tags: , |0 Comments

Software requirements under MTD

Software requirements under MTD Under HMRC's new Making Tax Digital (MTD) regime, which kicks in for VAT-registered businesses with a taxable turnover in excess of £85,000 from April 2019, businesses will no longer be able to keep manual records. Currently, spreadsheets are commonly used - not only to maintain records, but also to convert the information from accounting software into the VAT return figures. MTD requires spreadsheets to interact directly with software. Overcoming these issues may be challenging. Compatibility MTD requires businesses to maintain relevant information about sales and purchases in an electronic format, using 'functional compatible software'. Compatible [...]

2018-11-09T23:27:18+00:00November 22nd, 2018|Categories: Blog, HMRC, MTD|Tags: , , , |0 Comments

Making use of the trading allowance

 Making use of the trading allowance The introduction of the new trading and property allowances for 2017/18 onwards mean that those with low levels of income from these sources may not need to report it to HMRC. The trading allowance is £1,000 for 2017/18 and 2018/19. Broadly, those with trading income of less than £1,000 a year, no longer need to report it to HMRC. This may be particularly useful for people with casual or small part time earnings from self-employment, for example, someone who up-cycles old furniture for resale on eBay or similar. Where the trading income is [...]

2018-11-09T23:27:45+00:00November 18th, 2018|Categories: Blog, HMRC, Self Employment|Tags: , , , |0 Comments

High Income Child Benefit Charge

 High Income Child Benefit Charge The High Income Child Benefit Charge (HICBC) is a tax charge which applies where the 'adjusted net income' of a taxpayer or their partner is more than £50,000 in a tax year, and they or their partner receive child benefit. The charge is equal to one per cent of a family's Child Benefit for every extra £100 of income that is over £50,000 each year. If an individual's income is over £60,000, the charge will equal the total amount of the Child Benefit. Importantly, the charge does not only apply to the recipient [...]

2018-11-09T23:28:44+00:00November 16th, 2018|Categories: Blog, Taxation|Tags: , |0 Comments

How do I apply for Gross Payment Status? – CIS contractors

How do I apply for Gross Payment Status? – CIS contractors If you have a CIS registered limited company, obtaining gross payment status will allow you to be paid a gross amount rather than being taxed at 20% (CIS registered) or 30% (non-CIS registered). Having gross payment status is beneficial in that you can receive your gross income into your limited company without any deductions made. This means your income is not taxed at source and you only need to pay tax on a quarterly basis. Gross payment status is a level within CIS registration and is the [...]

2018-11-01T23:59:28+00:00November 14th, 2018|Categories: Blog, Taxation|Tags: , , , , |0 Comments

Apprenticeship levy to help smaller firms

Apprenticeship levy to help smaller firms In a bid to make apprenticeship schemes more accessible, the Treasury has raised the amount of the apprentice levy that larger companies can transfer to smaller firms in their supply chain from 10% to 25%. The change, which was announced by Chancellor Phillip Hammond at the Conservative Party conference, aims to provide additional flexibility for businesses so they can take full advantage of the benefits of employing apprentices, and to help as many people as possible find the right training to equip them for the new economy. An extra £90 million of [...]

2018-11-09T23:19:44+00:00November 12th, 2018|Categories: Blog|Tags: , |0 Comments

VAT on holiday accommodation

VAT on holiday accommodation Letting of residential accommodation is generally an exempt supply for VAT purposes. However this exemption does not apply to holiday accommodation (includes furnished and non-furnished holiday lettings. The definition of 'holiday accommodation' for these purposes includes property that is advertised or held out as holiday accommodation and those consider suitable for holiday or leisure use. It is not restricted to periods of letting or availability. Supplies of holiday accommodation are therefore taxable supplies and should be standard-rated, which means that if the rental income goes above the VAT registration threshold (currently £85,000 per year), [...]

2018-11-02T00:00:58+00:00November 8th, 2018|Categories: Articles & Guides, Blog, VAT|Tags: , , |0 Comments

HMRC launch MTD campaign

HMRC launch MTD campaign According to recent research undertaken by the Institute of Chartered Accountants in England and Wales (ICAEW), over 40% of businesses that will be affected by Making Tax Digital (MTD) for VAT are not yet aware of it. With only six months to go until MTD goes live for some businesses in April 2019, HMRC have only recently launched a major communications campaign to try and build awareness amongst small businesses. The ICAEW survey also shows that although there has been a significant increase in the number of businesses now using accounting software, a quarter [...]

2018-10-30T00:25:02+00:00November 4th, 2018|Categories: Blog, HMRC, MTD|Tags: , , |0 Comments

AUTUMN BUDGET 2018

AUTUMN BUDGET 2018 SUMMARY There was wide-ranging speculation in the run up to this year's Budget, with experts predicting that, whilst Brexit and ending austerity would be the most prominent features, Chancellor Phillip Hammond would also take the opportunity to make changes in other areas such as pension contributions tax relief and the tax regime for digital-only businesses. As is usually the case, some of the predictions (in particular those relating to austerity, Brexit and digital-only businesses) proved to be correct, but it will be of great relief to many individuals that the Budget did not include proposals [...]

2018-11-02T00:32:06+00:00October 31st, 2018|Categories: Budget Reports|Tags: , , , , , , |0 Comments
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