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February 2020 Questions and Answers

2020-02-11T22:24:29+00:00February 17th, 2020|Categories: Questions & Answers|Tags: , , , |

Q. What items can be excluded from ‘taxable turnover’ for VAT registration purposes? A. When the 'taxable turnover' of a business reaches the VAT registration threshold, currently £85,000 per annum, it must register for VAT. Income that is not counted as 'taxable turnover' is excluded from the £85,000 turnover figure. There are several items that can be ignored when calculating 'taxable turnover' for VAT registration purposes. Any income that is 'exempt' from VAT is ignored. This commonly includes insurance, postage stamps or services; and health services provided by doctors or dentists. - Some goods and services are outside the VAT [...]

Capital allowances SBA update

2019-09-02T11:29:22+01:00July 6th, 2019|Categories: Blog|Tags: , , |

HM Treasury and HMRC have recently published a summary and response document relating to the consultation on a new capital allowance for structures and buildings (SBA). Broadly, the SBA allows businesses that invest in new builds or renovations on or after 29 October 2018, to claim tax relief at 2% a year on eligible costs. A technical note outlining the key features of the allowances was published at Autumn Budget 2018, with the subsequent draft legislation released for consultation at Spring Statement 2019. Power to introduce the new allowance was contained in FA 2019, s. 30. Detailed legislation will be introduced [...]

Considering capital expenditure?

2019-09-01T23:08:54+01:00January 16th, 2019|Categories: Blog|Tags: , |

Businesses considering investing more than £200,000 in plant and machinery could benefit from a change to the capital allowances rules in January 2019, which should allow them to obtain tax relief at an earlier time. Capital allowances are treated as a trading expense of a particular accounting period, so they can potentially increase a loss, or turn a profit into a loss for tax purposes, which in turn, will impact on the amount of tax payable by a business. Where a business is considering expenditure on qualifying items, it may be beneficial to undertake some upfront planning. The annual [...]