Category: Accountancy Tips

  • Office Christmas - HMRC's

    Office Christmas - HMRC's

    Office Christmas parties - HMRC's view
    With the Christmas season upon us, it is a good time to look at the tax treatments for staff entertaining.

    Whilst the cost of entertaining customers and business contacts is not an allowable expense for tax purposes, entertaining staff is allowed so long as the entertaining is for business purposes, and not incidental to other entertainment. So your office Christmas party is an allowable expense for tax purposes, however the devil lurks in the detail:

    VAT

    As long as the entertainment is for business purposes, any VAT suffered can be reclaimed, but it may ...

  • Supply of Digital Services and VAT Mini One Stop Shop (MOSS) Guidance

    Supply of Digital Services and VAT Mini One Stop Shop (MOSS) Guidance

    If your business has supplied digital services to consumers in the EU, you can register for HM Revenue and Customs’ (HMRC’s) VAT MOSS scheme if your business is:

    • based in the UK (union VAT MOSS scheme)

    • a non-EU businesses (non-union VAT MOSS scheme)

    You can submit a single calendar quarterly return and VAT payment to HMRC, who will send the appropriate information and payment to each relevant member state’s tax authority.

    THE PLACE OF SUPPLY TO CONSUMERS

    Currently, the place of taxation for digital services [e.g. Video on demand, Downloaded applications (or ‘apps’), Music downloads, Gaming, E-books ...

  • IR35 Update

    IR35 is a piece of tax legislation announced in 1999, which took effect from April 2000. The legislation means that the Revenue can tax some contractors as though they are employees of their clients. Contractors caught by IR35 pay significantly more tax reducing their take home pay by up to 25%.

    Earlier this week HMRC announced that it is to withdraw the business entity tests (BETs) intended to help taxpayers assess whether they might be caught by the IR35 legislation, after a review conducted by the IR35 Forum found that the tests were used 'very little' and were not fulfilling ...

  • State pension deferral rate to be reduced to 5.8% per annum

    State pension deferral rate to be reduced to 5.8% per annum

    Pension’s Minister, Steve Webb, recently announced that the annual State pension deferral rate will be reduced from 10.4 % to 5.8 % when the new State pension is introduced in April 2016. Pensioners who choose to defer claiming their State pension when they reach State pension age may get extra State pension when they do eventually claim. Currently, State pensions increase by 1% for every five weeks that a claim is deferred. This is the same as 10.4 % for every full year in which a claim is deferred. The announcement means that State pensions will increase by 1 ...

  • VAT Scam Letter

    VAT Scam Letter

    This is the latest scam letter we have seen. If you receive one, put it in the bin! Do not register and certainly do not pay £320!

    It goes without saying that if you get any official looking letter about tax; show it to us before you do anything, especially if it involves parting with hard earned cash.