Making Tax Digital for VAT – are you filing returns through the MTD portal?
All businesses have to use MTD for VAT returns due on or after 1 April 2022. This means keeping digital records too. This could be spreadsheets or accounting software, or another option is dedicated bank accounts with inbuilt accounting and VAT filing. Please do not leave this to the very last possible minute to take […]
Every business owner using cloud accounting software should do this…
Those using cloud accounting software will probably be aware of the many time-saving functions available such as bank feeds, recurring sales invoices, links with other apps etc. However, there is one aspect which we strongly recommend every business do, and that is uploading the “paperwork” to the cloud products. Why? Many supplier invoices are received […]
Making Tax Digital – VAT
For around 1.1 million businesses that are VAT registered but with taxable turnover below the VAT threshold, MTD becomes mandatory for the first VAT period starting on or after 1 April 2022. This means accounting and VAT records will need to be kept digitally, and VAT information has to be filed with HMRC through compatible […]
Getting paid
Every business needs to be paid for its supply of goods or services. Without the cash coming in, supplier bills, staff and the business owner cannot be paid. How does your business get paid? Do you just send invoices and wait for the customer to decide as and when your bill gets paid? How can […]
Reimbursing staff business expense claims
The processing of expense claims can be both time-consuming from both the employer and employee viewpoint. Collecting expense receipts, then summarising and analysing them onto a spreadsheet, then taking the spreadsheet and rekeying that data into the accounting software all takes not insignificant amounts of time. The expenses then must be reimbursed – and someone […]
Budget – 27 October 2021
Following on from the increases above, the Chancellor will present his next budget on Monday 27 October 2021. It is highly probable that further increases in taxes etc will be announced. Some changes may even take effect from midnight that day. The rumour mill indicates a potential rise in Capital Gains Tax rates (to possibly […]
Tax bills- a nasty shock for some….?
Subcontractors in the building industry often have their accounts prepared as soon as possible after the tax year so that they can obtain a tax repayment of some of the tax suffered on CIS deductions. However, many have had a nasty shock already, and there will be many more, in that, instead of having a […]
VAT and hospitality
Be aware that the reduced 5% rate for the tourism and hospitality sector applied to 30 September 2021, when the rate then increases to 12.5%, before returning to the 20% level on 1 April 2022. Ensure your accounting software has the new rate added.
Dividends from your company – care is needed
In many small companies, the tax planning strategy is for directors to draw a “low” salary sufficient to ensure NI contributions are recorded, and any further funds are extracted by way of “dividend”. The dividend is a distribution of profits and not tax deductible in the company. The key words are highlighted… there must be […]
Automated Invoice processing
The prior article referred to invoices being duplicated. Using one of the purchase invoice data extraction products can help to prevent this type of error occurring as potential duplicates can be detected prior to entry into the accounting records. With more and more invoices coming into the business in electronic format – often PDF files […]
