VAT registration – monitor your turnover!
For small businesses, VAT registration is required if, over the last 12 months, the “taxable supplies” have exceeded the VAT registration threshold. For the current tax year, the VAT registration threshold is £85,000. The figure needs to be calculated on a rolling basis, so you’ll need to monitor your taxable turnover for a rolling 12-month […]
Dividends from your company
From April 2022, as well as an increase in the national insurance contributions, the tax on dividends also increases. An increase of 1.25% is often talked about-however this is an extra 1.25% charge, not the actual percentage increase – which in % terms is much higher. The rates are:• First £2000 dividend – no charge• […]
Making Tax Digital for VAT – the countdown clock is ticking
From their first VAT period starting on or after 1 April 2022, VAT registered businesses (including self-employed and landlords) that are not already required to operate MTD under the requirements applying from 1 April 2019 will have to: • keep their records digitally (for VAT purposes only)• provide their VAT return information to HMRC through […]
Tax payments
The tax payable under self assessment was due for payment on or before 31 January. Interest and penalties are charged on late payment. For tax due for 2020-21, HMRC is waiving the first 5% charge that is usually charged on 3 March; instead, it’s giving taxpayers until midnight on 1 April 2022 to either pay […]
Are you claiming VAT at the appropriate rate on expenses?
It is all too easy to enter an expense claim or bill, or enter a direct payment into the accounts for a hotel expense, and incorrectly claim 20% VAT. This is particularly relevant at this time of year as bills start to come in from Christmas parties (or business meetings!). In accounting software, there is […]
Have you “invested” in Bitcoin or other similar assets? Beware the tax implications
The price of Bitcoin and other similar crypto assets can fluctuate wildly, and, whilst at the time of writing, the Bitcoin value has increased by some 75% since January 1st, the current price is some 28% below its all-time high. If you bought when prices were low, and have since sold them again realising a […]
Are your savings really tax-free?
On the subject of planning, many are aware of the tax-free benefits of ISAs- individual savings accounts. There is no income tax on income generated and no capital gains tax on disposals. However, what is often overlooked is the fact that these will form part of your estate for inheritance tax purposes – so there […]
QuickBooks Desktop software user? Support ceasing on January 31 2023…what now?
QuickBooks desktop users are being notified that support will be discontinued, and it appears that desktop versions might not even work after that date. The data in QuickBooks will need to be downloaded and migrated to QuickBooks online or another software package. This appears to be a hugely unpopular decision and will inevitably lead to […]
“Casual Labour” – tread carefully!
There have long been misconceptions regarding labour costs, “self-employed staff” and “cash in hand” payments. Employing someone through the PAYE scheme means minimum wage implications, workplace pensions and NI costs. The rule is that, apart from short term harvest workers and beaters for shoots employed for 2 weeks or less, short term employees should be […]
Tax return filing deadline approaching fast!
The deadline for submitting the 2020-21 tax return to HMRC online is 31 January 2022, and any tax due should also be paid by that date. The tax will be any balance due for the 2020-21 tax year after taking into account payments already made in January and July 2021, and a first payment on […]
