Tag Archives: VAT

What changes might be coming? Rishi planning to cut VAT

The chancellor is set to make an announcement next month to introduce measures that will mitigate the economic downturn caused by the coronavirus. Not unlike 2008 when VAT was dropped to 15% (from 17.5%) to provide stimulus after the financial crash, there is speculation that the headline VAT rate again may be slashed to 17% (currently…

Are you ready to submit your first VAT return under the Making Tax Digital (MTD) rules?

If you would like further information there are webinars available from HM Revenue & Customs at https://www.gov.uk/guidance/help-and-support-for-making-tax-digital The webinars are on various dates throughout May. If you need any other assistance please contact us.    

‘No Deal’ Brexit: 3 Important Areas to Consider

Movement of goods, product compliance, March 2019, Transitional Simplified Procedures

With so much uncertainty around what Brexit will mean, planning for a “No Deal” scenario seems sensible right now. Businesses that buy and sell from the EU should have contingency plans in place which need to be flexible to cope with a variety of possible outcomes. If a ‘No Deal’ happens after March 2019, here…

Don’t Lose Your Personal Allowance!

pension contributions, git aid, tax

For every £2 that your adjusted net income exceeds £100,000 the £11,850 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%. The restriction applies between £100,000 and £123,700 adjusted net income. Another way that you could avoid…

Making Tax Digital (MTD) and Farming

MTD, farming, VAT, Xero

As you will have no doubt heard, HM Revenue & Customs (HMRC) are introducing a new way to file a business’ VAT returns from 1 April 2019. For VAT registered businesses with a turnover over the VAT threshold, currently £85,000, this is generally mandatory – there are exceptions, via religious beliefs, age exception and internet…

Advisory fuel rates from 1 March 2019

HMRC, VAT

Company-owned vehicles HM Revenue and Customs have announced revised tax-free advisory fuel rates from 1 March 2019 which may be paid for business journeys in a car owned by the business.   Rates for the previous quarter is shown in brackets. Engine size Petrol Diesel LPG 1,400 cc or less 11p (12p) 7p (8p) 1,600 cc or…

Deposit/Cancellation Fees – new VAT treatment

New VAT treatment, hotel

Hoteliers are you ready! From 1st March 2019 the treatment of cancellation fees is changing.  Previously where a customer has paid a deposit for a room and then subsequently cancelled, you had been allowed to reclaim the output VAT on this deposit, since there would no longer be a supply of accommodation and therefore this…

No deal Brexit – What about VAT?

The Government and HMRC have updated its collection of high-level guides called “partnership packs”, intended to help businesses involved in importing and exporting prepare for changes to customs procedures after 29 March 2019 in the event of a “no deal” scenario. If the UK exits the EU without a deal, UK businesses will have to…

Ignore Making Tax Digital at your peril!

Xero, HMRC, VAT

Less than 6 months now to go until tax gets digital via H M Revenue and Customs’ (HMRC) “Making Tax Digital” initiative. Yet a huge 40% of the affected businesses know nothing about it and have made no plans to conform with the new requirements for submission of their VAT Returns. From 1 April 2019…