VAT rate changes – should your business move to flat rate VAT?

19th November 2010

We had an interesting call with a client yesterday. He is not happy with the amount of VAT he is currently paying and doubly concerned about the increase in VAT from 4 Jan 2012 - to 20%. He asked me if there were any prospect of reducing is quarterly VAT figure. As a catering business with forecast turnover of £150,000 he more

Subway VAT appeal – Subway loses

4th November 2010

Two weeks ago, UK Subway franchisees were defeated in an appeal against HMRC in regards to paying VAT on toasted sandwiches. Essentially, they wanted the sandwiches to be "zero rated" i.e. no VAT to be charged on the sale of the toasted sandwiches eaten off the premises. However, its competitors (Quizmos, McDonalds) do not pay VAT on similar sandwiches. The more

Update week ended 27 October 2010

27th October 2010

PAYE hot potato You may be receiving the form P800. If the form shows that you have under £300 outstanding (per tax year) – the good news is that the tax is written off (see our 16 Sep blog). If under £2,000 (in total for both fiscal years) you will receive a P2 form detailing how much is collected through the payroll. Please more

Update week ended 1 October 2010

4th October 2010

Swiss bank accounts As you may have read, a rogue employee at a Swiss bank stole data on overseas account holders and distributed this to Tax authorities across Europe. As a result, HMRC have begun “fraud” investigations against account holders in the UK. The bank concerned HSBC have told that they will write to all 9000 holders – who were affected by more

Tax update week ended 24 September 2010

25th September 2010

5 October deadline If you’ve never filled in a tax return but have received some form of untaxed income or gain – e.g. selling a rental property, you have until 6 months before the tax payment deadline. The most recent completed tax year is the year ended 5 April 2010. Therefore, if you have something to report (relating to that year), more

Tax update week ended 17 September 2010

20th September 2010

Naming and Shaming The ability to “name and shame” is one of HMRC’s most controversial powers. 4 conditions must apply: 1. After deliberately evading tax, the individual has suffered at least one penalty. 2.The penalties relate to wrongdoing, tax returns and VAT returns for periods after 1 April 2010. 3.The underpaid tax is £25,000 or more. 4.The individual has not fully co-operated, hence HMRC levied more more

Tax update – week ended 10 September 2010

13th September 2010

NI Holiday This “holiday” scheme started last Monday (6 September 2010), so HMRC clarified matters. The scheme only applies to:

  • The first 10 employees employed in a business during the first trading year. If an employee leaves in this time, his “place” can’t be taken by another.
  • Earnings paid to employees on or after 6 September 2010, where his/her first year expires more

Tax update – week ended 27 August 2010

3rd September 2010

VAT reclaims in time A married couple opened a pub in County Durham, April 2004. They submitted VAT returns, paying sales tax (VAT) to the government every 3 months. However, they didn’t realise that they could reclaim the VAT on purchases – up until they de-registered for VAT in March 2006. Somebody pointed out to them that they had lost out on more