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Redundancy and Payroll Tax issues

11th January 2011

An individual with only employment income visited our office today. He was made redundant from his first employment (with severance package) and moved to a second job a few months later (within the tax year).As is common, the payroll department that produced his P60 at the second company failed to accurately represent the income from salary, benefits and redundancy from ...read more

Converting flats/rooms above a shop or office

29th December 2010

An increasing trend is the conversion of office space/storage space (above an office or shop) into flats. Bear in mind that you may have available one of the most generous allowances around- 100% capital allowances (tax deduction against income tax) on the expenditure subject to a few conditions:Qualifying flat Must be "dwelling" i.e. residential let 4 rooms or less (excluding bathrooms/kitchens) Lease term ...read more

Rental accounts – the 10% wear and tear rule

17th December 2010

An oft misunderstood rule is the 10% wear and tear allowance. This is one of the best tax allowances available for landlords. Essentially, 10% of rents (less any utilities/council tax/any other bills that a tenant would usually pay) is subtracted from the rent.However, you must choose between this treatment or the "replacements method" where you claim a tax deduction for ...read more

Barrister Accounts

9th December 2010

Barrister accounts and tax returns have a few idiosyncrasies. We're able to talk in your language and speak in detail about those nuances - whether you're a pupil, barrister or judge. We will guide you through all your accounting, tax and other financial advice needs from start to finish.If you're worried about the hassle of switching accountants - don't be. ...read more

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 ...read 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 ...read more

Update week ended 27 October 2010

27th October 2010

PAYE hot potatoYou 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 ...read more

Update week ended 1 October 2010

4th October 2010

Swiss bank accountsAs 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 ...read more