Knowledgebase

From The Knowledgebase: Accounts

As the Christmas season is rapidly approaching here’s a quick reminder of what is tax deductible and what isn’t! Christmas Parties The rules on Christmas parties depend on who is invited… Staff – the main tax implication of staff Christmas parties is whether you need to report the cost of the party as a taxable…

Claiming for the amount you spend on food is allowed when you’re self-employed, however, you can’t just claim for everything you eat. So, what’s the deal? HMRC’s general rule is that you can only claim for expenses that are “wholly and exclusively” for the purposes of trade, this makes food and drink expenses a tricky…

April brings the start of a new tax year and whether you currently use spreadsheets, a desktop/online accounting system or dare I say still using a pencil and paper, if you have been thinking about switching to a better system now is the perfect time! With HMRC looking to widen the scope of MTD in…

A client who had been with us for over 4 years recently emailed and asked “what was it we exactly did for them”. This came after the client had gone from paying no tax to paying £5k tax in their latest financial year. I found this fascinating as it dawned on me that some business…

Tax Relief brings some Christmas Cheer! As the Christmas season is rapidly approaching here’s a quick reminder of what is tax deductible and what isn’t! Christmas Parties The rules on Christmas parties depend on who is invited… Staff – the main tax implication of staff Christmas parties is whether you need to report the cost…

You may notice on your 2017/18 self-assessment tax return that you are being asked to make ‘payments on account’ towards your 2018/19 tax return. This will be the case if your Income Tax and class 4 National Insurance total more than £1,000 for the tax year and you don’t pay tax at source on more…

Last month HMRC published further information on MTD (Making Tax Digital) to support businesses and agents in the run up to the start of the mandatory MTD VAT service from April 2019. As part of Making Tax Digital, businesses registered for VAT with a taxable turnover above the VAT registration threshold of £85,000 will need…

Back in spring when the AAT informed us that all accountants needed to be DBS Checked to enable them to continue to be licensed, I was a little disgruntled.  ​I don’t mind being checked as I have nothing to hide but it was having to send off my personal documents and have yet another expense added to…

Business entertainment and VAT can often be a grey area for business owners, here’s a quick guide on the key points. VAT cannot be reclaimed on the provision of business entertainment expenses to UK business contacts and non-UK business contacts who are not customers. This includes: Provision of food and drink Provision of accommodation Provision…

There are numerous factors to consider when deciding which method of buying and using a car for business is the most tax efficient.  Sole Traders As a sole trader there is no concept of a ‘company car’ as there is no legal difference between you and your business. There are 2 options for claiming tax…

I may have exaggerated on the on jubilation but it is time for a “pocket-sized” celebration this week as 29th May marked Tax Freedom Day 2018! Every year the Adam Smith Institute calculates the number of days the ‘average’ person would have to work just to pay off their taxes. And this year, every penny…

Assuming the charity is VAT registered it may reclaim VAT on any purchases that are directly related to any VAT-taxable goods or services it sells. However, VAT-Registered charities are quite rare as the vast majority of their income will be exempt and therefore outside the scope of VAT. In the case of non VAT registered…

R&D tax reliefs support companies that work on innovative projects in science and technology. What counts as R&D? To qualify for R&D the work you are carrying out must be part of a specific project to make an advance in science or technology (social sciences like economics and theoretical fields like pure maths are not…

Part of our internal process system is to ask for feedback when a client leaves. We stress that it isn’t for us to make excuses but it is to help improve our customer service for future clients. To make this effective when a client replies I have to be very mindful not to get defensive…

Since the introduction of the new IR35 public sector rules in April, our tax specialist department have noticed that agencies have been quick to amend their contract wordings.   As a result, more clauses have appeared intending to pass on the liability to the contractors Personal Service Company (PSC) for the payment of tax and NICs….

Are these simple assessments HMRC’s way of turning back time??? Apparently, I say this because it was before my time as an accountant, before Self Assessments HMRC estimated how much tax someone needed to pay, the tax payer then appealed, a tax return would be submitted and once the figures agreed the tax payer would…

HMRC announce new timetable HMRC has announced significant changes to the timetable for rolling out the Making Tax Digital scheme, which was due to go live from April 2018. The scope and timetable have now been put back following feedback and concerns from parliamentary bodies, businesses, the accounting profession and software companies. Under the revised…

Next steps There is a large amount of information available regarding IR35 and how to protect yourself from it but what happens if you are actually selected for an investigation? The initial HMRC letter The majority of IR35 investigations begin with a letter from HMRC titled ‘Check of employer records’. In this letter HMRC will…

Results from a  YouGov survey carried out in April, revealed that more than three-quarters (76%) of senior decision makers in British businesses are unaware of a new law which could make their failure to prevent tax evasion in their company a criminal offence. Under the new law the business could be found guilty of a…

If you rent out property in the UK, then Section 24 probably affects you! The Changes From April 2017 tax relief on loan interest of residential property income has been restricted.  This is being phased in over the next 4 years so by 6th April 2020 loan interest will be restricted and only basic rate…

The snap general election has resulted in a number of tax measures, including Making Tax Digital, being dropped from the government’s Finance Bill 2017. Unincorporated businesses with turnover above the VAT threshold were due to start reporting their business’s financial data to HMRC digitally in April 2018, however, the clause to introduce digital reporting for…

When I was introduced to Cloud Accounting several years ago I was extremely excited as I could see the potential this gave business owners to have better control over their finances within their business.  I was shocked as to how many people differed from my opinion telling me they were costly and risky. Since those…

April brings the start of a new tax year and whether you currently use spreadsheets, a desktop/online accounting system or something else, if you have been thinking about switching to a better system now is the perfect time! Here’s why the first week of April is the best time to move: A new accounting year…

Last week HMRC published the response to the ‘Making Tax Digital’ consultations. The consultations asked for feedback on the government’s plan for ‘a transformed tax system and the end of the tax return’ by 2020. The consultation looked at how digital record keeping and quarterly updates would work in practice. Here is an update on…

Make sure your volunteers are insured! Charities do great work – helping to improve others’ lives. However, by doing this it can make them vulnerable to risks and liabilities they are not aware of. It does seem unfair but charities of all sizes are subject to the same level of scrutiny as a commercial business….

In the March 2015 budget HMRC announced its new ‘Making Tax Digital’ initiative, however, since then there has been few details on how it may work and what it would mean for small businesses. They have now produced consultation documents explaining in depth how they see Making Tax Digital working, here is a quick summary….

If a customer doesn’t pay your bill you can get back any VAT on this that you’ve paid over to HMRC. But where do you stand if you’re withholding payment to a supplier because you’re in dispute with them? Timing your claim Unless you use HMRC’s cash accounting scheme you can reclaim input tax on…

Wear & Tear Allowance is gone From 6th April 2016 (1st April 2016 for companies) the 10% wear & tear allowance is no longer available for furnished residential properties. Instead the actual cost of replacing furnishings and white goods used in the property are allowed as a deduction against the rental income. However, only the…

Currently companies must file an Annual Return to Companies House every year. The Annual Return provides fundamental information such as the company name, registered address and details on the company’s directors, officers and share capital. However, from 30th June 2016 the Annual Return will be replaced by a Confirmation Statement. The Confirmation Statement aims to…

Did you know the date of your accounting year-end is entirely up to YOU! Yes its true, you as a Business Owner have that choice yourself! However, it’s not as simple as picking a quiet spell and going with it. There are many factors to consider… Did you know…  The date you chose will affect…

As small business owners, contractors and directors of companies you will be aware of this wonderful Tax Season we currently find ourselves in. The team at TI Accountancy have been emailing you to keep reminding you of the online returns deadline… 31st January 2016. In order to dodge a hefty fine we ensure all returns…

Rules on reclaiming VAT following registration have been changed by HM Revenue & Customs (HMRC), meaning that some firms could lose money that they had expected would be refunded to them. Previously, traders that already held stock and assets prior to registering for VAT could reclaim the full amount of VAT paid in respect of…