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In just over six months, builders, contractors and other trades associated with the building industry will have to get to grips with a new way of accounting for VAT. Essentially, building firms will be required to charge… more
In just over six months, builders, contractors and other trades associated with the building industry will have to get to grips with a new way of accounting for VAT. Essentially, building firms will be required to charge themselves VAT when they buy building related services from other firms. This is referred to as a 'reverse charge'. EXAMPLE Subcontractor A undertakes groundwork services for contractor B. Currently firm A charges VAT at the appropriate rate on the invoice it issues to firm B, B pays the VAT to A and A pays it… more
As a self-employed trader, do you diligently record the mileage for every business journey you take? This attention to detail is necessary to convince HMRC that the cost of the journey is tax deductible. There are several apps which can… more
As a self-employed trader, do you diligently record the mileage for every business journey you take? This attention to detail is necessary to convince HMRC that the cost of the journey is tax deductible. There are several apps which can help you with this. The question is: where does your business journey start? HMRC will argue that your work only starts when you reach your customer's site and any business activities performed at your home-office are irrelevant. This would restrict your allowable travel costs to journeys between your customers and deny travel expenses for travelling from your home to the… more
When you sell a business or shares in your personal company, the gain made on that disposal will normally qualify for entrepreneurs' relief which applies capital gains tax (CGT) at 10%. Up to £10m of gains can qualify for this… more
When you sell a business or shares in your personal company, the gain made on that disposal will normally qualify for entrepreneurs' relief which applies capital gains tax (CGT) at 10%. Up to £10m of gains can qualify for this relief in your lifetime. For a company to qualify as your personal company you must hold at least 5% of the ordinary share capital and 5% of the associated voting rights. For disposals made from 29 October 2018 you must also have a right to 5% of the net assets of the company and to 5% of its distributable profits. … more
If your business is VAT registered, and the turnover for the last year has exceeded £85,000, you should soon receive a letter from HMRC stating that you must comply with the making tax digital (MTD) rules from April 2019. The… more
If your business is VAT registered, and the turnover for the last year has exceeded £85,000, you should soon receive a letter from HMRC stating that you must comply with the making tax digital (MTD) rules from April 2019. The MTD regime requires you to keep all records relating to VAT in a digital format and submit VAT returns through MTD-compliant software. The online VAT return form on gov.uk will be closed to all businesses required to comply with the MTD for VAT regime. This is because HMRC wants to minimise the risk of human error in submission of VAT… more
