The new penalty regime for late payment of VAT is fairer to those who miss the VAT payment deadline by a few days.
For Vat due in relation to periods beginning on and after 1 January 2023 you will have up to 15 days to pay, or arrange a time to pay agreement, without incurring a penalty. For the first year of this new system, you will have 30 days to pay the VAT liability in full instead of 15 days.
From 2024 onwards the new…
VAT registered businesses must now use MTD-compatible software to file VAT returns, as the old online form where you typed in your VAT figures has been closed.
To encourage businesses to file on time under the MTD regime the late filing penalties are being separated from the late payment penalties for VAT periods beginning on and after 1 January 2023.
Late filing penalties will be based on points awarded for each late submission. A penalty is levied only when the appropriate points threshold is reached, which…
Electronic sales suppression (ESS) is the use of software or hardware tools to manipulate the sales recorded by an electronic point of sale (EPOS) device, such as a shop till.
Traders may think that HMRC won’t find out about the sales hidden using ESS tools as the transactions are put through the till as normal, but selected sales are not recorded or are deleted.
To ensure the trader’s bank receipts match the total amount of sales recorded by the till, the card payments for those missing…
There is a very limited range of expenses that employees can claim, but these can include the flat rate deduction (£6 per week) for working from home, if you are required to work from home, have not alternative place to work at, and your employer doesn’t pay you a home-working allowance. You may also be able to claim uniform or tool allowances, which are specific to your trade, and claim mileage ( at 45p per mile) when you use your own vehicle while on a business journey.
When a company makes a loss after 1 April 2017, those losses can be set off in a far more flexible fashion than earlier losses, for example, trading losses may be used against property income. This means that the losses brought forward from earlier periods (before April 2017) need to be kept separate, so they don’t get mixed up with later losses.
Also, where losses arise within a group there are restrictions on whether certain non-trading losses can be surrendered to other companies in the group, which would include…
When a residential property is held through a company (or another non-natural person eg a trust) this potentially creates a liability to the Annual Tax on Enveloped Dwellings (ATED). This annual charge applies if the property is worth over £500,000.
There are several exemptions and reliefs for ATED, but those reliefs must be claimed each year for each property that falls within the ATED regime.
The property must be valued on acquisition to determine whether it is worth over £500,000. But it must also be revalued every five years after…
As a landlord letting a residential property you are required by the Housing Act 2004 to protect deposits provided by tenants on assured shorthold tenancies, by using a deposit scheme.
The not-for-profit companies that run these schemes will provide details of their customers to HMRC or to any other Government department that requests the information.
HMRC has recently received a large sample of data from deposit schemes and has compared the information to the amounts of rent reported on landlords’ tax returns for 2020/21. As a deposit usually represents four…
HMRC are always a little suspicious of businesses that claim a VAT repayment in their first VAT return, or a large refund in a later return. In such cases it will write to you asking for supporting evidence, such as copies of invoices, to be provided within 30 days.
You can now provide the requested information online, through a new portal HMRC has set up, especially for this purpose.
You need to quote the reference given in HMRC’s letter which will be in the format: CFSS-1234567, and supply other…
View our free guide to The Autumn Budget 2022.
In this analysis we have mainly concentrated on the tax measures that will directly affect individuals, employers and small businesses.
We are committed to ensuring all our clients don’t pay a penny more in tax than is necessary.
If you have any questions or would like one-to-one advice tailored to your needs, please call us on 01792 466 428 or email [email protected].
When the time comes to close a company the usual method by which this is done is via a process known as ‘Striking off’. The procedure is an informal, voluntary way of closing a company which is no longer required either because the company has ceased trading, or the director wants to retire or because the directors just want to close the business. However, strike off can be undertaken compulsorily, typically by a disgruntled creditor or by Companies House for non-submission of annual accounts. Importantly, a company can…