When you supply goods or services to your customers, you might also pay certain costs that you pass on when you invoice them such as travel expenses, postage costs, bank transfer fees, etc. In most cases, you'll have to charge VAT on these whether you paid any VAT or not. If your business is VAT-registered and you are not sure how to deal with these items correctly for VAT, contact the iC office for guidance.

UK interest rates have been held at their record low of 0.5% by the Bank of England's Monetary Policy Committee, a decision which was widely expected in light of disappointing Christmas sales in the retail sector and a sharp downturn in industrial output at the end of last year, coupled with general uncertainty in the Eurozone. Interest rates have now been maintained at this rate since March 2009. On a more positive note, according to estimates by the National Institute of Economic and Social Research,  the economy did grow marginally in the last quarter, enough to avoid the risk of recession. Let's hope for more positive growth throughout 2012.

From 1st April 2012, online filing will become compulsory for all VAT registered businesses, and all payments will need to be paid electronically (direct debit, BACS, debit/credit card or at a bank counter). To ensure you are geared up in time to submit and pay online, make sure you have your unique user ID from HMRC in good time, as this can take several weeks to arrive. For further advice, or to ask us to submit your returns on your behalf, contact the office.

A reminder that the deadline for Self Assessment tax returns is fast approaching - returns relating to the tax year 2010/11 need to be filed online - and any tax due must be paid - by 31st January 2012. Late filing will incur an automatic £100 penalty. If you need assistance with your return, please contact us as soon as possible.