iC Accountancy - Part of Intellectual Capitalists

VAT & costs passed on to clients

l.evans@intcap.co.uk — Thu, 26 Jan 2012 10:08:35 +0000

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 kept on hold at record low of 0.5%

l.evans@intcap.co.uk — Thu, 12 Jan 2012 16:17:22 +0000

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.

Compulsory online filing for VAT returns

l.evans@intcap.co.uk — Wed, 04 Jan 2012 13:58:11 +0000

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.

2010/11 Self Assessment deadline approaching!

l.evans@intcap.co.uk — Wed, 04 Jan 2012 11:38:04 +0000

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.

National minimum wage rise

admin — Thu, 08 Dec 2011 14:32:16 +0000

The Government has announced today that the National minimum wage will increase on October the 1^st 2011, as follows:

The adult rate will increase by 15p to £6.08 an hour;
The rate for 18-20 year olds will increase by 6p to £4.98 an hour;
The rate for 16-17 year olds will increase by 4p to £3.68 an hour; and
The rate for apprentices will increase by 10p to £2.60 an hour.

Offshore hideaway penalties

admin — Thu, 08 Dec 2011 14:31:40 +0000

HMRC have warned that individuals who have been evading taxes and concealing money offshore could face new penalties of up to 200%.

Commencing on the 6th of April 2011 the new penalties for offshore non compliance for income tax and capital gains tax will be linked to the tax transparency of the country involved. For nations which do not automatically disclose tax information with the UK, HMRC advises that there will be increased penalties in place for under-declared income and gains.

New VAT Ruling on Fast Food

admin — Thu, 08 Dec 2011 14:30:48 +0000

A new EU ruling has meant that it is likely that fast food retailers will be exempt from VAT providing that the operation is not classed as catering – examples include popcorn, salami and nachos.

Businesses lose out by not reclaiming VAT

admin — Thu, 08 Dec 2011 14:29:25 +0000

In 2010, £124 million went un-recovered by businesses as a result of businesses not keeping or obtaining valid expense receipts. This figure could rise to £140 million in 2011 due to the rise in VAT rate.

We’re urging clients to improve and enhance policies, ensuring receipts are obtained from employees to support claims.Please contact the office for a handy guide on best practice in record keeping.

Financial Directors concerned about fuel rises

admin — Thu, 08 Dec 2011 14:23:45 +0000

Financial Directors are more concerned about fuel rises than they are the VAT rise. A recent survey showed that 53% of respondents are concerned with this matter as the rise could affect their businesses significantly. If fuel were to rise above £1.70 per litre one in ten are predicted to make redundancies. At present within Europe, the UK is the 8^th most expensive country for unleaded petrol and 2^nd most expensive country for diesel.

HMRC targets poor record keeping SMEs

admin — Thu, 08 Dec 2011 14:20:50 +0000

A HMRC proposal indicates that 50,000 SMEs could be investigated during the second half of 2011 under its “Business Records Checks” initiative, which will target organisations who hold poor trading records, dating back over the past six years.

The investigations will focus on organisations with fewer than 250 employees and a turnover of less than €50 million. It will typically take half a day to complete the review of company records which will include cheque stubs, till rolls/sales records, plus bank and credit card statements.

Penalties will be imposed for significant record keeping failures which could see fines up to £3,000; SMEs may also be exposed to formal tax enquiries as a result. The scheme aims to raise £600 million in additional revenue over the next four years for the taxman.

There are a number of records you need to keep, dependent on your business size, sector and the different taxes that you have to pay, collect or charge.Contact the iC accountancy team to request our handy record keeping checklist.