You don’t have to pay tax on a benefit (gift) to your employee if all of the following apply: it cost you £50 or less to provide it isn’t cash or a cash voucher it isn’t a reward for their work or performance it isn’t…
Category: VAT & Duties
About face by HMRC
Last month, we reported the changes that CIS, VAT registered contractors and sub-contractors were about to face with the introduction of the “reverse charge” process from 1 October 2019. Shortly after our newsletter was published, HMRC conceded that it was aware that the industry…
Changes to contractor VAT from 1 October 2019
We have alerted building contractors and sub-contractors in previous newsletters of changes to the VAT rules from 1 October 2019. In a nut-shell, if you are subject to the Construction Industry Scheme and if you are registered for VAT, from the 1 October 2019…
Update on the VAT reverse charge for building contractors
From 1 October 2019, contractors who employ subcontractors will need to assume responsibility for declaring and paying the VAT that was previously settled by their VAT registered subcontractors. From this date, registered subcontractors will no longer add VAT to their invoices and main contractors…
Last call for VAT traders to prepare for new filing regulations
As we have mentioned before in this newsletter, VAT returns filed for periods commencing on or after 1 April 2019, may need to be filed using the new Making Tax Digital (MTD) protocols. The new filing obligations will apply to VAT registered businesses with…
Are you ready for the VAT filing changes?
A reminder that from 1 April 2019, VAT registered traders with turnover in excess of the current VAT registration limit, £85,000, will need to file returns after 1 April 2019 linked to HMRC’s Making Tax Digital (MTD) systems. Accounts software providers have been working…
What is AEO?
Businesses that presently trade with the EU block may like to consider applying for Authorised Economic Operator (AEO) status. The following notes explain why this may be helpful. AEO status is an internationally recognised quality mark that shows: your role in the international supply…
About-turn, you can use spreadsheets
HMRC has about-faced regarding the ban on using spreadsheets to work out your VAT return data from 1 April 2019, when the new requirement to file VAT returns using Making Tax Digital (MTD) format is introduced. Bowing to pressure from industry, the accountancy profession…
Construction drawn into VAT reverse charge process
It would seem, that HMRC is keen to plug the apparent drain from VAT receipts when contractors and sub-contractors charge their customers VAT and then go missing, keeping the VAT for themselves. This is described in legislation as “missing trader fraud”. Their preferred method…
Getting ready for Making Tax Digital (MTD)
As our regular readers of our newsletter will be aware, the government has back-tracked on their original proposal to digitise taxpayers’ affairs. The original plan, to have most self-employed traders and landlords uploading accounts and VAT data from April 2018, was scrapped. The new…