HLAS

If you are notifying HMRC of a decision to opt to tax land and buildings, you are normally required to notify HMRC within 30 days. The 30 day deadline was temporarily extended to 90 days to help businesses and agents during the pandemic, but that temporary extension has now ended for decisions made from 1 August 2021 onwards. Supplies of land and buildings, such leasing or renting out a property, are normally exempt from VAT. This means that no VAT is payable, but the person making the supply cannot normally recover any of the VAT incurred on property expenses. However [...]

HMRC have recently updated their guidance on accounting for VAT on goods imported from outside the UK which, since Brexit, includes the European Union. Businesses registered for VAT in the UK can account for import VAT on their VAT Return for goods imported into: Great Britain (England, Scotland and Wales) from anywhere outside the UK Northern Ireland from outside the UK and EU Businesses can also account for import VAT for goods moved between Great Britain and Northern Ireland that are declared into a customs special procedure, when they are removed from that special procedure. You do not need HMRC [...]

Last month we mentioned that draft legislation has been published to change the basis periods for the assessment of self-employed profits to coincide with the tax year. The proposed new rules provide that from 2023/24 onwards profits or losses will be apportioned to tax years where the period of account does not coincide with the tax year. This is intended to coincide with the start of Making Tax Digital for income tax. The transitional rules proposed for the previous 2022/23 tax year could result in large tax bills for some sole traders and partners, particularly those with an existing 30 [...]

The temporary 5% VAT rate that has applied to supplies made in the tourism and hospitality sector since the start of the pandemic comes to an end at the end of September. The rate then increases to 12.5% from 1 October until 31 March 2022 when it reverts to the standard rate. For those businesses operating in this sector this will mean an amendment to their accounting software and possibly prices. Note that the 20% rate continues to apply to the sales of alcohol. Where deposits and other payments are taken before 30 September 2021 the 5% rate would apply [...]

Remember that there are key steps that need to be followed as far as employment law is concerned. It is also important to treat any payments on termination of employment correctly for tax and national insurance purposes. In genuine redundancy situations the first £30,000 paid on termination of employment is tax free but many employers get this wrong. The £30,000 includes statutory redundancy pay and any enhancement from the employer as well as continuing benefits such as private health insurance. The excess is subject to income tax and employers national insurance. We can of course assist you with the process [...]

The Government are pulling the plug on support to employers for furloughed staff at the end of September as they anticipate that the economy will be back to normal by October. The grant claims for employees furloughed in the month of September are 60% of the employee’s usual pay up to a maximum cap of £1,875. Make sure that you make your final claims for the month of September by 14 October and make any adjustments by 28 October 2021. The end of furlough may be the trigger for many businesses to assess their staffing levels going forward and many [...]

How can a small business use cloud accounting? There is no denying that cloud accounting is now the preferred method for many accountants and small business owners alike. And as seasoned accountants ourselves, we can see why. Cloud-based accounting is quicker, easier, and more accessible than traditional methods, and it allows the automation of almost every accounting task. What’s more, VAT registered businesses are now required to store and submit financial information digitally under the Making Tax Digital (MTD) guidelines  QuickBooks: Our cloud accounting software of choice Our accountants are fully trained in 6 cloud-based platforms including QuickBooks Intuit and [...]

Why should I outsource my bookkeeping? As a small business owner, the thought of outsourcing your bookkeeping might not have crossed your mind. Bookkeeping is just a fancy word for noting down your outgoings, isn’t it? Well, not quite… it’s just the beginning! Understanding the true load of bookkeeping will not only ensure your business is compliant but it can be used to propel you forward, too. Let’s find out more. 5 key reasons to outsource bookkeeping as a small business Your accounts will remain accurate and up-to-date Accountants tasked with your bookkeeping will make it their sole focus, meaning [...]

This has been updated and outlines what to do if you or someone you employ is required to self-isolate. This includes being contacted by NHS Test and Trace, self-isolation rules and financial support. In the small number of situations where the self-isolation of close contacts would result in serious disruption to critical services, a limited number of named workers may be able to leave self-isolation under specific controls for the purpose of undertaking critical work only. This process is only intended to run until 16 August 2021, when fully vaccinated close contacts will be exempt from self-isolation. The government will [...]