Proactive

VAT changes for 2010

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VAT rate updated to 17.5%

With effect from 1 Jan 2010 the VAT rate returns to the once customary level of 17.5%. It was temporarily reduced to 15% on 1 Dec 2008 as part of the government’s financial stimulus.

All VAT registered businesses will need to charge VAT at 17.5% when appropriate on invoices raised from 1 Jan 2010.

VAT returns on line - soon to be compulsory

In their recent VAT update leaflet, HM Revenue & Customs have told us that all VAT returns will (in future) have to be submitted electronically. We’re not going to wait for the rule to start in 2010/11, we’re going to make progress now! We have three months to go before the end of the 2009/10 tax year and we are writing to the affected clients now. If you’re not yet a client and you want to understand what’s involved with online VAT, check this earlier article.

Posted on 29 Dec 2009 by The Proactive Accountant Dot Com

A fixed asset register

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Claiming tax relief on the big things

All businesses can claim tax relief on business expenses. That can include items that you bought before the business started! Do you have a laptop, and any other IT kit? Is your office equipped with a desk, a chair and a book case? Here’s a typical list of things that you might be introducing. There may be things on this list that you should ignore, and there may be other special things (in your line of business) that we haven’t thought about.

All of these things are “the big things”, the sorts of things that will serve the business over a number of years, and not be used up all in one go. Use this list as a guide, and please compile your own. The descriptions under “model” and “serial number” should be sufficiently clear so that one Dell laptop can be distinguished from the next Dell laptop that you buy, if you see what we mean!

Once your list has been prepared, please send a copy to us.

Posted on 9 Dec 2009 by The Proactive Accountant Dot Com

New company reference numbers

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Updating our systems

When a new company is incorporated, both the Revenue and Companies House will issue reference numbers. This may take between 14 and 28 days. In order to submit documents electronically, we need to ask you to let us know the reference in each case.

HM Revenue & Customs call it a Unique Taxpayer Reference or a UTR, or sometimes just a reference. Companies House talk about an authentication code. Examples of the tax office form and the Companies house letter are shown below. In each case, please let us know the reference or code. We don’t need the letter, just a simple email with the reference or code, thanks.

Once we have the reference number from the form CT41G we will complete the form using our own electronic proforma, and submit it on your behalf. You need not do anything with the original paper form. Put it in the confidential waste!

If you get too many letters from HM Revenue & Customs and Companies House, and you need any help please let us know.

Posted on 5 Dec 2009 by The Proactive Accountant Dot Com