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[24 Feb 2015 | Comments Off on The New Marriage Allowance | ]
The New Marriage Allowance

The new Marriage Allowance is set to come into force on 6 Apr 2015 when the new tax year starts. It was announced in last year’s Budget when David Cameron and George Osborne made a big deal about it . . .

Prime Minister David Cameron: “I made a clear commitment to the British people that I would recognise marriage in the tax system.”
Chancellor of the Exchequer George Osborne: “Our new Marriage Allowance means saving £212 on your tax bill couldn’t be simpler or more straightforward.”

However, it is not as simple …

getting things done, one offs »

[12 Dec 2014 | No Comment | ]
#VATMOSS #VATMESS

VAT MOSS applies to all businesses whether or not they are currently VAT registered! Do you sell (or are you planning to sell) digital products (eServices) over the web?
From 1 Jan 2015 the rules change and as a result, some non-VAT registered business will need to review their business methods and may be forced to register for VAT. Businesses which are already VAT registered may need to collect more data from their customers and charge a different VAT rate depending on where their customer lives.

The rules were developed to make …

one offs »

[30 Jul 2014 | No Comment | ]
HMRC on strike

Is it worth phoning HMRC? Do the staff in the call centres actually have any expertise? If you’re promised a return call, do they actually call you back? In our experience the answer to all these questions is an emphatic “no”!
Today, staff at HMRC are going on strike (for three days) to protest about staffing levels. We have long known that things are not getting done. We gave up phoning HMRC in 2006 and started a process of sending them everything in writing. That way, if there is ever any …

one offs »

[8 Nov 2013 | No Comment | ]
Should I dissolve my company or put it on ice?

Hopefully, running your own business has been a good experience. When business comes to an end, we know that the double barrelled question “should I dissolve my company or put it on ice” is often asked.
If you have finished with the company and no longer need it, then dissolve it. Keeping it will only add to your costs. A simple dissolution guide is here.
It is not possible to ever make a traded company become truly dormant again. There will always be things to do. A dormant company is one which …

one offs »

[8 Aug 2013 | No Comment | ]
Pre Trade Expenses

I’ve only just registered my business, can I claim pre trade expenses which I paid personally?
The basic principal is that “if you paid for something in the knowledge that you were starting a business, and the prime motive for buying this something was to enhance that business, then it is a business expense” and (subject to a three year time limit) you can claim for it. That applies to both goods and services, and in order to claim the full cost you must satisfy both parts of this test, that …

one offs »

[8 Jan 2013 | No Comment | ]
I’ve only just registered for VAT, can I claim back old VAT?

I’ve only just registered for VAT, can I claim back old VAT?
The short answer is “it depends”.
Have you read the general rules in the pre trade expenses article already? Do that first, then continue with this article.
Yes, you can claim for the VAT on goods (and in limited circumstances on services too) provided they:

were purchased within the three years preceding the date of your VAT registration
are still in the possession of the business on the date of your VAT registration
are actually used in the course of the business; and
satisfy the …

on the bridge »

[3 Mar 2012 | No Comment | ]
The age of Transparency

There have been a few discussions recently in the press, about this sector or that sector aiming for greater transparency. We were introduced to the idea of transparency, properly, during a visit to Oxford University in 2009. Until then, we only had a fledgling idea on an in-house project which we were calling “openness”.

The transparency report on the Proactive web site http://www.proactive.uk.net

Although businesses are generally slow to take up this new concept (and to date the initiative has been discussed mainly amongst central and local government) we are aiming to …

routine »

[27 May 2010 | No Comment | ]

You can link directly to this article using the short URL http://bit.ly/9pN7Vo

What is the VAT treatment on recharged expenses?

There is little logic in VAT legislation, and so the system is set out here for your information. Whether we like it or not, we have to follow the rules!
If you are VAT registered, then you charge VAT to your clients, on top of the cost of your product or services.
If in the course of doing that you incur expenses and you want to recharge those expenses, then you have to charge …

one offs »

[12 May 2010 | No Comment | ]

You can link directly to this article using the short URL http://bit.ly/akqEqp

Moving towards a more digital world

In order to work with the tax office electronically, we still have to handle a little bit of paperwork. As part of the process of setting up the online records, HMRC may send you an authorisation code in a letter like this . . .

The codes have a 28 day limit, so as soon as you receive one, please let us know. We don’t need the letter, just the authorisation code. Thanks.
You should follow …

one offs »

[5 Mar 2010 | One Comment | ]

You can link directly to this article using the short URL http://bit.ly/bVqSmg

And they have acknowledged their mistakes

HMRC has been issuing incorrect PAYE coding notices (forms P2) to a lot of our clients just lately! By their own admission they have got things wrong in numerous cases. We have just received a letter (as an employer, not as accountants) which says . . .

We are dealing with every case that comes to our attention. However, we do not always receive copies of your coding notices. If you have recently had a …