Under the cash accounting scheme you account for VAT on the basis of payments you receive and make, rather than on invoices you issue and receive. The main benefit of this scheme is that you don't have to pay VAT on invoices you have issued until your customers pay you, although it also means you can't reclaim VAT on purchases until you pay your suppliers. You get automatic bad debt relief because, if no payment is received, no output tax is due.
Friday, 25 June 2010
VAT Cash Accounting
Thursday, 24 June 2010
Clients from accross the UK
With the advancement of technology we are now able to deliver many of our services to our clients without the need to meet with them face to face. This means that it is now practical to deal with clients on a national or international basis. We have found that this is particularly beneficial to clients that spend a considerable amount of time working away from home.
Wednesday, 23 June 2010
Budget - 22nd June 2010
We all knew that Chancellor George Osborne was going to announce an increase in Capital Gains Tax (CGT) today, but we didn't expect the rate to rise immediately. Other surprises included reductions in the rates of corporation tax for both small and large companies and in the rates of capital allowances for all businesses.
A rise in the standard rate of VAT to 20% was widely expected, but this increase has been delayed until 4 January 2011, which is the first working day after the Christmas break.
Tuesday, 22 June 2010
Emergency budget
Some key points from today's emergency budget, I hope to provide a full report tomorrow once I have had time to review the budget in full.
Sunday, 20 June 2010
On a lighter note!
I returned from a 2 week holiday today to a myriad of emails. As I was reading through, I enjoyed a good chuckle to the contents shown below in an email from a client:
Subject: This is brilliant
BRILLIANT!!!!!
A SENIOR MOMENT - An elderly lady actually wrote this letter to her
bank. The bank manager thought it amusing enough to have it published
in The Times and this newspaper thanks him most sincerely.
Saturday, 19 June 2010
Using a Limited Company to Save Property Tax
Any decision must be carefully weighed up after examining your own circumstances and the following should only be read in conjunction with our disclaimer.
Here are some advantages of using a company...
1.Low Tax Rates
Small limited companies only pay tax at 21% (2010/11) on profits up to £300K and only go as high as 28% whereas a higher rate individual taxpayer pays tax at 40% or 50%, which is a large difference. The small company tax rate is due to increase to 22% by April 2011. If you or your spouse/ civil partner already control another company that existing company could be associated with the property and increase the tax rates for both companies. Also where the sale of property is a capital gain as opposed to trading profits, individuals only pay 18% capital gains tax.
Saturday, 5 June 2010
Pay Staff Tax Free - Staff Suggestion Scheme
This scheme is specifically allowed and provided for in the legislation. It is very simple to operate and works as follows...
■If a suggestion is implemented and a real financial benefit is expected to accrue, the employee can be paid the lower of:
■half the annual benefit expected in the short or medium term, or
■£5000.
■Payments of up to £25 can be made for employees' suggestions as an encouragement, whether or not the suggestion is implemented. Employees can make as many suggestions as they want.
Wednesday, 2 June 2010
Managing Your Business the McDonald's Way
Wouldn't it be great if your small business...
■Delivered its product or service consistently time and time again to the customer.
■The employees did it the same way every time, the best way.
If we're going to learn from the small businesses that successfully do this, let's take a look at the most successful small business in the world, McDonalds. Even if you don't like what McDonald's sell, there is no denying it is a hugely successful business.
Tuesday, 1 June 2010
June's Tax Tips & News
This is a copy of of our monthly newsletter, to receive your free copy direct, please subscribe here.
Welcome...
To June's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.
If you need further assistance just let us know or you can send us a question for our Question and Answer Corner.
We are committed to ensuring all our clients don't pay a penny more in tax than is necessary.
Please contact us for advice in your own specific circumstances. We're here to help!
