From 1st April 2019, if you have a VAT registered business with a taxable turnover above £85,000, HM Revenue and Customs (HMRC) are introducing some important changes which will affect you. They are introducing Making Tax Digital for VAT (MTDfV). These may have a significant effect on how you do your bookkeeping. From your first …
A report by the Office of Tax Simplification (yes, one really does exist) in 2017 floated the idea of reducing the VAT registration threshold. Currently, the VAT registration threshold in the UK is £85,000. It has steadily risen over time, and is currently one of the highest in the EU. The average threshold for VAT …
There was very little in the 2016 Autumn Statement which directly affected small business, but one measure caught our eye; HMRC are changing the VAT Flat Rate Scheme. The VAT Flat Rate Scheme is a simplified scheme for accounting for VAT. If you are VAT registered and on the scheme, you forego the ability to …
A change to vat on digital sales within the EU came into effect from the beginning of 2015. Previously, any VAT on digital sales was accounted for in the country of the seller. However, from 1 January 2015, the place of supply will change to the country where the consumer is established. What this potentially means …
HM Revenue and Customs are running a series of VAT webinars during August. The subjects they will cover are: What is VAT – an introduction VAT now that you are registered VAT accounting schemes VAT motoring expenses VAT trading with other countries For details of the content and how to book, please see here. …
The intention of the Flat Rate Scheme is to simplify the process of reporting VAT for businesses. VAT payable becomes simply a factor of VAT inclusive sales for a quarter – removing the need to analyse input VAT on purchases. See here for our recent blog on the Flat Rate Scheme. There is also an …
For years, many small businesses have stated that being registered for VAT is an administrative burden on their business. By being VAT registered, a business is effectively an unpaid tax collector. In order to try and help small businesses, the Flat Rate Scheme (FRS) was introduced by HM Revenue and Customs (HMRC) in 2002. If …
The current threshold for compulsory VAT registration is taxable turnover of £85,000 in the last 12 months. This is a rolling measurement – if you look at the year to 30 June and you are under, that’s fine. However, you then need to review for the year to 31 July, and so on. Note the …
HM Revenue and Customs (HMRC) first made businesses file their VAT returns online in April 2010. This ruling applied to all businesses with a turnover in excess of £100,000, plus all new registrations. From April 2012, virtually all VAT registered businesses will have to file their VAT returns online. See here for more details. NB …
If you’re not registered for VAT and your taxable supplies have exceeded £73,000 in the last 12 months, you MUST register for VAT. However, many businesses do not have that level of turnover, or may not have traded a full 12 months, and register VOLUNTARILY for VAT. So should you do it? There are several …