Smarter accounting

VAT for Advocates

VAT for Advocates

24 May 2022, Advocates, Barristers

There is specific guidance from HMRC on accounting for VAT for advocates.  VAT notice 700/44 was updated on 20th May 2022.  The change was only to update a contact address, but with an increase in people leaving work it is a good time to consider the VAT implications of leaving your practice as an advocate. […]

Declare your dividends

Declare your dividends

24 March 2022, Advocates, Artists, Barristers, Companies, Creative Industries, Employer, Musicians, Sole Traders

The Spring Statement 2022 confirmed increases to National Insurance from the tax year starting 6th April 2022.  The threshold for paying National Insurance increases to £12,570 from July, but this doesn’t affect the additional tax on dividends.  The difference in the payment date of your dividends by just one day could mean that you pay […]

Protect your cash

Protect your cash from the tax increase

24 March 2022, Advocates, Artists, Barristers, Companies, Creative Industries, Employer, General, Musicians, Sole Traders

The Spring Statement 2022 confirmed increases to tax and National Insurance from 6th April 2022.  The (mild) good news is that the threshold for paying National Insurance increases to £12,570 from July 2022.  There are still opportunities for most taxpayers to take advantage of a tax break in the form of pension contributions. What is […]

Pay your tax by end of Jan

Pay your personal tax return by the end of January

10 January 2022, Advocates, Barristers, Creative Industries, Musicians, Sole Traders

Don’t forget to pay your personal tax turn by the end of January. Who has to file a personal tax return? If you are self-employed or you are director of a limited company, you need to register with HMRC for self assessment tax returns in most cases.  You need to pay your personal tax by […]

Training vs Learning Organisation

Training vs Learning Organisation

28 December 2021, Advocates, Barristers, Companies, Creative Industries, Employer, General, Sole Traders

Alterledger is a learning organisation.  Our clients choose us for the insight that we provide.  The value we bring is that business owners don’t need to divert their attention to accounts and filing deadlines.  Alterledger exists to allow our clients to get with what they do best – their business. Comparison of training and learning […]

Gifts for customers and suppliers

Gifts for customers and suppliers

27 November 2021, Advocates, Artists, Barristers, Charities, Companies, Creative Industries, Employer, General, Musicians, Sole Traders

What is a gift? This might seem to be an obvious question, but it helps to get the definition clear to work out the tax implication of gifts for customers and suppliers. A gift is something you give without receiving anything in exchange.  For example, you may choose to give a customer a bottle of […]

Health and Social Care Levy

Health and Social Care Levy – Finance (No. 2) Bill

18 November 2021, Advocates, Artists, Barristers, Companies, Creative Industries, Employer, Musicians, Sole Traders

The budget confirmed a few increases to tax which are likely to stoke inflation in the form of the Health and Social Care Levy.  The Finance Bill is currently passing through the legislative process to introduce tax increases for most people. How does the budget affect my business? The figure of 1.25% crops up in […]

Minimum pension age

Minimum pension age increase to 57

5 November 2021, Advocates, Musicians, Sole Traders

Finance Bill 2021-22 includes minimum pension age increase The government has published the Finance Bill 2021-22 (Finance (No. 2) Bill), which includes a clause to increase the normal minimum pension age from age 55 to age 57 from 6 April 2028.  If you were born before 6 April 1973 consider whether you want to take […]

Death and taxes are the ultimate known knowns - you can add tax scams to this list.

Death, Taxes and Tax scams – known knowns

9 May 2021, Advocates, Artists, Creative Industries, General, Musicians, Sole Traders

It is said that there are two certainties in life, death and taxes.  The old cliche has a ring of truth, and you can add tax scams to the list of known knowns. Donald Rumsfeld was roundly mocked for his comment at a news briefing on 12th February 2002 about known knowns, but on reflection, […]

pre-trading expenses

Pre-trading expenses

20 April 2021, Advocates, Barristers, Creative Industries, General, Musicians, Sole Traders

A sole trader may incur costs before setting up their trade.  Some of these pre-trading expenses are allowable for tax purposes subject to being ‘wholly and exclusively’ for the trade or profession. Capital items purchased prior to trading may also qualify for capital allowances. Pre-trading expenses Expenses incurred up to 7 years before commencement of […]

Computer equipment intending trader

VAT intending trader

25 April 2021, Advocates, Barristers, Creative Industries, General, Musicians, Sole Traders

Before you start to trade you can register for VAT as an intending trader to recover input VAT on computer equipment and other costs.  You can also recover pre-registration VAT in some circumstances. Pre-trading VAT The current threshold for obligatory VAT registration is an annual turnover of £85,000. Voluntary registration is beneficial where: VAT on […]

Receipt Bank is now Dext

Receipt Bank is now Dext

23 February 2021, Advocates, Artists, Barristers, Charities, Companies, Creative Industries, Musicians, Sole Traders

A bolt from the blue – Receipt Bank is now Dext In a surprise announcement from Receipt Bank Dext, the branding and log in details for the online service changed today. How do I log in to Dext? If you previously used the following web address to log in to Receipt Bank, it should still […]

VAT on services

VAT on services outside UK

25 February 2021, Advocates, Barristers, Companies, Creative Industries, General, Sole Traders

Buying and selling services This article considers what has changed (and what hasn’t) for businesses trading in services with the EU, including situations where there are crucial exceptions to the general rules. The highlights of VAT on services outside the UK In many cases, the VAT on services is no different to pre-Brexit 2020.  However, […]

Self Assessment Tax Filing Deadline Extended to 28 Feb 2021

Self Assessment Tax Filing Deadline Extended to 28 Feb – please pass this on!

25 January 2021, Advocates, Artists, Barristers, Creative Industries, Sole Traders

At (almost) the eleventh hour, HMRC announces tax filing deadline extended to 28 February HMRC announced today that you will not receive a penalty for filing your 2019-20 tax return late, as long as you file online by 28‌ February.  We are still encouraging taxpayers who have not yet filed to do so by 31‌ […]

Need extra time to pay your tax bill?

Need extra time to pay your tax bill due in January 2021?

22 January 2021, Advocates, Artists, Barristers, Creative Industries, Sole Traders

Strapped for cash and worried about your tax? If you are one of the many self-employed who need extra time to pay your income tax bill at the end of the month, HMRC have an online process to help you spread your payment.  With just over a week to go until the filing deadline for […]

set up a manual VAT payment if you have VAT owing from 2020

How to set up a manual VAT payment

10 February 2021, Advocates, Barristers, Companies, Creative Industries, General, Sole Traders

Deferred VAT payment due to Coronavirus On 24th September 2020 the UK Chancellor announced that businesses who deferred VAT due from 20 March to 30 June 2020 had more time to pay VAT from this period.  The same guidance still stands though.  If you chose to defer your VAT payment as a result of coronavirus, […]

Making Tax Digital compulsory for VAT registered businesses - HMRC AI will change everything

You need to change the way you submit your VAT returns

30 December 2020, Advocates, Barristers, Companies, Creative Industries, General, Sole Traders

Action required by 8 April 2021 If you haven’t signed up for Making Tax Digital (MTD) yet, you need to change the way you submit your VAT returns. Even if you currently use Xero to file your VAT returns, you won’t be able to use software to file returns from 8th April unless you are […]

Check your SEISS eligibility

SEISS third grant

30 November 2020, Advocates, Artists, Barristers, Creative Industries, Musicians, Sole Traders

SEISS third grant open for claims. The rules on who is eligible to claim are different to those for the previous SEISS grants.  The third grant will be based on 80% of three months’ average trading profits, paid out in a single taxable instalment capped at £7,500, and will cover the period from 1 November […]

Bounce Back Loan - a Bright Idea

Bounce Back Loan Extended

5 November 2020, Advocates, Companies, Creative Industries, Employer, Sole Traders

When is the Bounce Back Loan Deadline? The Bounce Bank Loan deadline for applications was originally scheduled for 4th November 2020 and then extended slightly to 30th November 2020.  The announcement by Rishi Sunak on 2nd November on the Bounce Back Loan extended deadlines for applications to 31st January 2021.  The Bounce Back Loan Scheme […]

Received a Self-Employment Income Support Scheme Grant and stopped trading?

Received a Self-Employment Income Support Scheme Grant and stopped trading?

30 October 2020, Advocates, Artists, Creative Industries, Musicians, Sole Traders

Received an SEISS grant?  Check your inbox to avoid a penalty. HMRC is contacting businesses which claimed a grant under the Self-Employment Income Support Scheme to check whether they have stopped trading.  What do you need to do? How do I know an email from HMRC isn’t spam or phishing? HMRC do not normally email […]

Check your SEISS eligibility

SEISS extended to April 2021

6 November 2020, Advocates, Artists, Barristers, Creative Industries, Musicians, Sole Traders

Payment no 3 in December for SEISS extended to April. The Self-Employment Income Support Scheme (SEISS) has been extended to April 2021.  If you are self-employed and were eligible for the first and second SEISS grants you will be able to claim grants for the 6 month period from November 2020 to April 2021. What […]

More time to pay VAT

More time to pay VAT

25 September 2020, Advocates, Barristers, Companies, Creative Industries, General, Sole Traders

Rishi Sunak has given you more time to pay VAT On 24th September 2020 the UK Chancellor announced that businesses who deferred VAT due from 20 March to 30 June 2020 will now have more time to pay VAT from this period.  The original deadline for this VAT was 31st March 2021. Instead of paying […]

Bounce Back Loan - a Bright Idea

Bounce Back Loan Deadline for Applications

25 September 2020, Advocates, Companies, Creative Industries, Employer, Sole Traders

When is the Bounce Back Loan Deadline? The Bounce Bank Loan deadline for applications was originally scheduled for 4th November 2020.  On 24th September Rishi Sunak announced that the deadline for applications would be extended to 30th November 2020.  The Bounce Back Loan Scheme (BBLS) will help eligible small and medium-sized businesses affected by the […]

VAT on non-refundable deposits

VAT on non-refundable deposits

14 September 2020, Advocates, Barristers, Companies, Creative Industries, General, Sole Traders

VAT is chargeable on all non-refundable deposits HMRC requires you to charge VAT on non-refundable deposits.  So you must issue a VAT invoice for charges levied even if the customer does not use the goods or services.  This came into force with effect from 1 March 2019, cancelling HMRC’s previous interpretation which allowed some non-refundable […]

VAT on Cancellation Fees

VAT on Cancellation Fees

14 September 2020, Advocates, Barristers, Companies, Creative Industries, General, Sole Traders

HMRC changes policy with VAT on Cancellation Fees On 2 September 2020, HMRC, issued a Brief dealing with the VAT on cancellation of a contract or early termination fees.  The VAT treatment has changed for fees a business charges to allow customers to withdraw from agreements early.  If your customer cancels an annual subscription part-way […]

Making Tax Digital compulsory for VAT registered businesses - HMRC AI will change everything

Making Tax Digital compulsory for VAT from April 2022

31 August 2020, Advocates, Barristers, Companies, Creative Industries, Sole Traders

Making Tax Digital compulsory for all (eventually) Recent announcements make Making Tax Digital compulsory for all VAT registered business from April 2022.  The self-employed will be included from April 2023 and eventually Corporation Tax too. All VAT registered businesses will have to comply with Making Tax Digital (MTD) from 1 April 2022 and not just […]

Claim to reduce payments on account

Claim to reduce payments on account

4 September 2020, Advocates, Artists, Barristers, Creative Industries, General, Musicians, Sole Traders

Reduce your income tax payments on account to HMRC You can reduce payments on account to HMRC if you expect your profits to be lower in the year to 5th April 2021.  Most sole traders will find that their taxable profits will be lower this year due to the effects of the COVID emergency.  If […]

Check your SEISS eligibility

SEISS phase 2

17 August 2020, Advocates, Artists, Barristers, Creative Industries, Musicians, Sole Traders

Check if you can claim the SEISS phase 2 grant through the Self-Employment Income Support Scheme The Self-Employment Income Support Scheme (SEISS phase 2) is now open for the self-employed to receive a second and final grant of up to £6,570.  The HMRC website went live on 17th August 2020 to allow you to claim […]

How to set up your VAT Direct Debit

How to set up a VAT Direct Debit

19 June 2020, Advocates, Barristers, Companies, Creative Industries, General, Sole Traders

No more extra time to pay your VAT As part of the government’s support for businesses during COVID-19, HMRC gave businesses the option of deferring their VAT payments and cancelling VAT Direct Debit instructions if they were unable to pay on time.  This allows VAT to be deferred without incurring late payment interest or penalties.  […]

Check your SEISS eligibility

Check your SEISS eligibility

13 May 2020, Advocates, Artists, Barristers, Creative Industries, Musicians, Sole Traders

Check if you can claim a grant through the Self-Employment Income Support Scheme The Self-Employment Income Support Scheme (SEISS) is now open for the self-employed to receive a grant of up to £7,500.  The HMRC website to check your SEISS eligibility has been set up.  Find out what you need to do to allow HMRC […]

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