Smarter accounting

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 […]

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 […]

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, […]

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 […]

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, […]

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 […]

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 […]

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 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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

Claim Self-Employment Income Support Scheme Grant

Claim Self-employment Income Support Scheme Grant

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

Get up to £7,500 from the government if you are self-employed Find out if you are eligible to Claim Self-employment Income Support Scheme Grant of up to £7,500.  Details of the Self-employment Income Support Scheme have now been published to support the self-employed or members of a partnership with trading income.  You will need to […]

Bounce Back Loan - a Bright Idea

Bounce Back Loan

29 April 2020, Advocates, Barristers, Charities, Companies, Creative Industries, Employer

Where CBILS fails, smaller companies can get a Bounce Back Loan The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.  The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. Loan terms will be […]

CBILS Forecast

CBILS Forecast

4 April 2020, Advocates, Barristers, Charities, Companies, Creative Industries, Employer

Why you need a Coronavirus Business Interruption Loan Scheme / CBILS Forecast. The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK.  The businesses under consideration are those that are losing revenue and seeing their cash flow disrupted as a result of the COVID-19 outbreak.  The scheme is […]

How to set up your VAT Direct Debit

Deferred VAT payment and how to cancel your Direct Debit

3 April 2020, Advocates, Barristers, Companies, Creative Industries, General, Sole Traders

Extra time to pay your VAT On 20th March 2020 the UK Chancellor announced support to businesses in the form of a deferred VAT payment scheme.  This helps VAT registered businesses with their cash flow during the COVID-19 pandemic.  All VAT registered businesses can defer VAT payments.  If you currently pay by Direct Debit, you […]

Save more than 16% on Zoom subscription

Save more than 16% on Zoom subscription

2 April 2020, Advocates, Artists, Barristers, Companies, Creative Industries, Employer, General, Musicians, Sole Traders

Pay less for online subscriptions It seems that almost everyone is turning to online communications in the current situation, with Zoom, WhatsApp and Skype seeing a dramatic increase in use.  Even the UK prime minister is an advocate of Zoom.  Save more than 16% on Zoom costs by following the steps below.  You can also […]

Self-employment Income Support Scheme

Self-employment Income Support Scheme

27 March 2020, Advocates, Artists, Barristers, Creative Industries, Musicians, Sole Traders

Government grant to freelancers Details of the Self-employment Income Support Scheme have now been released to support the self-employed or members of a partnership with trading income. Who can apply for the Self-employment Income Support Scheme? You can apply if you’re a self-employed individual or a member of a partnership and you: have submitted your […]

no income tax payment due in July 2020

No income tax payments due in July

20 March 2020, Advocates, Artists, Barristers, Creative Industries, General, Musicians, Sole Traders

Payments on account cancelled in July The UK Government announced on 20th March that there would be no income tax payments due in July 2020 for the self-employed. Payments on Account Personal tax returns must be filed by 31st January following the end of the tax year. For the tax year ended 5th April 2019 […]

Claim Newly Self-Employed Hardship Fund

Newly Self-Employed Hardship Fund

24 April 2020, Advocates, Artists, Barristers, Creative Industries, General, Musicians, Sole Traders

Grants for newly self-employed The Scottish Government has announced a £34 million Newly Self-Employed Hardship Fund.  The fund will be managed by Local Authorities to allocate grants of £2,000 to the newly self-employed facing hardship.  The self-employed who started trading after 5th April 2019 are excluded from the Self-Employment Income Support Scheme.  The Scottish Government […]

How many VAT registered businesses in the UK need to sign up to Making Tax Digital

MTD Registration – progress to date

19 August 2019, Advocates, Barristers, Companies, Sole Traders

MTD Registration – Key numbers The Making Tax Digital (MTD) rules became law for VAT periods starting on or after 1 April 2019. MTD registration requires VAT-registered businesses with taxable turnover over £85,000 to keep their VAT records digitally.  They must also submit their VAT return direct from their Making Tax Digital-compatible software.  The MTD […]

How many VAT registered businesses in the UK need to sign up to Making Tax Digital

How many VAT registered businesses in the UK need to sign up to Making Tax Digital

30 March 2019, Advocates, Barristers, Companies, Sole Traders

How many VAT registered businesses in the UK are there? Figures from the Office of National Statistics state that there are 2.67 million businesses registered for VAT and/or PAYE.  Any business with employees must register for PAYE, but not all of these businesses are registered for VAT.  This prompts the question – how many VAT […]

How late can I register for Making Tax Digital for VAT?

29 April 2019, Advocates, Barristers, Companies, Sole Traders

When is my first Making Tax Digital VAT return due? If you are asking yourself “How late can I register for Making Tax Digital for VAT? (MTDfV)” you are likely to be storing up problems.  Suppose you submit quarterly VAT returns to June and have to register for Making Tax Digital for VAT (MTDfV); your […]

Has Making Tax Digital for VAT been delayed?

Has Making Tax Digital for VAT been delayed?

15 March 2019, Advocates, Barristers, Companies, Sole Traders

Has Making Tax Digital for VAT been delayed? Making tax digital for VAT legislation requires you to have “digital links” between your financial data and your VAT reports to HMRC.  What changes might you need to make to your record keeping to achieve this?  A “soft landing” delays the date that you need to have […]

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