Smarter accounting
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. […]
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 […]
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 […]
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, […]
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, […]
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 […]
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 […]
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 […]
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 […]
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 […]
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. […]
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 […]
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 […]
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 […]
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 […]
24 January 2020, Advocates, Companies, Creative Industries, Sole Traders
A recent case of missing documents highlights the need for supporting information for VAT expenses to minimise your VAT bill to HMRC. Make sure you have good bookkeeping systems to get the VAT back that you are entitled to.
3 December 2019, Advocates, Charities, Companies, Creative Industries, Employer, General, Sole Traders
You can give gifts to your staff and customers at any time of the year. Learn how to avoid the pitfalls of paying tax and VAT on your generosity.
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 […]
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 […]
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 […]
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 […]
2 March 2019, Advocates, Barristers, Companies, Sole Traders
Advocates Making Tax Digital for VAT Questions and Answers Tim Alter gave a lunchtime talk to the Scottish Bar on 1st March 2019. The members of the Faculty of Advocates were highly engaged in the session on Making Tax Digital for VAT. There was a lively and heartfelt response including a wide ranging discussion on […]
28 February 2019, Advocates, Barristers, Companies, Sole Traders
Advocates Making Tax Digital for VAT seminar We are looking forward to presenting the Advocates Making Tax Digital for VAT seminar in the Mackenzie Building in Edinburgh on 1st March 2019. Tim Alter will be presenting the lunchtime talk to the Faculty of Advocates. For any advocates who can’t make the Edinburgh talk at 1:00 […]
22 November 2018, Advocates, Barristers, Companies, Creative Industries, Sole Traders
HMRC VAT letter – what does it mean? Many business have received an HMRC VAT letter in the last week. This letter informs VAT registered businesses that HMRC processes are being modernised, known as Making Tax Digital (MTD) for VAT. What do I need to do? The HMRC VAT letter doesn’t require you to do anything […]
2 December 2017, Advocates, Companies, Creative Industries, Sole Traders
HMRC’s VAT Input Tax Toolkit highlights common errors businesses make when they reclaim VAT on purchases. As you would expect from an HMRC publication it focuses on situations where you can’t or shouldn’t reclaim VAT.
18 March 2017, Advocates, Barristers
The VAT Flat Rate scheme for advocates is changing along with all other Limited Cost Traders on 1st April 2017. The scheme was introduced with the intention of simplifying VAT. It was never intended to be a tax allowance or a way of saving VAT. The assumption from HMRC was that the scheme would be broadly revenue neutral.
30 September 2016, Advocates, Artists, Barristers, Charities, Companies, Creative Industries, Employer, Musicians, Sole Traders
If a trader on the flat rate scheme for VAT purchases services from outside the UK, the business needs to account for Flat Rate Scheme Reverse Charge VAT according to Directive 2006/112/EC. Small businesses on the Flat Rate Scheme for VAT do not usually account for VAT on purchases.
7 September 2016, Advocates, Artists, Barristers, Charities, Companies, Creative Industries, Employer, Musicians, Sole Traders
There are two new scams that you need to be aware of. Callers are leaving a phone message or posing as an HMRC investigator. If you are on the receiving end of an HMRC telephone scam you can report it on 0300 1232040 or on the Action Fraud Website.
24 August 2016, Advocates, Artists, Barristers, Charities, Companies, Creative Industries, Employer, Musicians, Sole Traders
Following the Bank of England’s cut in its base rate from 0.5% to 0.25% on 4th August the HMRC interest rate has changed too.
20 June 2016, Advocates, Artists, Barristers, Charities, Companies, Creative Industries, Employer, Musicians, Sole Traders
Most people will pay their tax electronically either through their payroll, direct debit or by bank transfer. Tax payments made from overseas now go to the HMRC new bank details.
Legal House 101 Gorbals StreetGlasgow G5 9DW
Telephone: 0141 443 4581 advice@alterledger.co.uk
Alterledger Ltd is registered with the Information Commissioners Office.
© 2023 Alterledger Ltd