National Cloud Accountant and Bookkeeping Service | 246 Godstone Road, Whyteleafe, Surrey, CR3 0EF | 0845 388 2298 | 01883 819 568 | info@cloudbookkeeper.co.uk

2017 Budget – Phillip Hammond – Update VAT 22/11/2017

Some of the high;rights from todays Budget.

  1. Vat Threshold to remain at £85,000 the lowest in europe
  2. Extra 2.8 Billion NHS
  3. Personal Allowance £11,850 from 2018
  4. Business rates revaluations every 3 years not 5 years
  5. Online marketplaces having to comply with VAT rules
  6. 100% tax premium on council tax for empty properties.

 

HMRC to disallow input tax on purchase invoices over 6 months

HMRC to disallow input tax on purchase invoices over 6 months if no proof can be provided.

Current VAT regulations state that if a payment to a supplier is overdue by more than 6 months then any input tax claimed on an earlier VAT return must be repaid to HMRC.  In a recent case with Capital SMA, HMRC disallowed some input tax claimed by the company on its April 2015 return under the six- month rule. The taxpayer’s appeal was based on the argument that it had paid for the invoices by cash, highlighting cash withdrawals in the company’s bank statements to support its argument.

However, the tribunal agreed with HMRC that payment had not been made and dismissed the appeal. The company provided no evidence from suppliers confirming payment had been made, such as a payment receipt or correspondence. The amounts for cash withdrawals did not reconcile with any particular invoices.

Lessons to take away from this case include;

  • using electronic payment methods to ensure there is some evidence of payment for VAT purposes.
  • ask suppliers to confirm cash payments using a stamp ensuring all relevant information is on the invoice.
  • Where an invoice is in dispute, then no input tax adjustment is needed if the supplier has agreed to extend the payment deadline while the problem is being resolved.

From 1 August eBay to charge 20% VAT on all fees for Business Sellers:

Following a recent legal restructuring eBay business sellers are now liable to pay 20% standard rate VAT on fees to eBay UK rather than eBay Europe S.à r.l, their Luxembourg arm.  Those business sellers that are already VAT registered won’t have to worry as they will be able to reclaim this additional cost by using a tax credit.  However, it’s those business sellers that aren’t voluntarily VAT registered and fall short of the taxable turnover threshold (currently £85k) that will suffer as a result of this news.  Private and individual eBay sellers already incur 20% VAT on fees so this news won’t impact them.

MTD – VAT

MTD will be launching in 2019 for Vat registered businesses, although the VAT returns will be the same as they are now, they will however be required in a digital format.  The way in which VAT returns are filed are also changing and these returns must now be done using MTD compatible software, the option to file through HMRCs online portal will no longer be possible.

Are you ready for MTD ? (Making Tax Digital)

 

 

 

Chaser – New Plugin for Credit Control

Having issues with credit control ? well this software might just be the tool your company is looking for. Chaser gives you the tools to get paid quicker and save time on chasing debtors.

 

Some of the features of Chaser includes.

Templates

Are the basis for the email chasers you send out. Placeholders show Chaser where to insert the pieces of information that will be invoice or customer specific.

Tailor

Customise templates to your personal style, preserving the human touch.

Attachments

Automatically attach copy invoices or statements to your email chasers.

Unlimited templates

Create unlimited templates to suit all your chasing needs.

 


 

Schedules

Set your templates to be sent out as email chasers at different points before and after an invoice’s due date.

Timings

Choose which days of the week and what time your email chasers will be sent out. Align this with when you do your bank reconciliation to avoid chasing invoices that have already been paid.

Escalate

Set for later email chasers to be sent from a more senior individual at your business and to a more senior individual at your customer.

Thank you

Build customer goodwill by automatically sending a thank you message when an invoice is reconciled on your accounting system

Different Schedules

Create multiple schedules with different chasing approaches for different groups of customers.

 

Chaser_Xero_Creditcontrol Chaser_Xero_Software

Are you ready for Auto Enrolment ?

Has your company received a letter from the pensions regulator in regards to Auto enrolment ? well if you have a limited company you should have received a letter displaying your staging date. Do you know the next steps ? do you nee help in enrolling your staff ? Automatic enrolment is compulsory and shouldn’t be ignored otherwise you could find your facing substantial fines. contact us now for help.

Digital Record Keeping – MTD

As part of HMRCs process to roll out the new Making Tax Digital (MTD) the new regulations will state that all expenses and income must be kept in a digital format within a software package which is recognised by HMRC.

As a Cloud Bookkeeper we have always taken the steps to keep all records in a digital format within the bookkeeping software and Cloud storage for receipts and invoices.

To avoid any compliance issues its best to seek help with these matters, the days of paper filling and on site software are soon to be a thing of the past. For more information contact Jason at Cloud Bookkeeper for more information

info@cloudbookkeeper.co.uk

VAT Flat rate scheme changes from April 2017

For many businesses particularly in the services sector the Flat Rate scheme has been the main choice when it came to VAT.  The flat rate scheme typically simplifies the Vat return at a flat rate. The Flat rate is available for businesses with turnover up to £150,000

New changes to the Flat rate scheme come into effect from april 2017 the new fixed flat rate will be 16.5%

Autumn Statement key points

Phillip Hammond the Chancellor has delivered his Autumn Statement today and heres the key points in regards to tax

 

  • Income tax threshold to be raised to £11,500 in April, from £11,000 now
  • Higher rate income tax threshold to rise to £50,000 by the end of the Parliament
  • Tax savings on salary sacrifice and benefits in kind to be stopped, with exceptions for ultra-low emission cars, pensions, childcare and cycling
  • National Living Wage to rise from £7.20 an hour to £7.50 from April next year
  • Employee and employer National Insurance thresholds to be equalised at £157 per week from April 2017
  • Insurance premium tax to rise from 10% to 12% next June

 

Cloud Bookkeeper presents D&L House Clearances

We have decided to feature some of our existing clients on our blog, some businesses are not very computer minded never mind entering the cloud revolution but with our help we manage to teach our clients an effective way raising invoices and producing reports on there business. Working in the cloud doesn’t need to seem so scary and our clients are now benefiting from good systems and accurate books. This video is on Daniel from D&L House clearances, a company who clear properties around the south east of England and dispose of materials by giving back to charity and recycling.