HMRC Archives - Page 28 of 37

Mar 08 2020

VAT On Letting Land

By admin HMRC, Potts & Co Accountancy & Business Advice News, Property, VAT

Letting land and property is normally exempt from VAT unless the landlord of a non-residential building has opted to tax the property, so VAT is charged at 20%. New commercial buildings also carry VAT at 20%. There are several other exemptions for letting land where VAT should be charged if…

Mar 07 2020

Loan Charge Action

By admin HMRC, Loans, National Insurance, PAYE, Potts & Co Accountancy & Business Advice News

If you received loans in place of your salary and did not fully repay those loans before 5 April 2019 you may be liable to pay PAYE and NIC on the outstanding amounts as if they were paid as salary on 5 April 2019. This tax is known as the…

Mar 06 2020

Corporation Tax Penalties

By admin Corporation Tax, HMRC, Potts & Co Accountancy & Business Advice News

Even if your business is in a spin you should not neglect your company's accounts and tax returns as late filing and late payment of corporation tax could result in huge penalties. Although the deadline for filing the corporation tax return is one year after the end of the accounting…

Mar 05 2020

Restricted Employment Allowance

By admin HMRC, Income Tax, National Insurance, Potts & Co Accountancy & Business Advice News, Restricted Employment Allowance

The employment allowance is currently worth up to £3,000 per year but can only be claimed by companies with at least one employee other than the sole director. From April 2020 the allowance will also be restricted to employers whose Class 1 NIC liability was less than £100,000 in 2019-20.…

Mar 04 2020

New NIC Thresholds

By admin HMRC, Income Tax, National Insurance, Potts & Co Accountancy & Business Advice News

The NIC rates and thresholds have been announced in advance of the Budget on 11 March to allow time for software providers to programme this information into their payroll packages for 2020-21. There is no change to the rates of Class 1 NIC as the Conservative Party pledged not to…

Mar 03 2020

Off-Payroll Working Rules

By admin HMRC, IR35, Personal Service Company (PSC), Potts & Co Accountancy & Business Advice News

The application of the IR35 rules is due to change for many contracts performed in private sector organisations from 6 April 2020 where the contractor offers their services through their own personal service company (PSC). Contractors working for public sector organisations have been subject to these rules for over two…

Mar 02 2020

Pay Capital Gains Tax in 30 Days

By admin Capital Gains Tax, HMRC, Potts & Co Accountancy & Business Advice News, Property

If you are planning to sell a residential property this year be prepared to pay any capital gains tax (CGT) due within 30 days of the completion date. CGT has normally been payable by 31 January after the end of the tax year in which the contracts are exchanged but…

Dec 11 2019

Trade Slowing Down

By admin HMRC, Potts & Co Accountancy & Business Advice News, VAT

If your business is not making sales but you are still incurring costs, HMRC may refuse to repay the input VAT on purchases and ask you to cancel your VAT registration voluntarily as there are no business activities. This is a drastic solution as you will lose your VAT number.…

Dec 10 2019

VAT Groups

By admin HMRC, Potts & Co Accountancy & Business Advice News, VAT

Groups of companies can apply to HMRC to operate as a VAT group so that transactions between those companies are ignored for VAT purposes. The group will submit one VAT return covering the sales and purchases of all members, which is a big administrative saving. The main disadvantage of a…

Dec 09 2019

Tax Relief for Installation Costs

By admin HMRC, Potts & Co Accountancy & Business Advice News, Property

When you buy a large item of plant or machinery you may need to make alterations to your land or buildings in order to install the item. For example, the equipment may require a new concrete base or a specially protected electrical circuit. The cost of installing equipment is allowed…

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