Bookkeeping / VAT Returns
Get cash quicker!
A strange thing to say but BOOKKEEPING IS REALLY IMPORTANT!
All businesses need information to succeed and accurate books are the bedrock of that. Better by using modern technology like QuickBooks or Xero and cloud accounting we can give you real time accurate information.
The quicker you raise an invoice the quicker you get paid.
Outsource your bookkeeping to us to allow you to spend more time running your business.
Click here if you would like us to assist you with your bookkeeping.
Is complex. It is very easy to get wrong & very easy for it to eat up lots of your time.
Worse – a major Government change – Making Tax Digital is here. You will have to comply & this starts with VAT. It will be expensive & onerous for you to do this alone but we can do this for you quickly, cheaply & accurately.
We also deal with more complex VAT:
- Select the best scheme for your business – Flat Rate/Cash Accounting
- Business structure for Zero Rated or Exempt Supplies
- Property advice – elections to tax or not
- Complex reclaims
- Partial exemptions
- Negotiations with HMRC
- Tax Investigations
For import/export businesses and those that supply digital services we can also help with your EC Sales List & Mini One Stop Shop (MOSS) reporting requirements.
Bonfire your VAT
Don’t leave it too late.
Then New years with reminiscing of gifts and what the year bought, looking forward and resolutions……….
Don’t leave it too late.
A handy check list of what you need to prepare for your VAT:
1) Bank statements, October—December for each account, paper or electronic format. Make your bookkeepers life easier and get on board with QuickBooks, not forgetting MTD is round the corner (ask for a Quickbooks demo)
2) Purchase and sale invoices
3) Cash receipts
Bonfire your VAT
Photo taken at Brockham bonfire night 3.11.18
How to avoid the VAT minefield
VAT can also be hugely complex – for instance:
- Selling hot take away food is VATable, cold is not – in a recent tribunal a taxpayer was assessed to over £100k of tax – they sold wraps at markets – the contents had been cooked & then kept warmer than the ambient air – HMRC said this was taxable & won.
- Nuts in shells are tax free – shell them & it is taxable.
- Are you a tutor? Tuition is zero rated if you are a sole trader but potentially taxable if you incorporate.
- Physical books are zero rated, e-books are taxable.
Get it wrong & penalties can be 30% of the tax due. (Plus huge costs & effort in putting it right).
We can help with your tax planning, get in touch today for more info.
New VAT rules for building trade in 2019
The measure is designed to combat VAT fraud in the construction sector labour supply chain which HMRC argue presents a significant tax loss. HMRC has now published draft legislation to introduce the Reverse Charge for Construction Services.
Under the proposed new rules, supplies of standard or reduced-rated building services between VAT-registered businesses in the supply chain will not be invoiced in the normal way. Under the reverse charge a main contractor would account for the VAT on the services of any sub-contractor and the supplier does not invoice for VAT. The customer (main contractor) would then account for VAT on the net value of the supplier’s invoice and at the same time deducts that VAT - leaving a nil net tax position. This is intended to ensure that VAT is correctly accounted for on supplies by sub-contractors.
CONSTRUCTION WORK AFFECTED
The reverse charge will apply to a wide range of services in the building trade, including construction, alteration, repairs, demolition, installation of heat, light, water and power systems, drainage, painting and decorating, erection of scaffolding, civil engineering works and associated site clearance, excavation, and foundation works. The definitions have been lifted directly from the CIS legislation.
Professional services of architects or surveyors, or of consultants in building, engineering, interior or exterior decoration or in the laying-out of landscape are not covered by the new rules. The draft legislation sets out other work to which the reverse charge does not apply. It is hoped that the legislation and guidance will be finalized by October 2018 to allow businesses at least 12 months in which to make the necessary changes to systems.
WHAT ARE THE IMPLICATIONS OF THE NEW RULES?
This will be a significant new burden in addition to the commencement of Making Tax Digital in April 2019 and HMRC are encouraging businesses to prepare early for these changes.
Failure to comply with the new VAT rules may lead to penalties and any output VAT wrongly applied to an invoice will be chargeable by HMRC but not necessarily recoverable.
Please contact us if you are likely to be affected by these changes and we can work with you to ensure you are ready for the new system.