Archive for the ‘News’ Category

The European VAT drama moves on…

Monday, October 22nd, 2012

After months of trying to avoid a planned 2% VAT rise, the Italian government has now proposed a different increase to the rate, which will now be raised by 1% to 22% as of 01 July 2013.

The reduced VAT rate will increase from 10% to 11%. The super reduced rate will remain at 4%.

Restricted Losses Tax Cap Proposal

Tuesday, October 9th, 2012

A lot of businesses have made significant losses in the current recession and will no doubt continue to make losses for a certain period. Losses made outside of a company can generally be set-off against the businesspersons other income, or in some cases their gains, without limit. There are restrictions on the use of losses made from a business where the trader is not actively involved and losses are often created by the significant amount of interest the business has to pay to the bank.

As of  April 2013 the Government is proposing to cap the amount of loss relief and interest relief given in any one tax year to the higher amount of:

  • £50,000; and
  • 25% of the taxpayer’s income

The restrictions on losses and interest may affect business decisions you have taken, or are about to make in the next few months.  Contact Phil Morgan in our tax team who can advise how these restrictions may impact you.

HMRC Taskforce Announcement

Tuesday, October 9th, 2012

Teams of tax investigators are to target particular trades in specific geographical areas. A typical taskforce team will include specialists to cover the taxes the business pays, which include VAT, PAYE, Self-Assessments and corporation tax. HMRC plans to have over 30 taskforce teams operating round the country by April 2013.

We have summarised below the target areas.

  • London: Markets, property rentals, property transactions, restaurants, fraudulent repayments
  • South West: Restaurants, motor trade, fast food outlets
  • South East: Overdue tax returns
  • Midlands: Taxi firms, restaurants
  • East Anglia: Property rentals
  • North East: Property rentals, motor trade
  • North West: Restaurants, construction, landlords
  • Yorkshire: Taxi firms, motor trade
  • Nottinghamshire: Motor trade
  • Northern Ireland: Hair and beauty
  • Scotland: Pubs & nightclubs, fast food outlets, restaurants, scrap metal dealers, landlords
  • South Wales: Restaurants, motor trade
  • North Wales: Restaurants, construction, landlords

HMRC will arrange a time to visit the business and inspect the records, either by phone or letter. Please tell us as soon as you get a letter or call to arrange this meeting, then, if we can speak to the officer at this stage we may be able to limit the scope of the visit.

UK introduces new VAT registration requirements for overseas businesses

Monday, October 8th, 2012

Overseas businesses which sell goods and/or services in the UK will be required to register and account for UK VAT from 1 December 2012, regardless of the value of those sales.

The new rules apply to businesses which do not have a UK establishment for VAT purposes.  This is a significant change to the rules, which currently allow non-established businesses to sell goods and/or services in the UK with a value of up to £77,000 in any 12 month period, before having to register.  The changes are intended to bring the UK in line with European Union (EU) VAT law. (more…)

New VAT Rules

Monday, October 8th, 2012

New VAT rules on things ranging from listed buildings, hairdresser chair rental, hot food, storage facilities and caravans came into force at from 01 October 2012.

The new rules which are designed to address anomalies and which also include sports nutrition drinks are summarised in Revenue & Customs Brief 27/12. (more…)

Astra Zeneca – does it affect your business?

Monday, October 8th, 2012

Since January, businesses have had to pay VAT on non-cash goods and services provided to employees in exchange for some of their salary.

Employers will still be able to reclaim tax paid to suppliers for the goods and services as input tax. (more…)