Category Archives: News

Oh what a night

It is fair to conclude that Mrs May’s ambitions suffered a set-back Thursday last week. She is now attempting to manage a minority government, and Brexit apart, there are other outstanding legislative matters that demand her attention.

One is the remainder of the Finance Bill 2017, that was placed in abeyance in order to accommodate the recent election. Thankfully, Philip Hammond seems to be continuing at number 11, and hopefully, this will result in a degree of continuity regarding the management of the UK’s finances.

Certainly, our job as advisors to the business community, was to a degree placed in purdah, much like the civil service, during the recent campaigning period. One major tax change that was...

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Recovery of VAT after deregistration

Last week we discussed in this blog, how to recover VAT paid prior to registering for VAT.

This week we are going to sketch out the reverse position: how to reclaim VAT after you have deregistered.

According to HMRC, you can make a claim for relief from VAT charged to you on certain services (not goods) supplied after your registration was cancelled and when you were no longer a registered person. You can only claim relief from VAT on those services which, although supplied to you after your registration was cancelled, related to your taxable activities prior to deregistration.

The most usual costs you could claim for are accountants’ and solicitors’ services where the supply could not be...

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The hidden tax on car benefits for employers

Businesses that provide employees with taxable benefits: company cars, health insurance and so on, will be aware that a benefit in kind charge is added to the employee’s income and subjected to an income tax charge the same as their salary.

Employers will also be aware that the cumulative sum of all the taxable benefits of their employees are subjected to an employers’ National Insurance charge – at present, this Class 1A charge amounts to 13.8% of all taxable benefits provided.

Which means the true cash cost of providing £10,000 of taxable benefits is £11,380.

Unfortunately, some benefits are not based on an identifiable cost, but on a scale rate applied by HMRC. Of particular concern are car...

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Claim back pre-registration VAT

It is possible to reclaim VAT you have paid on any business purchases before you have subsequently registered for VAT. In fact, once you have registered your business for VAT the first thing you should consider is the possibility of reclaiming input tax on purchases of goods and services prior to registration.

This article summarises the issues you will need to consider for the two categories: goods and services.

There’s a time limit for backdating claims for VAT paid before registration. From your date of registration, the time limit is:

  • 4 years for goods you still have, or that were used to make other goods you still have
  • 6 months for services

You can only reclaim VAT on purchases for...

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