International Trade Awareness: The benefits of trading overseas and the associated financial risks

A joint seminar with business experts Hart Shaw and Yorkshire Bank

 

Is your business trading overseas or do you have plans to do so in the future?

Hart Shaw and Yorkshire Bank are joining forces for a seminar to discuss the benefits of trading overseas and the associated financial risks involved in the trade cycle for UK businesses.

This seminar highlights the key areas your business needs to be aware of and the risks involved in international trade in order to give you proactive advice on how to manage issues such as:

• VAT issues with importing and exporting

  

• Liability to UK taxation
• Complying with overseas taxation requirements including:
• Residence and overseas branches
• Double tax relief
• Management charges
• The benefits of trading overseas
• Risks involved in International trade
• Methods of payment
• Export opportunities and the trade cycle
• Market update

Join Adrian Dunkley, Tax Manager at Hart Shaw and Terry Ventress, Regional International Trade Partner at Yorkshire Bank over breakfast at Hart Shaw’s offices for a seminar that provides a crucial insight into the benefits and risks of international trade in the current economic climate.

The details are:

• Date: Wednesday 3^rd August 2011
• Time: 8:00am for tea, coffee and breakfast sandwiches, 8:30am start and 9:30am finish with Q&A and optional networking until 10:00am
• Venue: Hart Shaw Building, Europa Link, Sheffield Business Park, Sheffield, S9 1XU

The seminar is FREE to attend and you are very welcome to bring a guest or a colleague.

To confirm your attendance please contact Brendan Hall at Hart Shaw on T: 0114 251 8872 or email: brendan.hall@hartshaw.co.uk. Places are limited so please book early to avoid disappointment.

We look forward to seeing you there.

2011: Is tax going to be taxing for the SME?

Many businesses are becoming increasingly frustrated in their dealings with HM Revenue & Customs.

It is widely reported that communicating with HMRC is harder than ever before. Many businesses and their advisers are experiencing HMRC delays in dealing with correspondence and difficulties in getting through on HMRC telephone help lines. Proposals for a 15% cut in HMRC funding over four years can surely only make matters worse.

Despite proposed cuts, a further £900m is earmarked by HMRC for tackling tax evasion in an attempt to recover an additional £7bn per annum in revenues by 2014/15.

Recently, HMRC announced that they intend to start a programme of Business Record Checks to review the adequacy and accuracy of trading records of SME businesses. They state that 50,000 businesses are to be targeted annually over four years with a proposed maximum penalty of £3,000 if records are found to be lacking. These penalties will be in addition to any tax, interest and penalties which may arise from a formal enquiry.

What action can businesses take now to ensure their records stand up to scrutiny?

• Keep “adequate” and “accurate” records. Sound advice, but what constitutes adequate for different types and sizes of business?
• Consider the merits of having a tax, VAT and PAYE health-check. This will help to identify any particular issues so that they can be corrected quickly.
• Many clients take out insurance which pays their accountants’ costs of dealing with HMRC enquiries. Then they know that their accountant can “fight their corner” without the worry of additional costs.

A little effort now could save a lot of heartache in the future.

Steve Vickers, Tax Partner

T: 0114 251 8850, Email: steve.vickers@hartshaw.co.uk

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Accountancy news from Hart Shaw

Freebies are VAT free

Due to a recent hearing at the European Court of Justice (ECJ) the way gifts and freebies are treated for VAT has changed.

Before the ruling the treatment was that the first promotional sample given to a particular individual within a business has been exempt from VAT. However subsequent samples going to the same individual or business have given rise to a VAT charge to the donor.

However after the ruling where gifts are given to individuals employed by the same organisation, the employer is not the recipient for the purpose of VAT.

This means that if a business has given away a number of business gifts to employees of the same organisation and has been required to pay VAT on them, they may be able to obtain a refund of such VAT, retrospectively for a period of up to four years.

Please contact Steve Vickers, Tax Partner at Hart Shaw on T: 0114 251 8850 for further details.

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Money Matters – Spring 2011 newsletter from Hart Shaw

The Spring issue of Hart Shaw’s Money Matters newsletter is now available to download from our website.

Hart Shaw's Money Matters Newsletter - Spring 2011

In this issue we take a look at key tax issues such as the planned major reforms in the PAYE system, changes in Class 2 National Insurance Contributions, Furnished Holiday Lettings and iXBRL. For personal tax there is a feature on the changes to Child Trust Fund accounts. 

We have also made available seperate newsletter briefings including a Year End Tax Planning supplement, VAT matters for the smaller business and an essential update for employers.

All these are available to download for free from our website via: http://www.hartshaw.co.uk/newsletters.htm.

Should you wish to discuss any aspect of our newsletters with us please contact Brendan Hall on T: 0114 251 8872 or email: brendan.hall@hartshaw.co.uk.

Brendan Hall – Marketing Co-ordinator

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Money Matters

Money Matters – a winter 2010 newsletter from Hart Shaw is now available to doanload via our website.

With the publication of three Finance Bills, 2010 has been an unprecedented year and seen many tax changes, so unsurprisingly our winter newsletter concentrates on tax issues.

Our front cover focuses on the restrictions relating to tax relief on pension contributions and the bad news that some high earners could find themselves with an additional tax charge.

If you are a high earner, has the introduction of a 50% top rate of income tax made you think that it may be worthwhile leaving the UK? We consider if this is a realistic option.

When is a car a pool car? To make sure there is no tax bill for an employee to pay, certain criteria must be met and increasingly HMRC are looking for employers to ‘prove it’. If your business has a pool car make sure that you can indeed ‘prove it’ and if you have any concerns please get in touch.

Another area under the HMRC spotlight is tax deductions for repairs and alterations to buildings. The deduction may be challenged but the cases we have highlighted show that HMRC don’t always win!

VAT is a complex area and now it seems paying what you owe is also becoming more complicated. New rules when paying by cheque were introduced in April 2010 and HMRC have recently thought it appropriate to a issue reminder. They have also issued revised guidance on correcting your own mistakes! Read ‘VATs it all about’ to find out more.

We also look at the increase in National Insurance Contributions and the decrease in corporation tax from April 2011. Finally, if you feel you have anything left to give away we look at the most tax efficient way to make donations to charity.

Included with the newsletter there are also special briefings where we look in more detail at:

– Year End tax planning tips for the individual
– Keeping the lid on Inheritance Tax
– Securing business success

Our Money Matters newsletter and these client briefings are available to download from our website via: http://www.hartshaw.co.uk/newsletters.htm

Regional Employer National Insurance contributions (NIC) Holiday for New Businesses

HMRC have now released draft legislation on the NIC Holiday available to new businesses in certain areas.

The scheme commenced on 6 September 2010 and runs until 5 September 2013. However, qualifying new businesses that started between 22 June 2010 and 6 September 2010 can also take advantage the scheme.

The scheme allows an exemption of up to £5,000 of Class 1 NIC for each of the first 10 employees hired in the first year of business. This gives a potential £50,000 exemption.

There are 3 main criteria for businesses to qualify, which are:

1. The principal place at which business is carried on when it is started can not be in excluded regions, which are Greater London, The Eastern Region, and The South East Region.  
2. The business must be a new business which starts between 22 June 2010 and 5 September 2013. There are anti avoidance rules to ensure that the business is new and not simply a re-organisation. The rules can be complex and advice should be sought when determining if the business qualifies.
3. Qualifying employees have to be engaged for the purpose of the new business

Businesses need to apply for the holiday, which is done via the Business Link Website – http://www.businesslink.gov.uk/nicsholiday/

If you use Royal Mail you could be eligible for a VAT reclaim

If you use Royal Mail for any of the following services then you may have a claim in respect of input tax:

– Delivery of bulk mail.

– Delivery of goods using Parcelforce

– Use controlled mail such as Mailsort or Walksort.

– Use special delivery and/or international services.

H.M. Revenue and Customs are now considering VAT repayment claims relating back to as far as 1 April 2006.

There is a four year cap for correcting errors on previous returns. This applies to the above claim. We are advising businesses to act fast and submit claims now so as to maximise those claims. For example, a claim for input tax can be made back to April 2006 if submitted before 31 May.

Further information can be found on our website by following this link: http://www.hartshaw.co.uk/ard/enews_article.asp?ID=1951&AID=581&CID=1

Steve Vickers, Tax Partner at Hart Shaw

There is a possible opportunity for the recovery of VAT on business samples and small value gifts

Many businesses will have been wrongly required to pay VAT on samples and small value gifts.

Following a case involving EMI Group Ltd, it appears that UK legislation may be at odds with EU legislation insofar as it applies VAT to the following transactions :-

– A series of samples given to the same recipient.

– The cumulative value of gifts rather than their individual value.

– An exceptional individual gift exceeding the national limit on value.

If the court follows the Advocate General’s opinion, there could be an opportunity to make a retrospective claim for VAT which has been accounted for on gifts and samples.

There is a four year cap for correcting errors on previous returns. This applies to the above claim.

We have been advising our clients to act fast and submit claims now so as to maximise those claims. For example, a claim for input tax can be made back to April 2006 if submitted before 31 May. Because, the court’s decision will not be released until later this year, we recommend that protective claims are submitted now to ensure that the possibility of recovering VAT in earlier periods is not lost.

Further information can be found on our website by following this link: http://www.hartshaw.co.uk/ard/enews_article.asp?ID=1951&AID=581&CID=1

Steve Vickers, Tax Partner at Hart Shaw