Submission Requirements & Covid-19

If you’re worrying about your VAT or Self Assesment returns amidst the Covid-19 pandemic, HMRC have announced new measures to relieve some of the pressure.

Companies House are also allowing a 3 month extension for filing accounts with them due to issues relating to Covid-19.

All measures are outlined below.

VAT

VAT that is due between 20 March 2020 and 30 June 2020 will be deferred to the end of the 2020/2021 financial year. You are not required to apply for this, it is an automatic offer from HMRC.

If you have a Direct Debit arrangement, you will need to cancel this yourself as HMRC do not have the power to do this, but please remember to reinstate it for the next quarter.

VAT refunds and reclaims will be paid as normal.

Self -Assessment

Income tax payments due by 31 July 2020 will be deferred to 31 January 2021. This again is an automatic offer from HMRC, so you do not need to submit an application to do this. You will not be charged interest, nor will you receive a penalty for late payment during this deferral period.

If you have a Direct Debit arrangement, you will need to cancel this yourself as HMRC do not have the power to do this, but please remember to reinstate it for January 2021.

Companies House

Companies House are offering a 3 month extension for Companies to file their accounts. There IS an application process for this. Applications can be made through a fast track online system which should take around 15 minutes. Click Here

It has been agreed that those stating issues around COVID-19 will automatically and immediately given the extension.

If you have any questions relating to any of the information above you can contact your usual Partner via email or telephone, alternatively you can all us on 0114 251 8850.

http://www.hartshaw.co.uk

http://www.hartshaw.co.uk/covid-19-your-questions-answered

VAT on overseas and property transactions

As with most taxes there are many areas in VAT that can have costly implications if a business does not get it right.

In this video, Hart Shaw’s VAT Adviser, Carla Davis looks at the complexity of the VAT rules from the viewpoint of UK businesses with particular focus on the sale of services overseas specifically to the EU and businesses who are entering into property transactions.

Watch Hart Shaw’s video on ‘VAT on property and overseas transactions’

If you require VAT advice on overseas transactions or property transactions our VAT team can help. Please contact us on 0114 251 8850 or email taxation@hartshaw.co.uk.

 

Watch VAT on overseas and property transactions here.

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Property Tax Seminar – Tuesday 12th May 2015

Hart Shaw and Wake Smith Solicitors are teaming up to deliver a seminar on Property Tax on Tuesday 12th May, taking place at Hart Shaw’s offices in Sheffield.

This seminar will review:

– PPR, Capital Allowances, VAT, Rental Income and Entrepreneurs relief by Carla Davis and Steve Vickers of Hart Shaw

– Outline of VAT on commercial property and SDLT introduction by Neil Salter of Wake Smith

– Tax implications of mixed use properties by Lisa Davison of Wake Smith

Registration – 8:00am – 8:15am
Refreshments – 8:15am – 8:45am
Presentations – 9:00am – 9:45am
Q&A – 9:45am – 10:00am
Close – 10:00am

Venue – Hart Shaw Building, Sheffield Business Park, Sheffield, S9 1XU

As with all of our events, there will be an opportunity to informally discuss any issues with the speakers and network with other professionals. If you are unable to attend or know of anyone who will be interested in our event please pass on this invitation.

Places are limited so book your free place as soon as possible by emailing Brendan Hall at brendan.hall@hartshaw.co.uk or call us on 0114 251 8872.

 

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Be prepared for changes to prompt payment discounts

Business owners are reminded that HM Revenue & Customs (HMRC) has announced the rules surrounding VAT declaration on prompt payment discounts (PPDs) are changing from 1 April 2015.

PPDs offer a reduction to the price of goods and services between a supplier and customer if the customer pays promptly. This is to encourage customers to pay after an invoice has been issued and ahead of the date that the full payment is due.

Under the current rules, suppliers offering a PPD are to charge and account for VAT on the discounted price, even if the full price (the undiscounted amount) is subsequently paid. This means that customers receiving PPD offers may only recover as input tax the VAT stated on the original invoice.

However, under the new rules due to come into force at the start of next month, suppliers must account for VAT on the amount they actually receive, while customers may recover the amount of VAT that is actually paid to the supplier.

Companies who supply broadcasting and telecommunication services underwent similar changes in May last year so this is a subject we’ve been watching closely.

The only problem is that under the new rules, the initial invoice will not necessarily show the correct VAT figure because you do not know whether the customer has qualified for the discount. HMRC has given some guidance and say that you can either issue a credit note and replacement invoice or issue a ‘one time only invoice’. This means that the invoice shows VAT on the maximum price, but the customer has to claim only the level of VAT equal to what they end up paying under the discount terms.

For further details please contact Carla Davis, VAT Adviser at Hart Shaw on 0114 251 8850 or carla.davis@hartshaw.co.uk.

 

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Money Matters – Autumn 2014

Money Matters, the Autumn 2014 newsletter from Hart Shaw is now available to download from our website.

Click here to download Money Matters 

The newsletter covers a number of topical issues including the one-stop VAT service which is being introduced to deal with the forthcoming change in the place of supply rules for those businesses providing EU ‘digital services’.

We report on the Government’s proposals to bring significant additional flexibility into the pension system by allowing those with pensions savings to choose what they want to do with their pension fund.

A number of Government approved investment schemes are available to encourage individuals to invest in high risk unquoted trading companies, and more recently social enterprises. We consider the reliefs available.

We also review why family company shareholders should consider the advantages and disadvantages of the different ways in which their company can be financed contrasting loans and further share subscriptions.

Due to a recent change in the law all employees with six month’s employment now have the right to request flexible working. We consider the request process, employer obligations and the benefits. We also report on the increases in the NMW rates which come into effect from 1 October 2014.

Many smaller employers now need to start planning for pensions auto enrolment. We consider the advantages and disadvantages of using a salary sacrifice to comply with these new obligations.

For those offering employees the benefit of a company car, or those who have the use of one, we consider the significant increases in the taxable benefits over the next few years.

Finally, there is information about how you can download Hart Shaw’s free mobile app for businesses onto your smartphone or tablet. Our app is designed for use by the modern business person and has a range of practical features including a business mileage calculator, expenses log, tax calculators, tax tables and key date reminders. Just scan the QR code on the front page of our newsletter or visit your app store and search ‘Hart Shaw’.

Please contact us if you have any questions regarding any of the articles we have included in our newsletter or if you would like further information on a topic we haven’t covered. Your views are always important to us and we would welcome your feedback.

 

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HMRC to allow telephone VAT filing

HM Revenue and Customs (HMRC) will now allow VAT returns to be filed over the telephone in “exceptional circumstances.”

Following a technical consultation this spring, businesses will be able to file over the phone when they do not have access to online filing options due to broadband issues or disability.

HMRC has confirmed in its response document to the consultation that amendments to the legislation of VAT will allow an alternative form of filing where taxpayers who satisfy certain criteria will not be required to file their VAT returns using the electronic return system.

The response document says that while it will make improvements to its telephone filing service, businesses will only be approved to use the system if they can prove that it is not reasonably practical for them to file online – a requirement for all other VAT-registered business.

HMRC say that by amending the VAT legislation this satisfies feedback to the consultation, where respondents supported the proposal to extend exemptions to online filing and the retention of an appeal service for refused exemptions.

HMRC put out the consultation after losing the First Tier Tribunal case of LH Bishop Electric Co Ltd and Others v HMRC Commissioners.

In the Bishop case the judge found that requirement breached the human rights of those who were unable to file online because they were computer illiterate due to age, or had a disability that made using a computer accurately very difficult or painful, or they lived too remotely for a reliable internet connection.

Whether businesses are filing over the telephone or online, we would urge them to seek specialist advice from a VAT accountant.

For more information on VAT filing requirements, please contact Carla Davis, VAT Adviser on T: 0114 251 8850 or email: carla.davis@hartshaw.co.uk.

 

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Autumn Statement 2013

On Thursday 5 December the Office for Budget Responsibility (OBR) published its updated forecast for the UK economy. Chancellor George Osborne responded to that forecast in a statement to the House of Commons later on that day.

In the period since the Budget in March a number of consultation papers and discussion documents have been published by HMRC and some of these proposals are summarised here. Draft legislation relating to many of these areas will be published on 10 December and some of the details in this summary may change as a result.

Our summary also provides a reminder of other key developments which are to take place from April 2014.

The Chancellor’s statement

His speech and the subsequent documentation announced tax measures in addition to the normal economic measures.

Our summary concentrates on the tax measures which include:

• the introduction of a transferable tax allowance for some married couples and civil partners  
• the introduction of an exemption from employer National Insurance Contributions for employees under 21
• allowing companies to claim tax relief on donations to Community Amateur Sports Clubs
• measures to tackle employment intermediaries disguising employment as self-employment
• anti-avoidance measures which will affect some partnerships in which the partners include individuals and companies
• changes to the CGT Private Residence Relief deemed occupation rules
• the introduction of new CGT rules for non-residents and UK residential property.

 

Click here to read our summary.

Click here to download a PDF version of the summary.

Sage 50 Accounts 2014

The latest version of Sage 50 Accounts is now available and includes various new features which will bring vast improvements to operating existing systems.

Sage 50 Accounts is the market-leading accounts software that makes managing customers, suppliers and day-to-day finances as easy as possible.

From invoicing customers and paying suppliers, to managing VAT returns and year-end  accounts, it helps business owners manage all the different areas of their business. By keeping things simple, it frees up time to focus on customers and the day to day running of a business.

The key new features of the latest version of Sage 50 Accounts include:

• No worry VAT – Everything needed to calculate and submit their VAT return in a single  step-by-step process
• Foreign Trading – Stay on top of tax legislation for trading abroad
• Managing stock – Calculate stock value instantly and make sure stock levels match stock takes
• Charities – Record donations and produce gift aid returns, quickly and easily, to upload straight to HMRC

For more information please contact Julian Wilkinson on T: 0114 251 8850 or M: 07590 446067.

Click here to download the Sage 50 2014 Accounts information pack.

Click here to find out what’s new with Sage 50 2014.

Click here to compare the latest version of Sage with older packages.

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The Adviser – Summer 2013

Welcome to the Summer 2013 edition of The Adviser, Hart Shaw’s periodic client newsletter. This newsletter aims to introduce you to the people behind the services at Hart Shaw and give you relevant points of contact for our more specialist services.

Our lead article focuses on preparing your business for sale or succession and the importance of developing a long term plan in order to maximise business value.

We would like to introduce you to our new Business Recovery Partner, Emma Legdon, who was made a partner at Hart Shaw earlier in 2013 after being with the firm for 20 years. Emma’s article on the current state of the economy shows that the recession may not be as bad as feared and that there are positive signs on the business recovery front.

We also introduce our new VAT Adviser, Carla Davis who provides a very interesting article on the history of VAT now that it is in its 40^th year of taxation.

Hart Shaw’s Financial Planning department would like to inform company directors to a new tax efficient life insurance product which is now available.

We also have some important news for users of Sage 50 Accounts software.

Our guest article comes from Reynolds Trade Credit, a key business partner to Hart Shaw who discuss the credit insurance market and how this can help with risk management for businesses who are looking to grow in difficult times.

Finally, no newsletter is complete without a plug for our social media forums! If you would like to engage with Hart Shaw on a more regular basis please check out our Blog, LinkedIn, Twitter and Facebook feeds. There are some smart phone links on the front page which will direct you to these forums.

As ever, we really appreciate any feedback you can give us about this newsletter, our other communications and the services we provide so if you would like to get in touch please email us at adviser@hartshaw.co.uk.

Click here to download The Adviser

Budget Summary 2013

A summary of this year’s Budget is now available on our website.

Budget Summary 2013

Please click here to read our summary.

Please click here to download a PDF booklet of the Budget Summary.

The Budget is covered extensively in the national news and in the press. In these hard times, what will it mean for you?

We have prepared this summary to outline the issues that are most likely to be of interest to you. We have included informative comments to help you assess the likely effect that the proposed changes may have on you personally and their significance.

If you have a question concerning any of the issues covered in this summary, or would like advice on the best possible course of action in a particular area, please contact Steve Vickers, Tax Partner on T: 0114 251 8850 or email: steve.vickers@hartshaw.co.uk.

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