Accounts / 21 posts found
March 2011 Questions and Answers
This is a round-up of questions that have been raised by clients over the past few weeks. They are being posted here for general information, but please see the disclaimer at the end!!! Bad debt adjustments Q: I have recently found out that one of my customers has been declared bankrupt. Unfortunately, I invoiced them four months ago for £1,000 plus VAT of £175 and as this is still outstanding, there is a good chance I won't receive this and will need to write it off. How do I account for this in my December 2010 year-end accounts and what income [...]
February 2011 Questions and Answers
This is a round-up of questions that have been raised by clients over the past few weeks. They are being posted here for general information, but please see the disclaimer at the end!!! Tax Point of a Transaction for VAT Q: I have recently registered for VAT and I am getting slightly confused regarding when my supplies and purchases take place in regards to VAT quarters. Could you please explain to me when a transaction takes place for VAT purposes? A: The date when a transaction takes place for VAT is called its tax point. It is not always the date [...]
January 2011 Questions and Answers
This is a round-up of questions that have been raised by clients over the past few weeks. They are being posted here for general information, but please see the disclaimer at the end!!! Margin Scheme Q: I am a second-hand car dealer who is now approaching the threshold for VAT registration. A friend of mine who also deals in second-hand goods, albeit art and antiques, has informed me that there may be a VAT scheme which I can use to minimise my liability and administration costs. Could you please advise me if such a scheme exists and explain the mechanics [...]
December 2010 Questions and Answers
This is a round-up of questions that have been raised by clients over the past few weeks. They are being posted here for general information, but please see the disclaimer at the end!!! Meals provided for employees Q: I own a gift shop and we are now opening longer hours in the run up to Christmas. On certain days this means opening late at night and we are now opening on Sundays too. I need my staff to do additional hours during this busy period and want to pay for their meals when they are working longer hours than usual. If I [...]
Christmas Tax Tips
Guidance on Christmas Parties and Gifts Wit the year-end fast approaching this seems like a good time to remind everyone of the tax surrounding tax and VAT when it comes to Christmas parties and giving gifts to customers and staff. Staff Christmas Parties An employer can pay up to £150 per head per tax year for the provision of a Christmas party or similar annual function, with no liability to income tax arising on the employee. The cost per head must include the cost of the actual party or function (including room hire, food and drinks, entertainment and any other [...]
Bookkeeping Basics
It is a legal requirement for every business to keep accurate records of its financial transactions. The basic need it to keep track of what the business owes, what the business owns, what its income is and what its outgoings are. There are lots of inexpensive bookkeeping programmes available designed for non-accounting types, and nowadays most people have some sort of spreadsheet programme which makes it quite straightforward to record money coming in and out of the business. At its simplest, cash accounting is a system where transactions are only recorded when money is either paid out or [...]
Questions and Answers Bumper Edition
Each month we prepare a 'Q&A' covering questions raised by clients. Although I will normally post them here monthly, this is a catch-up of the past few months, so happy reading! As always if you want to discuss any of the items as they apply to your particular circumstances please get in touch and we can arrange a suitable time to meet. June 2010 Questions and Answers Cycle To Work and Tax Free Bicycles Q: Due to the increase in fuel prices over recent months, I've now started cycling to work. My employer has suggested that they could offer me [...]
Emergency Budget Round-up
Chancellor George Osborne revealed a mixed bag of measures that will affect small businesses around the UK in the new coalition government's first Budget. He announced that the Lib-Con coalition will not be making any cuts to capital expenditure during this parliament. This could come as good news to a number of businesses in the construction sector and should serve to protect a number of jobs. One of the highlights of the speech with regard to small business organisations was the introduction of a new national insurance scheme. Under the initiative, certain businesses will be exempt from up [...]
May 2010 – Questions & Answers
Company Cars and Benefit in Kind Forms Q: I run a small business and we have a number of employees who use company vehicles for private travel and others who receive various expense payments. Can you advise me on the type of records we should keep for P11D benefit in kind purposes and what HM Revenue & Customs might target in an investigation? A: Small businesses are often targeted for in-depth reviews of their compliance systems and procedures by HM Revenue & Customs. When completing the employer year end forms P11D and P11D(b), you should pay careful attention to all expenses reimbursed to employees or directors, especially [...]
Emergency Budget – what can we expect?
We now have a coalition government between the Conservative and Liberal Democrat parties, which is expected to adopt tax policies from both constituent parties. The coalition agreement statement contains a brief note on tax issues. So what changes can we expect to see? Income Tax There will be a 'substantial increase' in the personal allowance from April 2011, with the Lib Dem target of £10,000 being a 'longer term policy objective'. It is possible that the income threshold above which personal allowances are phased out (currently £100,000) will be reduced. The 50% tax rate looks likely to remain in place [...]