Nigel Gorski Consulting - Chartered Accountant & Business Consultant
  • Home
  • Accounting
  • Tax
    • Digital Tax
    • Business Tax
    • Personal Tax
  • Planning
  • Training
  • About
    • Contact
    • Testimonials
    • The Small Print
  • News
  • Privacy
  • Home
  • Accounting
  • Tax
    • Digital Tax
    • Business Tax
    • Personal Tax
  • Planning
  • Training
  • About
    • Contact
    • Testimonials
    • The Small Print
  • News
  • Privacy

Making Tax Digital – All Change!

10/3/2017

0 Comments

 
Picture


Over the summer HMRC published some changes to Making Tax Digital which have ben warmly received by the businesses and professionals.
 

The government has said it believes that introducing a new digital tax system is still the right direction to move in.  However, it has made amendments to the businesses this impacts and the timescales for change. The amendments to Making Tax Digital now mean:

  • Only VAT registered businesses will need to keep digital records and only for VAT purposes;
  • They will only need to do so from April 2019;
  • Businesses will not be asked to keep digital records or update HMRC quarterly for other taxes until at least April 2020 (the original dates had implementation from April 2019).


Read More
0 Comments

Dividends - A Refresher of the Rules

10/3/2017

0 Comments

 
Picture
This is an area which can cause problems for owners of small limited companies.  With the arrival of the dividend tax it’s becoming increasingly important to document, declare and pay dividends correctly as the timing of these can influence your (and other shareholders’) tax bills.
I might have mentioned before but it really is unacceptable to simply take ‘drawings’ and hope it levels out at the year end!


Read More
0 Comments

Service That All Adds Up

9/11/2017

0 Comments

 
​Recently I’ve been prompted to compose a blog post about the service I provide to the County. To say that I was prompted is an understatement. I was press ganged into writing this by two regular clients who you’ll hear from later. So… let’s do this then…

Read More
0 Comments

VAT Flat Rate – Moving towards the new 16.5% Rate

2/13/2017

0 Comments

 
Picture

​The flat rate was introduced to simplify accounting for smaller businesses – you simply pay a relevant proportion of your gross takings to HMRC each quarter and this varies by industry category.  The highest rate is currently 14.5%. 

As reported late last year, life is about to become a whole lot more complicated for businesses that supply largely services of labour where goods (and we are still awaiting the precise definition) comprise:

  • less than 2% of their VAT inclusive turnover in a prescribed accounting period
  • greater than 2% of their VAT inclusive turnover but less than £1000 per annum if the prescribed accounting period is one year (if it is not one year, the figure is the relevant proportion of £1000)
 
So for example as a management consultant you invoice £100,000 per annum plus VAT of £20,000.  The flat rate currently applies is 14% so you pay 14% of £120,000 to HMRC i.e. £16,800.  You retain £3,200.
From 1 April 2017, if you do not meet the ‘goods’ test you would pay £19,800 retaining only £200 – 16.5% is a lot less kind than it first appears.

We do know that goods cannot comprise capital items, food and drink and motoring expenses.

There is of course the option to revert to normal standard accounting from 1 April 2017 but that does add complication to the preparation of VAT returns.

For help or advice concerning VAT and your business or any other accountancy questions you may have, why not contact me via the website?
​
Why not watch my short video below covering the flat rate of VAT?

0 Comments

Gift Aid

5/27/2016

0 Comments

 
Picture
​Gift aid is a great way to help charities and donations are topped up by the Government with the charity reclaiming the tax. 

​Any donations made by higher rate tax payers are also subject to additional relief via Self Assessment so its important to keep all of those ‘just giving’ receipts and notes of your direct debits.
 


Conversely given the changes to interest and dividend taxation above there will be people who no longer pay tax.  It’s therefore important to make sure you don’t tick the gift aid box and you review any direct debits as HMRC are quite entitled to come to you and ask for the tax back that the Charity has claimed. 

​This is particularly relevant to retired people who rely on investment income or those taking career breaks – with interest and dividends paid only periodically sometimes it’s too late when you realise that you’ve not paid any tax!

If you'd like to discuss any donations you've made and are interested to find our how this impacts you, then please call for a chat, or contact us via the website here.

0 Comments

    Nigel Gorski

    Say it as it is and you'll never be misunderstood. Here in the Blog you'll see news posts on many topics of interest to your and your business...

    Archives

    August 2019
    March 2019
    October 2018
    March 2018
    November 2017
    October 2017
    September 2017
    March 2017
    February 2017
    November 2016
    October 2016
    August 2016
    May 2016
    April 2016
    March 2016

    Categories

    All
    2015
    2017
    Accountancy
    Advice
    Allowances
    Budget
    Business
    Claim Allowances
    Company
    Company Accounts
    Company Vehicles
    Directors
    Dividend
    Flat Rate
    Gift Aid
    HMRC
    Income
    Inheritance Tax
    Interest
    Investment
    Let
    Lettings
    National Insurance
    Personal Allowances
    Property
    Self Assessment
    Tax
    TAX Rate
    Vans
    VAT

    RSS Feed

© Nigel Gorski Consulting 2016, Nigel Gorski BA ACA (Sole Practitioner), 23 Hollinwood View, Bingley, West Yorkshire, BD16 2EF
Telephone: 
07980 270610