Bottomline
Summer 2012
It's 1:15pm on Sunday 20th May, 2012
Why is VAT payable on chocolate covered biscuits but not on chocolate covered cake?
When VAT was introduced, certain goods and services were considered so essential that it was decided they should be subject to less tax, or none at all. This was done in two ways: zero rating and exemption. In the eyes of UK law, biscuits and cakes are necessities and are zero rated. However, chocolate-covered biscuits [...]
Posted by
Stephen Adams
in
Moore and Smalley comment
On June 9 2011
What you need to know about staff entertainment and VAT
HMRC are closely scrutinising staff entertainment, and from the three cases we have seen recently, two employers were unaware of any restriction to taking their workforce out. The tax exemption for staff parties is currently £150 including VAT per attendee, assuming all HMRC requirements are met, and records should be retained of both the cost [...]
Posted by
Stephen Adams
in
Advice for Businesses, Tax
On October 11 2010
Encouraging sales before VAT hike
VAT is set to rise to 20 per cent on 4 January 2011 and many people will want to make purchases before then to take advantage of the current lower rate. However, as is often the case in the world of taxation, matters are not quite as simple as they might be. HM Revenue and Customs have [...]
Posted by
Stephen Adams
in
Advice for Businesses, Tax
On September 2 2010
VAT partial exemption check and fee protection scheme
New VAT powers and penalty rules make the annual “partial exemption” calculation even more important this year because any “careless” errors will carry a minimum 15 per cent fine if not disclosed beforehand to HM Revenue and Customs (HMRC). For the VAT return year ended 31/3, 30/4, or 31/5 dispensing practices need to ensure they [...]
Posted by
Stephen Adams
in
Advice for Businesses, Advice for Healthcare businesses, Tax
On July 13 2010
A change in the rules on self-employed contractors?
HM Revenue & Customs (HMRC) have two proposals on hold which could affect up to 1.5 million self employed freelance contractors and consultants and the people who provide their work. HMRC often view freelance self employed work as “disguised employment” allowing the worker to pay less tax and national insurance contributions than they would if [...]
Posted by
Stephen Adams
in
Advice for Businesses, HR, Tax
On June 14 2010
Golden handshake and freelance consultants alert
HM Revenue and Customs (HMRC) are well aware many firms are looking to reduce costs in the current climate and seem to have geared up enquiries into two related areas to collect more tax and National Insurance Contributions (NIC). Far too many tax-free termination/redundancy payments are being challenged by HMRC leaving firms (ie, not their [...]
Posted by
Stephen Adams
in
Advice for Businesses, Tax
On April 6 2010
Is grant money subject to VAT?
Sooner or later every charity will seek “G” (grant) money and must decide if it is vatable. The unexpected loss of VAT from a grant can be a huge blow so care taken at the start can be repaid many times over. Always ensure all grants applied for are “£x excluding VAT if applicable” to [...]
Posted by
Stephen Adams
in
Advice for Businesses, Advice for Charities
On March 26 2010
