Late Filing Penalties for 2017 Self-Assessment

Q- I have one or two clients who have yet to give me the information needed to complete their 2016/17 self-assessment tax returns. I am concerned about the consequences of this and want to advise my clients of the implications.

A- Where a 2016/17 self-assessment tax return has not been filed by 31 January 2018, your client will already have been charged a £100 penalty.Online returns with a 31 January 2018 filing date will incur additional penalties from 1 May 2018. Penalties of £10 per day will be chargeable for up to 90 days.

Read More

Catering Businesses – Be Prepared For a VAT Investigation

Q- I have a number of clients with restaurants, cafés and take-aways, and have heard that HMRC have a Task Force actively looking into similar businesses. What, if any, potential issues do I need to be aware of for my clients?

A- HMRC do have Task Forces across the UK targeting cash businesses, and in particular those involved with catering. The potential issues HMRC are looking for include under-declarations of sales; incorrect liability; standard-rated/zero-rated apportionments on eat-in and take-away foods, and the VAT treatment of tips and gratuities. As well as carrying out scheduled visits to discuss the business and review records, HMRC are also likely to carry out test purchases.

Read More

HR Expert: Flexible Working

Q- A client has just received a request for flexible working from an employee that wants to attend an aerobics class on Wednesday afternoons, do they have to allow this?

A- The rise in flexible working practices has been a common theme in employment as organisations seek to maintain an attractive and non-discriminatory working environment. Read More

Selling To EU Customers

Q- My client sells goods on the internet to private customers. He makes sales within the UK and outside the EU, but the bulk of his turnover is now into other EU member states. He charges UK VAT on his sales to EU customers at present – is he correct to do this? He is considering finding a small warehouse in one of the member states from which to make his EU distribution. How would that affect his VAT accounting?

A- Sales of goods to customers in the UK will be subject UK domestic VAT. Sales outside the EU can be zero-rated exports as long as the supplier has the correct evidence of goods leaving the UK and going to the customer outside the EU within 3 months of making the sale.

Read More

HR Expert: Employee Lateness

Q- My client has an employee who is regularly late to work on Monday morning and blames traffic issues, are they able to dismiss him?

A- Infrequent lateness can be an annoyance, however when lateness becomes a regular occurrence it can cause a whole host of problems for your client which may lead them to consider an employee’s future. Read More

Private Residence Relief (PRR) And Delayed Occupation

Q- Relief under s 222 TCGA 1992 will be available in full to relieve any gain from being chargeable. However, this is only the case if the dwelling-house has been the individual’s main residence throughout the period of ownership. Under s 223(1) TCGA 1992 the last 18 months are deemed to be a period of occupation whether or not actually occupied.

Just before completion of the purchase of a house, there is a flood in the property and this delays occupation. The legislation provides no relief for a period of non-occupation on the acquisition of the property. So does this mean that full relief for the main residence will be denied on a later sale?

A. Where there is a delayed occupation of a main residence there is relief in the form of an Extra-Statutory Concession which is ESC D49.

Read More

VAT Reliefs For Disabled Persons

Q- My client is a general builder and has been asked to build an extension to provide practical living accommodation for his customer’s disabled son. The extension will include a flexible living and sleeping space and a shower room. There will also be a hoist in the sleeping area to assist in getting the child in and out of bed. The customer is asking about zero rating because the extension is being built to meet his son’s specific needs. Is there a blanket relief from the VAT or is relief restricted to specific areas?

A. There are a number of reliefs for specific goods and services for disabled people but no blanket relief by any means. Read More

April Pay Increase

With April fast approaching, If you are in business and employee staff you need to be aware of the changes in statutory pay rates which are set to come into force.

National Minimum Wage and National Living Wage will increase on April 1st. Those aged over 25 on the National Living Wage will benefit from an increase of 4.4%, with hourly payments rising from £7.50 an hour to £7.83 an hour. Younger workers and apprentices will also benefit from similar improvements, with the new rates as follows: Read More

Call Now ButtonChat With The Team