Making Tax Digital – a transition towards digitisation

What is Making Tax Digital? An HMRC initiative for the UK tax system and ultimately bring an end to Self – Assessment. MTD is a Tax Revolution in the UK. The MTD’s aim is primarily to make Tax administration, a fully digitalized tax system by 2020. Its primary objective is to make the tax system “Effective, Efficient and Easier”. The Secondary objective is to make MTD as a Cost Cutting measure, and finally to cut down the overheads for HMRC for managing Tax affairs. MTD would bring changes in the tax system which will apply to a wide range of taxpayers, including most businesses, self-employed professionals, and landlords. Here comes the challenge where the businesses would now get their records to be digitized and further it requires a Cloud Integration. Making Tax Digital timeline: From April 2019, quarterly reporting is: Mandatory for VAT for all registered businesses with a turnover above the VAT registration threshold (£85,000 per annum) Optional for VAT – registered businesses with a turnover below the VAT registration threshold  From April 2020, quarterly reporting is: Mandatory of income tax and corporate tax (as appropriate) for all businesses (including landlords) with a turnover over the VAT registration threshold (£85,000) Three Steps to going Digital: 1. Digital Records Storing all Transactions in electronic form Cloud Accounting AR and AP data stored in electronic format 2. Digital Link A Digital Link is an electronic or Digital transfer or exchange of data between software programs, products or applications. The use of ‘Cut and Paste’ does not constitute a digital link VAT account – Audit Trial No Human intervention 3. Digital...
VAT – Getting Started

VAT – Getting Started

VAT is an often misunderstood tax and clients often ask questions about it. Hopefully this post will dispel some of the myths and make clear how it works. What is VAT? VAT is Value Added Tax. It is a tax that’s charged on most goods and services that registered businesses provide in the UK. For the purposes of this post we won’t explore the complexities when trading outside of the UK but we are happy to advise on this if you use the Contact Us link. Who charges VAT? VAT can only be charged by a registered business. A registered business is an individual, a partnership, a company, club, association or charity. If your turnover is below the threshold then you do not have to register but you can voluntarily decide to register if it is to the benefit of your business. Once your turnover is over the threshold (currently £85,000 per year) you must register. How much is VAT? There are three rates: standard – 20% reduced – 5% zero – 0% Goods and services charged at a standard, reduced or zero rate are ‘taxable supplies’. Even though a zero rated item doesn’t have VAT charged on it it is still a taxable supply at a rate of zero. Most goods are standard rates. The reduced rate applies to children’s car seats, domestic supplies of fuel and power and products to help with quitting smoking. A zero rate is applied to most basic food items, books and magazines, children’s clothing and shoes, and travel by public transport. Rates on different goods and services – GOV.UK – via www.hmrc.gov.uk...
Client Spotlight – Weave & Wood Interiors

Client Spotlight – Weave & Wood Interiors

We are lucky to work with such a lovely set of clients and have occasionally thought it could help them with their businesses for us to highlight them to our other clients and blog readers. We are therefore going to be creating a client spotlight post on a regular basis to introduce you to our client base. I met earlier this week with Claire Wakely, who runs Weave & Wood Interiors in Ilminster.   Claire has been in the soft furnishings and interiors field for many years. Just a few years ago she decided to open up a retail outlet to showcase her skills and talents, along with the beautiful fabrics and many other products that she can supply. Having made a great success of this she now has a larger showroom and is an official stockist of Little Greene paint and paper. These beautiful products are luxurious and long lasting and will help make your home a unique and beautiful place to be. Click here for Little Greene’s website. Claire’s services include custom made to measure curtains, roller blinds, pelmets and cushions. These are bespoke products, made to your specification with fabric chosen from her huge selection of sample books. My own mother has had her living and dining room curtains made and hung by Claire and is delighted with the product and service she received. There is surely no better recommendation than a whole host of satisfied and repeat customers. Weave & Wood stock Romo fabrics and these are my personal favourite. Click here for Romo’s website. Claire’s showroom in Silver Street, Ilminster, is a treasure trove...

Setting up Self Employed

Becoming self employed is a dream for many people but there are a few things you need to know before you embark on the exciting journey of being your own boss. Business Structure You may need to think about the business structure that you need. Thousands of people begin as sole traders and this does suit most start-up businesses but it may be worth asking advice from a trusted business advisor to make sure that this is the best structure for your business. If you are going into business with one or more other people you can set up a partnership or a limited liability company, both of which come with pros and cons of their own. Regardless of the of business structure you choose you will need to register yourself as being in business. It may be as simple as filling in an online form with HMRC or could be slightly more complex depending on your requirements. If you are in any doubt at all you need to speak to someone who can impartially advise you about the process. Legal Responsibilities You must check if there are legal requirements for your type of business. Do you need a licence or a permit or some type of insurance? Being self employed is not just a case of beginning trading! Where Where will you work? Can you run your business from home or do you need an office or storage space? If you’re to be manufacturing goods do you need a factory or processing plant? If you rent or buy a business property you will need to register for and...

Payment terms

How would you feel if your employer told you they were going to pay your salary in 4 months’ time instead? For the next 3 months, no wage packet. Would you be unable to pay your mortgage? Looking at a bleak Christmas? Feeling powerless? Trust shattered?Welcome to the world of a supplier being told to accept ‘120 days credit terms’. In a digital world where it is possible to pay within days, more big companies are forcing suppliers into waiting 4 months to get paid. Let’s be clear. It’s bullying. And theft. They are taking goods and services, and withholding payment. They are stealing the interest the companies should have earned in those extra 3 months and using it to line their own pockets. For small businesses, often with their own suppliers to pay, and a wage bill, this can be disastrous. And we’re not talking about the Ryanairs and Sports Directs of this world. These are large global companies with huge CSR programmes claiming “fairness”, “community action” and “respect”, and probably running branded “entrepreneurship” programmes. This is truly unethical and shameful, even if legal. If this is your company, please raise a voice against it. Just ask the question…. “Why do we want to bully and steal from the suppliers who contribute to our success?” From Liz Tinlin via LinkedIn Share this:Click to share on Twitter (Opens in new window)Click to share on Google+ (Opens in new window)Click to share on Skype (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to email this to a friend (Opens in new window)Click to share on Pinterest...

Top 10 Devon Bookkeepers – we are one

In breaking news, an especially relevant Twitter poll says that Bruton Young Bookkeeping is one of the top ten Devon Bookkeepers. I am therefore going out to buy champagne 🙂 Recognition is wonderful! South West News Top 10 Devon Bookkeepers We offer the very best customer service and client support. It is a massive compliment that Twitter users voted for us. As a result it seems that clients value and appreciate our hard work. I would personally like to thank each and every Twitter user who voted for Bruton Young Bookkeeping in this poll. There are hundreds, if not thousands of bookkeepers in Devon and we are in the top ten! The south west news website is a very useful one for local information. The owners live in Devon and Cornwall so know the area very well. The writing is clear and concise. Local information is presented clearly and is therefore easily digestible. South West News looks great and so it’s easy to read. THere’s a plethora of useful information on numerous topics. I think I’ll need to add it to my list of news sites to keep an eye on.   Share this:Click to share on Twitter (Opens in new window)Click to share on Google+ (Opens in new window)Click to share on Skype (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to email this to a friend (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to...