Hopefully, by now, you have filed your self-assessment tax return. If you have then you won't get the £100 fine. But what happens if you can't pay your tax bill.
Your tax bill at 31st January 2010 comprises what you owe for the tax year ended 5th April, 2009 and your first payment on account for the tax year ended 5th April, 2010. From 1st February, 2010, interest will be charged on the total owed. If your 2008/9 liability is not paid by 28th February, 2010 you will receive a surcharge (penalty) of 5% of 2008/9 tax owed. There will then be a further 5% surcharge if any of the 2008/09 tax due remains outstanding after 31 July 2010.
Recently, the Chancellor announced an extension to the Business Payment Support Service for businesses affected by the current economic conditions. This service is designed for businesses who are worried about being able to meet tax, National Insurance or other liabilities owed to HMRC. You can get in touch with them to discuss payment options to help you deal with temporary cashflow difficulties on 0845 302 1435.
Sunday, 31 January 2010
Saturday, 23 January 2010
New Vat rules for overseas services
If your VAT-registered business supplies or receives services from businesses in the EU then you need to be aware of some new rules which came into effect on 1st January, 2010.
Businesses supplying services to EU-based businesses will need to complete an EC Sales List (ESL - VAT form 101). There are penalties for failing to do this.
Businesses receiving services from EU suppliers outside the UK (with some exceptions) will have to account for VAT under the reverse charge provisions. The reverse charge is reported on the VAT return as output tax and input tax. Some businesses which cannot recover all their input tax (ie with partially exempt supplies) will suffer and non-VAT registered businesses need to be mindful of this when reviewing whether they have to register for VAT
Businesses supplying services to EU-based businesses will need to complete an EC Sales List (ESL - VAT form 101). There are penalties for failing to do this.
Businesses receiving services from EU suppliers outside the UK (with some exceptions) will have to account for VAT under the reverse charge provisions. The reverse charge is reported on the VAT return as output tax and input tax. Some businesses which cannot recover all their input tax (ie with partially exempt supplies) will suffer and non-VAT registered businesses need to be mindful of this when reviewing whether they have to register for VAT
Wednesday, 20 January 2010
Some people are calling it the VAT Flat Rate Scheme (FRS) fiddle.
HMRC have just announced new FRS rates (which are necessary as the VAT rate increased from 15% to 17.5% on 1st January, 2010). Instead of the rates simply reverting to the pre-November, 2008 rates (when the standard VAT rate was 17.5%), HMRC have taken the opportunity to change a number of rates.
If you are on the FRS, you need to make sure that the scheme is still advantageous for you.
HMRC have just announced new FRS rates (which are necessary as the VAT rate increased from 15% to 17.5% on 1st January, 2010). Instead of the rates simply reverting to the pre-November, 2008 rates (when the standard VAT rate was 17.5%), HMRC have taken the opportunity to change a number of rates.
If you are on the FRS, you need to make sure that the scheme is still advantageous for you.
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