VAT MOSS compliance

Follow the rules for Electronically Supplied Services in the EU

If you offer electronically supplied services such as information downloads and eBooks to consumers in the EU then you need to follow the VAT rules.  Since January 1st 2015 VAT needs to be calculated on the basis of the appropriate rate in the purchaser’s country.

register for VAT MOSS if you sell electronic services into EU countriesFortunately you don’t need to VAT register in every single EU country.  Instead you can register in the VAT mini-one-stop-shop (MOSS) which allows you to submit a single VAT MOSS return and payment to HMRC once a quarter. HMRC then sends the relevant information and payment to the appropriate tax authorities.

If your turnover is below the VAT threshold you will have to register for VAT before you join the MOSS scheme.  You then send in nil UK VAT return.

VAT MOSS will still be applicable (in a slightly different form) even when the UK leaves the EU. So it pays make sure you are compliant.

More details on the scheme are available on the HMRC website.

If you have any questions about the VAT MOSS system or you need help sorting out VAT MOSS returns contact Lewis Smith & Co. today.

Call 01384 235549 or email info@lewissmith.com to set up an appointment.

 

Lewis Smith & Co. – Tax Planning Experts. CGT, CT, Income Tax and VAT

 

 

Declared Your Credit Card Sales?

HMRC says tell us now or face the consequences

HMRC’s Credit Card Sales Campaign is a voluntary disclosure facility for businesses who take credit card and debit card payments and who may not have reflected all of the transactions in a tax return.

HMRC credit card sales campaign. Declare your credit card and debit card income today

The campaign is an opportunity to come clean about both accidental and deliberate non-disclosure.  You will have to disclose all the income that was previously unreported and work out how much tax you owe.  The number of years you need to go back in your disclosure depends on why you didn’t disclose correctly in the first place.  If you deliberately misled HMRC then you must make a disclosure for a maximum of 20 years. You may also need to pay interest on unpaid tax and penalties too.

If all of this sounds like a lot of trouble to go through then remember that HMRC now has access to information on all credit and debit card payments in the UK.  They have said they will match that data with existing information received from businesses and open enquiries if they spot inconsistencies. They can go back up to 20 years and the more serious cases can lead to criminal prosecution.

If you don’t take this opportunity for disclosure then you are likely to face higher penalties if HMRC subsequently discovers the income.  You might even face criminal prosecution.

Our advice is to bite the bullet and go through the notification and disclosure process as soon as possible. Disclosure takes into account allowable expenses (if they haven’t already been declared), personal allowances and even tax credits, so it can get complicated.

Lewis Smith & Co. are here to help if you need it.  Call us today on 01384 235549 or email info@lewissmith.com to set up an appointment today.

 

Lewis Smith & Co. – Accountancy services for Stourbridge business.

 

Personal Savings Allowance

A little bonus for your tax return?

personal savings allowance - impact on your tax returnBack in April we highlighted that HMRC had introduced a tax-free allowance of £1,000 on savings interest.

Since many of you will be busy preparing your tax returns (you are doing that aren’t you?) it is worth reiterating some of the details of the allowance.

Basic rate taxpayers are entitled to the full £1,000 personal savings allowance, which is equivalent to the interest you would receive on £75,000 in some of the top savings accounts.

Higher rate taxpayers (earning £43,000 to £150,000) will be able to earn £500 interest with no tax, while those of you with income over £150,000 a year will be taxed in full on their interest income.

Interest income from most current and savings accounts from banks, building societies and credit unions is counted towards your allowance. Other less common sources include bonds, gilts, life annuity payments and interest distribution for some forms of investment like unit trusts.

Interest from tax free mechanisms such as ISAs and Premium Bonds isn’t included in your allowance.

The personal savings allowance is generally quite straightforward.  However your tax calculations might be a little more difficult if your savings income added to non-savings income takes you into a higher rate tax band or if your partner is already on a higher rate.

If you are unsure how the personal tax allowance affects your tax position then talk to Lewis Smith & Co. today.

Set up an appointment by calling 01384 235549 or email info@lewissmith.com.

 

Lewis Smith & Co – Providing accountancy services for Kingswinford businesses for more than 30 years.

Tax on Children’s Income

Children’s income is theirs, but…

For taxation purposes a child’s income (where children refers to stepchildren, illegitimate and adopted children) is theirs regardless of their age. In addition they benefit from a full personal tax allowance and are subject to all of the normal tax bands and rates.

Here comes the “but”.expert tax planning giving money to children

For unmarried children under the age of 18 income that comes directly or indirectly from a parent is treated as the parent’s own income, and tax is applied appropriate to that parent.  That means just “splashing the cash” on your offspring may have some unpleasant tax consequences

Fortunately there are some exceptions to the rule that you can take advantage of including;

  • Each parent can give monetary gifts to each child and provided any income generated from the gift is less than £100 for each child from each parent, then the income is taxed as the child’s.  If the income (interest from bank accounts for instance) exceeds £100, the whole amount and not just the excess over £100 will be taxed on the parent.
  • The return on National Savings ‘children’s bonds’ for under 16 year olds is tax exempt.
  • Personal pension contributions of up to £3,600 a year on behalf of a child are allowable.
  • Child Trust Fund Accounts can be established by parents for their children.

Interestingly grandparents aren’t treated as strictly as parents where it comes to helping out the children. So it might be worth a few conversations.

If you want to understand more about the tax implications of giving money to your children, why not talk to Lewis Smith & Co.?

Set up an appointment today by calling 01384 235549 or emailing info@lewissmith.com.

 

Lewis Smith & Co. – Expert tax planning in Dudley

 

 

 

Charity Quiz Success

And the winner is…The Friends of Alfie Johnson

The Annual Quiz 2016 fundraiser for Black Country charity The Friends of Alfie Johnson passed in great style on Friday October 14th.

With a record 50 teams entering there was an air of anticipation in the hall of Dudley College of Technology. Anticipation from participants about who would win and by the organisers about how much would be raised.

As defending champions and event sponsors, Lewis Smith & Co. had high hopes on both points.  We won’t go into the performance of our teams in the quiz but happily our expectations on fundraising were more than exceeded. Lewis Smith & Co sponsored the Annual Quiz night held at Dudley College of Technology

In fact the evening raised a whopping £2,330 including a generous surprise cheque for £300 from local TSB branches ( Old Hill, Merry Hill and Stourbridge) who are supporting the charity this year.

Alfie Johnson’s Dad, Paul, made an emotional introduction to the evening to highlight just what help the money raised by the charity is doing for disabled kids across the Black Country.  He was joined on stage by Dudley Mayor, Councillor Mohammed Hanif, who explained why the charity was on his list of causes and highlighted his on-going commitment to fundraising during his term of office.

We must also congratulate local company Wilkes Tranter on wresting the Annual Quiz trophy from us (it’s just temporary of course).

Lewis Smith & Co. are proud to have sponsored the event and we wish every to success to The Friends of Alfie Johnson as they continue to raise funds and help those kids.

If you need to contact us simply call 01384 235549 or email info@lewissmith.com.

 

Lewis Smith & Co. – Accountants for Dudley businesses

Annual Quiz – Sold Out

Plenty of contenders for our Quiz Night crown

Lewis Smith & Co are sponsoring the sold out Friends of Alfie Johnson annual quiz nightThe Friends of Alfie Johnson charity trustees have announced they have sold all of the tickets for their fundraising Annual Quiz 2016.

This means means that over 50 tables have been booked with around 200 people taking part.  The charity is expecting the 2016 quiz to beat all fundraising records with money coming in from tickets sales, a raffle and proceeds from “Alfie’s Arms” – serving drinks and snacks.

There are quite a number of business entrants this year with TSB, Higgs & Sons, Thursfields, SuperFast IT and Arrowsmith Marketing all taking part.

As current holders of the coveted Annual Quiz Night trophy the Lewis Smith & Co. stance is “Come and have a go if you think you are smart enough.”

We’ll be reporting on how successful we have been after the event, which takes place on October 14th at the Dudley College of Technology.  To get an idea of the types of questions being posed at the Quiz why  not follow us on Twitter or Facebook.

Lewis Smith & Co. has provided informal support for the Friends of Alfie Johnson for some years. This year we are proud sponsors of the Annual Quiz Night.  The charity raises money to purchase specialised equipment or services to improve the lives of disabled children around the Black Country.

To find out more about Lewis Smith & Co. call 01384 235549 or email info@lewissmith.com

 

Lewis Smith & Co. – Serving the Dudley business community for more than 30 years

Making tax digital

HMRC wants you to be software savvy

Although Lewis Smith & Co. supports a variety of accountancy software products (PC and Cloud-based) we understand many of you are perfectly happy using spreadsheets to do your accounts with.

The taxman, however, isn’t so keen.HMRC wants SMEs to use software to manage their accounts

HMRC has published a paper called “Making Tax Digital” (PDF download), which sets out its vision for the future. This very clearly states:

“…businesses will be required to use digital tools, such as software or apps, to keep records of their income and expenditure.  HMRC will ensure that free apps and software products are available, but many businesses and their advisers will choose to use commercially-available tax software packages.”

If you want to keep using MS Excel then you can do so, but you you might need to let us submit the final results.

Or you could get software savvy.

Lewis Smith & Co. recommends the web-based accounting tool Kashflow for its small business clients.  Kashflow provides everything you need to manage your accounts – if you want more bells and whistles then we are a partner for both Xero and Sage.

We can help you get started on Kashflow and manage the transition from your beloved spreadsheets. To get started just get in contact today and book an appointment.

Call 01384 235549 or email info@lewismith.com.

 

Lewis Smith & Co. – Dudley accountants for 30 years

 

 

Advisory Fuel Rate for Company Cars

Changes on some engine/fuel bands

The suggested reimbursement rates for employees’ private mileage using their company car have been changed by HMRC as of September 1st 2016. The previous rate is shown in brackets.

 Engine Size Petrol Diesel LPG
 1400cc or less 10p 7p
 1600cc or less 9p (8p)
 1401cc to 2000cc 13p (12p) 9p (8p)
 1601 to 2000cc 10p
 Over 2000cc 20p (19p) 12p (11p) 13p

The rates can also be used if you ask your staff to repay the cost of fuel used for private travel but are not applicable to vans.

If you have any queries on how to handle reimbursements just give Lewis Smith & Co. a call on 01384 235549 or email info@lewissmith.com.

 

Lewis Smith & Co. – Supporting Stourbridge businesses for more than 30 years