VAT Archives - WRLO Accountants

HMRC launches VAT Registration Estimator

WRLO Accountants — Sat, 03 Aug 2024 17:01:20 +0000

HMRC has launched a digital tool to help businesses estimate what registering for VAT may mean for them. The VAT Registration Estimator helps to show businesses when their turnover could require them to register for VAT and its effect on profits. A business must register for VAT if: Total VAT taxable turnover for the previous 12 months is more than £90,000. Turnover is expected to go over the £90,000 VAT threshold in the next 30 days. They are an overseas business not based in the UK and supply goods or services to the UK (or expect to in the next 30 days) – regardless of VAT taxable turnover. A VAT-registered business must charge VAT on eligible sales and can usually reclaim it on eligible purchases. Jonathan Athow, HMRC Director General for Customer Strategy and Tax Design, said: ‘We know that the majority of our customers want to get their tax right. We have listened to what businesses have said and the new tool is designed to help them understand VAT registration, including when they might be required to register.’ Internet link: GOV.UK

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Raise VAT threshold to £100,000, says FSB

WRLO Accountants — Fri, 02 Feb 2024 09:30:58 +0000

The government should raise the turnover threshold for VAT from £85,000 to £100,000, according to the Federation of Small Businesses (FSB). The business group said that this would give firms stepping into the VAT-paying ring crucial breathing space. It would also be an incentive to grow their turnover without fear of having to charge customers an extra 20% overnight, the FSB added. The FSB also suggested bringing in a smoothing mechanism to ease the transition for small firms, owner-managed companies and some of the self-employed who go just over the threshold. At the moment, thousands of small firms keep their turnover just below the £85,000 threshold, according to the Office for Budget Responsibility (OBR). The OBR said that hundreds of millions of pounds of potential economic activity could be lost due to this ‘bunching’ just below the threshold. Tina McKenzie, FSB’s Policy Chair, said: ‘VAT compliance flattens small firms by stifling their growth and emptying their coffers. It’s crying out for a modern makeover to match today’s economic landscape. ‘We can’t let it squash the ambitions of small businesses, strivers, and budding entrepreneurs. ‘The flaws in our current system are glaringly obvious. We are at a breaking point – a […]

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May 2023

WRLO Accountants — Tue, 09 May 2023 11:30:57 +0000

In this month’s Enews we look at the closure of the VAT filing portal and the latest rate of UK inflation. We also update you on the impact of frozen tax thresholds and pandemic support scheme fraud. With guidance for employers and warnings on scams, there is a lot to update you on. Online VAT filing portal to close in May UK inflation falls to 10.1% in March Tax threshold freeze trebles to £25 billion PAC criticises government for billions lost to error and fraud No sign of hiring difficulties easing, says BCC £177.6 million lost to impersonation scams in 2022 Workers must be protected from decisions made by AI, TUC says Latest guidance for employers Online VAT filing portal to close in May HMRC has reminded businesses that file VAT returns annually that the online VAT filing portal will close from 15 May 2023. The VAT portal closed to standard quarterly filers on 7 November 2022, but was kept open for a longer period for those who file annual returns. In emails to businesses and tax agents, HMRC urged all VAT registered businesses to use Making Tax Digital for VAT (MTD for VAT) compatible software to keep VAT records digitally and file […]

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