Posts tagged ‘Vat’

If you think Disaster Recovery procedures are a waste of time or too expensive for small businesses, think again.  Fellow Business Club, Cambridge member Neil from Safebox explains that simple and cost effective solutions are available.

It’s not going to happen to me…

3D Character and ChanceIf you see in the press that a company has burnt down or flooded, let’s be honest, the reaction is “poor things” for about a nanosecond then it’s back to work.  How many of us carry on regardless thinking, well that’ll never happen to me.  You’re right, it probably won’t but let me ask you this, do you buy a lottery ticket?  I’ll assume that the majority of us do and ask you to think about why you buy one, apart from the obvious potential of getting showered in millions of pounds.

“Because you never know, it might be me –  someone has to, don’t they?”

Protect your business; take disaster recovery planning seriously

Your business affords you your current lifestyle and if you suffered a total data loss for whatever reason, that lifestyle is immediately snatched away from you. This will affect sole traders, SME’s through to multi nationals, not to mention the regulatory bodies and frustrated customers and creditors that start banging on your door. Disaster recovery planning is an essential part of your business continuity and needs to be taken seriously.

A price to pay for piece of mind?

One solution is to store a Disaster Recovery Box which will contain everything you need to “get going” after a data loss, speak to us and we’ll be happy to quote, but it will be a lot less than you think.  Certainly less than the cost of replacing the data you’ve lost!  Storing in the region of 50 archive boxes for just £35.00 plus VAT per month.

Fancy your chances?

But if you don’t plan against the unknown, don’t worry, Saturday’s a rollover and you’ve got that ticket in the kitchen drawer!

 Safebox:  Your information is our business.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

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If you are planning to treat your employees to a festive event, take care not to create a taxable benefit, that would certainly make your event expensive for both your business and your staff – Bahh Humbug!

The rules clearly state that employers can spend up to £150 a head annually on staff events, not a penny more. If the total cost of the event (including travel, accommodation etc) divided by the number who attended equates to £150.01 the whole amount is taxable.

The £150 is inclusive of VAT and can be spent on one or more events in the tax year.  The type of event you chose is not an issue, but all employees must be invited and it must be considered an annual event.  So a one-off party to celebrate a retirement for example does not qualify.

Unfortunately, you need to plan and budget carefully.  Its a delicate balance between being a generous, hospitable boss and playing Scrooge.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

HM Revenue and Customs have gradually been trying to standardise the tax system across all the different taxes. From the 1st April 2010 further changes have come in to place in a bid to make the tax system more consistent.

Cross Compliance Inspections

Last year as part of the standardisation process HMRC introduced cross compliance checks enabling them to obtain information regarding various different taxes all at the same time. This meant that HMRC now have one set of powers giving them the ability to inspect records and consider the affect any information obtained has on various taxes such as Corporation Tax, VAT and PAYE, so if an error is found affecting one tax it could now have consequences across other taxes too.

From 1st April 2010 the list of taxes which can be inspected at the same time has been extended to cover almost all taxes imaginable. The major taxes of Income Tax, Corporation Tax, Capital Gains Tax, PAYE, VAT and CIS where all covered last year but this year majority of the remaining taxes have been added to the list, it now also includes Inheritance Tax, Stamp Duty Land Tax, and many more.

Time frames aligned

The standardisation process also covered the alignment of the amount of time a taxpayer has to make a claim and the amount of time HMRC have to make an assessment.  It now means that for Income Tax, Capital Gains Tax and Corporation Tax where the time limit for how far HMRC could previously go back was six years this has reduced to four years. However for VAT time limits have increased from three to four years.

 The changes to time limits largely took effect from 1 April 2010 so it could be well worth considering if a previously out of time claim could now be made or if a deadline is now nearing. Anyone needing to make an Income Tax repayment claim for earlier years should check the new deadlines to ensure they do not miss out.

Consistent and fair?

The new process is supposed to make the tax system more consistent and clearer for everyone to administer, but that remains to be seen.


Disclaimer: This article is for general guidance only.  All taxation planning should only be undertaken after appropriate professional advice.  George Hay Chartered Accountants are registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.