Audit Requirements
International Auditing Standards apply to account periods commencing after 1 January 2005. This increases audit work and therefore this has cost implications.
Companies below the audit threshold £5,600,000 and Charities below the threshold of £500,000 should consider whether or not they require an audit in future.
November 2007
Property Owners
If you let a property you have formerly lived in and subsequently sell it making a capital gain there is an additional relief you may be entitled to which in many cases can eliminate the tax due.
If this might apply to you please contact us to discuss it.
If you own a buy to let property and remortgage you can now obtain interest relief on the additional borrowing up to the value of the property.
VAT on Bad Debts
With effect from 1st January 2003 the rules for recovery of VAT on bad debts have changed. From this date trades will be able to recover VAT on debts of over 6 months old provided that they are written off in the books of that trader. It will no longer be necessary to notify the customer that this has happened. At the same time where VAT has been recovered from purchase invoices remain unpaid after 6 months, the input will have to be adjusted to remove the original claim.
Topical Issues...
This page highlights a few of the current tax issues that have come to the forefront recently. If you have queries about any of these matters, don't hesitate to contact us.
Construction Industry
NEW SCHEME STARTED APRIL 2007
HM Revenue & Customs have revamped the CIS Scheme with effect from 6 April 2007. The new scheme includes requirements for contractors to verify with the HMRC the status of subcontractors prior to taking them on.
It also introduced requirements for record keeping in relation to payments made to subcontractors.
Please contact us if you have any queries or would like to attend any briefings.
Corporation Tax on Small Companies
With effect from 1st April 2007 the rate for small companies has been increased to 20% (previously 19%). From 1st April 2008 it will be 21%.
Beware: There is extra administration in running a company. Please discuss it with us before purchasing a shelf company.
November 2007
CARS!!!
Emissions taxes are now with us. They apply to company car benefits for employees and directors.
Tip. Check to see if the car should be owned by you and not the company. You can then reclaim business mileage at the prescribed rates.
Capital Gains Tax
The Chancellor announced significant changes to Capital Gains tax which will take effect from 6th April 2008.
If you are considering selling assets which would trigger a chargeable gain you may need to review your situation prior to disposal.
November 2007
Charities Note
The 2006 Charities Act redefined the nature of Charitable objects. Some existing Charities may need to review their method of operation to retain charitable status.
The audit turnover threshold was increased to £500,000 for periods commencing on or after 1st March 2007.
Please contact us for more details.