Regarding the current economic downturn, we need to take into account any sort of assistance as offered by an accountancy service. 1st Contact is one such company that will be able to provide you with advice and support in this area.
Neil Warren very recently came up with ten top tips on his web site. He forecasted that the flat rate scheme might just be the thing to make paying the VAT an easier method for all. It can simplify the record keeping which is the difficult part of any business. However, he is mindful of any potential pitfalls of which not everyone is aware.
Flat Rate Scheme
The flat rate scheme is available to any sort of business which claims an annual taxable sales amount of £150,000 or less, which excludes the VAT itself. Otherwise, a total inclusive sales tax of £187,500 or less is also considered. Instead of doing a lot of accounting and record keeping you can simply pay a relevant percentage of your earnings according to the type of business you are running. The business still charges VAT to its customers, which is 15% on supplies and no VAT on zero-rated or exempt supplies. During the first year of your business you are entitled to an extra 1% off of the relevant flat rate in the first year of VAT, which could amount to £1,875 pounds in a year.
Capital expenditure is affected when there are larger expenditures such as a new van or a piece of machinery for your business. More savings are to be had if the cost of these items is higher than £2,000 pounds. You are advised to have your rate of VAT reviewed yearly to see if you can save any money, especially if you have two different businesses registered together. There are many more tax tips to take into consideration. 1st Contact will be able to discuss information of this nature with you.
Operation Captura 2
On the news front a recent report states that a tax fraudster has handed himself into police. What a coup for the HRMC sting named ‘Operation Captura 2’, which is celebrating a huge success rate. The operation launched a ‘Most Wanted’ criminal scheme which managed to nab Dennis Hunter, one of its main targets. He was arrested in Hungary for a £250 million VAT fraud between 2001 and 2003.
Not only did HMRC manage to arrest this criminal but others were also brought to justice under the same Captura umbrella in Spain. Fraudsters and hardened criminals have to learn that other countries are not tolerant of allowing them to live in their midst and living a life of luxury. Once the pictures and details of the crime are circulated, they usually get caught. The HMRC was extremely pleased with the results of this Operation Captura 2.
In the final hours, the HMRC will prevail and in due course all of the tax income will be collected. It will be an upward battle but one that the hundreds of officers will take on seriously. You must do what ever you can to ensure that you are remaining on the right side of the HMRC. If you should have any doubts in this regard, consult a professional that will be able to advise you accordingly. 1st Contact are on hand to assist you in exactly this way.
1st Contact Tax offers specialist tax services to contracting professionals.
These services include: Contractor Accounting, Contractor Umbrella payroll, Personal Tax for Contractors, Limited Companies for Contractors and Contractor Financial Advice.