The complex procedures for these returns are what make businesses suffer from confusion and other complexities. However, before you get started with the process, you should be aware that output VAT is charged on the sale of your business’s goods and services, and input VAT is something that you can claim on your purchases and the expenses that you have made for your business.

To ensure that there are no complexities during your VAT returns, it is recommended that you hire VAT return experts. But before you get to that part, wouldn’t you like to discover how to do it yourself? If yes, continue reading to gather some knowledge about the same.

How Can You Properly File a VAT Return?

To file VAT returns, you need to be prepared with a VAT number and a VAT online account. At the same time, you will need to use MTD-compliant commercial accounting software like QuickBooks or Xero. If you think that you can make good use of any of this software and get the returns filed in the right way, you can proceed further. But if you are confident about it, you might need to hire a specialised team of accountants. In this case, it’s better for you to avoid doing it all by yourself since you are not experienced, don’t have the expertise, and are not familiar with the software.

Three Schemes of VAT You Should Be Aware of

Choosing the right VAT schemes for your business’s good cash flow is what you should do as a responsible businessperson. But to do so, you need to learn about the schemes in detail. So, read the following pointers now:

• • Standard VAT Accounting

This is the scheme where all your VAT is recorded based on when the payment or invoice for sale is issued. Through this scheme, you can file your VAT returns every quarter.

• • Flat Rate VAT

This scheme is meant to provide you with incentives in order to simplify taxes. This way, it allows your business to charge 20% VAT on sales while paying HMRC at a lower rate.

• • Cash Accounting

If your business has a turnover of more than 1.35 million euros in VAT-able revenue, you cannot use this scheme for your VAT returns. If you have purchased goods for your company but haven’t paid for them yet, you cannot claim VAT on them.

How Can an Accountant Help Successfully File VAT Returns?

There are higher chances of you making mistakes in filing VAT returns. So, if you do so, HMRC may send an investigation notice to you. If you want to avoid this, you should hire a specialised team of accountants for the job. They can help you reduce the rate of errors or mistakes when filing the returns. Simultaneously, they will make sure that your business is compliant with MTD and make use of efficient accounting software for the procedure.

In order to acquire the best team of accountants or VAT return professionals, you need to find the best VAT return service at all costs. This way, you can successfully submit your VAT returns and enjoy the biggest benefits down the line for your business.

VAT Returns Made Easier with Biz Accounting Solutions Ltd!

Our team of specialised accountants can undoubtedly be your ideal companion on your journey to successfully filing VAT returns. So, call us now at 0787 722 4964 to bring them on board without any further delay!

The post Do You Really Need an Accountant to Make Your Vat Returns a Success? appeared first on BIZ Accounting Solutions.

• How the Private Residence Relief Works

To get private residence relief, you need to consider a few important factors.

Firstly, if you live in the house, it will be regarded as a ‘dwelling house’ and you are eligible for the relief. Also, if you have a garden or a garage, those will be counted. However, if you are living in the property for a few weeks only, you might not become eligible for the relief. But in these cases, the HMRC will assess whether you can apply for the PRR.

Apart from only ‘living’ in your property, you will need to cook, sleep and spend your time in leisure if you want it to be considered as a ‘dwelling house’ and get relief from CGT. On the other hand, if you use your property for business purposes, you will not be entitled to the relief. Also, if you have more than one property, you will need to notify the HMRC about the one that you consider to be your main residence. But if you are facing difficulties in the process, hiring a tax advisor in Reading & Wokingham in Berkshire County will be required to simplify it.

• PRR When You Are Married

If you are married, you and your spouse can only have one residential property if you want to become eligible for the PRR. However, if you and your spouse own individual properties and are still using them post-marriage, a joint nomination will be required to consider only one of these two properties to be eligible for the relief. But you and your partner can decide which of the properties should be considered for relief.

You will need to keep in mind that after the nomination, the other property will be liable for capital gains tax. To know more details on this topic, it’s best to consult a tax advisor in Hurst, in Berkshire County.

• Periods of Absence Considered When Calculating the Relief

If you are not residing in your property for a certain duration, you are still eligible for PRR.

When it comes to your absence in the property, it should not exceed three years. Also, you will not be eligible for the relief if you are employed outside of the UK. But if you are in the UK and need to move to a different country as required by your employer, it should not exceed four years.

However, if you are staying at your residence for the last 18 months, for instance, and want to sell it, you will be eligible for the PRR. Still, if you want to know more on the topic and stay in north Bedfordshire, you will need to hire a tax advisor in Riseley for detailed guidance.

• New rules when it comes to PRR

With effect from 6^th April, 2015 the PRR rules were amended and the new rules are applicable for both UK and non-UK residents.

Here, to get the tax relief, you have to be a tax resident and have to spend 90 nights on your property in the tax year. But there are other regulations too which a professional tax advisor can provide you with.

Qualified Accountants Ready to Assist You with PRR and CGT

If you are searching for chartered certified accountants in Reading and other areas of Berkshire County, Biz Accounting Solutions Ltd is here to meet your needs. So, call us if you want to book an appointment with our accountants.

The post How Private Residence Relief Can Exempt The Capital Gains Tax? appeared first on BIZ Accounting Solutions.

The Tax Exemptions on Company Car

Company tax does not apply on every company car. There are exceptions and when you hire us our accountants in Reading would guide you in this. As per HMRC rules, businesses enjoy exemption, if and when:

• They are one of the partners in  a partnership venture 
• They are a partner of any Limited Liability Partnership (LLP)
• They are the proprietor of their own business 
• The car has been adapted for mobility purpose 
• The car is NOT used for any personal purpose that has nothing to do with the business. 

In fact, when the company car is used exclusively for the purpose of business, the companies enjoy exemption from HMRC tax. In other words, if the car is left at the business premise overnight or during the weekends and is solely used for commuting for the purpose of meetings, business activities etc. tax is exempted. However, commuting for personal reasons is NOT exempted by the HMRC. 

Again, if the vehicle is a pool car, tax is exempted. Our tax advisor in Reading will explain that since such a pool car is shared by the employees for business purpose, and is retained at the business premise, tax is exempted.

The Clauses in regards to Vans

The HMRC tax exemption rules regarding vans are pretty much the same.. Tax is exempted if the van is used as a pool van and solely for business purposes. The use of the van for business purposes includes travelling to appointments and to temporary workplaces. However, the professional accounts in Wokingham have to notify their clients about a few more exemptions. In case of vans, tax is exempted in case of insignificant private journeys. In other words, minor detours for picking up a newspaper on the way to the business or a short stopover for a cup of coffee are exempted from the HMRC tax. 

How to minimise the tax on shared company cars? 

The HMRC tax rules for a company car, which is meant for more than a single employee for private use, are definitive. However, in case the business involves members of the same family, for example two siblings or husband and wife, things can get a bit tricky. Again, it is the responsibility of the professional accountants in Wokingham to guide their clients through these confusions. 

It is advisable that the car is made ‘available’ to both the partners in these cases, as it will reduce the tax to some extent and keep away from the attention of HMRC. 

Thus, when a company car is being ‘shared’ between two, the taxable amount will be divided in a reasonable and justified proportion between the two. 

Reducing the company car tax

As per the professional accountants in Woosehill, the easiest way of reducing company car tax is getting a low emission vehicle. The tax is calculated on the basis of the following: 

• The amount of CO2 emitted by the car 
• The P11d value
• The tax bracket

Thus, one has to get the P11 value as low as it can be and a low CO2  emission to reduce the tax. For those who are wondering what the P11 value is, it is: 

• The list price of the manufacturer including the factory option 
• VAT and delivery 
• Number plates and other options of expenses

Therefore you see, there are so many clauses in regards to HMRC company car tax and so many ways to reduce it. It is the responsibility of the professional accountants in Hurst to guide their clients all the way through. 

This is where we at Biz Accounting Solutions Ltd make the difference. Our expert accounts and tax advisors are there to guide you through. So dial 44 07877 224964 or 01183 671854 to fix an appointment. 

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Let us in this page discuss the efficacy of these new rules and the role of accountants in this. 

What do the new rules mean? 

The new pay off working rules are designed to ensure than individual who works as an employee but in his or her own limited company, (general a PCS or Public Service Company) or any other intermediary, has to pay the same Income Tax and the National Insurance Contribution (NIC) as any other employee. However this rule is not applicable for the self-employed individuals. Thus, here is where the professional accountants in Reading as anywhere else need to educate their clients about what they have needful to do and to explain why the rule is applicable, or why it is not. 

The needful to be done for the PSC or medium/large scape PCO

While it is the onus of the contractor to provide their services through the PSC on and from 6th April 2021, it is the responsibility of every large or medium sized PCO and voluntary sector organisations, as well as all the other public sector organisations to assess the employment status of the contractor for the purpose of tax payment. Now this is an area of work, which has to be taken care of and addressed by our experts who offer bookkeeping service in Reading or elsewhere.

Now this rule applies to every public sector clients as well as the private sector companies that fulfill the any two or all three following conditions:

• It enjoys an annual turnover of over £10.2 million
• It has a balance sheet total of in over £5.1 million
• It has in excess of 50 employees 

The role of the professional accountants in explaining the new rules

Few contractors are still not aware of the IR35 rules, which is essentially the tax avoidance legislation. A recent survey conducted by IR35 has shown that the majority of the in-work contractors (52%) has not yet assessed for the IR35. 86% of the contractors have not yet received important documentation, which is known as KID or Key Information Document. This is where our accountants in Wokingham have to be proactive in getting the KID for their clients and explaining the nitty-gritty of the rules to their clients. 

The main objective of these new rules is to define legally the status of a contractor in regards to employment characteristics – and how the contractors are from an actual employee. The rules also ensure that the employees are taxed properly and accurately. This is surely one area that has to be manned by our accountants in Hurst. 

Under these circumstances, it is the responsibility of our accountants in Calcot to..

• Take stock of the current workforce
• Discuss to the agencies and individuals in behalf of their clients and share the contact factsheet to help them understand how the new rules will influence them
• Determine whether the Off-Payroll working rules will apply 
• Determine who will operate the PAYE (‘Pay As You Earn)
• Settle the disagreements 
• Maintain the records 

Thus, you see, under the present scenario, professional accountants from quality firms working on the behalf of their clients will make a lot of difference in explaining things. That is the reason, you must put stakes in a quality accountant firm. What better name can you opt for, than Biz Accounting Solutions Ltd? For further details, call us at 01183 671854 or 07877 224964 during our business hours. 

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The Govt. of the UK was compelled to introduce VAT when it joined the European Economic Community (EEC) on 1st January 1973. The Purchase Tax that was in force before that on luxury goods got replaced by the VAT. The 6 original EC members then harmonised their VAT regimes, to reduce any discrepancy of export refunds. This gave all the member states a fair amount of competitive advantage, but that generated an economic distortion. 

How VAT operates in the UK? 

In the UK, the VAT system follows the parameters and directives of the European Union. However, these VAT directives do not apply to the members of the EEA or European Economic Area. Nevertheless, with Brexit, things are going to change.

Will Brexit have its effect on the UK VAT Structure? 

The experts believe that the Govt. of the UK is likely to enjoy more flexibility on the VAT structure, following Brexit. Thus, it is time for our professional accountants, who are working for various businesses, to bear more responsibility and help our clients to come to terms with these new flexibilities. These potential flexibilities that are created by Brexit imply that the UK Ministers will come under intense pressure to reduce the VAT rates and bring in more reform of the exemptions. This will lead to more confusion and further complexity. Surely, in these doldrums, the businesses, more so the medium and the smaller scaled ones are likely to face a lot of problems. Here is where our professional accountants in Reading and other places of the UK will come in handy with their able guidance. 

The UK has already a fairly higher registration VAT threshold at £85,000 and it will continue to be so till April 2022. However, the UK courts of Law may have to intervene and take into consideration the previous decisions by the Court of Justice of the European Union (CJEU) while deciding the fate of the VAT cases. What impact it will have on the VAT is still something to be seen, but this is all set to trigger off another set of confusions, for sure, making the life of the professional accountants quite harder and more hectic. 

The Big Change

The biggest change that Brexit is going to bring is in the way VAT will be charged while trading with the 27 remaining EU states following Brexit. The scale of that change is not clear, but will entirely depend on the final outcome that is negotiated by the Governments of these states. In the case of domestic transactions, the seller would charge the VAT on the buyer and then subsequently will pay that money that is collected to the Tax Authority. At present, VAT is not charged on the supply of goods and services between two or more members of the EU. 

However, with the UK coming out of the EU VAT scheme, it will become an outsider, more so, a third country. In other words, the way the businesses will manage the VAT on goods and services within the EU block will not be the same again. Sellers will not levy any VAT any more, but the buyers will have to pay VAT to the HMRC or HM Revenue and Customs at the point of Import, along with every custom duty, whatever applicable. 

Thus you see, things in regards to VAT are only going to be more complicated. And thus, every business needs to get in touch with seasoned accountants serving their clients in Wokingham and any other place across London and other regions of the UK for proper guidance in the period of uncertainty.

We at Biz Accounting Solutions Ltd are proud to be home to some of the best accountants and VAT experts who will be able to guide you through the days ahead. Thus, if you are a business owner, we would suggest you get in touch with us at 44 7877224964 or 01189 693061 during our office hours for further details.

The post What is Going to be the Likely Impact on VAT after Brexit? appeared first on BIZ Accounting Solutions.

Indeed, this new era accounting comes up with a string of benefits. These state of the art accounting software applications are extremely convenient tools, wherein the application is hosted by a service provider. Technically, this goes a long way in curtailing the problem of installation as well as maintenance of the software. Thus, professional accountants in Riseley as anywhere else are benefited immensely by these software platforms.

It provides universal accessibility:

Indeed, this high-tech accounting system offers universal acceptability. In other words, if anyone wants to take a look at the data or access the bank accounts, or track the inventory, sales and expenses and the likes, any time and from anywhere on this planet in a legal and authorised way, this is the  accounting technology that will provide that option. This new-age technology has made it possible for the users and stakeholders to have a look at the financial data in real-time and access the same from anywhere without any problem whatsoever.

As the entire constellation of the data is stored in a single platform, the entire database can easily be dealt with and accessed by authorised personnel. In situations like this, when the various stakeholders are located at different locations and their mobility us restricted by lockdowns and other curbs or traveling, cloud-based computing and accounting systems have come up as the savior, helping the stakeholders to carry out their accounting duties and responsibilities from their respective locations in an uninterrupted way.

Thus, when things come down to dealing with accounting functionalities, your accountants in Spencers Wood will be able to carry out their responsibilities from remote locations unabated, with the use of this high-end accounting technology.

The Technology works smarter & Faster:

At times, bookkeeping tends to turn out to be a somehow mundane and tiring task even for the professionals. They tend to get fed up with the daily procedures and when a sense of monotony creeps in, that leads to mistakes due to mental fatigue. Here again, this accounting technology comes into play, helping the professional accountants in Charvil like anywhere else in a great way.

Automated cloud-based accounting procedure takes the burden of carrying out everyday billing, transaction reconciliation, invoicing and the likes, lending speed and accuracy, and taking the element of frustration off from the task. Thus, at the end of the day, the accounting becomes faster and quicker and that’s what helps businesses in a great way, quite understandably.

Even when we speak about small businesses, this new-age technology will help them in a great way as a quicker accounting solution means the stakeholders do not need to spend much time for accounting and can instead utilize their time in dealing with things needed for further business growth and promotion. Also, perfection of this system helps these small businesses to get rid of accounting compliance issues.

Data Storage & Backup without any Hiccup:

One of the most prominent benefits that are derived from the automated accounting platforms is that the user can enjoy total freedom from all the customary problems of backing up and storing data.

The small businesses that deploy high quality, cloud-based accounting platforms are never impacted by the restriction in the mobility of the employees and the accountants in Mortimer Common – a very obvious phenomenon in this COVID 19 infected era. Thus, even the accountants and the business stakeholders are miles apart, this accounting system would help them take data storage and backup without any technical hiccup whatsoever.

Thus, you see, in this era of restrictions on traveling and a high risk that is associated with traveling, where work from home is the neo-normal way of running a business and related task, cloud-based accounting is one of the mainstays of keeping the wheel of accounts rolling unabated.

Therefore, if you are a small business and looking for accounting professionals who can take advantage of this new-age technology to come up with a flawless accounting system, hire Biz Accounting Solutions Ltd. We are home to some of the best professional accountants who will use the state of the art accounting system and help you in your accounting for your business in this difficult time. For further details, call us at 01183671854 or 07877 224964.

The post How Cloud-Based Accounting System Is Beneficial For Business during This Pandemic Period appeared first on BIZ Accounting Solutions.

As per the latest economic data, the economic activity in the UK shrunk by 20.4% in April, which is the steepest fall ever recorded since the second world war. Coupled with the decline in growth during the first quarter of 2020, the COVID 19 crisis has driven the UK economy down to the tune of 25% till April. However, following the easing of the lockdown on and from 15^th June, the economy is showing slight signs of rising. While 79% of the UK businesses have continued with their operation, further 9.3% has resumed the operation following the ease of the lockdown period.

However,  way back on 17^th March 2020, the Chancellor of the Exchequer, Mr. Rishi Sunak had announced a new COVID 19 Corporate Financing Facility (CCFF), designed to help the larger, the financially more sound companies that have suffered due to the economic disruption triggered by the spread of the epidemic.

Thus, it is the responsibility of the professional accountants in Grazeley who are working on the behalf of various financial institutions to explain to their clients the efficacy of this scheme and how the companies are going to benefit from this scheme. That is where we at Biz Accounting Solutions Ltd make the difference. Our highly competent accountants are more than ready to provide detailed inputs of this scheme to our clients.

The objective of this Scheme

Nevertheless, let us on this page, discuss the efficacy and effect of this scheme. The CCFF is designed to support businesses that are looking for market-based finance to boost their surging working capital and to meet various short needs, much due to the compressed cash flow resulting from the economic meltdown.

While further details about the scheme are still not out, the Bank of England has already set in broader terms, the way the scheme will work and the businesses that are eligible to get the support. Here again, it is the responsibility of the accountants in Reading to find out whether their clients are eligible for the scheme or not.

How will the CCFF Function?

The Bank of England has come up with the Corporate Financing Facility Limited (the Fund), which is designed to purchase the Commercial Paper (CP) maturity of up to one year, which are issued by firms. The Fund is supposed to purchase the newly issued CP on the primary market, through the dealers and after the issuance from the eligible counterparts of the secondary market. The purchases, however, will be financed by the central bank reserves.

What is the tenure of the availability of CCFF?

The CCFF is designed to be valid for a minimum period of 12 months and will continue to be in use until the cash flow pressure of the eligible companies does not ease out. However, a six-month notice period will be served to the companies, before the withdrawal of this facility.

Who will issue the CP?

The fund will purchase the CP that is issued by the companies, which make a material contribution to the UK economic activities, and used to enjoy a short or long term investment grade rating before the pandemic struck, or those who had a financial strength equal to the investment-grade rating.

The company eligible to issue the CP:

• Has to be a substantial employer in the UK
• Has to be headquartered in the UK
• Has to be incorporated in the UK
• Has to serve a substantial amount of revenue in and for the UK
• Serves customers of the UK
• Has multiple operating sites in the UK

Thus, you see, there are so many modalities to be realised by a business in regards to its eligibility to enjoy the CCFF scheme. This is where hiring Biz Accounting Solutions Ltd will make a difference. Our accountants in Earley will leave no stones unturned to explain the technicalities of CCFF and other aspects to our clients. For further details, call us at +44 7877224964/0118 367 1854.

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