Do I charge VAT if my turnover is less than 85000?

Shortened VAT, the value-added tax is a levy imposed on many products and services offered for sale by licensed businesses. Businesses are required to enroll for VAT if their VAT-taxable income surpasses 85,000. Even when the turnover falls below 85,000, businesses should still register.

 

What happens if I go over the VAT threshold temporarily?

Businesses whose taxable income surpasses the threshold temporarily should submit an application for a registration exception. Write to HMRC with supportive documents explaining why you are confident that your VAT taxable turnover, won’t come cross to the 83,000-deregistration threshold for the next 1 year.

 

Find out more

 

What is the VAT threshold for 2023?

The VAT-taxable income and sales are anticipated to remain the same for nearly all businesses in 2023. When the cumulative amount equals or exceeds the 85,000 VAT registration minimum for a period of 12 months ending in 2022/23, then you have up to the subsequent month to register.

 

What happens if you go over the VAT threshold without Realizing it?

Once you’ve surpassed the supply threshold, you will be required to register for Vat within 30 days. Failure to do so will attract a penalty whose extent will depend on whether you notified the HMRC of the error yourself or the HMRC detected the error on its own and whether it was a result of oversight or you intentionally tried to defraud HMRC.

 

Will the VAT threshold go up in 2024?

For the next two years starting 1st April 2022, the threshold for VAT registration and deregistration is will remain unchanged. It’s also expected that the 85,000 taxable turnover thresholds used in determining those eligible for VAT registration will remain unchanged until 31st March 2024.

 

How does HMRC check VAT returns?

VAT staff can come to your premises to examine your VAT records, also known as compliance checks in a bid to ensure that the amount of VAT you are paying or reclaiming is right. More often than not, HM Revenue and Customs (HMRC) gets in touch with you to plan the visit. In most cases, they issue a 7-day notice ahead of the visit.

 

Is it necessary to charge VAT as a sole trader?

Just as is the case with other business structures, sole traders have the same VAT threshold and conditions. With absolute control of your business and organization activities, you will be liable for VAT registration. Even as sole traders oversee the computation, charging and transfer of VAT to HMRC, it’s necessary to have a deep understanding of the process from the beginning to the end.

 

Do I need to charge VAT on shipping?

In the UK, VAT is levied in virtually all shipping activities except for the delivery expenses for zero-rated goods, which includes basic foods, newspapers, children’s clothes and footwear, water and books. Keep in mind that postage is categorized as a business expense and therefore you can file a claim to get it back.

 

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham

What expenses can a landlord claim on a rental property?

 

In the UK, landlord allowable expenses/ costs on rental property income come with a terrific relief. You can claim the overall maintenance and repairs of your rental property, not including any improvement.

Here is a unique breakdown to help you fully understand your allowable expenses easily.

Some examples of allowable expenses a landlord can claim are.

Being a landlord comes with a lot of busy schedules, but there is a need to always stay on track when it comes to your allowable expenses- gives you ample time for an easy workflow. You can claim your allowable expenses which include;

 

Firstly if you bought anything to be used in the rental property.

Utility and tax bills such as water, gas, electricity, and council bills, if only you paid for them.

Insurance includes landlord policies for rental property, contents, and public liability- that is, the cost of services such as gardeners’ and cleaners’ wages.

Letting agents fees.

Legal fees for renewing a lease of fewer than fifty years.

Accountants fees.

Rents, ground rents, and service charges.

 

Find out more

 

How does an allowable expense affect your tax bill?

As a landlord, you probably wondering how exactly an allowable expense will affect your tax bill, the truth is that, yes, it does affect your tax bill- positively. More reason to put on a smile as you work on your self-assessment tax return. When you deduct your allowable expenses, it reduces your tax bill too, as tax is charged according to the profit you make, Being a landlord in the UK.

 

Can I deduct my cell phone for a rental property?

Well, this is a challenging question for a majority of landlords, and you too need to find an honest answer to it. With that said, the answer is yes, you can deduct your cell phone for rental property, if only you did use it for purposes of your rental business. Be brave enough to separate business calls from personal calls, and also keep a record of the same for time-saving and easier access to your cell phone’s allowable expenses.

 

What are my expenses as a landlord?

The need to know your expenses as a landlord in the UK is very important as it plays a crucial role in matters of rental income and taxable profits. It helps in understanding what you will need to deduct from your rental income. These expenses include;

Maintenance and repair costs.

Insurance and service costs-cleaners and gardeners.

Council tax.

Utility bills.

Letting agents fees.

 

What is included in operating expenses for a rental property?

Operating expenses for a rental property are what keep your property in a good condition always, to maintain it. These are the costs that will recur, and they include;

Insurance.

Marketing and advertising- very essential for the rental property business’s prosperity.

Leasing and property management.

Repairs and maintenance.

Property tax.

In the UK, you, the landlord needs to understand your allowable expenses on matters of rental property. Be sure to know and enjoy your allowable expenses on rental business.

 

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham

How to prepare Ltd accounts for smaller companies?

Statutory accounts must include the following:

• A balance sheet, which indicates the worth of all the company owns, owes, and is owed
• A profit and loss account, which indicates the company sales, running costs, and any profits or losses made throughout the financial year
• Notes about the accounts

It is considered small when a company meets at least two of the criteria below:

• 10.2 million or less turnover
• 5.1 million or less on its balance sheet
• 50 or fewer employees

It is considered a micro-entity when a company meets at least two of the criteria below:

• 632,000 or less turnover
• 316,000 or less on its balance sheet
• 10 or fewer employees

Small companies and micro-entities qualify for an exemption so that their full accounts do not need to be audited. They can also decide whether to send a copy of their profit and loss account and directors’ report, and their balance sheet may be made simpler. Moreover, micro-entities are able to prepare simpler accounts that simply need to comply with the statutory account minimums and only send their balance sheet to the Companies House.

Statutory accounts must adhere to these accounting standards:

• International Financial Reporting Standards
• New UK Generally Accepted Accounting Practice

Find out more

 

How to file Ltd company accounts?

You may create and file your annual accounts using a variety of accounting software that is readily available. Or, if you are a small company or micro-entity, you might be eligible to use the Company Accounts and Tax Online (CATO) service, which enables you to send your accounting data at once to both Companies House and HMRC.

You must file your company tax return online. But you may use the paper form CT600 if you have a valid reason why you can’t file online or wish to file in Welsh.

 

Can I prepare my own limited company accounts?

For a limited company, you have the option to handle accounting on your own, including preparing and filing annual accounts. To manage their finances, however, most limited companies use an accountant. Because compared to sole proprietorships, limited companies have more complex structures and obligations, making it challenging to handle everything on your own. If you make a mistake, there are severe penalties.

 

Do I need an accountant for my LTD Company?

Although having an accountant is not legally required, doing so has several advantages, including making it easier to complete your annual accounts and company tax returns. Furthermore, they can handle the tax registration of new companies.

 

Can I submit my corporation tax return myself?

You have two options for filing your company tax return, either do it yourself or hire an accountant to do it for you.

 

Do Ltd have to file their accounts with Companies House?

Accounts must be delivered to Companies House by all limited companies. It doesn’t matter if your company has been successful, breaking even, not trading, or idle. You may contact HMRC directly if you have any questions concerning HMRC accounts or other tax-related matters.

 

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham

Can you have a limited company with one director?

 

Yes, the full truth is that you can indeed establish a limited company with one individual in the United Kingdom. If you look at the designated application form, you’ll notice that you have to mention at least one member and one director. The member can be a guarantor or shareholder. Despite that, it’s not unheard of at all for a sole individual to be named in both slots. This indicates that one person undoubtedly can establish a United Kingdom limited company with the assistance of Companies House.

Small business owners who wish to work independently may appreciate the answer to that question. The same thing applies to small business owners who do not require the cooperation of business partners for any reason. Limited company arrangements are extremely adjustable as well. Because of that, owners can recruit “extra” directors and members as they wish. They can do this freely once they first develop their companies.

The vast majority of individuals can create limited companies on United Kingdom soil. They simply have to be at least 16-years-old. They cannot be undischarged debtors or disqualified directors, either. Note, too, that people don’t necessarily have to live in the United Kingdom in order to establish limited companies in the nation.

 

What are the Requirements of Setting Up a Limited Company

The requirements of limited company establishment go beyond having to mention members and directors.

Limited companies have to provide registered office addresses during the incorporation process. These have to be tangible ones as well. P.O. boxes are not permitted. Mail items that HM Revenue & Customs, Companies House or government agencies in general send to your specific company go straight to the aforementioned registered office address.

 

Find out more

 

How Long Exactly Does It Take to Establish a Limited Company?

The official website for Companies House features the previously mentioned addresses. This is for public record purposes. Business owners have to make statutory company records accessible to all on these sites.

You need to mention various details on your application form. These details include:

The name of your company

Registered office address

Member and director information (service addresses, etc.)

Business operations details (1-4 SIC codes, etc.)

Influential company representative information

You can start trading using your newly established business soon you incorporate it. Just wait to get your incorporation certification.

 

Do You Pay Less Tax as a Limited Company?

Limited companies aren’t like sole traders. These companies aren’t required to pay national insurance or income tax. They are accountable for corporation tax payments for their business profits, though.

 

Can I Employ Myself in a Limited Company?

Self-employed persons are considered to be personally responsible for any and all debts that are accumulated by their companies. This fact may make their personal possessions vulnerable in various ways. If you have a limited company, you can take advantage of something that’s called “limited liability.” This safeguards personal assets. It classifies business owners as being their own entities.

 

How to register as self employed with HMRC?

Here is a brief review of the self employed registration procedure while we walk you through it in further detail:

1. Check to see if your work qualifies as self employed.

2. Register online for an account with gov.uk

3. Complete your registration by using your Government Gateway information, as well as details about your business, such as your trading name and contact info.

Once you have registered as a self employed person, you will have a number of duties and responsibilities, such as filing an annual Self Assessment tax return.

 

When do I need to register as self employed?

HMRC says that you need to register as soon as possible. There is a deadline, unfortunately. Legally, you are required to register by the 5th of October after the end of the tax year during which you began to work as self employed. In an ideal situation, you would not want to wait until it is too late to register. You can be stuck with a hefty tax charge if any goes wrong and you are not able to register by the deadline.

 

Find out more

 

Do I need to register as sole trader?

Being self employed does not always imply that you are a sole trader. If you work for yourself, you are most likely a sole trader, but there are other alternatives. Meanwhile, if you are involved in a business partnership, you must register as self employed, but not as a sole trader rather as a partner.

 

Your responsibilities once you’ve registered as self employed

You will have a number of responsibilities after you have registered.

1. Most essential, you should keep accurate records, specifically of any sales or outgoings related to your business.

2. It is also a good idea to save any correspondence from HMRC. These letters and documents might assist you in completing your tax return quickly and effectively.

3. You must file your Self Assessment tax return online by the 31st of January each year.

4. You must pay HMRC on the 31st of January and the 31st of July. However, you may be permitted to delay these payments if HMRC agrees. Besides paying income tax, you will be required to pay the National Insurance Contributions (NICs) for both Class 2 and Class 4.

 

Is registering as self employed the same as registering for Self Assessment?

The calculation and payment of your own tax and National Insurance liabilities will be your responsibility once you have registered with HMRC as a self employed individual. This indicates that you will be required to finish and submit a Self Assessment tax return to HMRC each year.

 

How do I get a UTR number as self employed?

By submitting an online application and registering as a self employed individual, you can obtain a UTR number quite quickly. This can be possible through the HMRC website. A UTR number will immediately be assigned to you after you register for Self Assessment or create a limited company.

 

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham

What Is a CIS Refund?

Subcontractors who are employed within the construction field do not always have to sign up for CIS. In spite of that, they have to complete and send CIS tax forms for all tax years. If you make the decision to avoid CIS registration for any reason, you’ll receive a 30 percent income tax straight from the government.

If you decide to go forward with subcontractor registration, the HMRC will request 20 percent payment taxes from you. It doesn’t actually matter which choice you make. You’ll overpay a substantial sum of tax money annually no matter what. You’ll pay more than standard employees who are part of the PAYE system. These individuals have the convenience of individual allowances that are available to them via the government.

How Do I Get My CIS Refund?

If you want to receive your tax refund, you can begin by completing and sending out your return promptly. This has to go to HMRC. You can accomplish this through the completion of a Self-Assessment tax return. This return enables people to list the tax payments they’ve given to HMRC during the year. It includes a thorough expenses list as well. Assessing this list can help with deduction calculations.

Once you’re due to file your return, you have to establish an HMRC account. You can verify things there using your national insurance and UTR numbers. If you’re classified as a CIS limited business, you have to include your business’ specific taxpayer reference number.

You can opt to receive your refund electronically. If that option appeals to you, you have to give out your bank information. You can do this as you file. You can also opt to request a paper check. Note, though, that this option generally isn’t as rapid.

Find out more

How Long Does a CIS Refund Take?

The HMRC generally takes between 10 and 14 days in total to complete tax return processing matters. That’s because they have to perform extra security checks as a means of guaranteeing that things are all in line with designated CIS regulations. It isn’t out of the question, though, for some refunds to complete processing in merely six days or so.

If a refund includes suitable information, tax specialists can finish filing within one to two days. Durations differ based on seasons and other factors. People for the most part can get their rebates back within a couple of weeks.

Can HMRC Check CIS?

You cannot give subcontractors payments prior to verifying their statuses with the HM Revenue and Customs team. The team will let you know if the subcontractor has signed up for the CIS or “Construction Industry Scheme.” They’ll inform you about deduction rates. They’ll even let you know if you can complete payments that do not include deductions at all.

How Often Do CIS Returns Have to Be Submitted?

It’s imperative to send HMRC returns each month by the 19th. This corresponds with the tax month before.

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.