The latest budget report was unveiled on the 25th March 2012. If you have any queries, please contact your business partner in the firm. Watch this space the pre-budget report from the end of November and next year's budget in March 2013.
We are also pleased to offer our clients fee protection insurance to cover the cost of accountancy fees incurred in dealing with a HMRC enquiry. With HMRC looking to raise even more taxes, this is an increasingly popular service that our clients are taking up. If you require further details on this please contact the office.
Look out for our monthly column in the Carmarthen Journal.
I have been told that it is important that I spend as much money on plant & machinery as possible before the end of the month. Why is that, as I don’t think I need many items for my business?
From the 1st April for companies and the 6th April for other businesses (sole traders / partnerships) the tax rules for equipment & machinery is changing. Currently a business can spend up to £100,000 on assets for itself (in a year) and claim 100% capital allowances i.e. the whole cost is taken off your profits for tax purposes. From the dates above, the £100,000 will drop to £25,000 and whilst you will not lose the tax relief if you spend over £25,000, it will take you longer to receive it. So if you have the cash-flow and you need specific items, it may be sensible to purchase them before the deadline, especially if they are expensive i.e. tractors etc.
Our business is small but we are registered for VAT. We are concerned that we are not ready for submitting our VAT returns online as it seems quite complex. What do we need to do?
You are quite right, HMRC have stated that all businesses that are VAT registered will have to submit and pay their VAT electronically from the 1st April. Whilst using the internet can be daunting at times, HM Revenue & Customs have prepared a beginners guide to VAT online: http://www.hmrc.gov.uk/vat/sign-up-for-online.pdf which takes you through a step by step guide of the process. I would suggest you look to initiate this as soon as possible given the impending deadline. Alternatively you may want to use your accountant who could be authorised to submit the returns on your behalf.
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