Company Formation Trend Predictions 2016 – Part 2

In the first part of our 2016 company formation predictions we discussed how tax changes may lead to a decrease in the number of contract and agency workers forming limited companies. Another tax change is responsible for our second prediction for UK company formations in 2016. A series of changes announced over the last year …

UK losing billions in VAT from online sales

It has been claimed that up to £2bn of VAT is being lost on sales though online marketplaces like Ebay and Amazon each year. HMRC have been targeting online sellers for a couple of years as they believe a lot of small UK businesses are trading online without being properly registered and without paying the …

EU VAT Rule Change Creates a VAT Mess For Micro-Businesses

The internet has made it incredibly easy for lots of entrepreneurs and startups to find customers and build a business. Now lots of micro-businesses and solo entrepreneurs who sell online are worried that a new EU VAT rule will mean the end of their business. In the UK, businesses aren’t currently required to register for …

Why your business should not wait to register for VAT

Registering for VAT means that you become an unpaid tax collector on behalf of Her Majesty’s Revenue and Customs (HMRC). Once registered you have to give 20% of the price of any VATable goods or services you sell direct to the government. If you don’t register you get to keep this 20%. So why would …

Selling on eBay? You may need an accountant.

Her Majesty’s Revenue and Customs (HMRC) have recently launched a new e-marketplaces campaign targeting people trading on sites such as eBay and Facebook Marketplace. While many online marketplaces including eBay and Amazon will sort out most of the VAT due on sales, HMRC are concerned that some VAT, National Insurance and other taxes may be …

VAT Increase From 4th Jan 2011 – How Will It Affect You?

With the election of the coalition Government and the budget that followed, a standard rate VAT increase was announced. From the 4th of January 2011 Value Added Tax will rise from 17.5% to 20% across the UK. There are no changes to zero-rates or reduced-rated VAT. How will this impact your business? How the change …

The Advantages Of Voluntary VAT Registration For Small Business

Value Added Tax (VAT) is the sales tax levied against goods and services within the UK. Businesses with a turnover in excess of the VAT Registration Threshold (currently £70,000 P.A. 2010-2011) are required by law to complete a VAT Registration with HM Revenue & Customs. Businesses that fail to do so within 30 days of …

VAT Rise Causing Hike in Inflation?

According to the BBC (Inflation expected to exceed 3%), the return to 17.5% VAT has had an effect on inflation. Inflation has apparently risen over recent months and analysts think that it might well increase further to 3.5%. It’s not all bad news though as the experts predict a drop back to more appropriate levels …