VAT returns | Tax advice & planning | Self assessment

Tax

Interaction with HMRC

In tax accounting nowadays, we find ourselves confronted with terms like ‘MTD’ and ‘RTI’, whereas most business owners are used to just filing VAT returns and processing payroll!

The basic taxes have not changed, but over the last 5 years, how you file them and interact with the HMRC has changed more than over the last 50 years.

There is always time

We can help you to understand what you need to do, or if need be take over the tasks of filing for you. We can ensure you file on time and meet payment deadlines, even if they seem impossible. Remember, there is always time and there is always a way, you just need to ask the question and we’ll find the answer.

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Case studies

TAX FAQ

FAQ’s

I have a VAT error, how do I correct it?

If the error is on accounting software, you can correct the error in the postings, and the next VAT return will automatically be adjusted to account for the difference. If the error is old/not on your software, then you need check that the value is below the HMRC current error thresholds. If so, you can then amend the error on the next VAT return after advising the HMRC in writing. If the error is above the error thresholds, you must advise the HMRC and fill in the form VAT652, and pay any balance of tax due.

What is IR35? How does it affect me?

IR35 is the short name for the rules relating to staff who work for a business, but who are not on the payroll. If you are employed full or part time for a business which is not your own, but paid as freelance worker, you may fall within the IR35 rules. If so, you could be deemed to be employed by that employer and have tax deducted from your income.

If you are a business who is employing freelance workers, you must check to see if they fall within the IR35 rules. If the HMRC decides that they do, then you may have to deduct tax from what you pay them and also pay employers NIC calculated on what you pay them.
There are specific tests to determine who does fall under IR35, so please let us know if you would like to know more.