Account Tax Ltd
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NewsWe will publish articles of interest here. If you are a regular visitor to our site, we will also post any changes here first. 2010/11 Tax Rates - Mar 2010 The personal allowance is unchanged at £6475. The
higher rate threshold is unmoved. Currency - Mar 2010 I return to the plight of the pound. If you have
earnings in foreign currencies (AUD, USD, Norwegian Krona, Euros) then open a
business account in that currency. Since i posted this suggestion the
pound has dropped 10-25% in value. The long term exchange rate of 12 to 1
with Norway is now just below 9 to 1. Non Residence - Mar 2010 The Gaines-Cooper ruling gives the Revenue a precedent to
challenge all non-residents. Precedent, however, dictates that each case
is taken individually. The Revenue don't have the resources to examine the
circumstances of 6 million UK non-residents. Non Resident Rules - Feb 2010 Robert Gaines-Cooper lost his tax appeal last week and was
deemed to be a UK resident despite having never spent more than 91 days in the
UK since 1976. He faces a tax bill of £30million. The courts have
deemed him to be UK resident because they are looking at residency more
carefully and HMRC have stated that they will look at each case individually.
More VAT Changes - Jan 2010 From April, VAT payments and returns will be done online for business who have net sales of £100,000 or more (VAT exclusive turnover). Businesses and agents should register NOW. To register you will need five facts that can be found on your last VAT return and VAT 4 certificate of registration. These are:
For more info see here VAT Changes - Jan 2010 The standard rate of VAT reverted back to 17.5% on the 1st
January 2010. The flat rates applicable have been altered in some cases.
The table of rates is available here.
The commonest categories that apply are: I would suggest that those who are predominantly office based should use 12.1/2% and those who are offshore should use 13%. The 1% discount still applies for those in their first 12 months of VAT registration. Thanks
for supporting
Montrose in the People's Millions -
Dec 2009 2006 Companies Act - Oct 2009 Changes to the Companies Act enacted in October 2009 will affect you. Earnings in Foreign Currency - Oct 2009 Currencies are volatile. If you earn in a foreign
currency you should make sure it is paid into a foreign currency account.
If the local bank say that you can't have a US$ or Euro account they are talking
rubbish! HMRC Penalties - Sep 2009 Extra care and attention required with VAT to avoid these!
50% Tax Rate - Sep 2009 See how it may affect you here.
Non-Residence - Aug 2009 There isn't a statutory definition of non-residence. The Revenue definition to date has been a single test of time. Spend no more than 91 midnights in the UK in a tax year and you are non-resident. For a long term absence of 4 years or more this definition is relaxed to allow a maximum of 182 midnights in any one year provided the accumulating average does not exceed 90 midnights per annum. This definition is concise. The Revenue have caused concern recently by adding subjective tests to this chronological certainty. They have won 2 high profile cases where they sought to establish that the tax payers 'belonged' to the UK. Belonging was defined as having a wife and family resident in the UK and owning a family home that was available for use. Because this enhanced definition emanates from case law the Revenue have to look at each case on its merits. They don't have the resources to do this.
What the November 2008 Budget means for you Click here for a summary of how the budget will affect you and your business. Working in Norway Account Tax Ltd have established a reporting structure to enable day raters to comply with Norwegian tax legislation. We perform this service for a number of clients and are particularly pleased to be associated with AGR Peak in Stavanger. This text covers what we do. On the contractors part all we need is copies of your monthly invoices.
VAT position when working overseas - June 2008 In May HMRC issued a new guidance note on the subject : Place of Supply of Services In the past you would charge VAT if you used a UK Agent and worked overseas.
Now VAT should not be charged on work that is physically executed overseas.
VAT Flat Rate Scheme - April 2008 It has come to our attention that a firm, which specialises in dealing with one man limited companies, charges a fee for processing the flat rate VAT returns. A flat rate VAT return involves adding the value of your invoices (including VAT) in a quarter, and applying the VAT percentage (which is commonly 11.5% or 12.5%). This takes less than 10 minutes and this is why we don't charge to process flat rate VAT returns. It also helps us when preparing the year end accounts because we know the VAT has been reconciled. How much would the 'specialists' charge for this service? Over £800 for someone with a VAT profit of £3500!!! As we don't charge for this service, you would automatically have an £800 saving! If you want to move to us, download this document, personalise it and send it to your provider. We will deal with the rest. The transition should be seamless.
Qualified Accountants - April 2008 The designation 'Accountant' isn't protected in the UK. Anybody can
call themselves an Accountant, and many do. Because there is a shortage of
Accountants in the North East of Scotland there is a proliferation of accounting
and taxation services from companies that aren't qualified and thereby subject
to monitoring. Make sure that the firms you trust are properly designated
Accountants. Watch out for the following sorts of designation; Chartered
Accountants, Chartered Certified Accountants, Registered Auditors, Chartered Tax
Advisers. If these labels aren't on their letterheads then beware.
Ask the question. In my experience qualified firms don't charge any more
than unqualifieds.
Non Doms Update - April 2008 John McFall, the Treasury Committee Chairman, has just found out what we already knew. Just how bad must the quality of Civil Servants in the Treasury be if little me can anticipate outcomes they cannot... Extract from Accountancy Age (10 Apr 08) TREASURY HAS IGNORED LOW INCOME NON DOMS
Income Shifting - April 2008 Click here for a presentation given recently on Income Shifting
Non Residence and Non-Dom Updates - Dec 07 Click for the latest on Non Residence and Non-Doms
October Budget Update The October budget update contained proposals which will have an impact when they become law in April 2008. They are as follows:
The change in the non-resident rules is a simple one but has a big impact.
At present days of departure from the UK and subsequent return count as
'overseas days'. From April 6th they will count as 'UK days'.
Rotational workers will therefore lose at least 12 days p.a. by this altered
ruling. The current system of Capital Gains distinguishes between Investment Assets
(buy to let residential properties, shares in Tesco) and Business Assets
(commercial property and shares in your own company). The system also
recognises 'time'. The longer you hold an asset the less tax you pay.
For business assets held for 2 years or more the rate of CGT on the profit on
disposal is 10%. Investment asset gains are taxed at 40%, unless you hold
the asset for 10 years, whereby the tax charge reduces in steps to 25%. Small companies are also at threat from the proposed new rules on sharing income with spouses/partners. These proposals have to be legislated for but will be as subjective as IR35. They can only be judged on a case by case basis.
The Government are desperate for additional tax revenues to fund the ever spiraling debt they have committed us to. You are being targeted.
Double Taxation Relief for Russian Republic Workers We can help you to claim double taxation relief for Azeri and Kazakh tax. Please see the attached flyer for further information. IR35 News
Non-Residence News The latest attack from the powers that be comes on those who register as non-resident. See here for more details.
Overseas Working News
The biggest problem attaching to overseas assignments
is that virtually every foreign regime deducts tax. These
taxes are invariably settled by the client (eg BP, Shell, etc). The
foreign tax authorities can’t organise the pursuit of every individual
consultant and so pursue the easy target. The good news for the consultants is
that their foreign tax gets paid on their behalf (usually between 25% and 35% of
their gross income). The bad news is that it is personal tax rather than
corporate tax. If you would like to know more about this or see worked examples, please contact me.
S660A News No longer applicable as the Govt lost the Arctic Systems case in the Court of Appeal. Having done so, it took them all of 6 hours to change the law which will be introduced from the 6th April 2008. The expectation is that spouse dividends will be measured according to contribution to the business.
We have moved! You will now find us at: 1st Floor Inchbraoch House, Our telephone and fax number remain the same.
From the North, follow the A92 through Montrose and over the bridge onto Rossie Island. At the next roundabout, take the first exit and head through to the Port Authority barrier. At the barrier, identify yourself and whom you are visiting and await instructions from Security. Once you reach Inchbraoch House, enter through the West end entrance. Our office can be found on the first floor. |
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simone@worksmarter.ltd.uk with
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