Originally written by Timothy Adler on Small Business
The government needs to say whether the current one-year business rates holiday for retail and hospitality businesses is going to be extended.
So says John Webber, head of business rates of property consultancy Colliers International, which has monitored the number of business rates appeals flooding the Valuation Office Agency (VOA), part of HM Revenue & Customs, which is tasked with processing complaints as part of a three-stage “check, challenge, appeal” process.
According to Colliers, some 170,000 businesses have taken the first step towards appealing against their rates since the pandemic began in the UK in March. That is more than the total number in the three previous years, during which 159,000 queried their rates.
>See also: Chancellor Rishi Sunak may scrap business rates in favour of a land tax
Partly, it’s the government’s own fault that the VOA is so swamped with business rates appeals.
Businesses are being forced into challenging ratings assessments now because the government has yet to announce whether the one-year business rates holiday for retail and hospitality announced in March is going to be extended.
Business rates are a tax on properties that are used for commercial purposes and are charged based on an estimate
Tag Archive for Accounts & tax
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Just when you thought it couldn’t get worse, business rates return in April
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government needs to say whether the current one-year business rates holiday for retail and hospitality businesses is going to be extended.
So says John Webber, head of business rates of property consultancy Colliers International, which has monitored the number of business rates appeals flooding the Valuation Office Agency (VOA), part of HM Revenue & Customs, which is tasked with processing complaints as part of a three-stage “check, challenge, appeal” process.
According to Colliers, some 170,000 businesses have taken the first step towards appealing against their rates since the pandemic began in the UK in March. That is more than the total number in the three previous years, during which 159,000 queried their rates.
>See also: Chancellor Rishi Sunak may scrap business rates in favour of a land tax
Partly, it’s the government’s own fault that the VOA is so swamped with business rates appeals.
Businesses are being forced into challenging ratings assessments now because the government has yet to announce whether the one-year business rates holiday for retail and hospitality announced in March is going to be extended.
Business rates are a tax on properties that are used for commercial purposes and are charged based on an estimate
Hot Business News Today
Halt rollout of Making Tax Digital to smallest businesses, urge MPs
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The rollout of Making Tax Digital, HMRC’s rolling scheme for businesses to self-report tax owed, should be halted before it reaches the smallest of businesses.
So says the cross-party public accounts committee in its report on bridging the £31bn tax gap between tax owed and what actually comes into the Treasury’s coffers.
MPs warned that it was unclear whether the controversial rules had achieved their stated aim of reducing tax errors.
>See also: Making Tax Digital bridging software: what is it and how much does it cost?
Since April 2019, VAT-registered businesses and the self-employed people with a turnover in excess of the £85,000 VAT threshold have been forced to use accounting software when they file their returns.
From April 2022, HMRC wants all VAT-registered businesses to adhere to Making Tax Digital. Self-employed people and landlords with a turnover of more than £10,000 will face the extra requirements from 2023.
Critics say the cost of applying the new rules has been unreasonably high. A report by trade body Association of Taxation Technicians found that some small businesses had been forced to spend more than £5,000 on software and training.
>See also: Five steps for small businesses Making Tax Digital
Extending the
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Redtape simplified for small business seeking CVA protection
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Any small business that needs protection from creditors while it continues to trade through Covid-19 will find it easier now the CVA process has been simplified.
Insolvency body R3 has published a standard form extending the help bigger companies get when they go into administration but continue to trade.
Although high-street names such as New Look and Travelodge have entered company voluntary arrangements (CVAs) until now they have been too complicated and costly for small businesses on life support.
>See also: Why the Government’s new insolvency bill is bad news for sole traders
What is a CVA?
A CVA is a form of insolvency used by businesses to cut debts, restructure their capital or dispose of assets such as property leases.
At least 75 per cent of unsecured creditors must agree to such a proposal for it to go ahead.
The R3 standard form details what businesses need to do to reach an agreement with their creditors, settle their debts and turnaround their business.
The form includes a breathing space period to allow a business time to restructure without fear of action from its creditors, to be followed by a payment period where a company’s debts are paid in line with
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MPs to fight Sunak over move to hike national insurance for self-employed
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
MPs plan to fight chancellor Rishi Sunak over his move to increase National Insurance tax for the self-employed, bringing it into line with PAYE.
Back in March, the chancellor hinted that he wanted to increase NI for the self-employed, to help pay for the Self-Employed Income Support Scheme (SEISS).
To date, the SEISS has cost the Treasury £13.4bn, with 2.7m self-employed claiming for the first income support grant, and 2.2m accessing the second.
>See also: Rishi Sunak plans grants for small businesses hit by hard lockdown
Earlier this year, Sunak was considering whether to raise national insurance contributions (NICs) paid by the self-employed by 3 per cent to pay for the SEISS.
Currently, class 4 NICs for self-employed people stand at 9 per cent a year, while those who are employed pay 12 per cent a year. Increasing this duty would add £500 to the annual tax bill for anyone self-employed earning over £42,000 a year; and £200 for the average self-employed worker.
The chancellor has since delayed his autumn statement, given the fast-moving coronavirus situation and how quickly the Treasury has to think on its feet, expanding the Job Support Scheme.
>See also: £40m funding for hospitality firms in
Hot Business News Today
Redtape simplified for small business seeking CVA protection
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Any small business that needs protection from creditors while it continues to trade through Covid-19 will find it easier now the CVA process has been simplified.
Insolvency body R3 has published a standard form extending the help bigger companies get when they go into administration but continue to trade.
Although high-street names such as New Look and Travelodge have entered company voluntary arrangements (CVAs) until now they have been too complicated and costly for small businesses on life support.
>See also: Why the Government’s new insolvency bill is bad news for sole traders
What is a CVA?
A CVA is a form of insolvency used by businesses to cut debts, restructure their capital or dispose of assets such as property leases.
At least 75 per cent of unsecured creditors must agree to such a proposal for it to go ahead.
The R3 standard form details what businesses need to do to reach an agreement with their creditors, settle their debts and turnaround their business.
The form includes a breathing space period to allow a business time to restructure without fear of action from its creditors, to be followed by a payment period where a company’s debts are paid in line with
Hot Business News Today
Rishi Sunak weighs increasing corporation tax to 24%
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Rishi Sunak is eyeing raising corporation tax from 19 per cent to 24 per cent to help pay down Britain’s COVID-19 debt.
Such a move would raise £12bn next year, rising to £17bn in 2023-24, according to The Sunday Times.
Sunak will argue that 24 per cent is the global average tax rate for business and would still be lower than other European economies such as France, Germany, Italy and Spain.
>See also: Bank of England eyes Working Capital Jobs Retention Scheme
The corporation tax hike would be part of a £30bn tax squeeze on businesses, pensions and foreign aid, to help pay off the estimated £391bn the government will spend trying to stave off the economic consequences of Covid in 2020-21 alone.
Increase dividend tax
Meanwhile, the Treasury is also looking at increasing the tax rate for company directors who pay themselves in dividends – currently 7.5 per cent compared to a basic income tax rate of 20 per cent. Such a move would especially hurt sole traders and others who have already missed out on government COVID-19 financial support.
The Tories catcalled a proposal by Jeremy Corbyn’s Labour at the last election to tax dividends in line with
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VAT on taxi fares, vehicles, fuel and staff travel – what can I claim?
by Ben Lobel • • 0 Comments
Originally written by Ben Lobel on Small Business
Small business owners often have a tough time navigating tax and what expenses they can claim VAT on.
Let’s start with Taxi fares. Zero rating of domestic passenger transport does not apply if the vehicle is designed to carry fewer than ten passengers.
Taxi and hire car fares are therefore, standard rated and if the business provider is registrable for VAT, it must charge VAT to customers.
Extra charges for baggage, waiting time, etc are also standard rated as are referral fees from other taxi businesses.
Tips and gratuities given voluntarily are not payment for supplies and are outside the scope of VAT. VAT due is calculated by multiplying the fares, including extras, by the VAT fraction.
Registered persons (such as a standard rated Taxi driver) must issue a VAT invoice to any customer who asks for one.
If the taxi is VAT registered they should issue you with a receipt which includes the VAT registration number, the date and the amount of the fare which will enable you to reclaim the VAT as Input VAT (the VAT added to the price when you purchase goods or services that are liable to VAT).
What else can small businesses claim VAT
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VAT on taxi fares, vehicles, fuel and staff travel – what can I claim?
by Ben Lobel • • 0 Comments
Originally written by Ben Lobel on Small Business
Small business owners often have a tough time navigating tax and what expenses they can claim VAT on.
Let’s start with Taxi fares. Zero rating of domestic passenger transport does not apply if the vehicle is designed to carry fewer than ten passengers.
Taxi and hire car fares are therefore, standard rated and if the business provider is registrable for VAT, it must charge VAT to customers.
Extra charges for baggage, waiting time, etc are also standard rated as are referral fees from other taxi businesses.
Tips and gratuities given voluntarily are not payment for supplies and are outside the scope of VAT. VAT due is calculated by multiplying the fares, including extras, by the VAT fraction.
Registered persons (such as a standard rated Taxi driver) must issue a VAT invoice to any customer who asks for one.
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If the taxi is VAT registered they should issue you with a receipt which includes the VAT registration number, the date and the amount of the fare which will enable you to reclaim the VAT as Input VAT (the VAT added to the price when you purchase goods or services
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Why should entrepreneurs care about EIS and SEIS?
by Matthew Cushen • • 0 Comments
Originally written by Matthew Cushen on Small Business
Why should entrepreneurs care about EIS and SEIS? The simple answer is because your potential investors do.
No credible entrepreneur would consider launching a product or service without getting into the head of their consumer. They would make sure they understand the needs they were satisfying, when, where and how competing options where purchased and consumed, and what it takes to influence the consumer.
It’s no different when ‘selling’ your business to investors. The more you understand about them, their rationale and how they make decisions, the better you’ll do in attracting cash to your venture. This means researching what you can about a potential investor. Are they professional (i.e. invest for a living, as part of a structured firm, maybe investing other people’s cash) or amateur (an angel investor, either alongside their day job or having retired)? Where does the cash come from? What is their investment rationale? What else is in their portfolio? How much do they like to get involved?
There’s one aspect that drives many investors in the start-up space and one reason that equity investment for start-ups is more available in the UK than in many other countries. The government have