Tip 1

Are you aware the current threshold for VAT registration is £85,000

Tip 2

Make sure you know what income to include when working out your "taxable income" for VAT registration

Tip 3

Are you late in registering for VAT? – Are you aware that HMRC can go back 20 years!?

Tip 4

Did you know that even if you want to be VAT exempt you still have an obligation to advise HMRC that you have breached the threshold even if its temporarily

Tip 5

When claiming back VAT on a car lease, make sure that you read the contract carefully to ensure that it is lease hire not lease purchase, as you cannot claim VAT on lease purchase.

Tip 6

You can claim 50% VAT on a car lease hire, but make sure that it is lease hire not lease purchase.

Tip 7

When claiming input VAT just remember the supply must have been made to you

Tip 8

When claiming back VAT on business entertaining ensure you ask yourself what was the purpose and who was present?

Tip 9

The VAT return for the quarter ended 30th June 2022 is due for submission by 7th August 2022

Tip 10

Do you check new supplier VAT registration numbers? If the number is invalid, HMRC may disallow your VAT claim. But did you know you can use the UK VAT registration checker here to get confirmation for your records.

Tip 11

HMRC's Fuel Scale Charges are for non-electric vehicles only as electricity is not classed as a road fuel.

Tip 12

If you pay your employees a flat rate for their business expenses you cannot reclaiming the VAT.

Tip 13

Reclaiming VAT on a company car - If the company car provided is used solely for business use, then you claim back the VAT spent on the car and fuel, however, business use does not include a daily commute!

Tip 14

MTD fines are just coming soon - HMRC have confirmed from 1st November 2022 penalties will be issued for anyone who does not file their VAT returns through MTD compliant software. 

Tip 15

Consider implementing your MTD compatible software now to give you enough time to iron out any issues before the April 2024 deadline.

Tip 16

MTD bridging software is a digital tool that extracts required information from your non digital spreadsheets or workbooks. It then sends this information in the correct digital format to HMRC.

Tip 17

HMRC have advised their online services for MTD will be down due to maintenance until 17.00 on Wednesday 28th September 2022.

Tip 18

VAT returns for the quarter ended 31st August need to be submitted by Friday 7th October 2022.

Tip 19

Make sure you tell HMRC by Wednesday 5th October 2022 if you need to submit your 1st self assessment tax return in January 2023.

Tip 20

Ensure you keep the correct digital records for MTD or risk a daily fine from HMRC, the fine can be between £5-£15.

Tip 21

On 1st November HMRC's VAT portal will be closing, therefore all VAT registered businesses must use MTD compatible software to submit VAT returns and keep digital records

Tip 22

From 22nd November HMRC will increase the interest rates on tax debts following the increase in the bank of England base rate. The increase will be on both late payments and repayment rates by 0.75%

Tip 23

Use HMRC's online VAT error correction Notice (VAT652) form to report any errors on your VAT return rather than the old print and post form. 

Tip 24

From January 2023 HMRC will be introducing a new VAT penalty system for late submissions and payments, we wrote a blog which has all the info you need read it here. 

Tip 25

"Alone we can do so little, together we can do so much" - We are kicking 2023 off with a motivational quote, we differ from your average bookkeepers as we enjoy helping those who already do their own bookkeeping by problem solving tricky areas and ensuring you are getting the most out of your bookkeeping software. 

Tip 26

If you took advantage of HMRC's offer to defer you VAT bill during the pandemic and you still have arrears now is the time to pay! HMRC have issued a warning stating that they will issue a 5% penalty for anyone who hasn't set up a time to pay arrangement and still has outstanding deferred VAT. Therefore, if you have outstanding VAT and cannot pay get in touch with HMRC asap to ensure you can set up a time to pay arrangement in order to avoid a possible fine. 

Tip 27

Hiring a bookkeeping can free up valuable time when it comes to sorting through errors on recorded transactions. 

Tip 28

Ensuring our clients use the best suited processes to ensure the smooth running of their day to day bookkeeping is imperative. We can suggest small changes which will not only save time but help with cash flow. For example, switching from paper invoices to electronic invoices and statements.

Tip 29

HMRC's new penalty for late VAT returns reminder. Even If you submit a nil or repayment VAT return, make sure it’s on time, otherwise you could still face penalty points and a £200 fine under the new rules.

Tip 30

A bookkeeper will ensure your books are prepared & ready for your accountant. This saves the accountant time which in turn saves you money.

Tip 31

Paper self assessment tax forms will no longer be readily available from HMRC, you will need to contact HMRC if a paper form is needed as HMRC won't automatically post these out nor will they be available to download online.

Tip 32

Extended deadline for NI top ups - HMRC confirms new deadline to make payments for any gaps in National Insurance record (from April 2006 onwards) will be 31st July 2023.

Tip 33

A reminder of the May 2023 Bank Holidays are: Monday 1st May, Monday 8th May, Monday 29th May.

Tip 34                  

HMRC will close the old vat return portal on 15th May 23, from then MTD for VAT will be compulsory for all companies & HMRC will automatically sign up any company using the old system to a new MTD account.

Tip 35                 

Regular bank reconciliation is key. Bank reconciliations are key to the smooth running of a business, they ensure your business accounting records tally to your bank statements. Being able to easily see what has come in & out as well as spotting any errors or suspicious activity. By using cloud accounting software, bank reconciliation can be relatively easy as long as you understand how the software works!

Tip 36                

The bank of England has risen its base rate to 4.5% as HMRC interest rates are linked to the base rate, any late payment or repayment interest charges will be affected by this increase.

Tip 37                

For taxpayers taxed through PAYE only, HMRC will increase the self assessment threshold from £100k to £150k for the 23/24 tax year.

Tip 38             

HMRC fuel advisory rates from June 2023:

Engine size                  Petrol - amount per mile        LPG - amount per mile                       

1400cc or less                         13p                                                    10p

1401cc to 2000cc                    15p                                                    12p 

Over 2000cc                           23p                                                   18p 

 Engine size                Diesel - amount per mile 

Up to 1600cc                          12p 

1601cc to 2000cc                   14p 

Over 2000cc                          18p 

Hybrid cars are treated as either petrol or diesel cars for this purpose.

Tip 40                 

Business and personal costs should be kept separate, this allows for accurate cash flow management. Don't mix the 2 or run the risk of errors and wasted time combing through accounts trying to split them up. Not only that having a business account will make it easier for the information on your tax return to be correct. A bookkeeper can help to keep your finances organised allowing you to better understand how well your business is performing at any given time.   

Tip 41               

Tax credit claimants have until July 31st 2023 to ensure your tax renewal is in, make sure your details are correct and any changes have been notified to HMRC by 31st July. 

Tip 42              

The Insolvency Service has launched an online hub designed for Ltd company directors, visit the hub here.  It provides directors with useful guidance and support to ensure they are being compliant and aware of their statutory obligations. Its aim is to aid directors in being the most successful they can be, giving potential problems a business could be faced with and even how to spot the warning signs of when a company may be facing financial distress and possibly insolvency. 

Tip 43              

If you receive an email offering an urgent tax rebate it is likely to be a scammer. HMRC have recently reminded tax payers to be alert for scammers posing to offer tax rebates via email.   HMRC will not email you if you are due a refund and they will not provide a deadline. You can forward suspicious emails directly to phising@hmrc.gov.uk

Tip 44             

25th July 2023 - Less than a week to get your 2nd payment on account in for your self assessment tax return. Midnight on 31st July 2023 is the deadline for the 2nd payment, payment should be half your previous years tax bill.

Tip 45             

Another base rate increase - on 3rd August the Bank of England Monetary Policy Committee (MPC) confirmed the base rate had been increased by 0.25% from 5.00% up to 5.25%.

Tip 46             

Correct any payroll mistakes the right way - HMRC are requesting employers are on top of correcting payroll mistakes from previous tax years, ensuring the appropriate method is used e.g. FPS or EYU submission.

Tip 47             

Autumn statement date confirmed! Chancellor Jeremy Hunt has set the date for the Autumn statement as Wednesday 22nd November 2023. The OBR have also been commissioned to present their economic and fiscal forecast. 

Tip 48            

HMRC fuel advisory rates from 1st September 2023 (items in red have increased), plus the rate for fully electric cars will be 10 pence per mile :

Engine size                  Petrol - amount per mile        LPG - amount per mile                       

1400cc or less                         13p                                                    10p

1401cc to 2000cc                    16p                                                    12p 

Over 2000cc                           25p                                                   19p 

Engine size                Diesel - amount per mile 

Up to 1600cc                          12p 

1601cc to 2000cc                   14p 

Over 2000cc                          19p 

Hybrid cars are treated as either petrol or diesel cars for this purpose.

Tip 49           

HMRC self assessment helpline reopens after being closed for 3 months.  Tax payers can now call 0300 200 3310 to speak to an advisor.

Tip 50        

From Sunday 1st October 2023 food vendors, shops, takeaways and hospitality businesses will be banned from selling single use plastic items namely, cutlery, plates, polystyrene cups and trays as well as balloon sticks. 

Items that are exempt will be takeaways served in plastic containers, trays and wrap as well as pre-packed food sold in plastic plates bowls and trays e.g. ready meals or pre-made salad bowls. 

Tip 51           

HMRC's recent changes mean that charging electric company cars and vans at home is now a tax-free benefit, eliminating the past tax burden on reimbursements for personal use. HMRC guidelines now clearly state that payments for home charging are tax-exempt. This means no extra tax charge if your employer reimburses your home charging costs for the company vehicle, provided it's proven that the electricity was used for charging. Employers should ensure reimbursements are strictly for company vehicle charging.

Tip 52 & 53          

Calling all side hustlers who earn over £1,000 as extra income, in 2024 HMRC will be cracking down on those who may not be declaring the extra income! By working closely with know side hustle platforms such Air bnb, Esty, Deliveroo etc getting them to report how much each individual is making in order to stop tax avoidance.

Tip 54          

Economic Update: September's inflation rate came in at 6.7%, but the good news is, we've seen a significant drop since then! The latest figures reveal a noteworthy decrease, bringing the inflation rate down in October to 4.6%. This is a positive shift in our financial landscape - lets hope it continues to fall.

Tip 55

A quick helpful reminder of the updated national minimum wages rates commencing from April 2024:

     New Rate from April 2024

Age 21 and over           £11.44

Age 18 - 20                    £8.60

Age 16 - 17                     £6.40          

Apprentices                  £6.40

Tip 56

Another reduciton in phone line help for self assessment customers. From Monday 11th December, HMRC will be solely focusing on priority calls that are unable to be dealt with by their online services.

Tip 57

From 6th January 2024 employees will pay a 10% rate of national insurance (previously 12%) on earnings between £12,570 - £50,270.

Tip 58

Self assessment tax returns due on 31st January 2024, submit and pay by midnight.

Tip 59

The Bank of Englad has decided to hold the base rate at 5.25% for the 4th consecutive time in a row.

Tip 60

The DWP has confirmed earnings trigger for auto-enrolment pension payments will remain at £10,000 for the 2024/25 tax year.

Tip 61

HMRC fuel advisory rates from 1st March 2024 have been cut between 1p and 2p for petrol and diesel engines but increased for LPG's.The rate for fully electric cars will be 9 pence per mile :

Engine size                  Petrol - amount per mile        LPG - amount per mile                       

1400cc or less                         13p                                                    11p

1401cc to 2000cc                    15p                                                    13p 

Over 2000cc                           24p                                                   21p 

Engine size                Diesel - amount per mile 

Up to 1600cc                          12p 

1601cc to 2000cc                   14p 

Over 2000cc                          19p 

Hybrid cars are treated as either petrol or diesel cars for this purpose.

Tip 62

New lower Self Employed NIC rates.  As of 6th April 2024 the rate of class 4 National Insurance contributions will be charged at the reduced rate of 6%  

Tip 63

Regularly record expenses - add logging expenses and receipts to your daily / weekly routine to prevent a backlog, meaning no last minute pile left to be sorted just before doing your tax return!

Tip 64 

March inflation drop - The Office for National Statistics (ONS) has confirmed that inflation has fallen again to 3.2% which is the lowest it has been since 2021.

Tip 65

Reconcile your bank accounts regularly - unreconciled accounts can be a time sapping nightmare! Therefore weekly reconciliation is a must in order to spot errors and mistakes early. 

Tip 66

Regularly back up your financial data - keep financial information safe and secure by running regualr backups (digitally or paper copies). HMRC requires 7 years of business accounts in the event of an investigation.

Tip 67

Base rate sticks at 5.25% - The monetary policy committee (MPC) met on 8th May 2024 and for the 6th time in a row the majority voted to keep the base rate at 5.25%

Tip 68

Ensure you have an audit trail - Keep documents for everything you buy and pay for. If you then face problems like tax errors or missing transactions your audit trail will help get you back on track.

Tip 69

HMRC fuel advisory rates from 1st June 2024 have gone up between 1p and 2p for petrol and diesel engines but LPG's remain the same.The rate for fully electric cars will be reduced to 8 pence per mile :

Engine size                  Petrol - amount per mile        LPG - amount per mile                       

1400cc or less                         14p                                                    11p

1401cc to 2000cc                    16p                                                    13p 

Over 2000cc                           26p                                                   21p 

Engine size                Diesel - amount per mile 

Up to 1600cc                          13p 

1601cc to 2000cc                   15p 

Over 2000cc                          20p 

Hybrid cars are treated as either petrol or diesel cars for this purpose.

Tip 70

MTD for Income Tax Self-Assessment isnt due until 6th April 2026 if you have over £50k turnover which might seem like a long time away but that doesn't mean you can't begin preparing for it. Especially if you are yet to get on board with digital  record keeping. MTD for ITSA will mean reporting quarterly rather than yearly and all via digital submission. 

Tip 71

PO box addresses are no longer allowed as an offcial registered office for a business at HMRC.  Anyone with a PO Box runs the risk of being struck off; therefore it is imperative to have an appropriate address for your business listed on the companies register.       

Tip 72

31st July Deadline Reminder - Just a quick reminder that it's nearly time to make your Second Payment on Account. 

The payment is based on half of last years tax bill. By spreading out your payments to HMRC it helps manage your tax obligations more smoothly.  

Tip 73

Starting January 2025, the government will introduce a 20% VAT on private school fees. While this change aims to raise funding for new teachers, we understand it will impact many families

Tip 74 

Base rate falls to 5% - as the base rate has been lowered to 5%, consequently, HMRC will adjust the interest charges applied to late payments and repayments. This will be from 12th August 2024 for quarterly instalment payments and from 20th August 2024 for non-quarterly instalments payments.

Tip 75

5th October Deadline for telling HMRC you need to submit a return. If you became self employed in the 23/24 tax year you have until 5th October to register with HMRC.  

Tip 76

Here are the new HMRC fuel advisory rates applicable from 1st September 2024. The rate for fully electric cars will be reduced to 7 pence per mile :

Engine size                  Petrol - amount per mile        LPG - amount per mile                       

1400cc or less                         13p                                                    11p

1401cc to 2000cc                    15p                                                    13p 

Over 2000cc                           24p                                                   21p 

Engine size                Diesel - amount per mile 

Up to 1600cc                          12p 

1601cc to 2000cc                   14p 

Over 2000cc                          18p 

Hybrid cars are treated as either petrol or diesel cars for this purpose.