Blog
VAT penalties update: Points mean penalties
The way in which HMRC charges penalties for late VAT return submissions and late VAT payments has changed. All VAT return periods starting on or after 1 January 2023 will be caught under the new VAT penalty system.
Less than a month until self-assessment deadline
With less than a month before the self-assessment deadline on 31 January 2025, a significant number of taxpayers are still yet to file their tax returns for the 2023/24 tax year. Taxpayers who fail to file their returns by the deadline will face an initial late filing...
VAT – Imports – Postponed VAT Accounting (PVA)
Postponed Import VAT Accounting was introduced on 1 January 2021 and VAT registered businesses can declare and reclaim import VAT (subject to the normal rules) via the same VAT return. This method helps to manage cashflow, as opposed to paying the VAT at the point of...
VAT – Energy Saving Materials (ESM’s)
Over the last few years, there has been a host of changes made to the VAT rules in respect of installation of ESM’s. Post Brexit, Great Britain was able to reverse the measures imposed by the CJEU to charge VAT at the reduced rate. In March 2022, the government at the...
VAT – Hobbies
Many people have a variety of hobbies such as playing sports, chess or even a musical instrument. Sometimes these can morph into a commercial venture of realising profits for tax purposes. When considering if a hobby has become a business activity, unusually for VAT...
VAT – Charity Purchases of Overseas Services
At Ellacotts we have many charity clients who purchase services from overseas suppliers such as Google/Facebook Ads or software downloads from US companies, and these all appear to be ‘VAT free’. However, these services are treated as ‘reverse charges’ for VAT...
The abolition of non-domicile status
In the Autumn 2024 Budget, Chancellor Rachel Reeves announced significant reforms aimed at non-domiciled (non-dom) individuals. These reforms are due to come into effect from 6 April 2025. What is Non-Dom Status? Non-dom status allows individuals who live in the UK...
Capital Gains Tax changes following the Autumn Budget
Many speculated an increase in Capital Gains Tax “CGT” rates would be announced in Labour’s first budget and they were correct, although rates did not increase as much as anticipated. Capital gains tax rate changes The lower rate of CGT increased from 10% to 18%,...
Raising Share Capital
Often limited companies may find it difficult to raise funds, whether they be starts up, those looking to expand or even to buy new plant and equipment. Some may not have a favourable credit history and cannot secure the required loans. An option to is to issue new...
Tax-free Christmas parties and staff gifts
Christmas is fast approaching us. You may be considering rewarding your employees for their hard work over the last year with a tax-free gift or a staff Christmas party.
Christmas Parties, Gifts & VAT Recovery
With Christmas just around the corner, here at Ellacotts, we see a surge in VAT queries in relation to the festive period. Can VAT be recovered on business gifts? Are there any implications of donating goods to a charity? By a country mile, the most commonly asked...
Are you affected by the Inheritance Tax changes in the Budget?
There had been wide speculation as to the changes that a new Government might bring to the Inheritance Tax (IHT) regime and whilst it remains largely unchanged in terms of Nil Rate Bands and rates, there have been two major changes that could have significant impact...
Employers: Avoid unwanted attention
The latest tax gap figures show a black hole of more than £3 billion for PAYE. This gap is being put down to employer errors. The gap that HMRC is talking about is the difference between the amount that is actually paid, and what should, in theory, be collected...
Case Study: Jointly-owned property: get it right
A need-to-read case came before the Tax Tribunal recently. The property and the problem This was the story of an appeal by taxpayer, Mr Bevan, against penalties for not having notified HMRC of a tax liability in relation to property letting income: and in the event...
HMRC’s new VAT tool
If you are thinking about registering voluntarily for VAT, or hovering around the £90,000 compulsory registration threshold, the new VAT Registration Estimator tool from HMRC could be for you. The tool can help you see what registering for VAT could mean for your...
Major change for holiday lets
Preferential tax rules for furnished holiday lettings (FHLs) end in April 2025, removing any tax incentive to offer short-term holiday lets, rather than letting residential property on a longer basis. Where properties have qualified for FHL treatment, income has...
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Banbury
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Banbury
Oxfordshire
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Birmingham
Kettering
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Kettering
Northamptonshire
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