As a UK business providing services to a UK customer, it's essential to understand the specific rules regarding VAT charging for projects outside the UK. While you typically charge VAT at the Standard Rate (20%) for services provided within the UK, special considerations apply when dealing with construction projects or oil rigs located outside the UK. In such cases, the VAT treatment is determined by the location of the land or oil rig itself rather than the customer's location. This article provides insights into the VAT treatment for UK businesses in such situations.
As a UK-based company with a branch operating in a foreign country, it's crucial to be aware of the compliance obligations in both the foreign jurisdiction and the UK. While the focus is often on meeting the requirements in the foreign country, UK companies must also address specific reporting obligations back home. In this article, we'll outline key UK compliance requirements, including segmental reporting, consolidated accounts, and accounting for foreign tax credits.
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In short, the answer is yes. Yes, your limited company can indeed loan money to another limited company owned by you or a family member. From a legal standpoint, the director of the lending company must ensure that the business has sufficient funds to provide the loan without jeopardizing its own financial stability.
When you're purchasing a building for your shop, it's crucial to explore all possible avenues to optimize your financial situation. One such avenue is the Structures and Building Allowance (SBA). In this article, we will delve into instances whereby you can or cannot claim it for your shop build.
Most overseas employers are subject to UK national insurance on their UK staff salaries when they have a taxable presence in the UK for PAYE purposes. If the non-UK employer has all of their UK employees working from home and does not have a physical address/office, subsidiary, branch, or taxable presence, it is likely that they will not be subject to employers' National Insurance on their UK staff wages.
According to the Business Income Manual published by HMRC (Her Majesty s Revenue and Customs), the mileage allowance of £0.45 per mile (first 10,000 miles) and £0.25 (after 10,000 miles) are solely intended to cover the cost of fuel and wear and tear on a vehicle.
When working from home as a limited company director, you can claim working from home allowance under the rules of a normal employee. You can find these here https://www.spondoo.co.uk/tips/working-from-home-allowance-calculator-employed-individuals/ However, as a director of a limited company it can be more tax efficient to setup an agreement with your company and charge a market rate for renting your home office out to your company.
Limited companies can provide their employees with mental health & welfare counselling without triggering a taxable benefit whilst also claiming a deduction in their corporation tax return. If you run your own limited company as a sole director, you must ensure that the contract and invoices from your counsellor are in the name of your company and not your own.
Under HMRC's Scale Payments, employers are allowed to pay employees a set amount for meals and other subsistence costs incurred while travelling for work, without the need for invoices or receipts. The amount that can be reimbursed is based on an approved rate set by HMRC. HMRC has set a limit on the amount that can be claimed for meals and accommodation without providing a receipt. The payments are based on the HMRC’s published benchmark rates, which consider factors such as the location of the trip, distance travelled, the type of accommodation and the time spent away from the usual place of work.
The HMRC website provides detailed instructions on how to set up a direct debit for PAYE. It is quite simple to set up a direct debit with HMRC, but it is something that the employer must do rather than agents, due to signatory on the bank account.
Businesses can defer payment of VAT on imported goods until the import procedure is completed, this is known as ‘postponed import VAT. A Postponed Import VAT Statement is an accounting document issued by HMRC and is used to declare the VAT that is due on the imported goods. Your company must be registered for the Customs Declaration Service to use Postponed VAT accounting services.
Some types of companies cannot send their accounts to Companies House electronically so you will need to send them in the post. The address for posting your company accounts changes based on where your company is registered:
Pre-incorporation When you register for VAT, you can usually perform a pre-registration claim for your input VAT going back 6 months on services and 4 years on goods. This can prove helpful to businesses registering for VAT by providing a much needed cashflow boost. However, it can be confusing for business making this pre-registration claim when they previously trade as an unincorporated sole trader (aka self-employed business) before incorporating as a limited company.
When you buy a franchise most reasonable people would assume all your franchise fees are an obvious business expense and fully deductible. Well, HMRC's view is not quite so simple, and it requires the franchisee to treat the different elements separately. Typically franchise fees are paid as an initial lump sum, followed by a monthly or annual payment.
As accountants for the creative industry, we are here to help you navigate the financial side of your business, so that you can focus on what you do best. Our accounting services for creatives comprise of the following: • Track your income and spending: We can help you monitor all the money coming in and going out of your firm, which may be important at tax time or when assessing your financial situation.
• We help you take advantage of all your tax deductions and credits while saving you money when file your tax return. We may also assist you lower your tax obligation. Our expert accountants know the ins and outs of the tax law and will assist you in maximizing the deductions that you are eligible for.
• Build a financial strategy to expand your company or make a large purchase. We help you develop a budget, anticipate income and spending, and identify financial bottlenecks.
• Advise on business structure: If you're unsure whether to operate as a sole proprietorship, partnership, or limited company, our accountants can assist you pick the correct type of entity.
• Prepare and file your taxes: Most individuals would prefer to have an accountant handle this for them. We can help you submit your taxes accurately and on schedule, avoiding penalties and interest for late or incomplete submissions.
The Annual Accounting Scheme is a VAT scheme which allows businesses to make advance VAT payments to HM Revenue and Customs (HMRC). This can be helpful for businesses which have difficulty making VAT payments on time. If you feel that your interim payments to HMRC under the Annual Accounting Scheme are incorrect, you can request that they be reassessed by writing to HMRC. Alternatively, you can write to HMRC to ask if you can leave the VAT Annual Accounting Scheme to join another scheme.
If you are a financial advisor in the UK, you may be able to use the Value-Added-Tax (VAT) Intermediation Exemption for certain services that you provide. To qualify for the exemption, the service must be classified as "intermediation" and performed by an intermediary. Intermediation is the process of connecting two or more parties to facilitate a transaction between them. To be considered an intermediary for VAT purposes, you must be licensed by or regulated by the Financial Conduct Authority (FCA), included in the Financial Services Register (FSR), and be a member of an FCA-authorised or regulated professional body.
We are happy to announce our new collaboration with ABL Business Ltd. ABL Business are a commercial finance company that simplifies the complex business funding market to help SMEs raise finances conveniently. Our collaboration is aimed at helping our clients acquire financing for their businesses – depending on their needs.
Spondoo has a team of accountants specialising in the property industry. Our team is highly skilled with landlord tax returns and Right to Manage (RTM) obligations.
The Cyber Essentials scheme helps businesses protect themselves and their clients from cyber-attacks and threats. The scheme is backed by the government and supported by different industries because its approach to cyber security reduces the risk of a data breach.
At Spondoo, we have a specialist team of licensed accountants that provides contractors and freelancers with bespoke and all-inclusive accounting services. We offer our services across the UK to contractors from different industries.
Spondoo provides cheap and affordable bookkeeping, accounting, and tax consultation in the UK to the self-employed, limited liability partnerships, start-ups, limited companies, and not-for-profit organisations. We offer our clientele value for money services for businesses across different industries in the United Kingdom and Europe.
The rise in digital technology has shifted accounting trends from traditional desktop-based to modern cloud-based accountancy. The modern cloud-based accountancy has opened doors for online accounting. Any small to medium-sized businesses will need a good accountant to grow, remain compliant, and thrive. Spondoo Accountants provide online accountancy services throughout the United Kingdom at very affordable rates. We help start-ups, sole traders, partnerships, small businesses, freelancers, and Limited companies with all aspects of their accounts and tax.
If paying and managing your suppliers is becoming too large and needs a better process, our Spondoo Accounts Payable solution might help. We become an integral part of your finance function to handle different tasks.
London is the international finance capital of the world with the highest levels of foreign direct investment per capital, and the highest number of unicorn start-ups in Europe. With this title London and the rest of the United Kingdom proves to be one of the best business environments to set up a business or even your headquarters to manage your international operations.
We have a team of licensed accountants with expertise in the domiciliary care sector – including children’s homes, daycare centres, nurseries, schools, and foster homes across the United Kingdom. Our team works with - individual children’s homeowners, not-for-profit organisations, limited companies, or even corporate groups.
Spondoo is a Zoho Advance partner that recognises Zoho as a market leader in providing business technology solutions. We help our clients to execute and manage solutions provided by Zoho.
As QuickBooks Desktop (QBD) stops operating on 31 January 2023 at midnight, all QBD users need to find another accounting software before this deadline. If you decide QuickBooks Online is not the right option for you, you could explore Sage Business Cloud Accounting. Sage Business Cloud Accounting is a cloud-based program commonly used by small to medium-sized businesses to process financial information. Just like QuickBooks, it offers core accounting functionality at a good value.
The QuickBooks Desktop (QBD) version will be discontinued on 31 January 2023, so Intuit can focus on QuickBooks Online (QBO) - which will remain available for QB users. If you are a QBD user in the UK, you must migrate your accounting data to another accounting system or QuickBooks Online by the above discontinuation deadline.
From midnight 31 January 2023, the QuickBooks Desktop version will not be available – or supported. If you were using this version of QuickBooks, you must find an alternative MTD-compliant accounting software with powerful features and a user-friendly interface. You may have several options available to you – including Xero accounting software. Like QuickBooks, Xero has comprehensive accounting features that most businesses need to run their business. It is also optimised for small to medium-sized companies.
If you are using the desktop version of QuickBooks, you must find an alternative solution before the discontinuation date - midnight of 31 January 2023. After discontinuation, the QuickBooks Desktop version will not be accessible or supported. Zoho Books is a good alternative if you are moving away from using QuickBooks Desktop – and want to remain MTD compliant. Zoho Books is cloud-based accounting software that provides many of the same features as QuickBooks Desktop and QuickBooks Online.
Small and medium-sized businesses using Quickbooks desktop for accounting and related business processes must find alternatives following the phasing out of the service from May 31, 2022. With the UK tax system transitioning to online submission processes (Making Tax Digital {MTD}), the QuickBooks team are stopping the desktop version because they fear that the platform may expose their customers to risks of using out-of-date and MTD non-compliant software. To remain compliant, you must find and migrate to a more suitable and efficient cloud accounting software.
Spondoo Accountants has a specialist team of e-commerce experts that works with Amazon FBA, Private Label, dropshipping and retail arbitrage sellers. We provide outstanding, tailored accounting services while ensuring our clients' information is up-to-date, accurate, and filed correctly – to avoid penalties and surprise tax bills.
We are accountants that focus on supporting you from bootstrapping the business in your bedroom to getting your initial Seed capital from angel investors, through to receiving your Series A to C funding rounds. This business journey, whether it is slow or fast, demands very different things from your accounting firm at different stages of your growth.
DataDear replacement ! If you have been using DataDear to connect your Xero Cloud accounting system to Excel, you will no longer be able to do this from October 2022.
It can be tough to get a business bank account in the United Kingdom when your own business falls into the following categories: UK limited company where all directors are non-resident UK limited company with UK or more UK resident directors, as well as one or more foreign or non-UK resident directors
Stop waiting to book a call with your accountant, chat with us instantly and on the move! We are available via WhatsApp at +447395534661 – drop us a message, and we will get back to you.
Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo is a trading name for Accounting SQL Limited, authorised & license accounting firm under the Institute of Financial Accountants.
