The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald


The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald.
By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants.

The taxman at HMRC has issued updated guidance on the operation of the VAT Flat Rate Scheme.
The scheme allows taxpayers to calculate the VAT payable by applying a flat rate percentage to their VAT inclusive turnover, rather than netting off output and input VAT due on sales and purchases.
The revision in the guidance follows a number of unsuccessful visits to the First Tier Tribunal (FTT).
HMRC has issued a revised version of VAT notice 733 Flat Rate Scheme to update their guidance in accordance with the FTT decisions.
The previous version of the notice listed a number of trades and professions (at paragraph 4.4 of the guidance) and indicated the relevant sectors and percentages that these types of business should choose.
These had a higher percentage than the 12% rate which applies to 'business services not listed elsewhere'.
The FTT was critical of HMRC in their rigid interpretation of their own guidance.
Although this section of the guidance has not been removed, taxpayers are now advised to 'use ordinary English' and choose the sector which 'most closely describes what your business will be doing in the coming year'.
The new guidance confirms that HMRC will not change a business's choice of sector retrospectively as long as the choice was reasonable.
Please contact us at Clay Shaw Butler if you would like any advice on VAT matters.
Internet link to the advice: https://www.gov.uk/government/publications/vat-notice-733-flat-rate-scheme-for-small-businesses
Meanwhile, new company car advisory fuel rates have been published which took effect from 1 June 2016.
The guidance states: 'You can use the previous rates for up to one month from the date the new rates apply'.
The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 June 2016 are:
Engine size Petrol
1400cc or less 10p
1401cc - 2000cc 13p
Over 2000cc 20p
Engine size LPG
1400cc or less 7p
1401cc - 2000cc 9p
Over 2000cc 13p
Engine size Diesel
1600cc or less 9p
1601cc - 2000cc 10p
Over 2000cc 12p
The guidance states that the rates only apply when you either:
  • reimburse employees for business travel in their company cars 
  • require employees to repay the cost of fuel used for private travel 
You must not use these rates in any other circumstances.
If you would like to discuss your car policy, please contact us at Clay Shaw Butler.
Internet link: https://www.gov.uk/government/publications/advisory-fuel-rates
PAYE, Student loan and CIS deductions are due for the month to 5th June, 2016.
This deadline is relevant to employers who have made PAYE deductions from their employees' salaries and to contractors who have paid subcontractors under the CIS.
Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions.
Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS.
Where the payment is made electronically the deadline for receipt of cleared payment is 22nd June 2016.
In year interest will be charged if payment is made late.
Penalties also apply.

You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) -
http://www.clayshawbutler.com/news/latest-news-for-business
We have a strong and experienced team with great local knowledge all geared-up to helping you get the very best from your finances – whether that is as an individual or as a business.
We stay ahead of the game by putting great store by continual professional development for our staff.
With Investors In People status at Clay Shaw Butler, we care passionately about making sure our staff have all the tools they need to serve you, our customers.

Weblink -http://www.clayshawbutler.com
The team at Clay Shaw Butler can be contacted on 01267 228500.
The team at Clay Shaw Butler are on Twitter. Look for @clayshawbutler.

Comments

Post a Comment

Popular posts from this blog

Former Gower MP Gareth Wardell the guest speaker at Llanelli Rotary Club

Image
Former Gower MP Gareth Wardell was the guest speaker at the weekly meeting of Llanelli Rotary Club held at the Stradey Park Hotel. Mr Wardell gave an illuminating address, weaving comparisons between his job as a politician and his late father's job as a Tumble barber. It was an amusing, highly-entertaining and thought-provoking address. Mr Wardell, now 69, won the Gower constituency seat in a Parliamentary by-election in 1982. The Labour MP held the seat until his retirement in 1997. He now works as a public affairs consultant in Wales. Mr Wardell's Parliamentary term was largely in opposition to Margaret Thatcher's Conservative Government. But his did make a significant contribution by being the youngest MP to chair the Welsh Affairs Select Committee. Mr Wardell recognised that in the 'fame stakes' he may have played second fiddle to his father, Jack, who was one of the UK's oldest barbers and who cut and styled hair for almost 80 years. Jac
Read more

'Class of 1980' from Burry Port enjoy reunion

Image
There was a big class reunion held in Burry Port at the weekend. Members of the Class of 1980 from Porth Tywyn (Burry Port junior) School got together at The Coasting Pilot pub. The reunion was organised by Christine Rees and same 22 members of the original class of 28 turn up to discuss their old schooldays. One ‘Class of 1980’ member was Burry Port businessman Owain Davies. He said: “We all have very happy memories of our time in school. We had a fantastic teacher in Mr Heddwyn Jones, who now lives in Four Roads. “We were very fortunate to have the same teacher for three years and we were a very happy class. Mr Jones was an inspiring teacher and we all got on every well and we are all still good friends. “Heather Thomas (now Heather Osmond) made it from Surrey, but she was trumped by Gail Morris, who flew in from Ohio in the United States for the reunion. “It was a fantastic evening at the Coasting Pilot with good food, good wine and good company. We even recreated the class
Read more

Lauryn Davey is making her mark in athletics - but needs sponsors

Image
Ammanford-based Lauryn Davey is making a major mark in the world of Welsh athletics. At just 16, she is the best all-round athlete of her age in Wales. She's chalking up Welsh championship victories and has been honoured by her club, the Carmarthen Harriers. Lauryn's been earmarked as a future international star, but knows the road to the big championships is difficult, demanding and expensive. Ammanford businessman and well-known comic entertainer Phil Evans has launched a campaign to get cash backers for Lauryn's athletics career. "Everyone in the area is hugely proud of her achievements in athletics to date," said Phil. "But we also want to see her go on and do bigger and better things. "Together with some friends, I am helping find ways of generating much-needed sponsorship cash for Lauryn. "She has massive potential to succeed on the international stage and I am sure a little bit of financial help will help to smooth her
Read more