Tag Archive: VAT

The twin-cab pickup makes a U-turn

Posted 6th March 2024 at 11:42 am

In an announcement made on 19 February, the government made a surprising U-turn and confirmed that twin-cab pickup vehicles with payloads of 1 tonne or more will continue to be treated as goods vehicles for both capital allowances and benefit-in-kind purposes. On 12 February, HM Revenue & Customs (HMRC) had updated its guidance on the tax treatment of twin-cab pickups following a 2020 Court of Appeal judgment. The guidance had confirmed that, from 1 July 2024, twin-cab pickups with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and... Read more

What tax do you pay if you sell on eBay?

Posted 9th January 2024 at 10:27 am

In these economically challenging times, and in an era where we are all more conscious of our impact on the environment, many of us are choosing to sell our unwanted second-hand items on sites like eBay, with some people even making this their main source of income. You might think of this as ‘free money’ but in fact, this is unfortunately not necessarily the case. The tax implications of selling on eBay are more obvious if you are making or buying goods specifically to sell for a profit – HMRC will view this as business income that needs declaring. However,... Read more

Chancellor steps into the fiscal storm

Posted 23rd November 2022 at 9:14 am

On Thursday 17 November, the Chancellor presented the government’s Autumn Statement in which he told the House of Commons his plans to tackle the cost-of-living crisis, “rebuild our economy” and significantly reduce borrowing over the coming years. The Chancellor said that global factors are the primary cause of current inflation and that most countries are still dealing with the fallout from the pandemic. He stated that the measures taken to combat Covid-19 in the UK must be paid for. He also acknowledged that the UK is in recession and indicated that things will have to get worse before they get... Read more

Changes you need to know about to VAT

Posted 20th April 2022 at 6:53 am

On 1st April two major changes to VAT were implemented. One or both of these may affect your business, so read on to find out more.   Making Tax Digital is now mandatory for all VAT-registered businesses  Making Tax Digital (MTD) became mandatory for all VAT registered businesses on the 1 April 2022. The government states that MTD helps taxpayers get their tax returns right by reducing common mistakes as well as saving time managing their tax affairs and is a key part of the overall digitalisation of UK tax. VAT-registered businesses that have not yet signed up to MTD for VAT should do so... Read more

VAT rate reduction for hospitality, accommodation & attractions

Posted 5th October 2021 at 10:16 am

The reduced VAT rate of 5% ended on 30 September 2021. In place now is an interim rate of 12.5% which lasts for 6 months, with the standard rate of 20% returning in April 2022. In common with the previous reduced rates of VAT, this new reduced rate also applies to businesses in those sectors that use the flat-rate scheme.   This measure is expected to continue to stimulate the economy by encouraging people to go out for meals or order takeaway, stay in a hotel or holiday let, or visit certain attractions. It is also expected to support the... Read more

Corporation Tax & VAT Changes for 2021/22: Your essential guide

Posted 7th May 2021 at 8:55 am

In this blog, we outline the key corporation tax and VAT changes that you need to know about for the tax year 2021/22. Look out for our other blogs detailing the changes to other types of tax this tax year.   Corporation Tax The Corporation Tax Rate remains unchanged at 19% for the financial years 2021 and 2022. From April 2023 however, companies with taxable profits of more than £250,000 will pay corporation tax at a main rate of 25%. A small profits rate of 19% will apply to companies with profits of £50,000 or less. Companies with profits of... Read more