VAT for small businesses

What is the definition of VAT?

Value Added Tax is a tax that suppliers of either goods or services charge on top of the cost of the goods or service and is something often handled by a specialist business accountant. There are four different VAT categories depending on the type of goods and services supplied.

Who is exempt from paying VAT?

Education, finance, insurance, doctors and d… Continue Reading

Tax Gap, Tax Avoidance and Tax Evasion

HMRC define the “tax gap” as the difference between the amount of tax that they should be collecting and the amount they actually collect. In percentage terms this has been falling in recent years with the gap at 8.5% in 2005/06 and at 6.8% for 2012/2013, equating to £34bn for 2012/2013. The tax gap is comprised of amounts estimated to not have been collected because of t… Continue Reading

IR35 Business Tests Not Working

An IR35 Forum was established as a result of an announcement in the 2011 Budget about the government’s commitment to improving the way IR35 was administered. The IR35 Forum looks at how the legislation works in practice and provides advice on improvements to the way it is administered. The forum includes representatives from organisations such as:

• HMRC
• ACCA (Association

… Continue Reading

OECD Plan Bolsters Clampdown on International Tax Avoidance

The Organisation for Economic Co-operation and Development (OECD) promotes policies to improve the economic and social well-being of people around the world. The OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems and they have recently made recommendations that will help tax authorities to clampdown on int… Continue Reading