Archive for September, 2010

HMRC targeting businesses using Flat Rate Scheme

Tuesday, September 28th, 2010

On 1st January 2010, when VAT reverted to 17.5%, not all Flat Rate Scheme (FRS) categories returned to their original levels. We are aware that HMRC have been selecting companies using this Scheme as a potential source of errors.  It may well be that HMRC will make similar checks following the increase in VAT to 20% on 4th January 2011 and so we have published the new rates, the key issues to be considered at the time of the increase, as well a brief summary of the anti-forestalling legislation. 


Friday, September 3rd, 2010

Important. If you are using  “The HMRC employers CDROM” for your PAYE you need to log onto the HMRC website and download an update. visit


Friday, September 3rd, 2010

DO  ·         keep a monthly record of your turnover – late registration can result in severe penalties·         notify your local HM Revenue & Custom’s office when major changes take place – changes must be notified within thirty days·         retain records for the last six years – these could be demanded by law·         obtain and keep VAT invoices – these are your authority to claim back VAT on supplies made to you·         charge VAT on supplies to your staff·         charge VAT on any equipment or vehicles (except motor cars) that you sell or part-exchange·         account for VAT on fuel used for private motoring using the appropriate scale charge DON’T·         claim the VAT paid on the purchase of a motor car – it is not recoverable except in some very special cases.·         claim the VAT paid on goods or services used for private purposes. Where there is an element of private use (e.g. telephone) an appropriate percentage should be claimed. Special arrangements apply to private use of petrol (see above)·         claim the VAT paid on entertaining.·         forget to account for VAT on inter-company charges.·         charge VAT on the transfer of a business as a going concern (make sure contracts incorporate appropriate VAT provisions)If you need to check you are being given a valid VAT number you can call HMRC’s national advice service on 0845 010 9000 from 8am to 8pm Monday to Friday.