Accounting Web
Benefit in Kind when no corp tax relief
My Ltd Co client provides IT sevices and one director has been working at a client's premises about 150 miles away for a period in excess of 24 months. The company pays the £650 per month rent for a flat used exclusively by the director Monday to Friday. For the past two years this has been charged to P & L and no Plld entry made.
Now that 24 months has passed this is no longer considered to be temporary accomodation and any rent paid should have been included on the 2009/10 P11D, but it was not.
Interest income earned by a UK non resident
I am domiciled in Germany. I need to file a German tax return.
HMRC offers guidance on iXBRL
As part of its education programme to prepare for the introduction of mandatory electronic filing of company tax returns with iXBRL format computations and accounts, HMRC has published a guide for businesses and is planning two more public events in the autumn.
Recording VAT recoverable on bad debt
When writing off a bad debt, I understand that the posting in the accounts is as follows:
Dr. B/S VAT recoverable (VAT amount)
Dr. P&L Bad debt provision (Net amount)
Cr. B/S Trade Debtors (Gross amount)
My question concerns the Credit posting to the VAT recoverable amount on the Balance Sheet.
If, on my VAT return, I only had the VAT reclaim amount, the posting upon receipt of a rebate from HMRC would be:
Dr. Bank
Cr. VAT recoverable
therefore netting off the original posting of the bad debt VAT amount.
Planning permission costs on rental property
A client has been letting out a cottage for a number of years and recently had some work done to the property, i.e. chimney repaired and window replaced (same size window but replaced with modern equivalent).
Owing to the nature of the property, the client had to obtain planning permission. Can a claim be made for architect's fees, planning permission costs and building regulation costs in the rental accounts?
client moving into property rentals
A new client who has been a very successful investor in the stock market for some years now wants to diversify by buying houses and then renting out
My question is should he do this as a sole trsder or a Ltd Co
Claim for eye test and specs used for reading and computer work?
I have a client who is a director and employee for her small limited company. She would like to claim from her limited company for the eye test and reading/computer specs.
Is this allowable?
Thanks
Is Dave Hartnett going soft?
HMRC is planning to tone down its hardline stance on legal action against companies it thinks are evading tax.
In an interview with Vanessa Houlder of the Financial Times, HMRC permanent secretary for tax Dave Hartnett admitted, “We are sometimes too black-and-white about the law.”
Split year treatment on residency
A client (born in the UK) left the UK in May 2007 and worked abroad until August 2010 with only about 16 days spent in the Uk during that time. He has no property and no family other than a few relations in the UK. His salary from that period was not remitted to the UK. What happens for 2010/2011 now he is back? I have read HMRC6 and it seemed to mention extra statutory concession A11, which would allow him to split the year's income between salary earned whilst still overseas that would not need to be included on his tax return if
VAT on sales outside EU
I am unsure whether I can zero rate a sale:
1) Customer is UK based, and collected goods from us (although we may have arranged freight - not clear)
2) End user is outside EU
3) Customer has supplied copy of freight documentation (export licences etc)
I have read VAT notice 703, but 'more experienced' persons than I are claiming it can be zero on the basis that we have confirmation the goods were exported,
Thanks in advance
TC
Practical advice on HMRC computer seizures
A recent Taxation magazine article on the Glenn v HMRC case confirmed HMRC's powers to seize computers from business premises. AccountingWEB.co.uk members responded in Any Answers by looking at how practitioners might cope in a similar situation.
use of home (again!!)
client works from home and travels from manchester to liverpool 2/3 days per week on a contract. Whilst some preparatory work is carried out in the house the contractor prefers the client to be on-site as this is where the main work is carried out under the agreed contract. Client looking to claim mileage between the cities as business mileage (claim 40p per mile using car) ie the home would be recognised as a work base. I am not so sure on this as it seems to me that the main performance of the self employment contract is carried out onsite in liverpool.
Garden office
I have a client who has built a Garden Office for business purposes. What can he claim? I am of the opinion that so long as it's movable (not just across the garden!) in a day, it's a Capital Asset and AIA can be claimed. But a colleague disagrees.
Any comments gratefully received, thank you!
Jo
Court requires evidence of no CGT liability
A client is currently divorcing his wife. The court has ordered the transfer of 4 investment properties from the wife to the husband as part of the divorce settlement subject to "relieving the wife from CGT liability".
The court has advised the client should get evidence from an accountant that the CGT can be deferred and the wife has no liability for CGT.
Does anybody have any experience of providing such evidence. Is it a case of quoting hold-over relief legislation or does it need to include an idemnity from the husband.
Thanks
Maxie
VAT position for drug addiction therapist
I recently took over a client who is a therapist for drug addicts who have been treated. She basically gets them into housing and gives continued support and counselling. Local authorities pay her for this (including effectively reimbursing her for the rents she pays out)
The first thing i said when I took over was that she should be vat registered. For 2007/08 turnover was £96k. However, part of this related to the rental of property so one assumes this can be deducted which may bring her back under the limits.
Correcting errors on flat rate VAT cash accounting - help!
Client hasn't charged VAT on expenses recharged to customers (eg hotel bills, mileage etc) and wants to make a voluntary disclosure to get everything up to date.
They have been using flat rate cash accounting since their second VAT qtr (first one being on cash accounting scheme) so we are a bot confused as to what to do.
Do we just take the flate rate % from the cash actually received even though VAT was undercharged or do we inflate the undercharged invoices for VAT and declare the flat rate % on the additional amount (even though it was never received!).
Gaines-Cooper heads to the Supreme Court
Seychelles-based entrepreneur Robert Gaines-Cooper is taking his long-running residence case against HMRC to the Supreme Court.
Supply teachers claiming expenses
A client is a supply teacher. To get work they have to use their home PC to communicate with agencies as they only email appointments out. Phone and broadband costs are incurred in getting appointments and chasing work.
They also use the home PC to fill out time sheets etc, as being temporary teachers they cannot usually use school equipment.
All teaching posts either are either through an agency or directly with a school with a P45/ P60 issued.
Capital Gain or Foreign Exchange Gain?
OK - this is doing my head in!
Client wants to buy US$140K of shares in July 2008 - GBP equivalent of £70K is deducted from his bank account the same day. His account with his overseas broker is credited with US$140K prior to the purchase.
Client sells all these shares in March 2009 - for US$140K. Sum of US$140K is credited to broker account that same day. However, the money is not transferred to the UK bank account until May 2009, when he receives a sterling equivalent of £91K.
Reasonable excuse -penalties
I have a pro bono client who was late filing multiple company and personal tax returns. By the time the client sought advice, the client had clocked up substantial penalties .
I believe client has a reasonable excuse within HMRC guidelines and that third party evidence of the excuse is available but client says that she cannot bear to explain her circumstances because of their personal and sensitive nature.
