In association with the AAT, we look at the questions worth asking a potential accountant.
HMRC have announced:
“On 1 January 2015 changes will be made to the European Union (EU) VAT place of supply of services rules involving business to consumer supplies of digital services (broadcasting, telecommunications and e-services).
From this date, the place of taxation of these digital services will be determined by the location of the customer who receives the service, rather than the location of the supplier of the services.
A new online service, the VAT Mini One Stop Shop (VAT MOSS), is being introduced so that suppliers of digital services don’t have to register in every EU member state in which they have customers. Businesses can register to use VAT MOSS from 20 October 2014 and the online service will be available to use from 1 January 2015.”
Note however, this only affects UK businesses who sell to the non businesses in the EU (consumer = “Joe Public”)
What are digital services – well, very very broadly – they are sales where no goods pass hands, and where there is very little human involvement.. think software download sales, subscriptions to PDF reports, web hosting services.
Does this affect you? Don’t leave it until the last minute. Get advice early, and be ready!
The harrowing scenes showing the destruction caused Typhoon Haiyan has brought a solemn day at The Den. Fox will donate today’s earnings to the Phillipines Red Cross. Our sympathies go out to all those who have been affected by this tragedy, both here and abroad, and our thanks and respect go to all those who are working tirelessly to provide aid.
Higher income parents currently receiving Child Benefit have just four weeks to register for Self Assessment with HM Revenue and Customs (HMRC) in order to avoid a penalty.
Parents who stopped receiving Child Benefit payments before 7 January 2013 do not need to take any action. However, parents who did not stop their payments until after 7 January or who are continuing to receive Child Benefit, and with income over £50,000, must register for Self Assessment for the 2012-13 tax year by 5 October 2013. This will enable them to declare the Child Benefit received, pay the tax charge on time and avoid penalties for failure to notify HMRC on time.
Letters are currently being sent to around two million higher rate taxpayers, including those affected by recent changes to Child Benefit. These will remind them they must declare any additional income or register now with HMRC for Self Assessment, in order to pay the High Income Child Benefit Charge, if they have not already done so.
HMRC’s Chief Executive, Lin Homer, said:
“HMRC wants to ensure that people avoid possible penalties and pay the right amount of tax. If you had any additional income last year, or have been affected by the changes to Child Benefit, you have until 5 October to register for Self Assessment.”
Over 400,000 people with higher incomes have already opted out of receiving Child Benefit payments. Those who did not receive any payments relating to the period after 7 January do not need to register for Self Assessment.
People who fail to register could face a penalty of up to 100 per cent of the tax due, depending on the circumstances. They might be able to come out of Self Assessment in future years if they (or their partner if they are the Child Benefit recipient) choose to opt out of receiving Child Benefit and avoid incurring the tax charge. People who want to opt out should go to hmrc.gov.uk/childbenefitcharge
An exciting day at the Den, today! We have been nominated for
The Bookkeepers Network - “Most Innovative Accounting Firm” award.
If you would like to show your support, you can vote here: