Up and down: Britons surveyed for economic outlook

Britons are feeling positive about their finances, but feel quite the opposite for the future of the economy, a report says.

Lucy explains Entertainment and VAT…

Let me entertain you …

 

We are nearly at the start of September and the talk of the Christmas party has already begun here at Rotherham Taylor! This year, the newest member of the team Jack will be organising our party and entertainment. The pressure is on for him to find a Christmas menu that all of us like!!

 

So what’s classed as business entertainment and what are the VAT rules on this…

 

Entertainment is usually defined as hospitality. For example, food, drink and accommodation which is available to employers and employees. Business entertainment in regards to clients is disallowable for VAT purposes, which means you cannot recover the input VAT on your VAT returns.

 

However, if you provide entertainment for the benefit of employees, for example, staff parties, team building exercises and outings, the VAT can be reclaimed as normal.

 

Any entertainment costs in relation to Directors, partners or sole proprietors only is disallowable for VAT purposes.

 

If you are an employer providing social functions and parties for your employees, you may need to consider your National Insurance duties. To be exempt from these rules, the entertainment must be provided to all employees and must be below £150 per head. As long as the total combined cost of the events is no more than £150, they are still exempt. Any events that are not exempt, will need reporting to HM Revenue & Customs and Class 1A National Insurance will be payable.

 

If you require any further advise on the treatment of business entertainment please contact the office.

Proposed crack downs on Britain’s ‘hidden economy’

New proposals to tackle the UK’s so-called ‘hidden economy’ have been outlined by HM Revenue & Customs (HMRC) in three consultation documents announced late last week.

Half of businesses have “negative” experience of HMRC, survey reveals

Just half of mid-sized businesses were positive about the quality of information available to them by HM Revenue and Customs (HMRC), a survey reveals.

More than half of taxpayer appeals successful

More than half of taxpayer challenges to HM Revenue and Customs (HMRC) are successful, figures reveal.

Nicola our Practice Manager talks about Gift Aid…

Did you know that you can help future Team GB Olympic champions by making donations through the Gift Aid scheme?

Not many people realise, that like donations to registered charities, Gift Aid now also applies to donations to Community Amateur Sports Clubs that have registered their status with HMRC.

For all donations to clubs and charities, they can claim 20% tax relief from donors who declare they are taxpayers and want to donate under the Gift Aid scheme. So for every £80, they will receive £100 under the scheme.

Please bear in mind though that non taxpayers should not use Gift Aid when making donations.

Changes to the tax system from 06.04.16 have meant an increase in individuals who are no longer paying income tax.

From 06.04.16 there was:

• an increased personal allowance of £11,000
• a new personal savings allowance meaning every basic rate taxpayer can earn up to £1,000 on interest without paying tax
• a £5,000 dividend allowance to every taxpayer to replace dividend tax credits

In light of the above, individuals, in particular pensioners who are receiving just state pension and dividend income and claiming Gift Aid, may now be left with a tax bill.

Care should be taken as it is the donors responsibility to pay back any shortfall in tax paid against gift aid claimed, to HMRC.

The Gift Aid scheme remains a great scheme for taxpayers to support local charities and sports clubs. 

If you need any help with the above in relation to your personal tax position then please let us know and we will be happy to help.

SMEs want access to single market

Access to the European Union’s (EU) single market is a priority for SMEs, a survey has revealed.

Accountancy firm’s Xero heroes

Preston-based chartered accountancy firm, Rotherham Taylor Limited, is increasing its digital accounting offering as two further professionals at the firm gain certification for the cutting-edge Xero online accounting package.

Pensioners charged 30 pence on the pound by the tax man

The average retired household has a tax bill of over £7,000, research reveals.

UK economy now worth £8.8 trillion

The UK economy is now worth £8.8 trillion, report the Office for National Statistics (ONS).