VAT like a Pancake – by Andrew Shinn

 

In this blog we’ll be talking about the pro & cons of the flat rate tax VAT schemes. It could be really useful if you’re thinking about setting up your own business or if you’re thinking about becoming VAT registered.

 

The Facts:

Flat rate tax is where you have a fixed rate of tax throughout the year. This means that no matter what your VAT input and VAT output are, your tax bill at the end of the year will be the same. This scheme is normally put in place with small businesses who have a small amount of overheads or a lot of hospitality businesses with a lot of stock that doesn’t have any VAT when it’s purchased.

 

Who Qualifies for flat rate VAT?

There are some rules for qualifying for a flat rate VAT scheme. First off, you must be a VAT registered business to apply for a flat rate scheme. Your business also must have a turnover less than £150,000 over twelve consecutive months. But the £150,000 is exclusive of VAT. Also, if your business is closely related to another business. This is usually because the combined turnover of the two businesses are normally higher that the £150,000 turnover.

 

What are the pros of a flat rate VAT scheme?

When you first register for flat rate VAT, HMRC will give you a 1% discount on your first year. Although 1% doesn’t seen like a lot, every small amount makes a different to your business. If your VAT purchases are low, it means you may be making additional profit at the end of your year. Flat rate VAT is also easier to work out the VAT at the end of the period. Another important thing to remember is, if you have any high purchases before you switched to a flat rate scheme, like a car or a new piece of equipment, you can still claim the VAT back, but this is limited.

 

What are the cons of a flat rate VAT scheme?

One negative of a flat rate VAT scheme is that the rate of VAT will stay the same on sales that have no VAT on them. This could mean that at the end of the year, you may have paid out a lot of VAT on purchases but haven’t had as much VAT output, you would normally get a rebate. But with the flat rate scheme it stays the same.

 

I really hope this has been useful for anyone thinking about switching to a flat rate scheme. If you do have any questions or would like any other additional information then please contact the team. We would love to hear from you.

PUB STOCK – NOTHING TO WINE ABOUT!

Stock is an important business assets which should be checked on a regular basis as it allow you to ensure the value of your inventory is accurate. It can also help you to know what you need to buy, what your stock turn is and are there any anomalies that need investigate.

Pub stock check

AUTHOR IS ANDREW SHINN – AAT APPRENTICE 

In this blog we will be talking about six important things in a pub stock check and why are they so important.

 

Have you separated wet and dry?

The first important thing to remember is to split your wet stock from your dry stock. Dry stock is anything that comes from the kitchen and wet stock is anything that’s sold behind the bar. It is really important to make sure you split them, mainly because kitchen items have a shorter shelf life than most drinks and it is worth treating the bar and kitchen as two different stock checks.

 

Have you checked the quantities?

When doing a stock check, it is important to count the items in the quantity that they were purchased. For example, if you buy a crate of orange juice in a pack of ten, each individual orange juice has to be counted as 0.1. This is so that you can easily replace and work out the value of the stock, rather than try and work out the value of the item as an individual.

 

How do I count the Spirits?

Because spirits are a high value item, it important to get the measurements right. If your doing a stocktake and you get to half a bottle of vodka, what do you do? The measurements of spirit bottles can only be broken down in quarters. This means that you use your own judgement and If it’s between the two, then normally it’s best to round down rather than up. This is because you do not want it to appear you are missing items on the next stocktake.

 

Is the stock in date?

Its always important to check that the stock is in date, especially in the kitchen. If you come across anything that is past its sell by date, this could be explained by either you are buying too much, or it will prompt you to review your menu as the item is not selling.

 

Helping Hand!

When doing a stock check it is very often easier if two people are involved as one can count, and other will record. By using two people it means you’re less likely to make a mistake so your stocktake will be a more accurate.

 

Have you forgotten anything?

Before finishing your stocktake it is important to make sure you’ve counted everything. Check nothing is hiding away and it would normally be something that you don’t really think about. Things like crisps, peanuts, lemons and limes and most importantly ice(if bought in bags). Although they may seem like small and low value items, every single item makes a difference to your business.

 

I really hope this has been useful to you. The most important thing to remember after you’ve finished your stock check…………….. RELAX AND HAVE A DRINK!!!!!!

 

If you need any advice then contact the team at Tax and Financial Solutions, we will be more than happy to answer any queries. #TAFS

 

 

Ten-Ants can be a pain in the wallet!

By Andrew Shinn – AAT Apprentice

Are you a landlord? Did you know that you might not be claiming as much as you could be?

 

In this blog we’re going to tell you about all the expenses you can claim. This will save you money so that you can make the best out of your rental property.

What Can you Claim?

  • Mortgage Interest – Although you may have taken out a buy to let mortgage for your property, you are not allowed to claim back the whole mortgage rate. However, you are able to claim back a proportion of the interest on the mortgage.
  • Advertising – If you advertise for tenants for your property then you may also claim this back. Although it may not be a lot of money, each penny reduces the income profit with means you’ll be paying less Tax.
  • Management Fees – Are you paying anyone to manage your property? This could be anything from a Gardner, a cleaner, or someone you pay to inspect the properties for damage, you can claim that as an expense.
  • Insurance – Home insurance is normally more expensive as a landlord so be sure to claim your insurance through your rental property. It’s also important to make sure all of the regulations are up to date as well. The last thing you want is your insurance to be invalid due to faulty smoke alarms. You can also claim fire safety equipment through your rental property.
  • Replacement – One of the main things that landlords forget to claim, are repairs and maintenance work. If you have a built in dishwasher and it breaks down, you can claim for a like for like replacement.

Things To Remember!

When offsetting expenses from your income there’s a few things to remember. For example, you have to make sure the claimed expenses are directly related to your business. For example, if on your cleaning expenses, you are getting your own house cleaned at the same time, it’s important to make an adjustment for the private cost.

It’s important to understand what you’re allowed to claim as sometimes the small things, can have a huge impact!

If you would like more information about landlord expenses and the Property income allowance then please contact the TAFS team. We would be more than happy to help you!

Preview of our new signage …..

Our new office signage is looking amazing, though the picture does not do it justice.

We will be loading more images and information over the next couple of days, keep your eyes open for updates.

If you need any advice or help please contact the team.

New member of the team

We are pleased to introduced Andrew Shinn as the newest member of the Tax and Financial team.

Andrew is currently completing his level 2 AAT professional course as a distance learner at Avado Learning, whilst receiving the continual support from the team at Tax and Financial. Andrew has been working for us since the 1st April 2018. He has chosen to take a job in accountancy & tax with the view to gain qualifications in the industry to improve his skills.

With a strong aptitude in IT and Accounting he is able to provide the online support to all our clients software queries, meaning they can get the answers they need within 24 hours.

Please do not hesitate to contact him at admin@taxandfinancial.co.uk, or alternatively you can call on 01392 692 192.

Opening Soon …

We have some very exciting news, we are expanding into new offices in the heart of Marsh Barton in Exeter.

We are still in the process of finishing the re-fit and get everything ready, as soon as we have a date confirmed we will be having a grand opening day.

#grandopening #tax #support #nextbigthing

Need more visibility to your business accounts?

I speak to so many businesses on a day by day basis, and I would say 90% are stressed about their business accounts.

If you are not sure what to do, try not to panic, as I know letters from HMRC are not always clear.

Just ask for some help! It can be explained, simply.

#help #tax #advice http://ow.ly/i/DOeyT

 

The team have found this interesting article, click here, and if you have any questions on how this will affect your business please feel free to contact the team.

 

We now accept card payments

 

Exciting news …….

At Tax and Financial we have exciting news, very shortly we will be opening a new shop in Exeter and we will keep you updated on details of our Grand Opening!