FAQS
A. You can only claim expenses that are wholly and exlusively used for your business. This could include items such as materials, tools, motor expenses, insurance, telephone, protective clothing, advertising, stationery, printing, computer software.
A. You must give a written statement to every subcontractor you make a deduction from. You have to do this within 14 days of the end of each tax month. A tax month runs from the sixth day of one month to the fifth day of the next month. You can give a subcontractor a statement each tax month or, if you pay them more often, one for each payment. Always give it to the subcontractor even if you pay an authorised third party.
If you and the subcontractor agree, you can give them electronic statements, as long as the subcontractor can store and print them. Each statement must include:
the name of your business and your employer tax reference
either the date when the tax month in which you made the payment ended, or the date when you made the payment
the subcontractor's name and UTR
the subcontractor's verification reference number if the deduction was at the higher rate
the gross amount before you made the deduction but after you'd taken off any VAT, CITB levy, materials costs and so on
the cost of any materials you took off before making the deduction
the amount you deducted
If a subcontractor needs a replacement statement you can give them one, but you must mark it 'Duplicate'.
A. The VAT threshold for registration in 2019/20 is £85,000.00.
Remember this is for a 12 month rolling period, not your financial year. If you are getting near the threshold, you need to look at your last 12 months turnover, if it's below the threshold in that month then you do not need to register. When you have your next months turnover, add that to the list and take off the first months turnover. This will give you the rolling 12 month period. If you require assistance, please contact us.
You can de-register from VAT if your turnover goes below £83,000, again on a 12 month rolling period.
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A. You must keep your records for at least 5 years after the 31 January submission dealine of the relevant tax year. Bundle them up into a box with the year end on and pop them in the loft. Then you will be able to easily see when you can dispose of them.
A. You should keep all your business transactions in a separate account. Making Tax Digital will soon be rolled out to self employed individuals and it makes bookkeeping much easier and quicker to have just your business income and expenditure showing on your account.
A. HMRC advise that it is safer to pay electronically, ensuring that you use the correct reference number. It is no longer possible to pay at the Post Office or to use your personal credit card for tax payments. For further information use this link here
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FOR MORE INFORMATION GET IN TOUCH ON 01255 861101, EMAIL info@officeminder.co.uk OR FILL OUT THE FORM ON OUR CONTACT PAGE