Why has Making Tax Digital (MTD) been introduced and what are the benefits?

HMRC are aiming to become one of the most digitally advanced tax administrators in the world. They have made significant changes to the way our tax system works to make it more efficient, effective and less complex in order to achieve this. The HMRC carried out live pilot testing in order to prepare for MTD. They invited some businesses to … Read More

Do you know about the changes to VAT with GoCardless?

Until April of this year, GoCardless have been exempt of charging VAT on fees, but following on from the government’s announcement in April of this year, that VAT will need to be charged on all fees for supplies, it meant that GoCardless were required to charge VAT on all of their fees. Due to the COVID-19 pandemic GoCardless made the … Read More

UK VAT Changes from 20% to 5% for Tourism and Hospitality Sectors (08/07/2020)

In today’s summer statement, the UK’s Chancellor said he plans to change UK VAT for the hospitality and tourism sectors from 20% to 5% with effect from Wednesday 15th July 2020 until Tuesday 12th January 2021. Any businesses that buy and sell food, provide accommodation or manage attractions will be affected by the change. We’ll publish more on this topic … Read More

Option to defer paying VAT ends on 30‌‌ June 2020

If, due to COVID-19, businesses could not afford to pay their VAT, HMRC offered a deferral without interest or penalties, meaning although the VAT return still needed to be filed, any VAT due for payment between 20 March 2020 and 30 June 2020 could be deferred until 31 March 2021. To do this, any business who had a Direct Debit … Read More

Making Tax Digital – More Information

Making Tax Digital Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their accounts. HMRC’s plan is to become one of the most digitally advanced tax administrations in the world. MTD is making fundamental changes to the way the tax … Read More

Insurance Premium Tax (IPT) changes 2018

Here is what you need to know about Insurance Premium Tax (IPT) changes What is it? Although VAT is the most common form of tax, it’s not applicable on insurance — that’s where IPT comes in… There are two rates of IPT: A standard rate (currently 9.5%) which is applied to pet, motor, mobile, contents, buildings and private medical insurance … Read More

Sage Tax (VAT) Codes

  Download your FREE Sage Tax Codes guide to help you understand which codes to use in Sage We know how hard it can be trying to remember all the HMRC terminology for the VAT status on items you purchase. The differences between T0, T2 and T9 often confuse, not to mention that some receipts or invoices show VAT but … Read More