Watson Knipe Blog

This year we have had quite a few changes to tax that have impacted individuals, businesses and landlords. We wanted to summarise a few fundamental changes coming up next year, which are worth noting.

We don't want to put a damper on all the seasonal festivities. Still, we thought it would be useful to clarify tax obligations for employers and employees if a work Christmas party is organised and paid for by the business.

A report published by MarketFinance on 9 December 2019 indicates that small businesses are having to deal with late payments regularly.

It is that time of the year again when we are busy helping our clients to get all the paperwork in order ready to submit their tax returns. Most of our clients, especially those that use our bookkeeping service, generally get their tax return filed early.

We wanted to let you know about changes to Capital Gains Tax coming up in April 2020. The amount of Capital Gains Tax is not affected; the changes relate to when the tax needs to be paid.

We have many clients that live abroad but still have to pay tax in the UK. Plus, some of our clients work abroad and again need to pay UK tax.

Understanding VAT Schemes

In our last blog – Understanding VAT Rates we outlined when businesses have to become VAT registered and the amount of VAT that needs to be added depending on the types of products or services that you are selling.

Understanding VAT Rates

When you start your business, it is essential to understand how VAT works and whether you should be VAT registered or not. Some companies decide to become VAT registered straight away, others wait until they reach the HMRC threshold. 

Benefits of Management accounts

As your business starts to grow, it's a good idea to have a better insight into your business finances. We support many companies by preparing monthly management accounts.

As an employer, you need to make sure that all your employees are receiving their weekly or monthly wages on time and most importantly, accurately. A mistake can take up valuable time to rectify and cause bad feelings for your team.

The government is working towards a no-deal Brexit; the aim is to leave the EU on 31 October 2019. If this goes ahead, then UK businesses need to be aware of how this will affect them. 

In July we gave an update on the domestic reverse charge VAT scheme for construction and building services. 

We wanted to make sure that all businesses registered for VAT that are in the construction sector and building services were aware of the changes.

There will be changes to the Private Residence Relief from April 2020. There has been a consultation underway for the past year and the draft Finance Bill published recently confirms that the changes will take place.

In our previous blog - VAT: domestic reverse charge for building and construction services – we explained how the domestic reverse charge would affect the building and construction services from 1^st October 2019.

From 1^st October 2019, all businesses that are VAT-registered and work in the building and construction sector need to be aware of and ready to collect VAT under the new rules.

If you are a contractor or freelancer, then you will know about the IR35 'Off-Payroll' Rules. Some significant changes are coming up in April 2020, so it's essential to keep up to date with these. 

If you complete a self-assessment for your business, you may have to pay your tax in two instalments. You don't need to make this payment if your tax bill is less than £1000 or you have already made 80% of your tax bill in advance.

All businesses need a business plan to help guide them and ensure that they achieve the targets you set for growing their business. This is particularly important when you are starting your business or if you are planning to expand.

If you are a landlord or letting agent, then it’s essential to understand the changes that were introduced by the Tenant Fees Act on 1st June 2019.

If you are starting a new business and you are unsure about the best trading structure, then you should read this blog. It outlines the key benefits for each way of trading.