Or a lesson for Contractor Accountants in when not to use an EBT (employee benefit trust). If, like me, you follow Scottish football with the same enthusiasm a hamster has for tank warfare – you may have missed the tax debacle north of the border. Before I go into what it all actually means –
What is the VAT Flat Rate Scheme? Any business in the UK with a turnover of more than £73,000 must be registered for VAT. This means adding on 20% VAT to your normal sales invoice and paying the 20% VAT over to the VAT office. However, there is a scheme called “The Flat Rate Scheme”
“IR35” has now been in existence for over ten years and still it remains a constant concern for freelancers and contractors across the UK. In particular, it has become a notorious threat to those within the IT Consultancy industry. Its significant impact on small businesses led to the emergence of the Professional Contractor Group (PCG).
Like many other Contractor Accountants, we use a software program called IRIS to prepare annual accounts etc. Quite a sophisticated program that holds together many different facets of a company and enables us to have immediate access to client data. This all sounds very simple, until one of my Accountants went to file a set