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”
I have often been asked about the Tax effects of Equipment and training costs to the one person owner/director/worker limited company. Firstly the tax effect is that if the corporation tax rate is 19% (as it is currently) then the actual net cost to the company is 81% of what is paid for the equipment.
If you look back at my Blog from 19th July, I made the point that amazing things had happened in the previous month. That list now looks like an aperitif compared to what’s happened in the last 3 weeks. When I finally am 64 years old (long way to go yet), my grandchildren will want