VAT “Mini One Stop Shop” (MOSS) for digital services to consumers in the EU

Has/Is your business supplied/supplying digital services to consumers in the EU?


There is a very important change in the VAT place of supply rules for businesses supplying digital services to consumers (B2C). From 01 January 2015, the place of supply for digital services will be where the customer belongs, instead of the current rule (where the supplier belongs). Digital services include telecoms, satellite TV, the downloading of computer software, music, books and manuals.


From 1 January 2015 there are new place of supply rules for value added tax (VAT) on the supply of digital services by businesses to consumers in the EU.

As a UK trader, you will need to identify where in the EU your non-business customer is located and apply the VAT rate for that country, instead of UK VAT. The customer’s location will be where the consumer is established, has their permanent address or usually resides. 

The VAT Mini One Stop Shop (MOSS) has been introduced to save these businesses from having to register for VAT in every EU Member State in which they supply their services.

Businesses can now register for the online service from 20 October 2014. Registration for the service has to be carried out by the business itself. Once registered, you can authorise us as your agent to act on your behalf for VAT MOSS.

To know more details, Register for and use the VAT Mini One Stop Shop, check these links below https://www.gov.uk/register-and-use-the-vat-mini-one-stop-shop
https://www.gov.uk/vat-on-digital-services-in-the-eu

If you have any queries, post them as comments below.

Contact us to know more on these changes and what changes you need to make to your small business!

 

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HMRC Credit Card Sales Campaign

HMRC's latest disclosure campaign is aimed at traders who accept payments by debit and credit cards but who haven’t declared all transactions. The Credit Card Sales campaign provides an opportunity for individuals and companies accepting debit and credit cards (but have not reflected all transactions in their tax return) to bring their affairs up to date in a simple, straightforward way and take advantage of the best possible terms.



You can use this if:

• you accept card payments for goods or service
• you haven’t declared all your UK tax liabilities

Traders wishing to use the scheme must first notify HMRC. They will then have 4 months from the date they receive HMRC's acknowledgement of notification to make a disclosure and pay any tax due. If, however, you do not come forward and HMRC finds later that you are behind with your tax, it may be harder to convince them that it was not a deliberate act. The law allows HMRC to go back up to 20 years and in serious cases HMRC may carry out a criminal investigation.

HMRC is targeting tax evasion through Debit and Credit Card Sales and will use information it holds on its digital intelligence systems to identify taxpayers who might not have declared all their income. Where additional taxes are due, HMRC will usually charge higher penalties than those available under the Credit Card Sales campaign.

For more information and source https://www.gov.uk/creditcardsales

Please contact us if you have more questions or need expert Tax assistance!

APJ Accountancy - A team of Chartered Certified Accountant regulated and monitored by The Association of Chartered Certified Accountants (ACCA).
Tel: 020 89310165  
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No Loss Relief For Non-Commercial Business!

A recent case before the Tax Tribunal reminds us that HMRC has set that in order to set a trading loss sideways against other income, the business must be commercial one with the intention to make profit against general income.

The case in question relates to Ms Thorne, who ran an equestrian business and another business growing asparagus.  HMRC has disputes on whether the trade had been carried out on a commercial basis with a view to the realisation of profits.  The self-employment pages of her tax return showed a single composite business, which incurred an overall trading loss. The equestrian business was unlikely to make a profit and was clearly a hobby. However, the asparagus business was in its early stages; it is widely accepted that it can take up to three years before a significant crop is produced. Had separate accounts been prepared for the asparagus business, loss relief would likely have been available, as it could be argued that the venture was being carried out on a commercial basis with a view to making a profit.

Check this Working sheet from HMRC Losses HelpSheet

If your business makes losses in the first few years, we can help to ensure the availability of relief by helping you prepare forecasts and a business plan, demonstrating that the business is being carried out on a commercial basis with a view to making a profit.

If you have made a loss in your business/trade or are entitled to a share of the loss made by a partnership of which you are a member, check this HMRC Losses HelpSheet for more details

Collection Of Unpaid Tax Through Your Tax Code!

Currently, HM Revenue & Customs can collect tax debts of up to £3,000 by adjusting your Pay As You Earn (PAYE) tax code. HMRC refers to this as ‘coding out’. The effect of this is to recover the debt from your income, by increasing the amount deducted from your income during the tax year.

This applies if you have a debt with HMRC and:
• are an employee paying tax through (PAYE), and/or
• receive a taxable UK-based private pension

HMRC are now increasing the amount of debt that can be recovered through your tax code if your annual earnings are £30,000 or more. To do this, HMRC will apply a sliding scale to your main PAYE income. The maximum amount that can be coded out is being increased to £17,000 (where earnings exceed £90,000 a year).

These changes will only apply to underpaid Self-Assessment and Class 2 National Insurance debts and Tax Credit overpayments. Changes will be reflected in your 2015-16 tax code and we will write to you before we collect any debts through your PAYE code from April 2015.

If your earnings are less than £30,000, there’s no change. Check the table below if your earnings are above £30,000 & its coding out limits from HMRC website:

More information on this at Collecting overdue tax through your tax code: changes to the amount HMRC can collect

Coding out the unpaid 2013/14 tax is only possible if you submitted your paper tax return by 31 October 2014 or file your tax return online by 30 December 2014.

If you have any queries, post them as comments below.

Contact us to know more on these changes and what changes you need to make to your small business!

UK Tax Deadline dates for November & December 2014

Tax Deadline dates for Businesses in The UK for the month of November & December 2014!

Date	What’s Due
1 November	Corporation tax for year to 31/01/14
19 November	PAYE & NIC deductions, and CIS return and tax, for month to 5/11/14  (22 November if paid electronically)
1 December	Corporation tax for year to 28/02/14
19 December	PAYE & NIC deductions, and CIS return and tax, for month to 5/12/14 (22 December   if paid electronically)
30 December	Deadline to file 13/14 SA tax return online if unpaid tax (up to £3000) is to be  collected via 14/15 PAYE code

This is for reference only and not a comprehensive list. For more and complete information, check www.hmrc.gov.uk/. 


Please contact us if you have issues or need expert Tax assistance!

APJ Accountancy - A team of Chartered Certified Accountant regulated and monitored by The Association of Chartered Certified Accountants (ACCA).
Tel: 020 89310165  
Mobile: 07900537459 
E-mail: info@apjaccountancy.com 

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Changes in VAT place of Supply rules!

VAT place of supply rules changes from 1 January 2015

Andrew Webb, Senior VAT Policy Manager at HM Revenue & Customs (HMRC), explained on the changes to the EU VAT place of supply rules for B2C digital service suppliers.

The changes will be implemented from 1 January 2015 to the European Union (EU) VAT place of supply of services rules involving business to consumer (B2C) supplies of broadcasting, telecommunications and e-services i.e., digital services.

VAT Moss Business to consumer supplies of digital services

What are the changes being made to the VAT place of supply of services rules?

On the 1st of January 2015, the EU Vat place of supply, and therefore taxation rules are changing, so that from that date the place of taxation will be where the customer lives, rather than where the supplier of the service is established. It's the final change in a series of changes to embed the idea that, with consumption taxes such as VAT, the place where the tax is paid should be where the service or goods are enjoyed, consumed or used.

What does it mean for the businesses affected?

It imposes on them an obligation to register for VAT where their customer is located. It also means that they have to collect information to define where their customer is actually living and the VAT rate in that Member State.

What can a business do if it doesn't want to register for VAT in every Member State where it supplies a service?

It can make use of a new service introduced on the 1st January called the VAT Mini One Stop Shop, or MOSS. With the MOSS, the business will only need to register in one jurisdiction and make one MOSS VAT return, one MOSS Payment to cover all of its obligations across the whole of the EU.

How can a digital service supplier register for VAT in the UK?

First of all register with HMRC through the gov.uk website.

Then, once registered, the business will collect the information about the supplies it's making to the customers. At the end of each calendar quarter it will submit its single return to us and its single payment, and then it can leave it to HMRC to do the rest.

HMRC will split the payment and the return and send it to the appropriate Member States where the consumers live.

Check the website for more information - http://www.hmrc.gov.uk/posmoss/

Are you still not clear on the changes? We are always happy to help you.
APJ Accountancy - A team of Chartered Certified Accountant regulated and monitored by The Association of Chartered Certified Accountants (ACCA).
Tel: 020 89310165  
Mobile: 07900537459 
E-mail: info@apjaccountancy.com

RTI Penalties Start October 2014!

Since 6 April 2013 employers have been reporting PAYE information to HM Revenue & Customs (HMRC) in real time. You may see this referred to as Real Time Information - or RTI.

This means you must set up payroll records for the new tax year using payroll software, some of which is free. It makes PAYE submissions to HMRC be updated in real time, every time you pay your employees.

Earlier this year, HMRC announced that the penalties for late returns of payroll information (RTI) would start from October 2014 instead of April 2014. If you operate your own payroll, make sure that your RTI submissions are made on time to avoid an automatic penalty.

Remember that the RTI submission should normally be made on or before the date when the wages or salaries are paid to the employees.

Check for more information about PAYE payments and deadlines and penalties at http://www.hmrc.gov.uk/payerti/paying/deadline.htm

Flexible Working Got More Flexible since June!

New employment rules mean the right to request flexible working extended to all employees with 26 weeks' service since June 30th.

Earlier, only employees with children under 17 (or disabled children under 18) and those with responsibilities as carers have a right to request flexible working.

New Flexible Working Rule

Under new measures, however, any employee with 26 weeks’ continuous service can ask to work flexibly for any reason, whether it’s taking up a further education course, combining work with caring for the grandchildren, or simply wanting to spend less time at work.

Eligible employees will be able to request a change to working hours, working time or work location.

The amended Children and Families Act 2014 removes the prescriptive statutory procedure for dealing with requests, replacing it with a duty on employers to deal with requests in a ‘reasonable manner’ and to notify employees of their decision within three months, unless an extension is agreed.

More employees will be able to request flexible working but it doesn’t mean they have the right to have that request granted. Similar principles are likely to apply when considering requests received and the grounds for refusing remain the same.

Employers will still be able to reject requests if there are legitimate business reasons for doing so; for example, if it would lead to additional costs for the company, affect its ability to meet customer demand or have a detrimental impact on the company’s performance.

The new flexible working rule is one of several ‘family-friendly’ changes in the pipeline over the next 12 months.

From October 1st 2014 a prospective father or a mother’s partner can take unpaid time off to attend up to two antenatal appointments, while from April 5th 2015 parents of newly born or newly adopted babies, and in some cases a mother and her partner, will be allowed to share a combined total of up to 52 weeks of parental leave and 39 weeks of statutory pay between them.

We have a specialist payroll service that can assist you in the continuing administrative requirements surrounding employment. We would be delighted to discuss these with you.

Contact us for more information at ☎☎ 020 89310165!

We are a team of Chartered Certified Accountant regulated and monitored by The Association of Chartered Certified Accountants (ACCA).