Information

Listed below are many of the questions which we are frequently asked:-

What is the current vat registration limit?

Currently, if all of a person's taxable supplies, both at zero and positive rates, for the past 12 months exceed £85,000, then that person must register for vat, unless the turnover for the next 12 months will not exceed £83,000.

What is the current limit for de-registering for vat?

Currently, if a person's turnover for the next 12 months falls below £83,000, then that person may apply for de-registration.

How do I calculate the amount of vat in a vat inclusive figure?

Multiply the vat inclusive amount by 1/6th (assuming a standard rate of vat of 20%).

How do I calculate the net figure from a vat inclusive amount?

Multiply the vat inclusive figure by 5/6ths (assuming a standard rate of vat of 20%).

I operate both a motor car and a van through my business. Can I reclaim the input tax on the fuel for those vehicles?

Yes. You can reclaim the input tax as long as you include the appropriate car scale charge with your output tax.

Do I have to pay the car scale charge for both my car and my van?

No. The scale charge only applies to cars.

What if the car scale charge exceeds the input tax on my fuel for the quarter?

You must look at the position each quarter. If the scale charge is greater than the input tax in any quarter, then you can opt not to pay the scale charge. Obviously, if you choose this option then you cannot reclaim the input tax on your fuel. It is important to note that this option must be applied to all vehicles operated by the business, including vans, for which no scale charge is payable.

What is the current level of the minimum wage?

There are different levels of NMW, depending on your age. The current rates (from 1 April 2020) are:

£8.72 - the main rate for workers aged 25 and over
£8.20 - the rate for workers aged 21 to 24
£6.45 - the rate for wokers aged 18 to 20
£4.55 - the 16-17 rate for workers above school leaving age but under 18
£4.15 - the rate for apprentices

If you are of compulsory school age you are not entitled to the NMW. Some of your other employment rights are also different.

How can I value my share portfolio?

Visit the web site of the London Stock Exchange for a free valuation - follow the link on our links page.

I am making one of my employees redundant. How much do I need to pay this person in redundancy pay?

To calculate the correct amount of redundancy pay, follow this link - click here

How do I convert amounts from one currency to another?

To convert currency, follow this link - click here

What is the filing date for self assessment returns?

If you wish the Inland Revenue to calculate your liability, and to collect any outstanding amount via a tax code adjustment, then your return must be filed by 30th September.
If you wish to file a paper return, then you must do so before 31st October.
If you wish to file your return electronically, then the filing deadline is 31st January.
Failure to meet the filing deadline will result in HM Revenue & Customs charging a penalty.

What is the penalty for late filing of self assessment returns?

Length of delay	Penalty you will have to pay
1 day late	A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late	£10 for each following day - up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late	£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late	£300 or 5% of the tax due, whichever is the higher. In serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this. These are as well as the penalties above.

When do I have to pay my self assessment income tax?

You are required to make payments on account on 31st January and 31st July. Each payment on account being equal to 50% of your final agreed liability for the previous year.

What if my liability for the current year is different from the previous year?

Any over or underpayment of tax will be adjusted in the payment on account due on the following 31st January.

What are the relevant filing dates for companies?

Companies are required to pay any corporation tax due on their profits, nine months after the end of the accounting period to which they relate.
Companies must file a copy of their accounts with Companies House within nine months of the end of the accounting period.
Companies are required to file a corporation tax return (CT600) within twelve months of the end of the accounting period.

What are the penalties for filing my company’s accounts late?

£150 less than 1 month late

£375 more than 1 month but less than 3 months late

£750 more than 3 months but less than 6 months late

£1,500 more than 6 months late

For more detailed information regarding tax allowances, rates of tax etc. please visit the web sites for H.M.Revenue & Customs and Companies House. The links to these web sites can be found on our links page.