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Business Challenges

Compliance Review

Do you often wonder if you are doing the right thing or just need reassurance that you are compliant?

We are not internal auditors, but we can review any compliance work you might have prepared incorrectly.

Payroll for instance is a complex area where the legislation is updated regularly.

As payroll specialists, we can assess if you are compliant with National Minimum Wage if you calculated and paid the correct pension contributions and so on.

Confused about when you should register for VAT?

Ask us anything and we will let you know if is not an area we are dealing with.

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Frequently Asked Questions

We have over ten years of experience dealing efficiently with the complexities and confidentiality of payroll, including the new pension rules regarding Auto Enrolment obligations.

We are experienced in submitting disclosures to HMRC. The biggest disclosure we submitted involved correcting overpayments and underpayments of National Insurance contributions for 810 Expat assignments in and out of the UK spanning 6 tax years.

Case Study

VAT registration

The VAT registration threshold is set on a yearly basis, and the threshold for registering for VAT usually increases each year.

However, in 2017, the VAT threshold was extended. This means that the 2017-2018 VAT threshold (£85,000) still applies in the current 2021-2022 tax year and will remain in place until April 2022 at the earliest.

One of our clients had the misconception that the VAT threshold needed to be monitored on a tax year basis rather than a rolling basis.

On a rolling basis you will need to monitor your taxable turnover for a rolling 12 month period, not just in the current tax year, your last financial year or the calendar year. If the total of your turnover over the last 12 months exceeds £85,000 at any point, you’ll need to register for VAT.

What was the issue?

Because of this misconception, the client was trading without charging their customer VAT on sales. They owed VAT from the date the registration was necessary and they were concerned that they might have to pay fines and penalties but wanted to do the right thing.

What did we do to help?

There is no guarantee that HMRC will not apply the fines and penalties for registering in time and in general they will consider an appeal if you believe that you have a ‘reasonable excuse’ for not registering for VAT on time. Although no legal definition exists of ‘reasonable excuse’, there are circumstances that may be accepted by HMRC.

We looked back at when the business should have been registered for VAT and completed the registration from that date. We also assessed whether the client can claim any VAT on expenses used in the business.

HMRC was happy with the information we provided and in this particular case, did not apply any fines and penalties.

 

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