June saw the start of the World Cup, and England succeeding beyond the group stages! We basked in glorious sunshine, we launched our Norwich Yare Mixed Networking group and The Avanti team supported Suffolk Age UK by attending their mid-summer party.
It’s not all been football and sunshine though and across the month we brought you a variety of tips , throughout flaming June we focused on VAT and hope that you found the bitesize information easy to digest, in case you missed anything, here are our highlights;
VAT is only 45 years old
First introduced in 1973. Value Added Tax, aka VAT, is most commonly charged at a percentage, to most or goods or services.
VAT registered businesses charge and collect VAT from consumers and clients. It does not matter if your customer is a business or individual – you still charge VAT as applicable.
Who registers for VAT?
You can voluntarily register whenever you like. However, unless your ‘trade’ is exempt, all businesses must register for VAT if its turnover (your sales) exceed the threshold and will do so within the next month. The turnover is calculated not on your financial year, or tax year – but a rolling 12 months. Registered businesses are required to submit a VAT return electronically every three months. It is therefore essential that you keep records of all sales and purchases, and the respective VAT paid or charged.
Some businesses are exempt from VAT treatment, some items sold qualify for a reduced VAT rate, VAT on food can also be complicated and some businesses may like to VAT register before they reach the threshold.
Naked Gingerbread = No VAT
Who knew that a chocolate milkshake is considered a luxury item therefore VAT is applied, unlike it’s strawberry counterpart? The minute that a gingerbread man gets dressed in his chocolate trousers, he’ll incur VAT too – these are just a couple of the many tricky areas of VAT that an Avanti accountant can help you with, food and drink outlets often find themselves in a muddle because of the different ways VAT on food is applied.
Our advice is to seek help from an accountant with knowledge, training and experience – it will save you time, money and allow you to get on and do what you do best running your business.
What is a VAT period?
You usually submit a VAT Return to HMRC every 3 months. This period of time is known as your ‘accounting period.’ (VAT Period)
Making Tax Digital Means Maintaining The Books
One part of organisation is ensuring that records are maintained, for us as accountants, we often see that bookkeeping becomes a rushed must do, rather than a standard part of running your business. More important than ever with Making Tax Digital on the horizon, meaning every business will have to submit quarterly information to HMRC, some clear thought, dedicated time and easy to understand bookkeeping software, can ensure that this sometimes laborious task is maintained with ease, giving you the knowledge and understanding of your business that will empower you to move your business forward.
Plan For Rainy Days
Plan for your liabilities, ensure that when business is good that you allocate finances to your upcoming liabilities. Avanti proactively inform you of your upcoming important filing dates and your liabilities, are able to provide easy to use Cashflow Forecasting tools and providing training. We don’t just do the books, we offer you advice throughout the year to help you get the most from your tax allowances.
Rein in the Expensive Expenses
It’s inevitable that as a business owner you will be on the end of some hefty outgoings, so you should whenever possible ask yourself if your expenditure is really necessary. Splashing out on the latest gadgets isn’t always a necessity for your business, and HMRC take a dim view of lavish expense claims for items that are not “wholly and exclusively for the use of the business” Outlandish expenses can attract the attention of the revenue, and put you and your business at risk of an investigation by HMRC.
We successfully launched our newest networking group in Norwich. So pleased to see a great turn-out and a large number of applications on the day. Our first meeting will be in August – Tuesday 28th August 12-2pm at The Oaklands Hotel, Yarmouth Road, NR7 0HH, contact us to book your seat.
We welcomed Paula Phelan of PS Human Resources Ltd to our Ipswich ladies group.
Olivia Higson, Blackwater Wealth Management was our Online Expert of the month, explaining why planning for retirement is key to enjoying retirement, read more here
Our Monday Networking Tips helped to guide you to working the room at your next event;
‘Making connections in your local business communities will help you spread your message and market your business to people that you never thought it possible to connect with – “it’s not what you know, but who you know that counts” Often attendees find that while networking is a proven formula for business growth and success, they admit feeling anxious about attending a networking event, with 51% of a those surveyed in a ComRes poll admitting that they feel uncomfortable while networking.’ Read more here
This month we will be focusing on The Different Types Of Business Structures; whether you are a sole trader, partnership or a Limited Company. We are sure to have tips that can help move you and your business forward. With a month full of Networking Tips to help you pack a punch at your next networking event , and SME tips that will empower you to go out there and reach your goals.