Despite the fact that the “blogster in chief” has now returned from her jaunt round the Med (courtesy of some Cossacks?) I have been asked (told) to do another one, mainly because I didn’t do the one I was supposed to do last time!
Anyway one of the latest things to interest HMRC is apparently the question of barter transactions, you know the sort of thing “you do my website and I’ll do your plumbing repair”. Sounds like Old Dog Tom, one of the books my younger brother learnt to read with. Trouble is this sort of transaction rarely if ever appears in the business records. Whilst on the face of it you might say “so what?”, there are tax implications.
For instance there are VAT issues where one party to the barter isn’t VAT registered or like the above example one part of the barter is of a non business nature.
Quite how much VAT and other taxes are unpaid because of barter transactions is hard to say and it does seem to smack, yet again, of HMRC attacking the small businessman or perhaps it was just a particularly quiet day at HMRC Towers (maybe the phones were off the hook!). Having said that HMRC are right and these transactions should be properly recorded. You have been warned.
Going back to my previous blog it was good to see that the Chancellor took note of my thoughts on his NI increase although I suspect the increases will re-appear once the election is over and he hasn’t got to worry about Dave’s previous manifesto promises.
Whilst a general election and the wall to wall news coverage that it entails is not always the most welcome of things it has had one beneficial result and that is a potential one year delay in the implementation of “Making Tax Digital” . Whilst I am aware of how much everyone was looking forward to having to keep digital bookkeeping records and submitting information to HMRC four times a year (as if once a year isn’t enough for us) this delay might, if we are lucky, give time for HMRC to make sure that when it is finally implemented it actually works.
Changes to the Furlough Scheme
When it commenced the furlough scheme meant that furloughed workers must not carry out any work for their employer. This will change from 1 July. Employers will be able to bring back furloughed workers on a part-time basis. The employer must pay the employee in full for the hours worked but can continue to claim […]
Bounce back loan scheme – small/medium sized businesses
For small to medium sized business there is a new loan scheme available. Eligibile businesses can apply to borrow between £2,000 and £50,000 for up to six years with no repayments in the first year. The scheme is government backed. You apply directly to the lender, the first choice for which would typically be your […]
Self-Employment Income Support Scheme (SEISS)
From 4 May HMRC will be contacting self-employed people who are eligible for the Self-Employment Income Support Scheme (SEISS). There is a checker so you can see if you are flagged as entitled to this – you will need your Unique Tax Reference (UTR) and National Insurance number. If you don’t already have a Government […]
Relaxing at a stressful time
Looking after yourself in this stressful time I wanted to share this really good article from the ACCA. We are all in a stressful situation and this has some really good practical advice. The link will open in a new tab. Anxiety, Emotional Quotient and taking care of your own wellbeing I hope you find […]
Coronavirus Resources
The Association of Chartered Certified Accountants (ACCA) is publishing guides to certain aspects of the grants and aid available to businesses and the self-employed as a result of COVID-19. Where these are written in plain English they are being added to the Downloads page (opens in a new tab). Please note that some of these […]
