Harnett Accontants

Tag: tax tips

  • – Vat Reclaim Cases Will Cost Taxman Billions

    Accountancy

    – Vat Reclaim Cases Will Cost Taxman Billions

    bring you this report from Accountancy Age, revealing how VAT claims going back as far as 1973 are now going through the European courts, and could see the taxman repaying tens of billions in repayments:

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    “THE COURTS are presumably growing tired of VAT reclaims cases now.

    At least, if they aren’t, they soon will be.

    In July, former high street retailer Littlewoods had its claim sent back to the UK courts by the European Court of Justice, sparing – at least temporarily – HM Revenue & Customs a bill that could have run into the billions.

    The dispute centred on whether refunds on VAT overpayments, made by Littlewoods between 1973 and 2004, should have been refunded with simple interest or with compound interest.

    The claims were made where customers had failed to fully pay for goods, but the retailers had paid the full VAT onto the taxman. Many now predict the UK court will rule in the taxman’s favour, which will see the VAT returned to Littlewoods with simple interest.”

    If you need advice about reclaiming overpaid VAT, or making sure that your business pays the correct amount of VAT without overpaying, please contact for a free no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with VAT returns and compliance?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • – Child Benefit Clawback

    Accountancy

    – Child Benefit Clawback

    present another useful tax tip about changes to child benefits in force from next year:

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    If your net taxable income last year was £50,000 or more you will shortly receive a letter from the Tax Office about child benefit. You can safely bin this missive if your children are no longer eligible for child benefit, but where you or your partner/spouse claim child benefit you need to pay attention.

    This is because from 7 January 2013 the higher earner in the family (where that person has £50,000 or more of income) will be landed with a tax charge to clawback the child benefit claimed in respect of the children. The tax charge will equal 1% of the child benefit received by the family for every £100 of income over £50,000, so 100% of the child benefit will be clawed-back when the higher earner has net taxable income of £60,000 per year.

    The tax charge only applies to child benefit paid from 7 January 2013 onwards, and will be calculated on your net taxable income for the current tax year: 2012/13. Net taxable income is income after deduction of losses, pension contributions and gift aid payments but before personal allowances. So there is some scope for reducing your net income below £50,000 by paying pension contributions, gift aid donations, or by taking a smaller dividend from your own company in the current tax year. But those strategies, and other ways to manage your income, need to continue until the children are no longer eligible for child benefit.

    You will be given the option of declining to receive child benefit to avoid the tax charge, and this will be explained in the Taxman’s letter. However, this is not the same as not making a claim for child benefit. It is important to make a claim for child benefit (even if your decline to receive it) as the claim can help entitlements to the state pension for a non-working parent, and ensures the child receives a NI number at age 15.

    If you need help with Child Benefits or other tax issues, please contact for a free no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with pension and retirement planning?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • – Self Billing

    Accountancy

    – Self Billing

    offer this useful advice on self billing:

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    ‘Self-billing’ is where the customer in the supplier/customer relationship raises the invoices to themselves for work done or goods provided by the supplier, instead of the supplier raising those invoices. Self-billing helps large organisations that need to pay out lots of small amounts to hundreds of suppliers. It allows their purchase invoices to be standardised which saves costs when processing, and payments to be made automatically at the time the invoice is raised.

    However, there are significant disadvantages for the supplier who agrees to self-billing. The supplier losses control of when invoices are raised and may have no control over the amount billed and the amount of VAT shown on the invoice.

    Although the VATman’s guidance on their website says that the recipient of the supply (i.e. the customer who raises the self-billed invoice) is responsible for ensuring the invoice carries the correct VAT amount, it is actually the supplier who remains responsible for the amount of VAT charged.

    If you are signed-up to self-billing as a supplier don’t assume that the VAT shown on the invoices you receive from your customers is correct. You will remain responsible for any errors.

    If you need advice about self billing or VAT payments, please contact for a free no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with VAT returns and compliance?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harnett Accountants Hammersmith – September Tax Q&a Part 2

    Accountancy

    Harnett Accountants Hammersmith – September Tax Q&a Part 2

    Harnett Accountants Hammersmith Welcome you to part 2 of our monthly tax Q&A.

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    Q. My business recently bought an e-book reader from an online retailer. It will be used for business purposes but the retailer is refusing to provide me with a VAT invoice, saying their products are not provided for business purposes, so VAT invoices are not provided to VAT registered customers. How can I get the VAT invoice I need to claim back the VAT charged to my business?

    A. If the customer (you) asks for a VAT invoice the supplier must provide one, but in practice you can’t force the retailer to comply with the VAT law. As long as you have documentary evidence that VAT was charged – the amount and rate – and evidence that you have tried to obtain a VAT invoice, you can reclaim the VAT charged in your VAT return.

    Q. I own a number of rental properties but this year I’ve been sued over unpaid service charges. The dispute has been resolved, but I’ve been left with legal costs. Can I deduct those legal costs from the property rental income for the year?

    A. In general any legal fees associated with acquiring or improving the property or defending the title to the property or extending a lease on a property cannot be deducted from the rental income, as they are capital expenditure. Other legal fees associated with annual bills or service charges should be allowable. You should keep all the paper work associated with the dispute just in case the Taxman asks about the legal fees in future.

    Remember to send in your questions by email to have them answered in next month’s Q&A from Harnett Accountants Hammersmith. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with VAT returns and compliance?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harnett Accountants Kensington – Ir35 And Visits From The Taxman

    Accountancy

    Harnett Accountants Kensington – Ir35 And Visits From The Taxman

    Harnett Accountants Kensington are pleased to present more useful tax tips for your business

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    IR35 Business Tests Released

    If you provide services through your own personal service company you will be aware of the tax law known as IR35. This tax rule imposes an extra charge on your company, if you would be treated as an employee of your customer or customers, if you worked for the customer directly. It is very difficult to pin down when IR35 should apply, as it depends on the relationship between the contractor and the customer, which will be different in every case.

    The Taxman thinks he can generalise about what makes some companies fall within IR35 and others escape it. He has drawn-up a set of business entity tests, complete with a scoring system, to help you judge whether your business would be at high, medium, or low risk of being investigated for falling under IR35.

    These business entity tests are not derived from the tax law. They merely represent the Taxman’s view of the risk of a business falling within IR35.

    The scoring attached to the tests is controversial, as it penalises businesses that have no bad debts, never pay to advertise and operate from the owner’s home. These IR35 business entity tests do not change the IR35 law one bit, and will probably be ignored by the Tax Tribunal.

    If you choose to use the IR35 business entity tests, you don’t have to declare your score to the Taxman, the tests are merely for your own guidance. However, if you are concerned that the business entity tests produce a high risk score for your business, we should discuss why this is the case. Are there any changes which can be made to the way your business operates which would make it less likely to be caught by IR35?

    What This Means For You

    We can advise you on the correct tests for IR35, which would be recognised by the Tax Tribunal, so do ask if you would like some reassurance.

    The Taxman has wide powers to inspect your business, but he is supposed to give you at least seven days notice to check on your business property, computer or business records. He is permitted to turn up without warning, but only if tax is immediately at risk, such as where fraud is suspected.

    In spite of these strict rules, tax inspectors do try to examine business records without a prior appointment, or where an appointment has been arranged, the officers may turn up hours early before the tax adviser has arrived. If the Taxman pitches up at your workplace and demands access to your business records, know your rights:

    – Ask to see the inspectors’ ID, which they must carry and check this ID is genuine by telephoning the HMRC office they claim to be from – You don’t have to let the tax officers into your building, and their rules say they must not gain entry by force – You and your staff are not obliged to answer the tax officers’ questions – You are required to provide access at any reasonable time to any computer you use for your business, and help the tax officer extract the computer records, but that’s where your responsibility ends – The tax officers are not supposed to rummage around in your stuff. They can examine materials and records brought to them but they do not have search powers.

    Remember if tax officers turn up unannounced, call us without delay!

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with property tax advice?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harnett Accountants Kensington – Government Lowers Audit Exemption Threshold

    Accountancy

    Harnett Accountants Kensington – Government Lowers Audit Exemption Threshold

    Harnett Accountants Kensington brings you this report from Accountancy Age, revealing that the government has lowered the audit exemption threshold.

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    “THE GOVERNMENT has announced changes to reporting and auditing requirements that will allow more small companies and subsidiaries to decide whether or not to have an audit.

    The changes, announced by business secretary Vince Cable in response to the consultation on Audit Exemptions and Change of Accounting Framework, also make it easier for companies to move from IFRS to UK GAAP.

    “Tackling these problems will help save UK companies millions every year and free them up to expand and grow their business, which ultimately benefits the entire British economy,” Cable said.”

    If you need advice about auditing, or if your company is being audited, Harnett Accountants Kensington are registered auditors and we can guide you through the process. We offer a free one hour, on obligation consultation, and you can contact us through our website or on 020 8977 3883. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with accounting and tax?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harnett Accountants Fulham – September Tax Q&a Part 3

    Accountancy

    Harnett Accountants Fulham – September Tax Q&a Part 3

    Harnett Accountants Fulham are pleased to present part 3 of our September tax Q&A:

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    Q. I’m an IT contractor currently working for a government department through my own company, for £300 per day. I’ve heard that all contractors will have to go on the department payroll. I don’t want to be a wage-slave, so what should I do?

    A. The government has announced that all senior appointments in government departments, such as executive positions, will have to be paid through payroll. This does not apply to other contractors. However, other government department contractors who are engaged for six months or more, and who are paid more than £220 per day, must when their contracts come up for renewal, or start afresh, include terms that allow the government department to seek formal assurance that income tax and NI obligations are being met. We can help you provide this assurance if it is requested.

    Q. I don’t have the all the figures needed to complete the tax credits renewal form, and I’m worried I’ll lose my tax credits as the deadline is 31 July. The main problem is my income is as a musician as I don’t know what my total income is until I receive the royalty statements.

    A. Don’t panic. You are required to return the tax credits renewals form by 31 July, or renew by phone, but you can submit estimated figures for 2011/12. When your self-employed accounts are ready you can submit the final figures and your tax credits award will be adjusted as necessary. As long as you submit final figures by 31 January 2013 you should not lose your tax credits.

    Q. What’s all this about RTI? Do I have to do something by October? Is it going to cost me more?

    A. Real Time Information (RTI) is a new way of submitting PAYE information to the tax office. All employers will have to use RTI by October 2013 (not this year), but some employers are starting to use RTI early in a test phase from April 2012. The aim is to add more employers to the RTI project at intervals, depending on how the first tests go. The tax office says your payroll software should cope with RTI when the time comes. We suggest you ask your software provider when their RTI update will be ready, and how much it will cost. We can help you prepare your payroll for RTI. This involves checking you have the full name, gender, date of birth and accurate NI number for every employee, including those who earn less than the NI threshold.

    What This Means For You

    Remember to email us with your tax questions for next months Q&A. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with payroll management?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harnett Accountants Putney – Government Plans To Unite Sme Incentives

    Accountancy

    Harnett Accountants Putney – Government Plans To Unite Sme Incentives

    Harnett Accountants Putney brings you this report from the Accountancy Age website, revealing new government plans to provide help for SME’s and startups under one centrally managed scheme.

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    “HELP FOR SMEs should be more easily accessible and under the umbrella of one organisation according to ICAEW chief executive Michael Izza.

    As things stand, applying for funding for activities such as employing young people, starting your own business, cheap loans and export support must be done through various different bodies.

    But a state-sponsored small business bank announced by George Osborne last week provides an opportunity to unite those services under one roof.”

    In July, Harnett Accountants Putney reported on a survey revealing that a third of UK SME’s were missing out on tax breaks available to them. More worryingly, at the time of that report, only 1 in 3 UK SME’s were completely aware of all the tax breaks available to them. However, it is hoped that this new decision to unite all of the various incentives and finance schemes under one roof will raise the level of awareness and use of available tax breaks and further help the ailing UK economy.

    If you need advice about tax breaks and incentive schemes, or if you’re unsure about exactly which schemes your company could be elligable for, please contact us through our website or on 020 8977 3883, and we will arrange a free, one hour no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with business start-up advice?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harnett Accountants West London Car Tax Advice

    Accountancy

    Harnett Accountants West London Car Tax Advice

    Many of our clients in West London ask us for advice on Company Cars and the tax implications.

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    Our accountants in Wimbledon have had several such enquiries lately, so we asked Damien to say a few words.

    We hope this is of help.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with accounting and tax?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harnett Accountants Fulham – Bank Of England Plans To Increase Lending

    Accountancy

    Harnett Accountants Fulham – Bank Of England Plans To Increase Lending

    Harnett Accountants Fulham brings you this report from the BBC Business News website, detailing new plans being rolled out by the bank of England to encourage banks to lend more to individuals and small businesses.

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    “Funding for Lending, the new Bank of England and Treasury initiative to boost bank lending to households and businesses, has come into operation.

    The aim of the scheme is to increase bank lending by roughly £80bn, and banks and building societies will be able to access funds until the end of January 2014.”

    As accountants in West London, we see many small businesses and individuals who need access to business finance or mortgages, and over the last four years it has been increasingly difficult to obtain that finance. It’s hoped that by giving commercial banks access to cheaper borrowing (in the form of treasury bills), they will then be able to afford to lend more money to individuals and small businesses. However, there don’t appear to be any safeguards in place to ensure that the funds lent by the Bank of England are actually used to provide more lending to customers, only incentives to reward banks who do increase their lending with a very low interest rate.

    However, this scheme could simply turn into a cheap and heavily manipulated source of finance for commercial banks, with very little or no extra lending to individuals or businesses required. Other critics also cite fears that the worsening Euro zone crises will simply cancel out any good that will come from this scheme completely. There is however some protection for tax payers built into this scheme, namely a way to ensure that commercial banks will have to take a haircut on any losses their incur instead of the Bank of England.

    If you need help or advice with raising finance for your business, or advice about interest rates and loans, please contact Harnett Accountants Fulham, and we will arrange a free one hour no obligation consultation. Contact us through our website or call us on 020 8977 3883. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with accounting and tax?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.