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Showing posts from tagged with: accountancy

VAT changes to eBay charges

Posted by Charlotte Morley in Accounts, Business, News, Sales, Tips, Xero | 0 comments

eBay recently wrote to business sellers to remind them of the upcoming changes to how VAT will be charged on fees. Effective from the 1st of August VAT will be applied to all fees. For the first time sellers will be able to reclaim the VAT on their VAT returns.

Historically sellers were unable to reclaim VAT but if they gave eBay their VAT number eBay would deduct the VAT at source. Then for the past 18 months eBay had special dispensation to not charge VAT for any business seller (even if they weren’t VAT registered).

This follows on from last year’s package of measures introduced by the Chancellor, aimed at tackling the rapidly growing VAT evasion by overseas traders that sell goods in the UK via online marketplaces such as eBay, Amazon and others. As a result, HMRC was given the power to force online marketplaces to ensure that their overseas customers were registered and accounting for VAT or risk being liable for the VAT themselves.

The change to how eBay charge VAT

Now, from the 1st of August eBay UK will bill from a UK entity and charge VAT on fees and only those who are VAT registered and able to claim input tax credits will be able to recoup the VAT paid to eBay.

Many sellers have welcomed the move – eBay will be charging VAT as a UK entity and the VAT will be passed to the exchequer. Sellers, especially those who have been suspected of dodging VAT will find the VAT added to their eBay invoice and if they’re not registered for VAT with HMRC won’t be able to claim it back!

For sellers who can reclaim VAT it’s effectively just a cash flow and accounting change with no financial impact to their bottom line.

Those it will negatively impact

There are a few sellers who will be negatively impacted – sellers registered as businesses whose turnover is too small to compulsorily register for VAT will either start paying VAT at 20% or take the decision to voluntarily register. Also sellers on certain VAT schemes who are unable to reclaim input VAT will also see their costs rise. It’s important to realise that this isn’t eBay’s fault however (net fees are not changing). VAT is a government mandated charge and for the past 18 months sellers have had a free ride and it’s just that this added Brucie bonus is coming to an end.

What if you’re billed mid month?

If you’re a business seller billed on the 15th of the month, your invoice dated the 15th of August 2017 will show VAT on all your fees. However, you’ll also see a credit for any VAT applied to your fees between the 16th and 31st of July.

If you need further help or have questions on VAT, we’d be happy to help. Perhaps we can help organise your accounts with a free month of Xero? Get in touch to organise a free of charge consultation. Drop us an email hello@thebusinesshut.co.uk or give us a call 01858 289189

Thanks for stopping by,

Charlotte

Introducing the Xero App Marketplace

Posted by Alex Ruck in The Business Hut | 0 comments

For so many modern business challenges, there is an app solution.  If finding the programs that are perfect for your business is difficult, finding ones that are compatible with each other can be impossible.  The Xero App Marketplace is a great place to start looking as it’s filled with apps that connect with and support Xero. There are over 500 out there, covering every possible business need. You can search via both the app function and business type.

There are new apps being added all the time, and here are some recent highlights.

Grow
Business intelligence software for small businesses looking to accelerate growth, Grow specialises in bringing together data from different sources, so you can compare Xero reports with other data. Grow is easy to use, with a customisable dashboard and uncluttered display. Insights are tailored to your business and key objectives can be highlighted with the easy customisation options.

ExcluServ Connect
ExcluServ Connect integrates Concur and Xero. Concur is a powerful app that controls all your expenditure, managing expense, invoice and travel. ExcluServ Connect provides support for managing billable expenses and viewing all your expense receipts as attached images to Purchase Invoices in Xero.

CaFE
CaFE stands for Cash Flow Engine and allows for accountants and bookkeepers or their clients to manage cashflow. The app is always running and automatically syncs, so can highlight impending shortfalls and surpluses instantly. It is always there when you need it and the reports produced are easy to understand.

Instafile
Every app should focus on saving time and minimising hassle, and Instafile does both brilliantly. It lets Xero users file Limited Company Accounts and Corporation Tax Returns directly with Companies House and HMRC; an easier way to do statutory year end filings, saving lots and time and avoiding the mistakes manual data-entry can lead to. Its compatibility with Xero is seamless as the app was developed with constant of feedback from the Xero user community.

Using cloud accounting software and applications puts you in control. You can decide who can view data, and control each user’s level of access. The cloud really is the safest place for your accounts to be.

To find out more about Xero Cloud Accounting or moving your accounts, get in touch. We’d be happy to help. Email us at hello@thebusinesshut.co.uk or phone 01858 289189

If you want to talk to us about your requirements for a bookkeeper or accountant, we offer completely free of charge business consultations so we can get to know each other and see if The Business Hut is a good fit for your own business.

Thanks for stopping by,
Alex

Source: Xero

New Financial Year Goals!

Posted by Charlotte Morley in Accounts, Business, Start Ups, The Business Hut, Tips, Xero | 0 comments

Procrastination is part of human nature, it’s amazing how mundane things like housework become super important when you have a project on the go or deadline that should be tackled. The house and garden usually gain more attention when putting something off. As small business owners one of your new year’s resolutions may have been to convert to a new accounting software in the new financial year.

What is the Confirmation Statement?

Posted by Charlotte Morley in Accounts, Business, News, The Business Hut | 0 comments

You may have heard that from 30th June 2016 the confirmation statement replaces the annual return. We often get asked what this means and understand that you may still have questions. We’ve provided the details you need to know in our latest blog.

A Rise in the National Living Wage – April 17

Posted by Charlotte Morley in Accounts, Business, News, The Business Hut, Tips | 0 comments

From 1st April 2017 The National Living Wage (NLW) was given a little bump! The rise to £7.50 per hour is in line with Chancellor Phillip Hammond’s Autumn Statement announcement in November. The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker’s age and if they are an apprentice.