Is your business winter ready? Warning signs of self-assessment scammers, using the new online form for the VAT Flat Rate Scheme, plus changes to Alcohol Duty
Welcome to our round up of the latest business news for our clients. Please contact us if you want to talk about how these updates affect your business. We are here to support you!
Is your business winter ready?
Disruptions due to the weather can happen anywhere at any time. Taking time to plan and prepare your business can save you time and money when something untoward happens.
There are simple steps all businesses can take to ensure that they are prepared for adverse weather such as:
- signing up for flood warnings;
- installing flood protection systems;
- checking your insurance policy covers weather damage to your property – make sure you have suitable insurance, the Association of British Insurers provides helpful information; Commercial property insurance is particularly relevant;
- having a business continuity plan;
- making copies of your insurance documentation and key contact information; and
- preparing a grab bag with essential items which can be easily accessed should the premises be evacuated.
Businesses are also encouraged to be aware that harsh weather conditions could leave staff unable to travel to work and therefore should evaluate the risks and provide solutions to being understaffed during this time.
See: Preparing for emergencies – GOV.UK (www.gov.uk)
Self-Assessment scam warning
HM Revenue & Customs (HMRC) is urging Self-Assessment customers to be on the lookout for scam texts, emails, and phone calls from fraudsters.
Scammers impersonating HMRC
With a large number of people expected to submit a Self-Assessment tax return for the 2022-23 tax year before the 31 January 2024 deadline, fraudsters will prey on customers by impersonating HMRC.
The scams take different approaches. Some offer a tax rebate; others tell customers that they need to update their tax details or threaten immediate arrest for tax evasion.
What to do if you suspect a scam
An unexpected contact claiming to be from HMRC should be viewed as suspicious. Take your time and check HMRC’s scam advice on how to identify tax scam phone calls, emails, and text messages.
You can report any suspicious communications to HMRC by:
- forwarding suspicious texts claiming to be from HMRC to 60599;
- forwarding emails to ; and
- reporting tax scam phone calls to HMRC.
Filing your Self-Assessment tax return
If you need to file a Self-Assessment tax return for the 2022 to 2023 tax year, you must do so and pay the tax you owe by the deadline of midnight on Wednesday 31 January 2024.
See: Self Assessment tax returns: Overview – GOV.UK (www.gov.uk)
Welcome to Business Finance Week 2023!
From 6-10 November the British Business Bank, along with several partners from across the UK, will host Business Finance Week 2023.
With a host of free of charge nationwide and regional in-person events, webinars and more, Business Finance Week helps smaller businesses learn about the different finance options available to them to support their individual needs.
Some of the events running are:
- An introduction to angel investment
- Demystifying early-stage equity finance
- Founder Fables and Investor Tales: Common mistakes and how to avoid them
- How to start your business and avoid costly mistakes
- Making sense of start-up funding: Where do I start?
- Starting up the right way: How to supercharge your start-up with investment
- Growing your business: An interview with a founder
- Meet the experts in finance for business growth
- Investment for innovation
- Inspiring inclusive entrepreneurship
See: Business Finance Week 2023 – British Business Bank (british-business-bank.co.uk)
The VAT Flat Rate Scheme – new online form
The amount of VAT a business pays or claims back from HM Revenue and Customs (HMRC) is usually the difference between the VAT charged by the business to customers and the VAT the business pays on their own purchases.
With the Flat Rate Scheme:
- you pay a fixed rate of VAT to HMRC;
- you keep the difference between what you invoice your customers and pay to HMRC;
- you cannot reclaim the VAT on your purchases – except for certain capital assets over £2,000; and
- to join the scheme your VAT turnover must be £150,000 or less (excluding VAT), and you must apply to HMRC.
The main benefits of the scheme are:
- simplified record keeping, as you do not have to keep detailed records of sales and invoices;
- fixed rate percentages that are lower than the standard rate; and
- it helps manage cash flow.
HMRC has launched new online form for businesses to apply for the VAT flat rate scheme: Form VAT600FRS.
The Flat Rate Scheme isn’t the best choice for all businesses. Depending on your sector, you may find that you pay more VAT this way than through standard VAT accounting, so please talk to us and we can give you all the information to make the right choice.
See: Flat Rate Scheme for small businesses (VAT Notice 733) – GOV.UK (www.gov.uk)
Alcohol Duty Reform
Changes to Alcohol Duty took effect on 1 August 2023. This includes new reliefs which could reduce your tax bill:
- A Small Producer Relief: which reforms and extends the relief previously enjoyed by small breweries, to producers of all alcoholic products under 8.5% ABV; and
- A reduced rate for draught products also known as Draught Relief, which reduces the tax due on draught alcoholic products under 8.5% ABV, packaged in containers of at least 20 litres, and designed to connect to a qualifying dispense system.
Please contact us to check if you can take advantage of the new reliefs and transitional arrangements for producers and importers of some wine products.
You can find guidance on the new Alcohol Duty rates, Small Producer Relief, and how to submit returns and pay duty here: Alcohol Duty from 1 August 2023 – GOV.UK (www.gov.uk)