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Welcome… To the latest edition of Tax Tips & MYOB News, our monthly newsletter designed to keep you one step ahead. MYOB tip for November – Speeding up access A few of our clients using MYOB and Acclivity (both on Mac and PC) have recently had problems with their networks.  If these are not managed, access to the datafile can become slow.  Here are a few suggestions to speed up access. 1. Take a copy of the whole raw datafile into a backup folder. Then Purge all closed prior year transactions. Go to each Command centre Item (Accounts, Banking, Sales etc) one at a time, select File, then the Purge option for that Command Centre. Purge transactions not needed on a daily basis and reducing the datafile size should increase the speed.  The backup will still have all data should it need to be retrieved. 2. Do frequent backups.  Verify Daily. 3. Do frequent optimisations 4. Have a good look at network setup to ensure it is optimal. There are some guides on the Australian MYOB website for different operating systems. General XP Win 7 Vista   November 2013 · Using the SEIS · Earn-out Payments on Business Sales · VAT and Indirect Exports Change · Self Billing · November Question and Answer Section · November Key Tax Dates Using the SEIS top The seed enterprise investment scheme (SEIS) is designed to help small companies raise modest amounts of funding (up to £150,000). The investor must subscribe for new shares issued by the company (not buy them from another shareholder), and in return he can claim income tax relief equal to 50% of the cost of those shares. If the investor has made a capital gain in the same tax year as he makes the SEIS investment, up to 50% of the amount invested in SEIS shares can be set against that capital gain to reduce the CGT payable. This CGT reduction was 100% for gains in 2012/13, but is only 50% for gains arising in 2013/14. That sounds wonderful, but there are a lot of conditions for the investor and the company to comply with before the SEIS tax relief can be given. Read More   Earn-out Payments on Business Sales top   VAT and Indirect Exports Change top When you sell a business, you may receive some of the consideration up front and another payment later if the business meets certain targets, that later payment is called an ‘earn-out’. How this earn-out is taxed can be tricky to work out, as it depends on a number of factors. For example: is the earn-out to be paid in cash or as shares or bonds, or is there a cash alternative to the offer of shares/bonds? Can the value of the earn-out be determined at the time the business was sold, or not until some later event has occurred? Determining or ‘ascertaining’ the value of the earn-out is crucial for your capital gains tax computation. Read More When you export goods to a country outside the EU the goods are ‘zero-rated’ for VAT purposes, which means you do not apply VAT to the value of the goods. However, you need to have the paperwork to prove that the goods left the UK. If your customer does the physical exporting, in that they take possession of the goods in the UK and handle the shipping, this is called an ‘indirect export’. HMRC has previously only allowed you to zero rate the goods in this situation if your customer was an ‘overseas person’ – they had no VAT registration in the UK and no business establishment here. Also the goods must leave the UK within three months of the handover date. Read More   Self Billing top   November Question and Answer Section top The procedure of ‘self-billing’ is frequently used in the publishing and construction sectors, where a large business customer engages lots of smaller businesses as suppliers (eg authors or subcontractors). The customer issues self-billed invoices on behalf of the small suppliers, usually with the payment to each supplier. If you are operating self-billing you must comply with the conditions set out in the VAT Notice 700/62: Self Billing. These conditions have recently changed, so make sure you download this latest version of the VAT notice from the HMRC website. In particular there is a new legal requirement to mark all self-billed invoices as ‘SELF BILLING’. The key requirement of self-billing is that the suppliers must actively agree to self-billing, and provide the customer with their VAT details (registration number and address). Those that do not sign a self-billing agreement must issue their own invoices to the customer. When you operate self-billing you should review your agreements at least once a year. This involves checking with the supplier that their billing details are still correct, and whether their business is VAT registered or not. In the recent recession many businesses have deregistered for VAT but have carried on trading. It is important to get the supplier’s VAT details right, If you issue a self-billing invoice on behalf of a supplier, that includes VAT, when the supplier is not VAT registered, your business will over-claim VAT. This will result in penalties and interest for your business. Your annual review of self-billing agreements does not have to be conducted all at the same time; the agreements can be reviewed on a rolling basis. Q. After purchasing a residential property to let, I spent a considerable amount on kitchen refurbishments and a new central-heating boiler, before letting it for the first time. Can I claim those costs against the rents for tax purposes?Answer Q. The Taxman has written to me saying I missed a small pension worth about £800 a year from my last tax return. He hasn’t noticed that I also missed it off the last four tax returns. What should I do? Answer Q. I’ve just won a sports car! The snag is the prize is only available from the company’s headquarters in Seattle, USA, although there is a cash alternative. Are there any tax implications of accepting the prize in the form of the car or as cash?Answer   November Key Tax Dates top 19/22 – PAYE/NIC, and CIS deductions due for month to 5/11/2013   Need Help? top   New Clients Welcome top Please contact us if we can help you with these or any other tax or accounts matters. In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list. If you are not already a client and are interested in becoming one, we would love to discuss how we can help and provide you with a competitive quote for our services. See details of our Business Companion Service.   About Us top Simple Accounting Limited offers a cost effective Business Companion service to business owners who use MYOB, Acclivity, Mamut, Solar Accounts, Quickbooks or Clearbooks. We offer a range of accountancy services despite being specialists. ‘All clients using these software packages can benefit from our support. Visit our website http://www.simpleaccounting.co.uk for a look at the resource on offer.’   If the images do not show. If the images contained within this email do not show correctly please add this email to your safe senders list.

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