Business Advice

VAT Charges for Online Marketplace | VAT Advice for Selling Online | VAT Help Bristol | VAT Advice Online
VAT Charges for Online Marketplace 758 513 Stepping Stones Accountancy

VAT Charges for Online Marketplace

More and more people are setting up their own businesses as a result of COVID-19, whether it be because of redundancy or just taking a fresh look at life following lockdown and deciding to make a change.

When these businesses start out though they only have a small client base, so for these vendors the quickest route to get their goods or services to a larger market can be via a third-party online marketplace such as Etsy or Amazon.

Whilst this is an attractive and seemingly simple way to reach new customers, there are some considerations that need to be taken into account when selling in this way, such as commission fees, transaction charges and VAT charges. Things to be aware of include:

  • VAT is payable on the full price of the product or service, not the net amount after fees have been paid to the online marketplace.
  • If the online marketplace is based outside of the UK, as is often the case, a UK business that is VAT registered must apply the reverse charge on their VAT return.
  • If the sales are to EU based customers, as of the 31st December 2020 it is important to remember that the transitional deal ends and VAT will be charged at the rate of the customer’s country where applicable.
  • Sales to UK customers will be at standard rate.
  • Sales to customers outside of the EU are not liable for VAT.
  • Where a business is not VAT registered, any payments to overseas suppliers are treated as taxable sales.

The rules can seem somewhat complicated so if you are unsure about how they apply to your business it is important to seek advice from and accountant who will be able to clarify what VAT payments are due.

If you have any questions or need some assistance then please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk

The Client Journey 150 150 Stepping Stones Accountancy

The Client Journey

In our latest animated video we give an example of how simple it is to outsource all of your accountancy needs to Stepping Stones.

The Power of Diversification | Accountancy Support for Diversification | Helpful Accountant in Bristol
The Power of Diversification 758 513 Stepping Stones Accountancy

The Power of Diversification

In today’s ever-changing landscape many businesses have had to take the approach of adapt or face the harsh reality of closing their doors. This is especially true for the retail sector.

For example, the local fruit and veg supplier with a small shop on the high street will testify that they had to be innovative and resilient in order to survive. With everybody locked down and shops closed nobody was able to call and shop for their fresh fruit and vegetables, instead they had to diversify and accept orders online and via telephone, then deliver door to door.

Very quickly they had to put in place a simple online ordering system which customers could use and then plan a logical delivery route in order to efficiently fulfil the orders. After 1 week the shop had tripled its orders and were asked if they could expand their product range to include other items. So, in order to meet the demand, they were able to introduce an additional 200 products to their range.

The long-term future also looks bright and the shop has opened its doors again which means that not only can it can now offer more products, it provides customers with the choice of purchasing face to face, via telephone or online and can deliver to homes within a 15-mile radius. All of which they had not even considered prior to COVID-19.

The one area that really helped the shop was the role of their accountant. They spoke at great lengths with their accountant who provided advice, recommendations and guidance on what to do and what would be needed in order to meet the demands of a varying client base. Any small business needs to be surrounded by good people and an accountant can become a very valuable business partner both in good times and bad.

If you own a business and are thinking about diversifying, then our team would be delighted to answer any questions. Please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk

Keeping on Top of your Accounts 150 150 Stepping Stones Accountancy

Keeping on Top of your Accounts

In our latest animated video we give an example of how Stepping Stones can helping you stay on top of your accounts.

Cashflow Forecasting | Business Support with Cashflow | Accountancy Help Bristol | Help Planning Cashflow
Cashflow Forecasting 758 513 Stepping Stones Accountancy

Cashflow Forecasting

Cashflow has never been more important for businesses than in 2020. The Coronavirus pandemic has shaken businesses to the core and with the potential of a second wave a potential second wave, company owners are left wondering if their business can survive another lockdown.

With government support tapering and uncertainty about what the next few months hold, cashflow forecasting is vital to understand the position of the business. Historically, many owners have worked this out in their heads or in convoluted spreadsheets but the danger is that something gets forgotten and a large, unaccounted for, outgoing could cripple the business.

Now, more than ever, accounting software is vital. A simple, easy to understand, forecasting tool that helps businesses understand their financial position and identify areas for concern, before they become overwhelming, is something that can help businesses navigate the turbulent months ahead. By understanding the business needs in advance, company owners can try to mitigate any risks identified, putting them in a stronger position to survive any further lockdowns that may come.

Our job is to guide you through the implementation and interpretation of the data in order to provide accurate cashflow forecasting. Making the process as simple and easy to manage as possible will ensure that you have real time data, providing accurate updates at any time to help underpin any vital business decisions that need to be made.

If you have any questions or need some assistance then please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.

Flexible Furlough Planning | Accountancy Help with Furlough Scheme | Advice on Coronavirus Job Retention Scheme
Flexible Furlough Planning 758 513 Stepping Stones Accountancy

Flexible Furlough Planning

The Flexible Furlough Scheme was launched by the Government on the 1st July as the next stage of the coronavirus job retention scheme. It was designed to replace the initial furlough scheme and provide employers with more flexibility with regards to bringing staff back to work on a part-time basis.

Full details of the scheme can be found on the GOV.UK website however, the following provides a useful summary of the key points:

  • The scheme is operational from 1st July 2020 until 31st October 2020.
  • Claims can only be made for an employee under the new scheme if they were furloughed under the old scheme for 3 consecutive weeks between 1st March 2020 and 30th June 2020. This means that the 10th June 2020 was the latest date by which an employee must have been furloughed for the first time.
  • There are exceptions to this rule which include military reservists and employees returning from statutory parental leave.
  • All employees who were part of the old furlough scheme are eligible for the new flexible scheme.
  • From 1st August employers must start paying NI and pension contributions again.
  • From 1st September employers must contribute towards the cost of employees’ wages again. The amount of government support available will be tapered until the end of October.
  • Employers are able to decide the working hours and shift patterns of their employees. This provides companies with the flexibility to utilise staff as much, or as little, as needed.
  • Working patterns will need to be confirmed weekly in order to make a claim under the scheme.
  • Working patterns must be notified to employees in writing.
  • There is no minimum furlough period.

If you have any questions or need some assistance then please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk

Difference Between a Grant & A Loan 150 150 Stepping Stones Accountancy

Difference Between a Grant & A Loan

In our latest animated video we answer popular question of what is the difference between a grant and a loan.

State Aid & Covid-19 | Accountancy Support for Business in Bristol | What is State Aid | Can State Aid Help Me
State Aid & COVID-19 758 513 Stepping Stones Accountancy

State Aid & COVID-19

With the current COVID-19 crisis many businesses continue to seek government support to help them with the uncertainty of the months ahead. Whilst this aid is undoubtedly a lifeline for many, it could lead to potential problems in the future as businesses that benefit from such schemes can be said to be benefitting from State Aid.

Under EU legislation, a business can be said to be benefitting from State Aid if it receives aid from an EU member state which could distort competition and trade within the EU. This aid can be in the form of grants, tax breaks or loans and if it is deemed to be only available to certain sectors or industries, then it falls within this remit.

However, schemes that are universally available and not restricted to designated sectors or business size, such as the job retention scheme and deferral of VAT and income tax payments, are not classed as State Aid. Further, the business rates relief available for retail, leisure, hospitality and childcare nurseries are also not classed as State Aid, due to the colossal impact that COVID-19 has had on these sectors.

Monies received under the small business grants fund (SBGF) are classed as de minimis State Aid, providing that they fall under the ceiling of €200,000 over a rolling 3-year period, and as a result do not need EU approval. Though all companies benefitting from the SBGF are required to complete a declaration confirming that the aid does not exceed the threshold, including any previous non-COVID-19 related de minimis aid claims.

In order to support businesses in this tumultuous time, the EU have established a temporary framework within which several State Aid measures can be approved rapidly, whilst still being compatible with the EU’s internal market. The UK State Aid that sits under this temporary framework includes:

  • Retail, hospitality and leisure grant fund (RHLGF)
  • COVID-19 business interruption loan scheme (CBILS), interest and other direct payments
  • Bounce back loans
  • Statutory sick pay (SSP) reclaims
  • SBGF claims that exceed the de minimis cap (see below)

All of these measures are subject to a combined overall cap of €800,000 apart from the CBILS and Self-Employed Income Support Scheme.

If you have any questions on state aid feel free to call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk

How do I Register my Accountant as my HMRC Agent? 1024 541 Stepping Stones Accountancy

How do I Register my Accountant as my HMRC Agent?

We regualrly get asked, “how do I regsiter my accountant as my HMRC agent?”. You will find all the answers in our fun animated video.

Adjusting a CJRS claim for Employment Allowance | CJRS Advice Bristol | Covid-19 Business Support Bristol
Adjusting a CJRS Claim for Employment Allowance 758 513 Stepping Stones Accountancy

Adjusting a CJRS Claim for Employment Allowance

The Coronavirus Job Retention Scheme (CJRS) has been set-up by the Government to enable companies to claim up to 80% of an employee’s wages plus any National Insurance or pension contributions during the coronavirus crisis. However, many companies have been left wondering what impact this new scheme might have on their ability to claim Employment Allowance (EA).

In order to provide clarity to the situation, HMRC have recently confirmed that the rules for claiming and applying for EA WILL NOT change as a result of a claim under the new CJRS for Class 1 National Insurance (NI) costs.

Those employers who are eligible can continue to utilise the EA scheme to pay a reduced amount of NIC until their allowance runs out or until the end of the tax year, whichever is soonest. (Currently the employment allowance scheme enables eligible employers to reduce their annual NI liability by up to £4,000). Eligibility applies to a business or charity where their NI liabilities were less than £100,000 in the previous tax year.

In order to calculate how much National Insurance Contributions an employer can claim back through the scheme, they simply need to subtract any EA that is used in a specific pay period. If the employer finds that the amount of EA being claimed will not cover the total employer NIC which is due, then grants are available.

If an employer chooses to delay their EA claim and as such they have employment allowance that is unused at the end of a tax year, then they can use it to reduce other tax costs.

It is important to note that any business needs to make sure they are not receiving relief for the same costs twice, as this can be considered as fraud and may result in claims being investigated. This is where it is best to consult with full qualified accountant who will be able to provide advice, guidance and support for such matters.

If you have any questions or need some assistance then please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk

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