Started work in ICL-STC 1989, becoming a qualified CIMA in 1994 as Management Accountant for an optical fibre factory & 6 months secondment to Holland. Moved to EEV 1994 as Divisional Accountant, training as 6-Sigma Greenbelt and leaving in 2001 to set up my own Accounting practice. I worked with a variety of SME's, increasingly focusing on sales growth & profitability. In 2018 I started to work with Steve Hackney as a Business Growth Mentor and Consultant, setting up The Business Growth Secret Ltd in 2019.
SATR & Insolvency Who pays for the SATR work? In the circumstances I would suggest to the client that he takes all of his paperwork, including any from the "insolvency" to the local tax office & explains the situation. My experience, by word of mouth admittedly, was that a client was then able to get HMRC to complete the SATR for them.
Yes to the value of the original purchase The interest (only) portion of the mortgage is reclaimable as a cost for tax purposes. However, the reclaimable portion is capped at the original cost of purchase against this property. eg Original purchase £50k (including purchase costs, like solicitor) Current value £200k Mortgage raised today £100k at 7% Annual interest £7,000 Interest reclaimable (50,000*0.07) = £3,500.
A further relief is available if the remaining £50k of the mortgage were used to pay for a second rental property costing £50k or more. This purchase must be within a reasonable period of time and you should be able to demonstrate, if challenged, that you were actively seeking this property purchase for rental between mortgage and acquisition.
Incidentally, the whole £100k cash raised can be used to reduce your own home mortgage without penalty (just gain!).
European VAT No, they should not have added VAT to the invoice. Request a credit note. In the meantime you may wish to pay ex-VAT and send a letter as to why.
In general, if you have imported goods/services from the EU, then there should be no VAT on the invoice. However, the importer is liable to the importing country VAT rate. So, if your company is not VAT registered, you must pay HMCE 17.5% of the Eire ex-VAT figure. If you are VAT registered, you treat it both as an output and input via the normal VAT return ( plus fill in box 9). HMRC helpline for VAT returns is 0845 010 9000.
Alternatively, employees of a UK company may have incurred Vatable supplies whilst working in Eire. There is a separate form for reclaiming the VAT. Again, contact the above.
Materiality & Veracity Just some thoughts.. How big is the variance, ie is it material to the standard? If it is very large, it begs the question of it's veracity in the absence of a cause.
Standards and variances are set by management to give feedback control information. In my experience they want to know what is generally going on. They also want to improve performance, so giving good feedback to subordinates is part of that, and having their own brownie points noted also goes down well with your relationship with them in the longer term. So if your management accounting report mentions favourable variances twice as large as the adverse ones, I have found this to be useful. Who wants to always carp, anyway? I always investigated to the same degree before accepting any material variance in the accounts. Constant and large favourable variances to a standard, particularly at the beginning of the year, may indicate the laxity of the budgeting process in terms of improvement drive. Depends on culture, though. A standard may have been set on the basis of end of last period performance so that full improvements in the next period can be used for evaluating individual / team performance in annual appraisal. Hence you may already be expecting a large adverse variance because you experienced the standard setting. It doesn't usually take more than a 2 minute phone call to the right person to confirm how well things have gone in the period to confirm a variance.
Seriously.....forget the wine Certainly some relief from spiralling PII costs because the greedy activities of the big boys would be very wellcome to a small practictioner such as myself.
Reductions on tax manuals would be good,too. Anything which would help me reduce my practice costs, like discounts on stationery. Anything doing on service providers for telephone calls?
With regards to wine.... after 24 years of trying to get the hang of it, I recently decided that I don't generally care very much for it. So really, something more innovative than that, anyway, please.
I SAy, can I join? I SAw your emails and laughed. InSAnity beckoned me, too. Membership more limited than the Jehovah's Witnesses, without the need to knock on doors - IAST - I Support (the) Almighty Taxman.
Sales Margin never exceeds 100% The easy way to remember the difference between Sales Markup and Sales Margin is that Sales Margin never exceeds 100%. Therefore the denominator for Sales Margin must be the nett sales price.
My answers
SATR & Insolvency
Who pays for the SATR work? In the circumstances I would suggest to the client that he takes all of his paperwork, including any from the "insolvency" to the local tax office & explains the situation. My experience, by word of mouth admittedly, was that a client was then able to get HMRC to complete the SATR for them.
Yes to the value of the original purchase
The interest (only) portion of the mortgage is reclaimable as a cost for tax purposes. However, the reclaimable portion is capped at the original cost of purchase against this property. eg
Original purchase £50k (including purchase costs, like solicitor)
Current value £200k
Mortgage raised today £100k at 7%
Annual interest £7,000
Interest reclaimable (50,000*0.07) = £3,500.
A further relief is available if the remaining £50k of the mortgage were used to pay for a second rental property costing £50k or more. This purchase must be within a reasonable period of time and you should be able to demonstrate, if challenged, that you were actively seeking this property purchase for rental between mortgage and acquisition.
Incidentally, the whole £100k cash raised can be used to reduce your own home mortgage without penalty (just gain!).
Ann Dartnall
Abacus 161 Ltd
Chelmsford
European VAT
No, they should not have added VAT to the invoice. Request a credit note. In the meantime you may wish to pay ex-VAT and send a letter as to why.
In general, if you have imported goods/services from the EU, then there should be no VAT on the invoice. However, the importer is liable to the importing country VAT rate. So, if your company is not VAT registered, you must pay HMCE 17.5% of the Eire ex-VAT figure. If you are VAT registered, you treat it both as an output and input via the normal VAT return ( plus fill in box 9). HMRC helpline for VAT returns is 0845 010 9000.
Alternatively, employees of a UK company may have incurred Vatable supplies whilst working in Eire. There is a separate form for reclaiming the VAT. Again, contact the above.
Ann Dartnall
Abacus 161 Ltd
Chelmsford
Materiality & Veracity
Just some thoughts..
How big is the variance, ie is it material to the standard? If it is very large, it begs the question of it's veracity in the absence of a cause.
Standards and variances are set by management to give feedback control information. In my experience they want to know what is generally going on. They also want to improve performance, so giving good feedback to subordinates is part of that, and having their own brownie points noted also goes down well with your relationship with them in the longer term. So if your management accounting report mentions favourable variances twice as large as the adverse ones, I have found this to be useful. Who wants to always carp, anyway? I always investigated to the same degree before accepting any material variance in the accounts.
Constant and large favourable variances to a standard, particularly at the beginning of the year, may indicate the laxity of the budgeting process in terms of improvement drive. Depends on culture, though. A standard may have been set on the basis of end of last period performance so that full improvements in the next period can be used for evaluating individual / team performance in annual appraisal. Hence you may already be expecting a large adverse variance because you experienced the standard setting. It doesn't usually take more than a 2 minute phone call to the right person to confirm how well things have gone in the period to confirm a variance.
Ann Dartnall (ACMA)
Seriously.....forget the wine
Certainly some relief from spiralling PII costs because the greedy activities of the big boys would be very wellcome to a small practictioner such as myself.
Reductions on tax manuals would be good,too. Anything which would help me reduce my practice costs, like discounts on stationery. Anything doing on service providers for telephone calls?
With regards to wine.... after 24 years of trying to get the hang of it, I recently decided that I don't generally care very much for it. So really, something more innovative than that, anyway, please.
I SAy, can I join?
I SAw your emails and laughed.
InSAnity beckoned me, too.
Membership more limited than the Jehovah's Witnesses, without the need to knock on doors - IAST - I Support (the) Almighty Taxman.
Can you make mine a gin & tonic?
Ann
Sales Margin never exceeds 100%
The easy way to remember the difference between Sales Markup and Sales Margin is that Sales Margin never exceeds 100%. Therefore the denominator for Sales Margin must be the nett sales price.