SDLT - payment deadline, not payable on and trading house
rates
- must pay duty within 14 days of the effective date of transaction (usually completion)
- not payable on purchase price attributed to things such as carpets, curtains etc
- if trade house, pay SDLT on market value
Rates;
- up to £125k - 0%
- 125k-250k - 2%
- 250-925 - 5%
- 925 - 1.5m - 10%
- 1.5m+ - 12%
SDLT - Anti-avoidance - what % charged when
Second resi SDLT rates and main resi + refund
- 15% charge when companies or collective investments buy property over £500k
Second resi SDLT rates;
- 3%
- 5%
- 8%
- 13%
- 15%
- does not apply if main resi is being replaced and refund can be claimed if main resi is sold within 36 months
SDRT on shares - how much on shares, what are exempt, payable by who, shown where and CGT
- 0.5% stamp duty on shares and rounded up to the nearest £5
- stamp duty of transactions less than £1k are exempt
- payable by purchaser and shown in contract note
- can be deducted for CGT purposes
VAT - what is input and output VAT
- offset, trader must complete what and how often, VAT can be reclaimed when, cars and entertainment and exempt/mixture
Input VAT - vat paid on goods and services purchased
Output VAT - vat paid to HMRC for goods and services sold
- value of input can be offset against output VAT
- trader must complete VAT return (usually quarterly)
- vat reclaimed if input vat exceeds output
- some cannot be reclaimed (cars and entertainment)
- businesses with exempt supplies (banks & insurance) or mixture are restricted to amount of input vat that can be recovered
VAT registration - when must they register, >£85k notification, expect to exceed this when and notification, voluntary and deregister
- must register if make taxable supplies above set limit
- if more than £85k in past 12 months, must notify HMRC within 30 days of the end of the month in which exceeded.
- if expected to exceed in the next 30 days, must notify before the end of 30 day period
- voluntary registration for lower levels is possible
- can deregister if trades fall below £83k
VAT - zero rated supplies;
- food, books, buildings, services, transport, chemist, clothing and women
- most food and some drinks (restaurants etc standard rate, however)
- water and sewage supply
- books and publications
- sales of new resi buildings, charity buildings and renovated houses empty for more than 10 years
- services for new builds or charities
- public transport
- drugs
- clothing for children
- women’s sanitary products
VAT - reduced rate supplies - what rate and includes;
- fuel, energy, contraception, car, disabled, smoking, renovation and hospitality and current rate
- rate of 5% and includes;
- fuel for domestic and charity use
- installation of energy saving material
- contraceptive products
- children’s car seats
- mobility aid
- smoking cessation products
- certain property renovations and conversions
- certain hospitality and hotels (subject to new rate of 12.5% until March 2021)
Exempt supplies - whats not charged and cannot reclaim, includes what (5)
Partially exempt - input tax and can reclaim all input if (amount and total)
Exempt;
- output vat not charged but input vat cannot be reclaimed on these
- include insurance, finance, health, education and burial services
- leases and sales of commercial land over three years old
Partially exempt;
- when they both exempt and taxable supplies
- generally not able to recover input tax relating to exempt supplies
- however, can reclaim all input if exempt vat is no more than £625p.m or half of total input vat in relevant period
Flat rate scheme - who use this, how does it work (%), sector, limited cost business rate and what are they, amount to qualify for this, reclaims, who not suited, complex, stay in scheme until when (£) and advantages (2)
Small business can use optional flat-rate scheme to calculate their liabilities;
- allows then to account for VAT as percentage of taxable turnover rather than input/output
- flat rate varies depending on sector
- limited cost business must use flat rate of 16.5% - little advantage using this
- limited cost business spends less than 2% of turnover on g&s or spends more than 2% but less than 1k a year in vat
- to qualify, must have annual taxable turnover of £150k
- no reclaims on any vat purchases (capital purchases worth more than £2k can be)
- businesses with vat refunds not suited for FRS as lose benefit of claiming input vat
- complex for businesses that trade across borders
- can stay in scheme until business income over £230k
- means vat admin simplified and billl can be reduced
VAT - imports and exports - trading in and outside EU difference?, export rate and special rules for who
- businesses in UK trading with EU treated same as trading outside EU
- normally same rate as if goods are in the UK
- export of goods are zero-rated
- special rules for goods moving between NI and UK and NI and EU
Corporation tax - pay corp tax on what (3), rate and rising to what when
- pay corp tax on trading profits, investment income and chargeable gains
- rate of 19%
- will rise to 25% from 04/23 for businesses with profits >£250k
Corp tax - trading losses & payments of corp tax - loss must be claimed within what period, excess loss carried back to?
Payment;
- large companies (classed as?) must pay when?, same for smaller companies, tax return submission, residency and incorp and resident and management/control
- must be claimed within two years of loss making period (extended to 3 years temporarily)
- excess loss can be carried back 12 months and may result in repayment of corp tax or reduction in bill
- large companies (over £1.5m profit) must make quarterly payments of tax liability
- smaller companies must pay 9 months and one day after end of accounting period
- must submit tax return within twelve months of EOAP
- all companies incorporated in UK count as UK resident
- if incorporated overseas, they are UK residents if central management and control is exercised in UK
