Skip to main content Skip to search

News

EU VAT CHANGES FOR 2015

The measure allows the countries of the EU membership to apply the reverse charge mechanism for a limited period of time with specific conditions also to be taken under consideration. All of this represents a faster procedure..

More specifically, this new directives apply to digital services (everything that can be downloaded or used online)

The area of sectors where this mechanism can be taken to action is broader and it includes also mobile pones, integrated circuit devices, supply of gas and electricity, telecom services, game consoles, tablet PCs and laptops, cereals and industrial crops and raw and semi-finished materials.

As a seller on the market you are responsable to pay the buyers VAT based in their own country (this means any EU country) nevertheless whether you are an EU based company or not. This new directives are not quantitiy and price aware so by selling one ítem for less than a dollar, new legislature will rules are still being applied.

You are also obliged to store buyers information (their location etc.) for the next 10 years after the deal was executed.

Read more

USES OF FINANCIAL REPORTS

Employees need these reports in making collective bargaining agreements with the management, in the case of labor unions or for individuals in discussing their compensation, promotion, and rankings. Prospective investors make use of financial statements to assess the viability of investing in a business. Financial analyses are used by investors and prepared by professionals (financial analysts), thus providing them with the basis for making investment decisions.

Vendors who extend credit to a business require financial statements to assess the creditworthiness of the business.

Government also produces financial reports to stay accountable to the public and people. The rules for recording, measurement and presentation of government financial statements may be different from those required for business and even for non-profit organizations. The requirements for non-profit financial statements differ from those of a for profit institution and therefore, will not be discussed.

Read more

FUNDAMENTAL ACCOUNTING

In order to prepare the financial statements, it is important to adhere to certain fundamental accounting concepts. Going Concern, unless there is evidence to the country, it is assumed that a business will continue to trade normally for the foreseeable future.

Accruals and Matching, revenue earned must be matched against expenditure when it was incurred Prudence, if there are two acceptable accounting procedures choose the one gives the less optimistic view of profitability and asset values. Consistency, similar items should be accorded similar accounting treatments. Entity, a business is an entity distinct from its owners. Money Measurement, accounts only deal with items to which monetary values can be attributed.

Helps existing and potential investors and creditors and other users to assess the amounts, timing, and uncertainty of prospective net cash inflows to the enterprise

Separate Valuation each asset or liability must be valued separately.
Materiality, only items material in amount or in their nature will affect the true and fair view given by a set of accounts. Historical Cost, tTransactions are recorded at the cost when they occurred. Realization, revenue and profits are recognized when realized. Duality, every transaction has two effects.

Read more

SAVE ON TAXES

Under EU law, the standard rate of VAT in any EU state cannot be lower than 15%.Each state may have up to two reduced rates of at least 5% for a restricted list of goods and services. The European Council must approve any temporary reduction of VAT in the public interest.

The default VAT rate is the standard rate, 20% since 4 January 2011. Some goods and services are subject to VAT at a reduced rate of 5% (such as domestic fuel) or 0% (such as most food and children’s clothing).

VAT is an indirect tax because the tax is paid to the government by the seller (the business) rather than the person who ultimately bears the economic burden of the tax (the consumer). Opponents of VAT claim it is a regressive tax because the poorest people spend a higher proportion of their disposable income on VAT than the richest people.Those in favour of VAT claim it is progressive as consumers who spend more pay more VAT.

Read more

ACCOUNTING 1 ON 1

In order to prepare the financial statements, it is important to adhere to certain fundamental accounting concepts. Going Concern, unless there is evidence to the country, it is assumed that a business will continue to trade normally for the foreseeable future.

Accruals and Matching, revenue earned must be matched against expenditure when it was incurred Prudence, if there are two acceptable accounting procedures choose the one gives the less optimistic view of profitability and asset values. Consistency, similar items should be accorded similar accounting treatments. Entity, a business is an entity distinct from its owners. Money Measurement, accounts only deal with items to which monetary values can be attributed.

Helps existing and potential investors and creditors and other users to assess the amounts, timing, and uncertainty of prospective net cash inflows to the enterprise

Separate Valuation each asset or liability must be valued separately.
Materiality, only items material in amount or in their nature will affect the true and fair view given by a set of accounts. Historical Cost, tTransactions are recorded at the cost when they occurred. Realization, revenue and profits are recognized when realized. Duality, every transaction has two effects.

Read more

PROPER INVOICE INFO

Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that

Read more

Budget highlights – March 2013

– Personal allowance increased to £9,440 for the year 2013/14, and a further increase to £10,000 in 2014/15.

– A £2,000 Employment Allowance for businesses and charities to set against their employer national insurance contributions from April 2014.

–  The small profits rate of CT will remain at 20% from April 2013, the main rate of CT will be unified by April 2015, providing a single rate of CT of 20%.

– Annual Investment Allowance limit increased from £25,000 to £250,000 for a two year time period for all qualifying investments in plant and machinery made on or after 1st January 2013.

– CGT annual exemption  currently £10,600, wil rise to £10,900 for 2013/14, £11,000 for 2014/15 and £11,100 for 2015/16.

– The VAT registration threshold will rise from £77,000 to £79,000 and the deregistration threshold will increase from £75,000 to £77.000, both from 1 April 2013.

Read more

Expert accountancy support

We provide a full spectrum of accountancy, taxation and business support services with an attitude of proactive advice and support.  We work with you to help ensure that your affairs are always in good order rather than taking remedial action when a problem arises.  However, when issues do arise we have wide experience of special situations with the in-depth knowledge to provide expert help with challenging compliance or financial circumstances.

We offer fee protection insurance  to all our clients.

As a well-established general practice, we service a diverse range of businesses.  The majority of our clients run family businesses and these vary in size from sole traders to medium sized businesses.  Many are based in Ayrshire, but we also have clients based elsewhere in the UK and even a few overseas. Key services at Clement & Co include

  • Accountancy and book-keeping services
  • Taxation services and advice
  • Support for business start-ups
  • Business planning and forecasting
  • Personal financial planning
  • Pensions and investment (under licence)
Read more

Taxation Advice

Keeping on top of Payroll Tax records and VAT can be a serious strain for small businesses. It’s time consuming and detailed work which needs to be done on a regular basis and can distract busy business owners from other key roles. Our role at Clement & Co is to offer Payroll or VAT compliance support to take this burden off the shoulders of many of our SME clients.

Read more

Retirement planning

At Clement & Co we have many years of experience and acquired expertise in advising clients in the often complex business of either “passing on” the business to other family, selling out a stake or selling the whole business.

Read more
  • 1
  • 2