Roger Wood publishes one of its regular newsletters.

The accountancy firm Roger Wood has issued one of its regular newsletters. It notes the various elements of the temporary change in UK VAT from 17.5 pct to 15 pct. Roger Wood notes that you don't have to pass on the VAT reduction.
Based in Weymouth the firm notes that more firms are likely to face a tax enquiry with the efforts to collect more tax and VAT. Roger Wood also looks at the VAT consequences of housebuilders, who rent out properties they have built. the firm says it can help with "the partial exemption calculations, which are tedious and complex."
Meanwhile, the VAT reduction has been criticised by German Finance Minister Peer Steinbruck, who basically says the recession is irreversible and that we just have to grin and bear it.
To implement the VAT cut has been very fiddly in administrative terms for many companies. I don't get the sense the government appreciated that fact. It will be interesting to see if the reduction has helped retail sales.

VAT nightmare for everybody!!

Written before Alistair Darling's pre-budget statement, if the worst-kept secret is carried out, a reduction in British VAT to 15 pct, then there will be quite a bit of administrative angst for UK companies. This compares with the current rate of 17.5 pct. To pay for the reduction, there is talk of quite an increase later.
The British Chancellor has been caught out on his previous forecasts. He did not expect 1 pct growth for 2008 for example or recession in 2009. This shows more the perils of forecasting rather than the competence of Mr Darling. We are living in extraordinary times. Last week saw the humbling of U.S banking giant Citibank and this week is seeing the rescue.
Lower interest rates and a weaker pound might get the British economy going again but they also hit groups like pensioners, who rely on income from banks and building societies. The weaker pound has offset some of the falls in the oil price for petrol purchases.
For a government that has never built a power station, it will be interesting to see if the public works programme succeeds or not. British prime minister Gordon Brown has often spoke about public investment but when you look around in Britain it has not really happened.
www.searchaccountant.co.uk

Roger Wood & Co publishes January newsletter.

Dorset based accountancy firm Roger Wood & Co has just published a news letter for January. One of the articles is on the new invoice rules for VAT.http://www.rogerwoodltd.co.uk/newsletter.asp?switch=9559

VAT registration delays!!

I suppose VAT registration delays are the the price to pay for HMRC's increased
vigilance against missing-trader fraud and carousel fraud. However, it is hitting
the cashflow of new companies with the inability to invoice properly.

http://www.contractoruk.com/news/003334.html
"HMRC has said there is a temporary worsening of the VAT backlog due to 20,000 applications received from newly-incorporated companies, as a result of the managed service companies rules in the Finance Bill 2007."