MOSS all around the world & it's all okay, a third party handles your digital sales

It is all okay, a third party handles your digital sales so no need to register for VAT.


Well... yes and no.

No worries if they:

·        Handle payments

·        Handle supply to customer

·        Set up standard Terms and Conditions

But, there is always a 'but', not all third party platforms are ready to comply with the new VAT legislation.  Check with your third party platform to make sure you are legally selling your "automated digital services"

Yes - you do need to worry if:

·        Your 'third party' is not set up to be compliant - check with them

·        You use PayPal - PayPal and similar payment providers are not third party providers.

 Sales covered by the new VAT rules are:

·        Business to Customer (B2C) - private consumer, non-business customer.

Not

·        Business to Business (B2B) - treatment of VAT stays as it is at present.

 Mixture of countries

If your sales are a mixture of UK and EU sales and you are below the UK VAT threshold you will have to register for VAT in the UK.  It is advisable to register for UK VAT and join the Mini One Stop Shop (MOSS) scheme;

·        This will NOT mean you have to charge VAT on UK sales, or be able to claim VAT on any UK sales - after registering, your UK sales will need to be accounted for separately to EU sales.

·        You will, however, be able to claim VAT on any expenses incurred solely and wholly on any EU sales

·        Using MOSS means four returns a year

·        Not registering in UK means you will need to register in the EU state your customer is located in - easier to use the MOSS scheme

 UK only sales

·        If under UK VAT threshold: 1) do not register or 2) voluntarily register if you want to.

·        Do not worry about MOSS scheme

 Outside of UK & EU sales

·        The current scheme does not affect supplies to non-EU customers (business or otherwise), under existing rules reverse charging applies and the UK supplier does not charge VAT.

·        Electronic services are within the list of services where the place of supply depends on where the customer is based if the customer is resident outside the EU.

·        It should be noted that some countries outside the EU are likely to introduce similar schemes.  South Africa has introduced a variant of the MOSS scheme and the USA are currently looking at it.

 Be aware that by not complying with the new VAT rules - see previous blog: "VAT is not for me - you think not?  Beware - new rules on digital sales" - could cause a financial problem for a SME.  If an eMerchant does not comply then it will be penalised based on which EU member state’s tax law has been broken.

Penalties vary country to country it could be twice the amount of VAT unpaid without any upper capping limit, as in Denmark and Belgium;  in Spain it is  50% of the VAT.  Other EU member states have upper limit monetary fines for example; Slovenia  €125,000, in Germany it could be up to €50,000.

If your business has digital sales in the EU you will need to:

·        Locate your customer in the EU, using to non-conflicting pieces of evidence

·        Have systems in place to calculate the VAT rate of the country in which the sale takes place. (Sales take place in the country the customer is based in) Negate this requirement by signing up to Mini One Stop Shop via HMRC, online completion of return will automatically calculate relevant country's VAT due.

·        Correctly invoice for EU sales

·        Store transaction data for ten years.

MOSS to spread around the world?

It appears that at a UK seminar held in June 2014, and from an European Commission’s report on the taxation of the digital economy, published May 2014, the Commission considers these changes mark the first step towards all goods and services supplied to consumers will be subject to VAT in the customer’s location.  

To handle the changes MOSS will need to be extended.  Agreements with other countries outside of the EU are being looked at by the Commission re the possibility of extending MOSS to cover these countries - Canada and South Africa have been mentioned. Indications are that all VAT charges should be extended and for them to be based on the place where the consumer is located.

For more information on this subject please contact Cecile Hunt.


Tel: 01594 842164 Mob: 07963 892 439  Email: [email protected] 

Cecile is licensed to practice in accountancy and has run her own business for ten years, she has a wealth of experience in advising and assisting start-ups, micro and small businesses in running their business' plus advising on, and dealing with, taxation issues, including  VAT, of sole-traders, limited companies, partnerships and personal tax.

Much more Information on MOSS can be obtained from:

https://www.gov.uk/government/publications/vat-supplying-digital-services-to-private-consumers

ARSON: DO YOU KNOW THE RISKS?


Recent UK fire statistics show that arson accounts for over 40% of fires in business premises and over 20% in residential properties.

It can be argued that all premises are potential targets for arson. It is clear however that some are particularly vulnerable such as schools, unoccupied buildings, and places of worship, newspaper premises, farms, and animal research establishments.

Risk assessment

It is imperative that an arson risk assessment is carried out by a competent person as part of an overall fire risk assessment, as required under fire safety legislation. The assessment should be formally documented and reviewed regularly.

Tips on storing hazardous items

1. Waste materials should be removed at the end of each working day, or more frequently as necessary, dependent on the nature of the business.

2. All waste materials should be held securely in bins or skips at least 10m from the building and at least 2m from the site perimeter.

3. Where a 10m space is not achievable, waste should be held in lockable metal containers located as far away from doors, windows, canopies or overhanging roofs as possible

4. If plastic wheeled bins are used, ensure they are located away from doors, windows to prevent movement by potential arsonists

5. External storage of timber pallets, plastic crates and other combustibles should be kept to a minimum and located a minimum of 10m from buildings and structures

6. Hazardous materials such as flammable liquids and gases should be located in secure storage facilities and petrol and diesel pumps immobilised

Security measures

Security decisions should be driven by the arson risk assessment and should also incorporate any specific requirements of insurers.

Security measures may include:

• Perimeter security fencing

• Physical protection to buildings

• Intruder alarm with remote signalling to an alarm receiving centre

• Security lighting

• Remotely monitored CCTV

• Manned guarding

• Access control

Key security should be strictly controlled and the building fabric should be maintained in good repair. For example:

• Gaps beneath external doors should be kept as small as possible and sealed

• Letterboxes should be fitted internally with metal receptacles

• Unused letter boxes should be permanently sealed

Staff precautions

Employees should be made aware of the risk of arson and encouraged to challenge any strangers on the premises and report suspicious behaviour. Care should also be taken in the recruitment of staff, with references taken and verified. All contractors working on the premises should be suitably supervised.

Closedown procedures

Effective closedown procedures are vital to controlling arson, fire and theft risks.

Arrangements should include an inspection of all areas prior to closure each day to ensure that waste materials have been removed; flammable liquids and gases have been locked away. Staff and visitors have left the building and all fire and security protection systems are working.

Fire Facts

 ·         The most common time for fires to be reported are between 8pm and 9pm.

·         Fire and Rescue Services attended over 212, 000 fires in England and Wales during 2013.

·         In 2013-2014, the number of reported fires started deliberately in houses and other buildings in England and Wales was over 9,000.

·         In 2013-2014, there were over 22,200 fires recorded in buildings which were not residential dwellings in England and Wales.

·         In excess of 4,600 fires were recorded during this period in domestic garages and sheds.

·         Restaurants, cafes, pubs accounted for over 2,200 fires recorded during this period.

·         Over 1,900 fires were recorded in communal living locations – i.e blocks of flats for instance.

For further guidance on Fire Safety speak to your local Fire Service or visit  www.firesafe.org.uk

Andrew Long Cert CII
Commercial Account Executive at Cass Stephens Insurances Ltd

Reflexology with Wendy Guilfoyle

Wendy qualified as a Reflexologist in March 1994, so she’s a dab hand at it and has been a practitioner for 21 years. Now, if you’re like me, your feet might not be your most attractive feature. In fact, when I broached the subject of feeling slightly embarrassed to bare this most unbecoming body part, her reply really tickled me, “It’s not as though they fray at the ends.”

Don’t be afraid to bare your feet

“Hmm,” I thought, “She hasn’t seen mine.” However, my fears were unfounded and Wendy didn’t run screaming from her treatment room. As long as you show up with clean feet, all will be well.

This much neglected body part deserves more love

That’s one of the lovely things about reflexology. We often ignore and neglect our feet, when they actually deserve to be pampered. After all, they’ve been getting us from A to B for our entire lives!

So, does it tickle? Not at all!

Now, Wendy is a lovely lady who has a very calming aura which seems to put everyone at ease as soon as they meet her. I wasn’t sure what to expect, and wondered whether my feet would get a good pummelling! However, Wendy practices Gentle Touch Reflexology – which is just as relaxing as it sounds and doesn’t tickle at all.

Relax in a comfy chair next to an open fire – pure bliss

Wendy practices her Reflexology (along with other modalities such as the allergy work which she’s been carrying out for 20 years), in her cosy treatment room. She prepared a roaring open fire and got to work on my feet with a lovely scented oil. Meanwhile, I reclined in her extremely comfortable therapy chair.

Now, as far as I know, the theory goes that certain areas of your feet are linked to other parts of the body. When she manipulated a certain part, I felt a pressure in my chest and had to ask her what part she was working on. It happened to be one of my lungs. As an ex-smoker, was this more than a coincidence perhaps? After she had finished working on my feet, she wrapped them in warm towels and left me to relax by the open fire for 20 minutes.

Total relaxation that lasted well into the following day

So, how did I feel afterwards? Well, I felt great and that lasted well into the next day. So, I’d recommend Reflexology to anyone who needs a little extra help unwinding – they’ll also have the pleasure of Wendy’s company!

You’ll love Wendy’s practical no nonsense approach to alternative healing

In fact, something that really impresses me about Wendy is her approach to alternative therapies. Her background is actually in science, and one honestly gets the impression that she wouldn’t bother practising any therapy which didn’t have some sort of logical basis in science. The whole alternative health scene can seem a bit “woo” to some people, but Wendy does away with that in her own quiet but matter of fact way. 

Employer’s Liability Insurance – what you need to know.

Many people in business assume that if you have Public Liability insurance in place then all is fine and you comply with the law. Wrong.

With the possible exception of a swimming pool operator, it is not a legal requirement to have Public Liability. It is however compulsory to have Employer’s Liability insurance in place when you employ staff – whether this is on a casual, temporary, part-time or full-time basis.

A couple of notable exceptions exist – for instance when the business only employs say a husband and wife, then this situation would be exempt.

What every business who employs staff should know is that there are substantial legal and financial implications if you don’t maintain a valid Employer’s Liability insurance policy.

Currently the Government agency HSE is able to impose DAILY fines of up to £2,500 if you fail to provide evidence of suitable Employer’s Liability insurance. Additional fines of up to £1,000 can be imposed too if you fail to correctly display your current Certificate of Employer’s Liability insurance.

Can you and your business afford to meet these costs, which within days can spiral into a five figure sum?

To obtain Employer’s Liability insurance, you would normally purchase this in conjunction with a Public and Products Liability policy, and more typically for Small to Medium Sized businesses, this is included within a Package Policy or a Business Combined insurance policy, which incorporates a number of covers.

For further information and advice, please contact Andrew Long, Commercial Account Executive at Cass Stephens Insurances Ltd.

AML
10.03.2015

Who needs money ? Why remortgage  ?

In today's competitive market, many borrowers choose to switch their mortgage every few years in order to take advantage of the new rates on offer. Those that remain on the same deal for the full term of their loan could lose out on a range of potential benefits, not least the opportunity to reduce the total amount paid back, which could be a significant margin in some cases. 

In simple terms, remortgaging involves switching your current mortgage to a new deal, arranged either with your existing lender or with a new lender. As a current homeowner you may want to consider taking this step for a number of reasons, such as:

To save money If you're paying your lender's Standard Variable Rate (SVR), it's likely that your existing lender will offer a better rate and greater flexibility on other available products. This could allow you to save money on your monthly repayments, or to repay your mortgage sooner. And if your current lender doesn't offer better rates or greater flexibility on its other products, you may want to consider switching your mortgage to another lender, even if doing so would trigger early repayment charges payable to your existing lender, as this could still mean a net saving to you.

To raise money Higher income or a rise in your property's value means you could increase your mortgage to help pay for major outgoings such as a wedding or your child's university costs, rather than borrowing separately, and in some cases more expensively, for the outgoing itself.

To avoid moving home It can be cheaper and more convenient to adapt or add an extension to your existing home, paid for by remortgaging or a further advance, than to move home.

To consolidate your debts Remortgaging can allow you to release some of the equity you hold in your home and consolidate other debts, such as a car loan or credit cards, which can attract higher rates of interest than that of your mortgage.

To Reduce the Term

With each remortgage you can look at reducing the term of the loan bring the mortgage down by years eventually if this is the goal. Why might it not be ? Well you need to speak to me to find out.

Book your free Home Mortgage Review Now  07973 720848 or 01594 719389