VAT ON EBAY CHARGES
This change, effective from 1st August 2017, follows a restructuring by eBay resulting in UK customers no longer contracting with eBay Europe but with eBay UK.
This follows on from last year's package of measures introduced by the Chancellor, aimed at tackling the rapidly growing VAT evasion by overseas traders that sell goods in the UK via online marketplaces such as eBay, Amazon and others. As a result, HMRC was given the power to force online marketplaces to ensure that their overseas customers were registered and accounting for VAT or risk being liable for the VAT themselves.
If the overseas retailer does not comply with the above requirements, HMRC can issue a direction to the online marketplace notifying that it will be jointly liable for the VAT on future sales made by that overseas retailer if it is allowed to continue using the online marketplace.
The direction will normally provide a period of 30 days for the online marketplace to either, ensure the overseas retailer becomes VAT registered, obtain funds from the overseas retailer to meet any future VAT liability or remove the overseas retailer from its marketplace so that it can no longer transact sales in the UK. If the retailer fails to take any action within this 30 day notice period then the online marketplace will automatically be liable for the VAT

Protect yourself against the cost of an #HMRC investigation. Call us today to find out more!

Great news - HMRC have pushed back the deadline for Making Tax Digital.

Ha - may hold off from processing 16-17 returns until this is resolved!

"HMRC’s own database software contains errors for 2016-17, which in turn has been replicated by all commercial software, because in order to get the returns to file electronically, suppliers must pass the HMRC flags including those which are incorrect."

Did you know that those earning between £100,000 and £123,000 actually pay tax at a rate of 60% on a portion of their income? Its definately worth considering making some pensions contributions to minimise the 60% tax charge at this income level. For more information please contact me: emma@ejaccounting.co.uk