Press Release
February 2009: Tax help on hand for businesses wanting to increase cash flow
Valuable advice is available for local businesses wanting to increase cash flow to help them through the economic downturn. Sheffield independent accountants and business advisors UHY Wingfield Slater have prepared VAT planning guidelines for use by company owners and managers.
They are detailed in UHY Wingfield Slater’s latest Financial Monitor advisory newsletter which has been emailed to UHY Wingfield Slater clients and is now available for anyone to download from its website: www.uhy-wingfieldslater.com.
The guidelines show that all companies with an annual “VATable” turnover of less then £1.35 million could benefit by switching to cash accounting. This will increase cash flow because VAT is only payable once payments due from customers have been collected.
If a company’s annual turnover is less than £150,000, and only small amounts of input tax are reclaimed each month, then the flat rate VAT scheme may be more worthwhile. This is because it helps companies in that situation to increase their retained profits.
Said UHY Wingfield Slater tax partner Peter Newsam: “Even if companies don’t have any special VAT schemes in place, we are advising them not to forget to claim bad debt relief. Any debt that is over six months old qualifies as a bad debt and companies can claim the output tax they have already paid on the debt.”
The UHY Wingfield Slater Financial Monitor also gives advice on tax liabilities for self employed people, details the latest VAT rate changes, and lists the revised fuel tax rates on business motoring allowances.
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