As the increase in the VAT rate approaches, businesses need to be mindful of charging the correct amount of VAT where invoices are raised or payments received around the date of the increase – January 4, 2010. Please check with us if you are not sure. Applying the wrong VAT rate at this time, or worse still falling foul of the anti-forestalling provisions, could prove expensive.
Save on the company car
In these austere times, businesses are constantly on the lookout for effective ways to cut costs. If you presently purchase your company car(s) and change them on a regular basis, you might find you can save by leasing rather than purchasing.
Small businesses often finance their cars through hire purchase or a loan but leasing charges can sometimes be significantly lower than finance charges. A new website, financeacar.co.uk allows businesses to conduct cost comparisons between leasing and purchasing options and so make more informed decisions in this area.
Bear in mind also that with leased cars used exclusively for business purposes you can reclaim the VAT in full, and even if the car is also used for personal journeys you can normally reclaim 50 percent of the VAT. Check with us if you need advice.