Tax Matters

Members can access a tax helpline to discuss the topics below. If you would like to benefit from this please email us at [email protected].

• Income tax
• Business tax
• Corporation tax
• Capital gains tax
• Stamp duty land tax
• Inheritance tax
• Trust tax
• Payroll
• Benefits in kind
• National insurance
• HMRC enquiries
• IR35
• VAT

The Optical Confederation advises that you should regularly review your accounting practices to ensure that you are paying the appropriate level of tax [1].

Many optical practices operate what is known as Full Cost Apportionment (FCA) with the agreement of HMRC. Most of these have a written agreement with HMRC stipulating the basis on which they can operate FCA and such agreements usually require a recalculation of FCA

• after a prescribed period of time or
• where there is a material change to the business.

Practices should regularly review (usually annually) their letters of agreement with HMRC to check whether they are required to undertake new calculations to ascertain the level of exemption to apply to the sale of dispensed optical appliances.

Our VAT adviser Shaun King of Kings VAT, who has considerable experience advising opticians on tax and VAT, has created the following resource for you.

• VAT – a guide to methods of sales apportionment

If you have specific questions about self-employment, IR35, VAT or another tax issue, we might be able to offer you more support. In some cases which we assess on a case-by-case basis, we help towards paying for expert advice. Contact [email protected].

For detailed information read business tax for free online.

[1] Optical Confederation, September 2012, Tax Points Update, issue 2.2012