Are limited resources stunting your growth?

When a business is trying to grow there is often a limited resource that prevents it doing so. The one that immediately comes to mind is customers or, more accurately, a lack of customers.  However, for many, a lack of customers is not the main issue; there is some other limiting factor that prevents them …

FREE review – What is the best bookkeeping package for you?

Bookkeeping is often seen as a necessary evil for business owners – something that you must do to make sure the accountant and the taxman are kept happy. The task is often time consuming, labour intensive and prone to error. But things have changed! Are you are using any of the following methods for your …

A £ saved is worth more than a £ earned

In every business for every £1 made in Sales only a small % is yours to keep. This is because there are direct costs incurred when making each Sale. For example, you may have to pay direct labour, direct materials, bank charges etc. So, for that £1 in Sales your business may only see 50% …

Is it a bird? Is it a plane? No, it’s a Super Deduction!

For capital expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments. Under the super deduction, for every pound a company invests, their taxes are cut by up to 25p. For example, a Limited Company that purchases a new £10,000 van …

Construction Businesses Support – Introducing I-Construct

I-Construct is a government-backed project, designed to help local companies access opportunities in the construction market and develop new products and services within their businesses. How could my company benefit from the I-Construct programme? Network All eligible SME companies will become members of the I-Construct Network, which is worth up to £800 per year. Through …

Should I register for VAT?

VAT, or Value Added Tax, is known as a sales tax because it’s added to the sales your business makes. Most businesses can reclaim the VAT they suffer, so VAT is a tax on the consumer or the end user of a product or service. As a business who makes taxable supplies you must register …

3 Key Reports For Business Owners – Xero Features Explored

Xero is not only there to make your bookkeepers lives easier – it can also help you to manage your business. Lack of understanding of your finances has been identified as one of the top barriers to growth. In the past, business owners either relied on their bookkeepers to run reports to tell them how …

Sole Traders – What expenses can I claim against my tax?

When you operate as a sole trader you are subject to some specific sets of rules around what you can and can’t claim against your tax. These rules have been tried and tested over the years and are generally very clear, but some are open to interpretation and are almost always being tested in the …

Individual Tax Planning: Things to do when approaching the end of a tax year

As we approach the end of another tax year, its time to consider the things you should be doing to ensure you don’t lose out on the allowances and tax planning opportunities available to you. Many of these are specific to your individual circumstances but are worth considering and raising in a discussion with us. …

Today’s Budget Announcements

After listening carefully to the Budget today, we can report on the headline announcements and how they affect you as a business owner. As usual, the detailed nuances will become apparent over the coming days, but this newsletter contains the highlights. This was always going to be a balancing act for Rishi, as we are …

Closing Your Business – Using a Solvent Liquidation (MVL) to Extract Funds

When you think of liquidations, you often think of the insolvent variety, where you can’t pay your creditors and have to close the company in a formal manner. However, liquidations don’t have to be this way; they can also be used to close solvent companies i.e., companies that have cash in the bank and the …

The Benefit of Budgeting – Xero Features Explored

Xero has some great features, that are included in the fee you pay, but are not often used as they are not part of the core product and are often overlooked. The Budgeting Manager is one such feature. Budgeting itself is important if you want to keep some financial control over your business. What is …

Further Government Help for Businesses due to COVID-19

Information has been published by HMRC concerning the process for repaying VAT deferred by businesses during the first lockdown. To defer your payments, you will have to opt into the VAT Payment Deferral Scheme when it opens on 23rd February. We, as your agent, cannot opt into the scheme for you. Once opted in, you …

Salary Sacrifice…What Is It, How Does It Work and Is It Worth It?

Salary sacrifice is an agreement to reduce an employee’s entitlement to cash pay, usually in return for a non-cash benefit, such as providing the employee with an asset or healthcare. As an employer, you can set up a salary sacrifice arrangement by changing the terms of your employee’s employment contract. Your employee needs to agree …

THE DIVIDENDS TRAP – How Dividends Can Cause You A Problem

For many years, the standard advice from accountants has been for Directors to pay themselves a salary and for shareholders to take dividends. Often in small companies, the Directors and Shareholders are the same people. This approach minimises the tax liability because dividends are taxed, or have been in the past, at a much lower …

Should you lease or buy equipment?

We are often asked by clients if they should buy or lease capital equipment for their businesses. The answer, as usual, is not simple and it depends upon the nature of your business, but there are nevertheless a few guidelines you can follow to help you decide what you should do. Broadly speaking, if you …

How To Incentivise Key Employees By Gifting Them Shares

One of our most frequently asked questions is “Can I give shares to key employees? And what are the tax implications of this?” Why do you want to do this? The answer is yes you can give your employees shares, but before we investigate how, we should look at your reasoning for giving shares to …

Fines And Penalties – What To Be Aware Of When Running A Business?

HMRC collected £1.4 billion in fines and penalties in the year to 31st March 2020. These are entirely avoidable penalties for late tax returns, unpaid tax etc. Companies House also collected millions in late filing penalties. To be forewarned is forearmed, so it is good to know the range and scope of penalties you will …

BREXIT – Are you ready for VAT and customs duty requirements from 1 Jan 21?

The UK/EU withdrawal agreement expires at 11pm GMT on 31 December 2020. After that date, the UK will become a separate customs territory from the EU. This means that from 1 January 2021, all imports and exports of goods to, and from, the EU will become subject to customs procedures, both in respect of EU …

Should I register for VAT?

VAT, or Value Added Tax, is known as a sales tax because it’s added to the sales your business makes. Most businesses can reclaim the VAT they suffer, so VAT is a tax on the consumer or the end user of a product or service. As a business who makes taxable supplies you must register …

Furlough or Redundancy – The harsh decision facing businesses this Christmas

As the new tier system kicks in, many businesses are finding themselves facing tough times and some very difficult decisions this Christmas. Over the last six months, you have probably already had to make some hard choices, as your business has seen its work dry up and its income drop off a cliff. More than …

Company Car-is it time to go electric?

Company cars are an easy target for HMRC – people need a car, and they often desire an expensive one! So maybe it’s time to ditch the petrol and diesel and think about going electric…here we help you consider whether an electric car would be more beneficial for you. Traditionally, the bigger the engine and …

Reverse charge VAT for CIS construction services

If you are CIS registered and VAT registered, then from the 1st of March 2021 there will be changes to the way you account for VAT. This blog investigates these changes and what they mean for your business. The changes mean a VAT-registered business, which supplies certain construction services to another VAT-registered business for onward …

How should I own my rental property – Personally or in a Ltd Company?

Whether you are a professional or a reluctant landlord, many people are unsure of the tax implications of owning their property in a limited company and whether this would work out more financially beneficial for them. The answer is, as it usually is, that it depends on your personal circumstances and intentions. Owning property personally …

HOW LIKELY IS A TAX INVESTIGATION?

One of the perpetual fears of many business owners is HMRC. Sometimes this is an irrational fear and sometimes it justified. HMRC have enormous powers that seemingly increase year on year. Tax, Payroll and VAT are getting increasingly complex and its up to you, as a business owner, to get it right. How on earth …

Warning Companies house are stopping paper reminders!

Companies house have announced that from Monday 9th of November they will no longer sending paper reminders for important deadlines. An example would be dates on when a business owners confirmation statement is due. Companies house are now urging companies to opt for their email reminder service which is free this service allows you to …

How should I own my car? – Limited Company Version

Aside from your home, your car is probably one of the biggest expenses you face and how you own this is one of our most frequently asked questions. This blog then investigates how best to own this expensive but essential asset. Personally, or in your Limited Company. Owning Your Car Personally If you are a …

What is the best trading structure for my new business

One of the first decisions that you will need to make when you start a business… What is the best trading structure for my new business? Which legal entity do I wish to trade through? A legal entity is how HMRC will treat you for Tax purposes and determines what rules and regulations you will …

If you employ people – Do you have an IR35 problem?

HMRC want all people you “employ” to be on your payroll and for taxes to be deducted from them at source and paid over each month. The reality is more complicated. More and more people are demanding flexible working and do not necessarily want to be tied into a traditional employee role. IR35 is tax …

Capital Gains on Property – You have 30 days to pay the tax

If you are a landlord, second homeowner or a holiday homeowner and you sell your property at a gain, you have just 30 calendar days to inform HMRC and make a Capital Gains Tax (CGT) payment. If you fail to meet this deadline you will be subject to a £100 fine which rises to £300 …

How To Delay Paying Your Tax

During this pandemic, many businesses are finding it increasingly difficult to balance the cashflow and will need to make arrangements to spread the cost of their tax. HMRC’s dedicated helpline has been set up to support businesses and individuals with their tax liabilities. The number to call is 0800 024 1222, and the lines are open …

Entertaining – What you can and can’t claim…

HMRC do not like entertaining as much as the rest of us – at least they don’t like to give us Tax relief for spending money on it.! This blog will explain what you can and can’t spend on Entertaining from a Tax perspective. Entertainment can involve eating, drinking and other hospitality and broadly speaking, …

Does the Job Support Scheme make sense?

Last week Rishi Sunak announced the Job Support Scheme to replace the Coronavirus Job Retention Scheme (CJRS). Hundreds of thousands of workers remain on Furlough and are reliant on these government payments. However, in October the CJRS payments reduce to 60% of the employee’s wages, up to £1875, with the employee contributing 20% and in …

Ways to reduce your Inheritance Tax

In a taxes popularity contest, Inheritance Tax would be in last place! Also known as the Death Tax, Inheritance Tax (IHT) is a tax you pay on the value of your estate after you die. Many people are motivated to minimise IHT to benefit their surviving relatives. After all, you have worked hard to accumulate …

Landlord Taxes Explained

Owning and renting out houses has traditionally been a good way to supplement your income. In fact, it had been so popular that the government has tried to put the brakes on by introducing tax measures to make it less attractive. The government want people to increase the number of houses available to buy and …

Start-up business help in rochester

Starting a business? How to choose the right bank

Let’s face it… Banks have not covered themselves in glory in the past few years. Architects of the credit crunch and slow to respond to the pandemic, banks, overall, in my opinion, are not friends to business. However, they are a necessary evil; when you are starting a business, you will need a business account …

Tax efficient ways of getting paid from your company

A Limited Company is arguably the most tax efficient structure to run your business through, but there are hidden tax traps that are easy to fall into. The biggest one is how you get paid from your company. Companies are taxed at 19% on all the profit they make, if you took no money from …

Is It Time For You To Go Limited?

Trading as a sole trader or partnership does have some advantages, mainly around flexibility, but the one area where these legal entities can be inefficient is tax. A limited company, when all things are considered, is a more tax-efficient structure but it does come with some caveats. This blog then is all about whether trading as a Limited Company is better for you. What this …

Making Tax Digital – Important dates announced

Making Tax Digital (MTD) is the electronic filing of tax information to HMRC, and there have been some important dates announced this week. MTD for VAT Since April 2019, most VAT-registered businesses with taxable turnover above the VAT threshold of £85,000, have been mandated to keep digital VAT records and to submit their VAT returns …

Ways of dealing with cash flow problems

Most business owners immediately think of the bank or loans when they’re short of cash. But there are many more resources you can tap before you ask for that expensive overdraft or an overdraft extension. You can often free up funds from within your business by re-examining your business systems, and these funds might in …

Getting Paid On Time – The Perfect Credit Control System

A good credit control system is worth its weight in gold. The system doesn’t have to be over-complicated; it simply needs to be systematic and capable of applying increasing pressure on the late-paying customers without upsetting the good ones. If you haven’t got these steps in place in your credit control system, then these are …

Don’t forget to pay tax on or before 31 January 2020

Source: HM Revenue & Customs | | 07/01/2020 The 31 January 2020 is not just the final date for submission of your Self-Assessment tax return for 2018-19 but is also an important date for payment of tax due. This is the final payment deadline for any remaining tax due for the 2018-19 tax year. In …

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Last reminder for parents with income in excess of £50,000

Source: HM Revenue & Customs | | 07/01/2020 Parents could be liable for the High Income Child Benefit tax charge if either partner’s income exceeds £50,000 and you are in receipt of child benefit. The charge effectively claws back the financial benefit of receiving child benefit either by reducing or removing the benefit entirely. If you or …

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Did you actually file your tax return on Christmas Day?

Source: HM Revenue & Customs | | 07/01/2020 A new press release by HMRC has highlighted the fact that 3,003 taxpayers took the time to file their tax return online on Christmas Day with a further 9,254 taxpayers completing their tax returns on Boxing Day. More than 11 million taxpayers are expected to complete a …

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