The Chancellor unveiled a fresh batch of tax changes and updates in the Spring Statement. Here are the key takeaways for small businesses. Fuel duty has been cut One change announced in the Spring Statement has already come into effect: at 6pm yesterday, fuel duty was cut by 5p a litre for a period[…]
How the scheme works EIS is designed so that your company can raise money to help grow your business. It does this by offering tax reliefs to individual investors who buy new shares in your company. Under EIS, you can raise up to £5 million each year, and a maximum of £12 million in your company’s lifetime.[…]
How the scheme works SEIS is designed to help your company raise money when it’s starting to trade. It does this by offering tax reliefs to individual investors who buy new shares in your company. You can receive a maximum of £150,000 through SEIS investments. This will: include any other de minimis state aid received in the 3 years up[…]
Despite the coronavirus lockdowns HMRC still expect P11d forms reporting expenses and benefits to be submitted by the normal 6 July deadline. Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee’s duties. Dispensations from reporting are no longer required, although[…]
HMRC are urging businesses to look out for the use of mini-umbrella companies (MUCs) to pay contractors supplying their labour via agencies and other intermediaries. Businesses need to be aware of the financial and reputational risks of such entities in their labour supply chain and carry out due diligence to minimise those risks. You may[…]
Xero is accounting software to-do your to-do. Running in-the-cloud you get everything you need to run your business. It’s fast, simple, powerful software and we love it. Watch this brief intro video to find out more and see how much it could help you manage your finances.
ASSOCIATED COMPANIES COUNT FOR NEW CORPORATION TAX RATES A 25% rate of corporation tax will apply to all of a company’s profits if they exceed £250,000 from 1 April 2023. The 19% rate will continue to apply where profits are below £50,000. The marginal rate that applies between those limits will be 26.5%. Those upper[…]
DETAILS OF FOURTH SELF-EMPLOYED INCOME SUPPORT GRANT Like the CJRS scheme for employers the Self-Employed Income Support Scheme (SEISS) has been extended to September 2021and details of claims for the fourth grant have now been released. This fourth grant covers February, March and April 2021. There will then be a fifth grant covering May to[…]
New furlough pay grant The fourth version of the CJRS “furlough” grant scheme starts on 1 May 2021 and will run until 30 September with employees affected continuing to be supported such that they are entitled to be paid at least 80% of their “usual pay” subject to a limit of £2,500 a month for[…]
In the Budget on 3rd March the Chancellor announced a new 130% tax relief for expenditure on new plant and machinery incurred between 1 April 2021 and 31 March 2023. It turns out that this new tax relief is only available to limited companies and the latest Finance Bill reveals a nasty sting in the[…]
If the company has sufficient profits it can pay a dividend to its shareholders. Although dividends are NOT subject to NI, they are subject to tax at the following rates:
The “off-payroll” working rules that apply to certain workers supplying their services to clients via their own personal service companies start from 6 April 2021. Under this new regime end user businesses will be required to determine whether that individual would have been treated as an employee or not if directly engaged. This will be[…]
CHANGES TO THE CORONAVIRUS JOB RETENTION SCHEME FROM JULY 2021 The Coronavirus Job Retention Scheme has been extended until 30 September 2021 and the level of grant available to employers under the scheme will stay the same until 30 June 2021. The current version of the furlough scheme that started on 1 November 2020 was[…]
SELF-EMPLOYMENT INCOME SUPPORT SCHEME FOURTH GRANT (SEISS) In the recent Budget, the chancellor has set out further support for the self-employed. In addition to the upcoming fourth grant there will also be a fifth SEISS grant covering the 5 months to 30 September. The chancellor has extended the scheme to include certain traders who were[…]
GET READY FOR THE “OFF-PAYROLL” WORKING RULES Where large or medium-sized organisations are paying workers via personal service companies (PSC) or agencies they will need to operate new procedures from 6 April 2021. The new rules will apply to partnerships, LLPs and larger charities as well as limited companies. Only those organisations that would be[…]
CHANCELLOR “LEVELS UP” WITH US ON TAX In the Chancellor’s second real Budget on 3 March 2021 he announced that he had to level with people about the state of the UK economy. Prior to Budget day there were fewer leaks than normal about possible tax changes. There were however announcements prior to Budget day[…]
BUY NEW EQUIPMENT BEFORE 6 APRIL? Your business year end, not 5 April, is relevant for capital allowances purposes. If however you are running a business and making up accounts to 31 March or 5 April you should consider buying plant and machinery to take advantage of the £1 million Annual Investment Allowance (AIA). The[…]
VAT RULES FOR CONSTRUCTION SECTOR STARTED The new “reverse charge” system of VAT accounting affects sub- contractors supplying their services to main contractors in the construction sector. Under the new rules, supplies of standard or reduced-rated building services between VAT-registered businesses in the supply chain are no longer invoiced in the normal way. Under the[…]
HMRC has launched its VAT deferral new payment scheme for businesses who deferred their VAT payments last year due to the coronavirus. The online service for the new payment deferral scheme opened from Tuesday to 21 June 2021. It is for businesses that deferred VAT payments due between 20 March and 30 June 2020 and[…]
Expense claims can be a headache for both the employee and the accounts team. With Xero you can manage the whole process online. Employees can add receipts in Xero or on the go using Xero touch.
How will trading conditions affect eligibility for the Self-Employment Income Support Scheme. HMRC has updated its guidance to define what it means by reduced activity, capacity or demand or temporary closure and gives examples of how this could affect eligibility. Claims for the third SEISS grant have now closed. The last date for making a[…]
HMRC has announced Self-Assessment taxpayers who cannot file their tax return by the 31 January 2021 deadline will not receive a late filing penalty if they file online by 28 February. Taxpayers are still obliged to pay their bill by 31 January. Interest will be charged from 1 February on any outstanding liabilities. Anyone who[…]
Managing your bills in Xero accounting software helps you stay organised, manage cashflow and pay your suppliers on time. This video tutorial shows you how it’s done!
Xero and Grind Coffee. An excellent case study to show how powerful the partnership between small business, cloud software and modern accountants can be.
A number of government support schemes designed to support employers, employees and business owners through the coronavirus (Covid-19) pandemic have been extended this week. Here’s a roundup of the latest updates. Coronavirus Job Retention Scheme Also known as the ‘furlough’ scheme, the Coronavirus Job Retention Scheme (CJRS) is a temporary initiative that allows employers to access financial[…]
New fast track government loans are being introduced for micro sized businesses to provide access to underwritten loans of up to 25% of turnover In addition to the recent CIBLS (Coronavirus Business Interruption Loan Scheme) the Government has announced another loan scheme to get emergency credit into the hands of very small businesses. The[…]
The new Self-employment Income Support Scheme offers a taxable grant worth 80% of trading profits, up to a maximum of £2,500 per month, for the next three months. Who does it cover and who does it not? The Self-employment Income Support Scheme targets self-employed people or members of a partnership who have lost trading/partnership[…]
Summary VAT registered businesses are not required to make VAT payments that are due from 20 March 2020 to 30 June 2020.This relief is both automatic: it does not need to be claimed and it is optional: payment can still be made.Your VAT liability and payment is not cancelled, it is deferred. Any VAT liability[…]
As of this morning, 25th March 2020 the government has provided very little more in the way of detailed guidance around the Coronavirus Job Retention Scheme. We simply do not know all the answers as yet and we continue to wait until the government announces anything new as an update. Key Features All UK employers with[…]
Newly appointed Chancellor of the Exchequer Rishi Sunak has just delivered his first ever budget to the House of Commons. Chief Accountant at FreeAgent, Emily Coltman FCA, digs a little deeper into exactly what today’s Budget means for small businesses. Huge thanks to Emily Coltman of FreeAgent for providing such a small business focused, summary,[…]
SEIS is designed to help your company raise money when it’s starting to trade. It does this by offering tax reliefs to individual investors who buy new shares in your company. You can receive a maximum of £150,000 through SEIS investments. There are various rules you must follow so your investors can claim and keep SEIS tax reliefs relating to their shares.[…]
‘Cash basis’ is a way to work out your income and expenses for your Self Assessment tax return, if you’re a sole trader or partner. Why use cash basis If you run a small business, cash basis accounting may suit you better than traditional accounting. This is because you only need to declare money when it[…]
Making Tax Digital (MTD) is changing the way UK businesses, accountants and bookkeepers do their taxes. Find out what this means for you and learn how Xero can help you become MTD-compliant. What is Making Tax Digital? Making Tax Digital is an HMRC initiative designed to make sure the UK tax system is effective, efficient[…]