By Katie Business News • Tax News 0 Comments

Changes to paying CGT on residential property from 6 April

From 6 April 2020 there is a major change in the reporting and payment of Capital gains tax (CGT) on residential property disposals. From that date, it will be necessary to report the disposal of the property within 30 days of completion of the disposal and pay CGT on account to HMRC.

This will be a significant acceleration of the payment date as CGT is currently payable with income tax on 31 January following the end of the tax year. Hence, where completion of a property disposal takes place on 1 April 2020 CGT will be due 31 January 2021. If however completion were delayed to 1 May 2020, CGT would need to be paid on 31 May 2020.

Note that the new 30 day reporting and payment obligation will not apply where no tax is payable such as the disposal of the taxpayers private residence.

Need more information?

If you need anymore guidance on capital gains tax please do not hesitate to get in touch with our dedicated team of tax accountants. We have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

Contact us below

Fields marked with an * are required





    By Katie Business News • Tax Advice • Tax News 0 Comments

    Possible u-turn on pensions for high earners?

    Will there be changes on pensions? There have been many stories in the press about GPs and senior hospital doctors refusing to take on extra shifts and additional responsibilities due to the additional tax they are required to pay on the extra pension contributions paid by the NHS. A number of solutions have been put forward. There are now strong rumours that the tapering of the annual pension allowance for those with income over £150,000 may be abolished or amended for all taxpayers, not just those working in the NHS.

    Listen out for a possible announcement in the Spring Budget, together with other changes to pension tax relief.

    Health Secretary writes to UK Chancellor.

    Health Secretary Jeane Freeman has again called on the UK Government to find a permanent solution to the pension taxation issue impacting vital NHS staff and frontline services.

    In a letter, Ms Freeman urged UK Chancellor Sajid Javid to take decisive action to ensure pension and taxation rules no longer undermine delivery of frontline health services for the people of Scotland and other UK nations.

    As a result of UK Government pension taxation rules, highly experienced staff can face unexpected additional tax liabilities. This has led to some staff having to reduce their hours or retire earlier than expected.

    In response the Scottish Government introduced a temporary opt-in policy for all affected NHS staff in November 2019 to ensure crucial services are maintained as demand on the health service continues to increase.

    However, this interim measure is due to come to an end on 31 March 2020 with the end of the current financial year, and a permanent solution must be found by the UK Government.

    Need more information?

    If you need any more guidance on pensions, please do not hesitate to get in touch with our team. The team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

    Our fantastic team at A&C Chartered Accountants are here to help.

    Contact us below

    Fields marked with an * are required





      By Katie Business News • Tax Advice • Tax News 0 Comments

      Changes to disguised remuneration loan charge

      There has been changes to the remuneration loan charge. The independent loan charge review, conducted by Sir Amyas Morse, was published on 20 December, having been delayed due to the general election. The loan charge was introduced to collect tax from individuals who had benefited from schemes devised to avoid PAYE and national insurance. The date that the loan was made to the individual is critical in determining whether the loan charge will apply.

      The major change, which will be legislated in the next Finance Act, is that taxpayers who took loans before 9 December 2010 will not now be subject to the loan charge. This was the day when draft legislation was published, alongside a ministerial statement, to make it clear that disguised remuneration arrangements, including loans, would be specifically taxed as earned income. The current legislation, introduced in 2018, applies retrospectively to such loans and will need to be repealed.

      Those taxpayers who took loans between 10 December 2010 and 5 April 2016 and who fully disclosed the use of the loan scheme will not be subject to the loan charge if, and only if, HMRC failed to take action because of disclosure.

      Loans taken out on or after 6 April 2016 and which were still outstanding on 5 April 2019, remain within the loan charge. Such taxpayers can now elect to spread the tax charge over three tax years from 2018/19 to 2020/21

      Need more information?

      If you need any guidance with the remuneration loan charge, please do not hesitate to get in touch.

      We offer a wide range of services and our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

      Our fantastic team at A&C Chartered Accountants are here to help.

      Contact us below

      Fields marked with an * are required





        By Katie Business News • Tax Advice • Tax News 0 Comments

        Review of off-payroll working rules

        In January the government launched a four-week review of the changes to IR35 “off-payroll” working rules. These are scheduled to come into force in April, as the result of mounting criticism about the way they will operate. The review is scheduled to conclude by mid-February. From this, the government hold a series of meetings with stakeholder representative of those affected by the changes.

        It is unlikely that there will be a significant U-turn, but there may be scope for the impact of the legislation to be reduced in terms of the range of contractors to whom it will apply, or the size of businesses who will be obliged to operate it. The new rules are currently scheduled to apply to large and medium-sized businesses as defined by the Companies Act.

        Further review

        The government will also carry out a further review of the enhanced CEST tool designed to assist businesses in checking employment status and public sector bodies’ experience of applying the rules since 2017.

        Need more information?

        If you need any more guidance on the “off-payroll” working rules please do get in know. We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

        Our fantastic team at A&C Chartered Accountants are here to help.

        Contact us below

        Fields marked with an * are required





          By Katie Business News • Tax News 0 Comments

          Budget day is now 11 March

          The December General Election meant that the Autumn Budget was delayed and we now know that Sajid Javed will deliver his first Budget on the second Wednesday in March which is when Budget day used to be!

          We are expecting that the tax measures in the Conservative Party manifesto will be announced again together with confirmation that changes consulted on last year will be put in place.

          Key tax announcements to listen out for include leaving the rate of corporation tax at 19% and an increase in the national insurance threshold. Unfortunately, it is unlikely that the planned roll out of the “off-payroll” working (IR35) rules to the private sector will be delayed.

          The Chancellor is also expected to again announce a u-turn on the 2019 loan charge following a review of the legislation by Sir Amyas Morse.

          Need more information?

          If you require any more information on the budget day please do not hesitate to contact our team. We offer a wide range of services and our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

          Our fantastic team at A&C Chartered Accountants are here to help.

          Contact us below

          Fields marked with an * are required





            By Katie Business Advice 0 Comments

            Reduce debtor days to improve cash flow

            Cash flow is king in any business. Yet cash flow is one of the areas that many businesses struggle to manage.

            Customers are reluctant to part with their money, even if it’s to pay for your goods or services. As such, it can take a while for them to pay their invoices.

            While longer debtor days might not be a big issue for huge international corporations, for the rest of us, it can be a very real source of stress. You need your customers to pay you as quickly as possible so you can continue to run your business, so it’s easy to find yourself working extra hours, chasing up late-paying clients. Here are a few tips to help you to reduce your debtor’s days.

            Be clear and concise

            When creating an invoice, think about your messaging. Is the due date easy to see on the page, does your invoice state exactly how much payment is required and have you clearly outlined the various payment options that you accept (such as bank transfers, cash, cheque, etc.)? Options such as “pay now”, “pay by instalments” or “pay on the due date” should be clearly set out.

            Offer incentives

            Sometimes offering a small discount can motivate your clients to pay on time. Offering say, 5% off the total bill for clients who pay within 2 weeks of the invoice date can help a business to get cash in quicker. Setting this type of incentive out at the beginning of a client relationship can go down well as clients can see the early payment discount as a “value add”.

            Charge fees for late payment

            Incentivise customers to pay you on time by charging a fee for late payments. If you communicate the terms and conditions around late fees clearly, clients will not be surprised if they are charged for late payment.

            If you are going to charge clients for late payment, it is usually effective to give some sort of warning. It may be helpful to send clients an email saying that “payment is due in 10 days time and if it isn’t received, a late payment fee will be applied.” This gives the client an opportunity to respond.

            Embrace technology

            There are a vast array of systems available to help businesses to track invoices, monitor payments and manage clients who have missed payment deadlines. With an automated accounts receivable system, you can keep track of the status of each invoice, who has paid and what is outstanding.  You can set up automatic reminders at crucial moments in the payment cycle and significantly reduce your administration time.

            By implementing the above strategies, you can reduce debtor days in your business and ensure that you are getting cash in as quickly as possible.

            Need more information?

            We offer a wide range of services which can help with your cash flow. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

            Our fantastic team at A&C Chartered Accountants are here to help.

            Contact us below

            Fields marked with an * are required





              By Katie Business Advice • Startups 0 Comments

              Executing your strategy

              Having a good strategy is one thing, executing it well can be a huge challenge.

              Many business owners and managers are familiar with the scenario – you arrange a strategy day with your team, capture the outputs and create a strategic plan. Everyone goes back to the office, the strategy paper gets filed and that is the last you see of it until next year’s strategy day. The hardest part of any business strategy is implementationOnce you have created your strategy, you need to start engaging with your organisation. The communication process is key and needs to be two-way. You need to create a mechanism for people in your firm to feed back their view.

              Once you have your feedback and have finalised your strategic plan, the next step is to start creating tangible objectives.

              Each objective should have a dedicated owner (who is responsible and accountable), a deadline and regular updates on progress towards each goal should be provided at, for example, a monthly meeting.

              Tracking and reporting are key components of executing any strategy. Monthly updates should be provided by the people responsible for each objective and should include a quantitative measure of progress and a short commentary to add background information about progress to date, expected timeline for delivery, resources required for the next stage, and so on.

              Performance management is also key to successfully implementing your strategy. Your team need to be accountable and you need to create a connection between the strategic objectives of the business and your team member’s day jobs. Each person on your team should have a set of objectives which cascade from the overall company objectives that are set out in your strategy document. Aligning the objectives of each individual with the overall goals of your business ensures that your whole team is working towards the same common goal. You should measure and reward people for their contribution to achieving the firm’s strategy. This encourages the right behaviours among your team.

              Executing your strategy isn’t a process. It is about developing a culture in your firm where everyone is working towards a common set of goals. At the end of each year, you should evaluate your strategy, keep the bits that are working well and update those parts that haven’t been so successful.

              Need more information?

              Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector, and above all are here for you and your business. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

              Our fantastic team at A&C Chartered Accountants are here to help.

              Contact us below

              Fields marked with an * are required





                desk
                By Katie Business Advice • Startups 0 Comments

                Do you need a desk for everyone in your office?

                desk

                Office space is expensive. Do you really need to have a dedicated desk for each and every employee?

                Recent years have brought a lot of changes to the office environment, particularly as technology develops and the next generation of employees has come through to management. This new generation of managers brings new thinking about the modern office environment and what it should be.

                For example, if a workforce of 100 has, on average, only 80 people in the office on a given day, those 20 empty desks take up space and are not being efficiently utilised. A hefty portion of business overhead is dedicated to office building space and maintenance. By trimming furniture and hardware costs, some of that wasted space can be better used as a meeting or project development space, saving money and benefiting the bottom line.

                If your employees hot-desk, they tend to socialise more. Employees who sit beside someone different every day interact more, converse with a greater number of departments, and can find inspiration where it wasn’t possible to before. More interaction with a wider variety of people can lead to greater company cohesion and increased collaboration.

                Employees will tend to optimise the space around them for productivity and might select a space that meets their needs for any given day. If they have conference calls on their schedule, they may gravitate towards a small meeting room or less-crowded alcove. If they are collaborating with colleagues on a specific project, they may choose to work in a room with presentation software and large screens, rather than huddling around a single desk.

                When your office design allows for employee flexibility, your workers who thrive on mobility and independence are happier and more productive. They will find a way to optimise their office set-up for each and every day.

                So, perhaps modern businesses are better off having flexible, open and collaborative offices rather than relying on the more old fashioned approach of assigning each employee a fixed desk. As an added bonus, the business may be able to reduce office overhead costs as office space can be used more efficiently.

                Need more information?

                We are proud of our offices here at A&C Chartered Accountants. Each team member has a standing desk which also gives staff the option to sit too. If you would like to come into the offices to check it out please feel free to pop in at any time. We offer a wide range of services which are unique to your business. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                Our fantastic team at A&C Chartered Accountants are here to help.

                Contact us below

                Fields marked with an * are required





                  By Katie Business Advice • Business News 0 Comments

                  Key Business Trends for 2020

                  Check out our key business trends for 2020. The environment, wellbeing, mental health and technology look set to be some of the big business trends in 2020.

                  As we move into 2020, businesses will have to adapt in a world that places greater emphasis on sustainable business practices. People will want to work for firms that take care of their employees in terms of their physical and mental health.

                  Technology will continue to be the key enabler to allow us to work flexibly, remotely and more effectively. It looks like 2020 is set to be a busy year for businesses in the UK and internationally.

                  Customers are becoming more environmentally aware. Companies like Beyond Meat, the maker of plant-based, protein-rich foods or Everlane, which creates clothes from recycled fibres and plastics, are gaining traction. People are trying to reduce their carbon footprint and are making buying decisions on the basis of the environmental credentials of businesses.

                  As a result, businesses are responding by focusing on their environmental and sustainability policies. Many firms are adapting their CSR activities to include environmental projects in order to help drive the green agenda in local communities. As we move into 2020, this trend is likely to accelerate.

                  On the technology side of things, machine learning and artificial intelligence (AI) are continuing to advance. The AI industry is growing and businesses have access to more powerful tools in order to create new customer experiences. For example, music-streaming service Spotify uses AI to make the listening experience more personal by creating customised play-lists for each user.

                  Younger workers are putting greater emphasis on physical wellbeing and their mental health. Employers will need to adapt in order to attract the next generation of talented employees. Flexible working and wellness programmes are high on the list of priorities for Millennials and Generation Z employees. The businesses that really embrace these new trends will attract the best people.

                   

                  Need more information?

                  If you need any guidance with the above pointers please feel free to get in touch with us. Our team offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                  Our fantastic team at A&C Chartered Accountants are here to help.

                  Contact us below

                  Fields marked with an * are required