By Katie Business Advice 0 Comments

Fraud and scam protection for your business

Fraud and scam protection for your business

Companies House incorporate and dissolve limited companies. They register company information and make it available to the public. They have recently updated their guidance on how to protect your company from fraud and scams and how to report it:

See: Companies House – GOV.UK (www.gov.uk)

Need more information?

Do you need further guidance on fraud and scam protection? 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.

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    By Katie Making Tax Digital • Tax News 0 Comments

    MTD for income tax – Quarterly information to be reported by businesses

    Making Tax Digital (MTD) for Income Tax will apply to sole traders, property landlords and certain other businesses with gross turnover and/or property income over £10,000 a year and will commence in April 2024. The system will then be extended to partners from April 2025 and LLPs and partnerships with corporate members from April 2026.

    The Income Tax (Digital Requirements) Regulations 2021, set out the requirements that relevant persons must comply with under MTD for Income Tax. These include the use of MTD-compatible software to keep and preserve their business records (income and expenses) digitally, send quarterly updates of their records to HMRC and submit an end-of-period statement to HMRC.

    HMRC has now published draft notices of the detailed provisions for consultation. The consultation invites views on these which provide additional information on the key requirements of MTD as they relate to:

    • The use of functional compatible software.
    • The information required when submitting quarterly updates and end-of-period statements.
    • Retail sales election.

    The draft notices specify the proposed dataset requirement. Later in the year, HMRC will publish guidance to explain how customers can reflect any accounting and tax adjustments that may be required to reconcile the quarterly submissions to the final taxable profits for the year (The End of Period Statement). The consultation sets out the adjustments that are likely to be required, such as accruals, prepayments, private use adjustments, stock and capital allowances.

    As expected, the breakdown of income and expenses broadly follows the headings on the self-employment and property income pages on the Self-Assessment Tax Return.

    The consultation document states that where the annual turnover is below the VAT registration threshold, the individual may choose to provide the total of all income and the total of all expenses, instead of a detailed breakdown of expenses. This is also consistent with the self-employment pages in the Self-Assessment Tax Return.

    Retail sales businesses may enter a single digital record of the daily gross takings for any retail sales made.

    Please talk to us about making sure your business complies with MTD. We are here to help!

    For details, see: Tertiary legislation for Making Tax Digital for Income Tax – GOV.UK (www.gov.uk)

    Need more information?

    Do you need support with MTD for income tax? Get ahead now!

    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.

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      By Katie Business Advice 0 Comments

      Traineeships – would your business benefit?

      The talent shortage continues to place a burden on the economy. As companies struggle to find the talent they need, now is the time to invest in new and more strategic approaches to developing an early talent pipeline. One way of bringing in new talent is through traineeships.

      A traineeship is a work-based skills development programme that includes a work placement. There is a free government scheme (outlined below), although you may have your own business costs. Some employers may choose to pay the wages and expenses such as travel and living costs.

      The full programme can last from 6 weeks to 1 year, though most traineeships last for between 6 weeks and 12 weeks. Your business needs to be able to offer a work experience placement between 70 to 240 hours. You work with a training provider to design what is included in the programme. Trainees can gain English, maths and work-related qualifications which can lead them on to:

      • an apprenticeship
      • work
      • further education

      Employers need to provide:

      • a safe, meaningful and high-quality work experience placement.
      • a minimum of 70 hours of work experience placement throughout the entire traineeship (if the trainee claims benefits, the placement cannot last longer than 240 hours).
      • constructive feedback and advice to the trainee.
      • an interview for an apprenticeship or job in their organisation at the end of the traineeship if one is available.
      • an exit interview at the end of the traineeship with meaningful written feedback if no job is available.

      Traineeships can benefit your business by:

      • providing a stepping-stone for your future apprentices.
      • allowing you to test out a new position in your business without committing to full-time hires.
      • attracting a new generation of talent.
      • offering financial incentives of up to £1,000 per trainee.

      If you are interested in offering a work placement for a traineeship:

      • Contact the National Apprenticeship Serviceto register your interest and ask for advice and support on traineeships. They can help you set up a traineeship and advertise it on Find a traineeship.
      • Partner with a training providerwho will help you to design a traineeship that will meet your business needs. They will also advertise the work experience placement for you.
      • Agree with the trainee and your training provider about what each of you expects from the traineeship.

      See:  Traineeship information for employers – GOV.UK (www.gov.uk)

       

      Need more information?

      Does your business offer traineeships? 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.

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        By Katie Business News • Tax News 0 Comments

        Diary of main tax events July/August 2022

        Find below our diary of main tax events July/August 2022. If you need further guidance or support on meeting these deadlines, our team our here to help.

        Date What’s Due
        1/07 Corporation tax for year to 30/9/21 (unless pay quarterly)
        5/07 Last date for agreeing PAYE settlement agreements for 2021/22 employee benefits
        5/07 Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2021/22
        06/07 Deadline for forms P11D and P11D(b) for 2021/22 tax year. Also deadline for notifying HMRC of shares and share options awarded to employees.
        19/07 PAYE & NIC deductions, and CIS return and tax, for month to 5/7/22 (due 22/07 if you pay electronically)
        31/07 50% payment on account of 2022/23 self-assessment tax liability due.
        1/08 Corporation tax for year to 31/10/21 (unless pay quarterly)
        19/08 PAYE & NIC deductions, and CIS return and tax, for month to 5/8/22 (due 22/08 if you pay electronically)

        Need more information?

        Our team are here to help you meet all of the deadlines above. Our diary of main tax events July/August 2022 are here to keep you informed. 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.

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          By Katie Business News • Tax News 0 Comments

          R&D tax credit repayments delay 2022

          The Research & Development (R&D) tax credit scheme for small and medium sized enterprise companies is particularly generous as there is currently 230% relief for qualifying expenditure and, where the company is loss making, this results in a 14.5% repayable credit. This means that the company receives a £33,350 refund for every £100,000 spent on R&D.

          R&D tax credit repayments delay 2022

          This generous tax break has reportedly resulted in abuse of the system. HMRC have recently paused some repayments while they investigate an increase in irregular claims. Unfortunately, even for legitimate claims, this is going to increase processing times.

          For the vast majority of claims, HMRC aims to either pay the payable tax credit or contact the claimant regarding the claim within 40 days instead of the previous 28 day response.

          Need more information?

          Do you need further guidance on the R&D tax credit repayments? 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 to optimise growth and help you 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.

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            By Katie Business News • Tax News 0 Comments

            Penalties for overclaimed SEISS grants

            SEISS grants

            HMRC are reminding sole traders and partners who have received Self-Employed Income Support Scheme (SEISS) grants that there are potentially penalties of up to 100% of amounts overclaimed in certain circumstances.

            HMRC may apply the penalty where they believe that the trader knew that they were not entitled to the grant and did not tell HMRC within a 90-day notification period. The law treats the failure as ‘deliberate and concealed’. This means HMRC may charge a penalty of up to 100% of the amount of the SEISS grant that the trader was not entitled to receive or keep.

            Traders are required to notify HMRC if there is an amendment to any of their tax returns on or after 3 March 2021 which either:

            • lowers the amount of the fourth or fifth grant they are eligible for
            • causes the trader to no longer be eligible for the fourth or fifth grant

            If the tax return was amended before claiming the fourth or fifth grant, traders had to tell HMRC within 90 days of receiving the grant. If the tax return has been amended after receiving the fourth or fifth grant, traders must tell HMRC within 90 days of the amendment.

            Reporting SEISS grants on 2021/22 tax returns

            Where applicable, the fourth and fifth SEISS grants that a trader was entitled to need to be reported on the trader’s 2021/22 self-assessment tax return, with any overclaimed amounts separately disclosed. The fifth grant claim was particularly complicated as it was dependant on the reduction in business turnover.

            If you have any concerns, we can check that the amounts reported are correct and minimise any potential penalties.

            Need more information?

            Do you need further support with SEISS grants? 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.

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              By Katie Making Tax Digital • Tax News 0 Comments

              MTD for VAT – new guidance on penalties for non-compliance

              MTD for VAT – new guidance on penalties for non-compliance

              HMRC have also issued new guidance on the penalties that they impose for non- compliance with the Making Tax Digital (MTD) for VAT rules. In particular, there is a penalty of up to £400 for every VAT return a business files without using ‘functional compatible software’.

              Functional compatible software means a software program, or set of software programs, products or applications that can:

              • record and store digital records
              • provide HMRC with information and VAT returns from the data held in those digital records
              • receive information from HMRC

              There are additional penalties if the business does not keep their records digitally.

              HMRC may charge the business a penalty of between £5 to £15 for every day on which the digital record keeping requirement is not met.

              To meet the digital record keeping requirement, the business’ functional compatible software must contain:

              • the business name, address and VAT registration number
              • any adjustments from calculations made outside the functional compatible software for any VAT accounting schemes used
              • the VAT on goods and services supplied, meaning everything the business sold, leased, rented or hired (supplies made)
              • the VAT on goods and services received, meaning everything the business bought, leased, rented or hired (supplies received)
              • any adjustments made to a return
              • the ‘time of supply’ and ‘value of supply’ (value excluding VAT) for everything bought and sold
              • the rate of VAT charged on goods and services
              • details of any ‘reverse charge transactions’, where the business needs to record the VAT on the sale price and the purchase price of the goods and services bought
              • copies of documents that cover multiple transactions made on behalf of the business like those made by volunteers for charity fundraising, a third-party business or employees for expenses in petty cash

              All transactions must be contained in the functional compatible software there is not a requirement to scan or upload supporting documents like invoices and receipts.

              Need more information?

              We have helped many businesses move over to MTD. 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

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                By Katie Tax Advice 0 Comments

                Tax-free childcare account savings

                Childcare accounts can subsidise summer camp costs

                If you have children under 12 who attend a nursery, after school club, play scheme, childminder or you are considering sending them to a summer camp, you should think about setting up a tax-free childcare account. The government adds 25% to the amounts that you save in the account, contributing up to £2,000 for each child each year (a higher amount applies for disabled children). For example, if you save £8,000, this is topped up to £10,000.

                The account is then used to pay approved childcare providers. It is worth noting that it doesn’t need to be the child’s parents paying into the account. Uncles, aunts, grandparents and others can also make payments, The government have noticed that many families who are eligible for this scheme are yet to set up their accounts.

                Various factors affect eligibility but those with annual net income in excess of £100,000 are notably excluded.

                 

                The tax-free childcare account scheme will gradually replace childcare vouchers which many employers continue to provide to employees.

                Childcare vouchers are free from tax and national insurance (within specified limits) and can be used to pay for childcare until the child is 16. Childcare voucher schemes can no longer be set up but employees already eligible can continue to benefit.

                Need more information?

                We 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

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                  By Katie Business News • Tax News 0 Comments

                  Increase in National Insurance thresholds July 2022

                  In the Spring Statement 2022, the UK Government announced an increase in National Insurance thresholds affecting the 2022 to 2023 tax year.

                  We want to take the opportunity to remind our clients that the threshold changes will take effect from 6 July 2022, meaning employees will pay National Insurance contributions on less of their income.

                  The primary threshold from 6 July 2022 to 5 April 2023 will be £242 per week and £1,048 per month, equivalent to £12,570 per year (increased from £9,880 per year). See the guidance Rates and thresholds for employers 2022 to 2023, ‘Class 1 National Insurance thresholds’ for further information.

                  The National Insurance lower profits limit for self-employed people has also increased in line with the changes for employees. The annual lower profits limit is now set to £11,908 for 2022 to 2023. This is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570, mirroring the position for employees. Self-employed people are also no longer required to pay Class 2 National Insurance contributions on profits between the Small Profits threshold (£6,725) and Lower Profits limit (£11,908), but they are still able to build National Insurance credits.

                  Please contact us about these changes – we are here to help!

                  Need more information?

                  Do you need further support with the new National Insurance thresholds? 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

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