By Katie Business Advice • Business News 0 Comments

The Employment Allowance – Don’t forget to claim

The Employment Allowance (EA) is a £5,000 allowance set against employers National Insurance Contributions (NICs) and has to be claimed each tax year if the employer qualifies. This allowance was introduced in 2014/15 and was increased to £5,000 from 2022/23. Employers make a claim for the Employment Allowance through their payroll software. They do this by completing and submitting a Real Time Information – Employer Payment Summary (EPS) to HMRC. The employer must enter “Yes” in the “Employment Allowance Indicator” field of the EPS confirming that they are eligible to claim the allowance.

Eligible employers can claim the Employment Allowance at any time during a tax year. Employers may also claim the Employment Allowance against closed tax years, provided they have not already claimed the allowance for those years. However, claims for closed tax years are limited to the four tax years falling before the current tax year.

The Employment Allowance can be claimed by most employers who pay secondary Class 1 NICs on their employees. This includes:

  • businesses (includes self- employed persons, companies and partnerships who have employees)
  • charities (includes private businesses that have charitable status such as schools, academies, further education colleges and universities)
  • Community Amateur Sports Clubs

If two or more companies are connected with one another, or two or more charities are connected with one another, then only one of those companies/charities may claim the Employment Allowance and they must decide which company/charity claims the allowance.

For recently updated guidance on connected businesses see: –

https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim06560

 

Other Employers Excluded from claiming the Employment Allowance

Employers are not eligible to claim the Employment Allowance where their employers’ Class 1 National Insurance liabilities in the previous tax year exceeded £100,000.

Another important exclusion from EA are single director companies where the director is the sole employee of the company.

Employment Allowance counts towards the total de minimis State Aid you’re allowed to get over a 3 year period. Employers that exceed the de minimis State Aid threshold for their sector (Agriculture products for example 20,000 euros) are also excluded from claiming EA.

Please contact us if you need help with your payroll.

Need more information?

Do you need further guidance on the above? 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 Business Advice • Business News 0 Comments

    Support for High Energy use Businesses extended

    High energy usage businesses, such as steel and paper manufacturers, are set to receive further support for electricity costs as the UK government has confirmed details of the Energy Intensive Industries (EII) compensation scheme.

    The scheme will be extended for a further 3 years and its budget will be more than doubled.

    The scheme provides businesses with relief for the costs of the UK Emissions Trading Scheme (ETS) and Carbon Price Support mechanism in their electricity bills, recognising that UK industrial electricity prices are higher than those of other countries. The scheme will now also provide support for companies that manufacture batteries for electric vehicles.

    See: High energy usage businesses to benefit from further government support – GOV.UK (www.gov.uk)

    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.

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      By Katie Business Advice • Tax Advice 0 Comments

      Gift aid your donations to help Ukraine

      Gift aid your donations to help Ukraine:

      For individuals and businesses wanting to donate money to help to support those suffering in Ukraine, there are a number of charities providing humanitarian relief. Ideally this should be done via the Disasters Emergency Committee (DEC) Appeal at

      www.dec.org.uk/.

      Individual UK taxpayers should make sure to tick the Gift Aid box as that will increase their donation by 25%. It should also be remembered that, like pension contributions, higher and additional rate taxpayers are able to obtain even more tax relief. For example, a £40 donation only costs £30 after higher rate tax relief.

      Need more information?

      Have you used Gift aid before? We offer a wide range of services which are unique to your business and our expert team of tax advisors get to know you and your business needs. 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

        Tips to help you reduce your business energy bills

        Top tips to help your business move towards net zero carbon and reduce your business energy bills.

        Businesses need to lead the way in moving towards net zero carbon emissions. There is no quick fix so businesses need to start the journey now and move towards the ultimate goal of net zero, over the next few years. Here are some of the changes that you can implement in your firm.

        Switch to a green energy supplier.

        Green energy is generated by renewable sources such as wind, hydroelectric or solar. The more businesses that switch to green energy suppliers the quicker the shift away from fossil fuels such as coal or oil will be.

        Switch to electric vehicles.

        If your business has a fleet of petrol or diesel vehicles, you could switch across to electric-only vehicles. It is also worth noting that company car drivers who choose an electric vehicle also enjoy a reduced benefit-in-kind, for tax purposes. If you deliver products or services to your customers, showing up in an electric vehicle sends a positive message that your firm is an environmentally responsible business.

        Reduce business travel.

        Reducing business travel will help to reduce your carbon footprint. Air travel is responsible for significant carbon emissions so really challenge yourselves on whether meeting objectives can be met via Zoom or Teams.  Commuting also contributes to carbon emissions. Encouraging your staff to work from home, some of the time, will help to reduce your carbon emissions. Face-to-face meetings are still very important but it is key to get the balance right.

        Focus on reducing waste.

        Wasted paper, water, energy or raw materials contribute to climate change and also cost money.

        You can reduce your energy bills by ensuring that all equipment is turned off at night.

        You can also invest in improved insulation and thermal management of your business premises in order to reduce the amount of central heating that is required, particularly in the winter months. You can also encourage staff to print less and reuse or recycle materials, where possible. Embracing new technology such as electronic signatures, etc. can further reduce your reliance on paper.

        Switch to lower carbon suppliers.

        Research low carbon suppliers and where possible, switch to using them instead of your traditional suppliers. Even small changes such as using a local supplier rather than an overseas firm, will help to reduce the carbon footprint of transporting materials to your business premises. If you only buy from other businesses that are taking action on climate change, you will help to further drive the business community towards our shared goal of net zero carbon. Examples could include banks who offer paperless statements, logistics companies who use electric vans or food companies who recycle and use minimal packaging.

        Need more information?

        We offer a wide range of services which are unique to your business and can have a chat about how your business can reduce your energy bills. 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

          What should you do with your savings?

          Savings used to be the foundation of good financial management. Putting cash away to deal with emergencies, or to build up a cash sum for anything from a deposit on a first home to our old age was the first step to financial security.

          The banks and building societies were only too pleased to help us become savers. They needed our cash to lend out to other customers and they would pay interest to encourage us to leave it on deposit with them, but times have changed. It looks as though the banks don’t want your savings and they are certainly not keen on paying a good rate of interest on them.

          The Covid crisis is still not over, but it could be that normal life is becoming a real prospect for the near future. The Bank of England has even raised its own interest rate – the rate that underpins the rates the high street banks use – in an attempt to get inflation under control as the economy bounces back.

          But although the base rate increased from 0.1% to 0.75% in recent months, the banks don’t seem too keen on passing on the increase to savers. You might still only earn 0.01% on easy-access deals from the big banks; Barclays, Lloyds (including Halifax), HSBC and NatWest (including Royal Bank of Scotland).

          The simple reason is that they are already awash with cash, having benefited from an additional £187 billion savings accumulated since the start of the pandemic and total of around £974 billion sitting in easy-access accounts.

          They don’t need to pay you to look after your money and the reserves are so high this is unlikely to change any time soon.

          It is possible to earn slightly better rates on your savings with some smaller banks and online providers. Your financial adviser could help you find the best performing accounts, but it might still be difficult to earn more than around 0.75%.

          This is of course substantially below the current inflation rate of 6.2%, meaning that your savings will decline in value in real terms.

          So what are the alternatives?

          With investments, your cash is used to buy something, such as stocks and shares. These may rise and fall in the short-term, but if you invest carefully for a few years, you have an excellent chance of riding out these ups and downs and taking advantage of long-term potential growth in the markets to provide capital growth – or income.

          Starting investing can seem a big step, but with help from your financial adviser, investing – in a tax-efficient ISA – can be as easy as saving. Ask them to help you select managed funds that are right for you.

          Please note: The information contained in this article is based on general knowledge and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action. Please talk to us and we can recommend an independent adviser.

           

          Need more information?

          We are not financial advisors but we know how important savings are to our clients. We offer a wide range of services which are unique to your business 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

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            By Katie Business Advice 0 Comments

            Religious festivals, holy days and observances – guidance for employers

            Religious festivals, holy days and observances – guidance for employers:

            In the UK there are a wide range of different religions that both employers and employees may need to have some understanding of and how they may occasionally affect the workplace.

            Many workplaces have employees from different religious and non-religious backgrounds. Encouraging greater awareness and understanding of these backgrounds can be rewarding, particularly in terms of team building. It can also help to reduce the chance of misunderstanding resulting in complaints or disciplinary action.

            ACAS have produced guidance for employers and employees on how to reduce the chance of religion or belief discrimination happening at work, how it might happen and how it should be dealt with if it does.

            See: Acas guide on religion or belief discrimination | Acas

            Need more information?

            We offer a wide range of services which are unique to your business and if you need further help with the above we are here. 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 • Business News 0 Comments

              Chancellors Spring Statement – April 2022

              Following on from the Chancellors Spring Statement Yesterday, we have outlined the key measures affecting our clients.

              National Insurance Contributions (NICs)
              Despite lobbying to delay the upcoming 1.25% increase in NICs payable by employees, employers and the self-employed, the government has decided to go ahead as planned from April 2022, to provide additional funds for health and social care.
              Some new measures have however been announced in an attempt to combat the effect of the increase, at least partially.

              Increase in the starting NIC threshold for individuals
              The annual level at which employees and the self-employed start to pay NICs was due to increase from £9,568 to £9,880 from 6 April 2022.
              This increase will go ahead but be further uplifted to £12,570 from 6 July 2022, effectively aligning the point at which an individual starts to pay NICs with the £12,570 income tax personal allowance.
              In the tax year to 5 April 2023, this is a NIC cut worth £267 for most employees and £207 for most self-employed individuals.
              Crucially, this will more than negate the impact of the 1.25 percentage point NIC increase for most workers with employment earnings of less than £34,000, providing them with a small contribution to the increased cost of living.
              The starting NIC threshold for the self-employed and company directors is computed on an annual basis and so will be set at a pro-rata sum of £11,908 for the whole of the tax year to 5 April 2023, before increasing to £12,570 in the tax year to 5 April 2024.

              Class 2 NIC liabilities of the self-employed
              For the self-employed, some individuals will find that they no longer need to pay Class 2 NICs from April 2022. The small profits threshold will be set at £6,725 as planned but the requirement to pay Class 2 NIC will only apply to those with self-employed profits over £11,908.
              This will benefit approximately 500,000 self-employed individuals by saving them £165 a year.
              From 6 April 2023, Class 2 NIC will only be payable by those with profits over £12,570.

              What about employers?
              No changes have been made to the annual level at which employers’ NIC start to apply; namely £9,100 for most employees in the tax year to 5 April 2023.
              However, the Employment Allowance, which allows eligible businesses to reduce their employer NIC cost, will increase from £4,000 to £5,000 for the tax year to 5 April 2023.
              It is expected that 495,000 businesses will benefit from this increase, with most saving £150 in the tax year to 5 April 2023.

              Personalised summary
              While the Spring Statement described tax cuts, we must not lose sight that there is still the upcoming 1.25 percentage point increase in NIC, along with a freeze in income tax bands and allowances. Many individuals and businesses will still be paying more tax and NIC in the year to 5 April 2023 than they did last year.

              Please get in touch if you’d like a personalised summary of how these changes affect you or if you have any questions about your payroll.

              Income Tax
              The Chancellor has committed to reduce the basic rate of income tax from 20% to 19%, but not until 6 April 2024.
              Note that the Scottish Parliament and Welsh Assembly have devolved powers to set their own income tax rates on earned income.
              It is estimated that this will save 30 million individuals an average of £175 per year.

              Business Tax Relief for Capital Investment
              In preparation for the 130% ‘super-deduction’ for companies coming to an end on 31 March 2023, other alternatives are being considered in an attempt to continue encouraging investment from April 2023.
              In the meantime, remember to talk to us about the reliefs potentially available (to companies and non-corporates) for expenditure on plant and machinery. This includes:
              • A £1million annual investment allowance;
              • 130% and 50% super-deductions;
              • 100% first-year allowances (including on electric cars); and
              • 18% and 6% writing down allowances.
              The date of acquisition of capital assets can make a difference to the tax relief you can claim so do speak to us before your next sizeable investment.

              Fuel Duty
              Fuel duty has been cut by 5p per litre for 12 months from 6pm on 23 March 2022.
              The Treasury report that this will save the average car driver £100 a year and the average van driver £200 a year.

              Household Support Fund
              The Household Support Fund will be doubled to £1billion from April 2022. The Fund will help households with the cost of essentials such as food, clothing and utilities.

              Green Technology
              Green technology, including solar panels and heat pumps, will be exempt from business rates in England from April 2022, a year earlier than originally planned.
              VAT on Energy Saving Materials (ESMs) installed in residential accommodation will be reduced from 5% to 0% from this April in Great Britain. The measure will be introduced in Northern Ireland in due course. The 0% rate will apply until 31 March 2027.
              A 100% relief for eligible low-carbon heat networks which have their own rates bill will also be available.

              VAT Rates in the Leisure and Hospitality Sector
              No extension has been granted to the leisure and hospitality sector for use of the reduced 12.5% VAT rate on eligible supplies including food, non-alcoholic beverages and hotel and holiday accommodation. The VAT rate applied to these supplies will revert to 20% from 1 April 2022 as planned.

              Research and Development (R&D)
              The R&D tax relief schemes for companies will be enhanced from April 2023 but we have to wait until this summer for more details.
              We do know the reform is set to boost sectors where the UK is a world-leader, including artificial intelligence, robotics, manufacturing, and design.

              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.

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                By Katie Business Advice • Business News 0 Comments

                Business Support: Help to Grow: Digital Scheme

                ‘Help to Grow: Digital’ is a UK-wide scheme to help small and medium-sized businesses adopt digital technologies that are proven to increase productivity.

                The scheme offers:

                • free, impartial advice and guidance about what digital technology is best suited to your business and how it can boost your business’ performance
                • targeted financial support, if your business is eligible, worth up to £5,000 towards the costs of buying approved digital technologies

                The website offers advice, guidance and tools to help businesses explore the huge potential of digital technology to help your business to grow. It aims to help you:

                • identify the digital technology needs of your business
                • make informed decisions about which software products best meet those needs
                • successfully incorporate these products into your business

                See: Help to Grow: Digital (learn-to-grow-your-business.service.gov.uk)

                Need more information?

                Are you interested in the Help to Grow scheme? 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.

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                  By Katie Business Advice 0 Comments

                  Ukraine: What can businesses do to help?

                  Ukraine: What can businesses do to help?

                  Many want to do their bit to support those who have been forced to flee their homes because of the invasion. Here is how you can help #StandWithUkraine.

                  Financial donations

                  If you want to donate money, there are a number of charities providing humanitarian relief in Ukraine. See: Donate to the Disasters Emergency Committee Ukraine Appeal

                  The UK Government will match public donations to this appeal pound-for-pound up to £25 million.

                  Donating essential supplies

                  One of the best ways to help is by donating cash through trusted charities and aid organisations, rather than donating goods. Cash can be transferred quickly to areas where it is needed, and individuals and aid organisations can use it to buy what is most needed. Unsolicited donations of goods, although well-meant, can obstruct supply chains and delay more urgent life-saving assistance from getting through.

                  Organisations across the UK are gathering essential supplies, such as clothes, first aid and sanitary products. Many charities and community groups will have lists of items they need.

                  Charities with experience of responding to disasters are best placed to reach victims on the ground.

                  Apply to be a sponsor

                  The government will be launching a new sponsorship scheme to make sure that Ukrainians who have been forced to flee their homes have a route to safety.

                  The scheme will match people, charities, businesses and community groups to Ukrainians who do not have family ties to the UK.

                  Details of the scheme and how you can apply will be published shortly by the Department for Levelling Up, Housing and Communities.

                  Extracted from: Ukraine: what you can do to help – GOV.UK (www.gov.uk)

                   

                  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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