By Katie Insights 0 Comments

SHOULD WE GIVE SHARES TO CHILDREN AND PAY £5,000 DIVIDENDS TAX FREE?

SHOULD WE GIVE SHARES TO CHILDREN AND PAY £5,000 DIVIDENDS TAX FREE?

The introduction of the £5,000 tax free dividend allowance has tempted many family company shareholders to give shares to other family members so that they can be paid £5,000 a year tax free. (Note that this allowance reduces to £2,000 from 6 April 2018).
Such a strategy needs to be carefully structured as there can be Capital Gains Tax on the gift of shares, and HMRC may also seek to tax the dividend as employment income under certain circumstances. The dividend will also be taxed on the parents if received by a child who is a minor.

By Katie Insights 0 Comments

BETTER TO PAY INTEREST ON YOUR LOAN ACCOUNT THAN DIVIDENDS IF HIGHER RATE TAXPAYER

Ever since the introduction of the 7.5% increase in the rate of tax on dividends in April 2016, it has been more tax efficient for owner managed business shareholders to pay interest on their loans to the company rather than pay themselves dividends.
The interest would be deductible against the company’s profits saving corporation tax at 19% (was 20%), whereas dividend payments are not tax deductible. A higher rate taxpayer would end up with more post tax cash, despite the rate being 40% compared to the 32.5% rate on dividends.

By Katie Insights 0 Comments

DIARY OF MAIN TAX EVENTS – MAY/JUNE 2017

1st May 2017

Corporation tax for year to 31/07/16 (unless quarterly payments apply)

19th May 2017
PAYE & NIC deductions, and CIS return and tax, for month to 5/5/17 (due 22/05 if you pay electronically)

1st June 2017
Corporation tax for year to 31/8/16 (unless pay quarterly)

19th June 2017
PAYE & NIC deductions, and CIS return and tax, for month to 5/6/17 (due 22/06 if you pay electronically)

By Katie Insights • • • • 0 Comments

Microsoft Major Partnership With XERO

Tuesday saw XERO, the most popular cloud accounting software in the world, make a major announcement that it would be partnering with both global IT corporation Microsoft, as well as Barclays bank. XERO aim to further automate small business financial management and control through their strategic partnership with two super powers of industry.

Microsoft – Xero Partnership


Power BI is being brought to the XERO table through Microsoft as the partner, delivering big data for small businesses so that any business customer can gain true insights from their business data. Microsoft Power BI transforms your company’s data into rich visuals for you to collect and organize so you can focus on what matters to you. Stay in the know, spot trends as they happen, and push your business further. Microsofts software literally brings your almost meaningless mess of raw data to vibrant life. Power BI is a suite of business analytics tools to analyze data and share insights. Monitor your business and get answers quickly with rich dashboards available on every device.

Barclays also come on board joining banks such as Metro Bank, RBS, Natwest, and Silicon Valley Bank with live data feeds.

The two companies said the Microsoft – Xero integration will enable businesses to analyse data faster, more efficient and with greater understanding through 25 metrics such as cash position, revenue vs expenses, profit loss trend, etc. The new analytics tool is expected to be available in March and is certainly in much anticipation for XERO users.

“Business tools today are smarter and more connected than ever and finally available to the small business sector,”

said Xero’s chief executive, Rod Drury.

“The Accounting Industry runs on Microsoft Office and we’re delighted to further integrate with Microsoft Power BI to give our users easier ways to access and analyse information from Xero and other sources to make smart, informed decisions.”

Users will be able to share valuable data & insights directly from within Office365 and Microsoft have praised the partnership and it’s long term future with XERO cloud accounting. Statistics from XERO suggest that they have over 600,000 users with more than a quarter (150,000) using at least one of either Microsoft or Barclays in conjunction with XERO accounting software, which makes this a very powerful strategic alliance and a great move for XERO.

By Katie Insights • • • • 0 Comments

XEROCON London 2016 Highlights

Xerocon – It’s the world’s most beautiful and innovative conference for leaders in cloud accounting and it took place again in London 9 – 10 February. An action packed 2 day event with pre convention drinks prior and a fabulous after event party unsurpassed for industry networking. This year XEROCON London was sponsored by Microsoft, Expensify and Receipt Bank.

XERCON LONDON SPEAKERS

XERCON attendees had a real treat with the amazing array of guest speakers at the event – compelling keynotes from the people in the know. This year’s Xerocon featured a really impressive line-up of speakers to inspire and enlighten those truly passionate about XERO and cloud based accounting, as well as business.

Highlights of amazing Xerocon guest speakers at this years Prestigious XEROCON London event included:

Screenshot 2016-02-11 11.07.17

Sir Ranulph Fiennes OBE

The world’s greatest living explorer
Ranulph was the first man to reach both poles by surface travel and the first to cross Antarctica unsupported. He’s also the oldest Briton to climb Everest. His recent attempt to cross Antarctica on foot was thwarted by frostbite, but Ran says: “if you’re lucky enough to be able to walk without a crutch, you might as well go for it.”

Screenshot 2016-02-11 11.07.29Dale Murray

Software entrepreneur and angel investor
Dale is the co-founder of Omega Logic, a British mobile pioneer launching pre-pay mobile top-ups, which she took to a £450m turnover in just three years. Now an angel investor and start-up expert, Dale holds a number of board positions and takes an active lead in mentoring entrepreneurs.

Screenshot 2016-02-11 11.07.36Charles Counsell

Executive Director of Automatic Enrolment, The Pensions Regulator
Charles has been involved in the design and delivery of automatic enrolment at The Pensions Regulator, and became Executive Director in 2011. He has been setting up and running major business change programmes around the globe for nearly 20 years, in the public sector as well as the financial services and automotive industries.

Screenshot 2016-02-11 11.07.43Brigid McBride OBE

API and Third Party Software Lead, HMRC
Brigid has been instrumental in delivering significant, high-profile transformational projects in government since 1987. At the forefront of changing how government does business with its customers, Brigid has led HM Revenue and Customs’ digital strategy and is responsible for linking their systems with third-party software products.

Also attending the very successful XEROCON London were – Rod Drury, Andy Lark, Gary Turner, Angus Norton, Jonathon Macdonald and Dave Coplin.

XEROCON London – Schedule Highlights


This year, attendees were literally able to go hands on in expert workshops or take in keynotes across two days packed full of inspiration and learning. Workshops included some fantastic expert advice covering topics such as content marketing, auto enrolment, payroll as well as fantastic information through keynote presentations on the future & vision for XERO and the cloud accounting market place, HMRCs digital transformation strategy and managing change for accountants in the digital communications age.

Screenshot 2016-02-11 11.24.14

Xero handed out awards again this year for this years top performing partners – the XERO integrations and technology really is going from strength to strength with some truly inspiring partner businesses buying into the power and vision of XERO.

XEROCON Exhibitors

This was the most exciting aspect of XEROCON for us at A&C Chartered Accountants. We got to meet and interact with a HUGE host of exhibitors where we could literally dive in and discover innovations to help us as accountants, and our clients thrive from the burst of innovation in the XERO cloud accounting technology. From Customer Relation Management to mobile payment solutions, the exhibitors completed the Xerocon experience as the cherry on the top of the cake for us. This was both inspiring and amazing to see how fast technology speeds along, and improves how people conduct business across the world.

Highlights

Here at A&C Chartered Accountants, we thoroughly enjoyed the engaging experience in London for Xerocon 2016, and this reaffirmed our choice of cloud accounting software to which we have dedicated a long standing partnership as a GOLD Partner. We know we have made the correct choice to help our clients and their business create results that were previously never possible with old fashioned accounting. XERO really does open up a world of opportunity that never used to be available, at the same time, as streamlining, cutting costs, improving visibility and so much more for existing businesses.

If you’d like to discuss XERO cloud accounting, and how we can help as true outsource financial controllers, please do get in touch with one of our team.

CONTACT US

By Katie Insights • • • • • • 0 Comments

Contractor? No More Umbrella Benefits…

A&C Chartered Accountants is helping hundreds of contractors, just like you, to optimise your accounting, business and earnings during the government changes clamping down on the use of umbrella companies. 

bluetickLet A&C Chartered Accountants – the full service accountancy firm assist you move your contractor business to the cloud with greater, streamlined financial control. There is no need to panic when moving away from an umbrella setup any longer.

bluetickJoin over 100,000 contractor based businesses worldwide already using Xero and cloud accounting to help them grow.

bluetickLeave frustrating, complex, expensive, pre-internet accounting software behind.

bluetickOur experienced team of chartered accountants is dedicated to managing your accounts, minimising your tax AND providing expert business advice. Contact us for complete umbrella company migration support today.

get in touch now

Where many contractors go into business and set up a traditional ltd company, there has been a considerable rise over previous years of contractors opting to work through an umbrella company in their business affairs to match their goals and expectations from business.

What has previously been a massive challenge to the one man contractor business, even with a good and reliable accountant, is the daunting prospect of handling paperwork, tax, national insurance contributions and PAYE. While those excuses are redundant with a true online accounting solution such as A&C Chartered Accountants who specialise in contractor accounting specifically, many contractors instead opt to use an Umbrella Company. Some benefit of an umbrella company could be to save start up and set up fees, as well as fees to shut down a ltd company should that situation arise. That can of course be a benefit if you’re planning to run as a contractor for a short period of time, or, you’re trialling work/life as a contractor for the first time.

IR35 – the facts and what you need to know about legislation changes

Intermediaries legislation (known as IR35) is the tax and National Insurance contributions legislation that may apply if you’re working for a client through an intermediary.

If IR35 applies, all payments to the intermediary are treated as your employment income and the intermediary must pay any tax and National Insurance contributions due. It ensures that you pay roughly the same amount of tax and National Insurance contributions as if you’d been directly employed by the client.

The intermediary is always responsible for ensuring compliance with the IR35 legislation when it applies. As a director of your limited company or a member of your partnership, you must ensure compliance with all relevant legislation, and take responsibility for determining whether IR35 applies for each of your engagements or not.

There can be significant consequences of ignoring IR35 legislation. Interest and penalties may be charged on any additional tax and National Insurance contributions due as a result of an HM Revenue and Customs (HMRC) enquiry into your situation.

For these very reasons, many contractors have opted to work through an umbrella company specifically to disguise their tax and NI obligations.

If you feel your current umbrella set-up will no longer be optimal for your business, or, you’re simply unsure about the upcoming changes – then feel free to contact one of our specialist accountants.

get in touch now

April 2016 Onwards – The Death Of Umbrella Companies For Contractors?

With latest government tax rule updates and changes, it is becoming less and less beneficial to work as a contractor through an umbrella company. Post 2016, new services offered by Umbrella Companies will be a much less secure arrangement, involving zero hour contracts and even NO contracts at all…

Original umrella company tactics were to ensure maximum tax relief on travel costs and subsistence costs. HMRC is poised to be changing all of this in 2016. With the T & S Legislation going through as proposed (due to apply from April 2016, the restriction will net £635m over four years), it is becoming obvious more and more that the government are taking those small steps closer and closer to the goal of making expense claims for contractors via umbrella companies harder to put through, and much more uncomfortable.

In short, tax relief on your expenses as an umbrella contractor will no longer be given at source; it will soon have to be claimed at the end of the tax year in a self-assessment tax return.

Found at section 289A of the Finance Act, the clause will be in force for the 2016-17 tax year. It effectively states that for reimbursed expenses which are allowable expenses, no tax liability arises as long as the reimbursement is NOT made by virtue of a salary-sacrifice arrangement and that the tests imposed by Section 336 ITEPA 2003 have been undertaken by the payer or employer.

But an amendment to Section 289E of the Act, on salary sacrifice arrangements which also applies to the 2016-17 tax year, states: “In this section ‘arrangements’ includes any scheme, transaction or series of transactions, agreement or understanding, whether or not legally enforceable.” – source ContractorUK

Is It Time To Speak To A Qualified Accountant?

If you are a contractor, and you have been accustomed to working via and through an umbrella company to date and are seeking advice on how to proceed into 2016 with your business and tax affairs contact us now.

Here at A&C Chartered Accountants we can offer a risk free, cost effective accounting solution, that will take the flexibility and streamlined approach of an umbrella company, by using specialised cloud based real time accounting software via our team of specialised accountants to service your needs and business.

get in touch now

CALL NOW 0161 962 1855

 

By Katie Insights • • 0 Comments

Dividend Taxation 2016

April 2016 Dividend Tax Rules Changes

It’s all change, I am afraid, on the taxation of dividends.

From 6 April 2016 new rates will  be introduced on dividend income over £5,000 as follows: Dividend Allowance Factsheet 

·         7.5% on dividend income within the basic rate band (expected to be up to £43,000)

·         32.5% on dividend income within the higher rate band (expected to be up to £150,000)

·         38.1% on dividend income within the additional rate band (expected to be above £150,000)

Under the present system an individual with no other income can receive £38,000 of dividend income tax-free. However under the new system the tax charge on this income will be in the region of £1,700

Now may be a good time to maximise dividend withdrawals before 06/04/2016, subject to availability of distributable profits.

Please give A&C Chartered Accountants a call, or drop us an email to discuss you own personal situation.

By Katie Insights • • 0 Comments

Veeqo Inventory Synhcronisation

Veeqo is essentially an all in one solution which allows you to sync your inventory across your complete sales channel in real time.  This gives you full control over the management of your sales orders and gives you the ability to print your shipping labels automatically.

The Veeqo platform gives you visibility of your inventory so that you can see which stores your products are being sold at right down to an individual basis if required.  It will also allow you to link your inventory held across the different stores by SKU code automatically – so there is no input required from either you or your team.  Alternatively there is the option to do it manually if required at which point you could even go ahead and link lots of listings from the same store to one individual product.

Veeqo will also give you the power to update your stores and set special rules that focus specifically on things such as percentage of stock available or maximum stock levels for example.  If you are concerned about the labelling of your inventory then Veeqo will allow you to batch print labels with a barcode.  You can even create your own labels to make your label more specific to your companies requirements.

If you are one of these companies that holds stock across multiple locations then let Veeqo focus on being able to trace and manage your inventory regardless of where it is currently being held. It will also allow and assist you with the transfer of your inventory between those locations.

A real bonus with the Veeqo platform is the fact that you are able to view and ship all of your orders from one simple to use screen that doesn’t require you having to log into multiple platforms in order to refresh the list of current orders for example.  The Veeqo platform will allow you to view orders in one place no matter whether they have been logged via eBay, WooCommerce, Magento or Amazon to name a few.

Other valuable feature that are in built with the Veeqo platform include the import/export facility so that you can bring in all of the latest order information as soon as it’s ready.  Alternatively, you can create direct and orders made via telephone by simply searching for the customer details and adding the products required.  The fact that Veeqo allows you to sync in real time is brilliant as it means that the software is constantly checking for any new orders that have been placed.

Just by reading through the above information you can hopefully start to see exactly how the use of Veeqo will allow you to concentrate and focus fully on more client facing work, which will also remove the hassles that come with the administration side of the business.

If you would like to learn more about Veeqo, what it has to offer and the integration abilities we would love for you to contact us on 0161 962 1855 for a free and informal chat with a member of our team.

By Katie Insights • 0 Comments

Tradegecko Inventory Management Software

Tradegecko is a cloud based inventory management software that will help to simplify all of your order and inventory operations and assist with your business growth at the same time freeing you up to spend time on other aspects of the business.

This software platform includes numerous valuable features focusing on inventory management, order management, multi channel sales, multiple warehouses, customer relationships and accounting through to B2B ordering.

For example Tradegecko will allow self service online ordering to both your distributors and retailers giving a complete solution that will handle all backend operations and in turn take orders from B2B customers with ease.  It will give the customer the power to be able to log in and see their products and prices in real time – making the complete wholesale ordering extremely simple for all concerned.

The inventory management feature within Tradegecko will help to improve all tracking through automatically updated stock levels no matter when any purchase or sales have been made.  This also means that your stock management will be a lot easier to manager which should help you as a business to avoid any stockouts which would obviously cause a loss of sales and hit your profits.

The order management addition will focus on customer satisfaction at all times as it gives you the power to synchronise your orders with your inventory and allow the order managements process to flow as simply as possible for all concerned.

If you as a business are looking to grow and in turn increase revenue then you will no doubt be interested in adding sales channels to help with this.  Tradegecko makes this extremely simply by allowing you to sell on sales channels via B2C e-commerce such as WooCommerce or Magento, or via mobile sales app for example.  No matter which sales channel your sales are being made through they will still be managed via one central order management system.

One of the most interesting feature with Tradegecko is the ability to record your customers purchase history , details and preferences which will allow you in studying their future behaviours.  Obviously this can then be used to add default discounts for future orders as an example – the power is endless.

Finally there is the reporting functionality which gives you the power to access accurate sales figures wherever and whenever – of course all in real time – giving you the ability to focus on those all important metrics which can help with your businesses growth.

Just by reading through the above information you can hopefully start to see exactly how by using Tradegecko, it will allow you to concentrate and focus fully on more client facing work, which will also remove the hassles that come with the administration side of the business.

If you would like to learn more about Tradegecko, what it has to offer and the integration abilities we would love for you to contact us on 0161 962 1855 for a free and informal chat with a member of our team.