By Katie Business News • Tax News 0 Comments

When will budget day be now?

It was announced on 14 October that Sajid Javed’s first budget would be on 6 November but with a general election in December when will it be now?

The current political uncertainty makes it difficult to give clear tax advice as a number of key proposals in the draft Finance Bill scheduled to take effect from April 2020 might not now take place, due to the December general election.

The key tax measures “in limbo” until legislated in Finance Act 2020 are:

– Extending the “off-payroll” working rules to the private sector

– Restricting R&D repayable credit for SMEs

– Limiting CGT private residence and lettings reliefs

– The proposed 2% reduction in P11d car benefits

The “off-payroll” working rules will almost certainly proceed, even if not from 6 April 2020, and thus businesses and workers affected should prepare for the planned changes. Contact us if you need help in assessing the likely impact on your business.

Need more information?

If you need any support with how your business will be affected by the budget, please do not hesitate to get in touch with our team. We offer a wide range of services which are unique to your business and our dedicated team are here to help. 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 – October/November 2019

    Diary of main tax events for October/November 2019. If you need any help please do not hesitate to get in touch with our dedicated tax accountants.

    Date What’s Due
    1/10 Corporation tax for year to 31/12/18, unless quarterly installments apply
    5/10 Deadline for notifying HMRC of chargeability for 2018/19 if not within Self-Assessment and  receive income or gains on which tax is due
    19/10 PAYE & NIC deductions, and CIS return and tax, for month to 5/10/19 (due 22/10 if you pay electronically)
    1/11 Corporation tax for year to 31/01/19, unless quarterly installments apply
    19/11 PAYE & NIC deductions, and CIS return and tax, for month to 5/11/19 (due 22/11 if you pay electronically)

    Need more information?

    It is important as a business to keep up to date and be aware of all the latest tax dates and events. Our team are here to help you along the way. We offer a wide range of services which are unique to businesses who are just getting going! 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

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      By Katie Tax Advice • Tax News 0 Comments

      Tax on your dividends – January payments

      DON’T FORGET THERE MAY BE TAX TO PAY ON YOUR DIVIDENDS IN JANUARY

      The rules for taxing dividends changed radically from 6 April 2016 with the removal of the 10% notional tax credit and the introduction of new rates of tax on dividends. For many taxpayers that means more tax to pay on dividends on 31 January each year.

      If you are a higher rate taxpayer and received £22,000 of dividends in 2018/19 only £2,000 of those dividends are tax free now leaving £20,000 of those dividends to be taxed at 32.5% meaning £6,500 due on 31 January 2020, and possibly payments on account of your 2020/21 liability.

      If you can let us have all of your tax documents as soon as possible we can let you know how much tax you need to pay next January so that you can set aside sufficient funds. We may also be able to suggest some tax planning ideas to reduce your tax liabilities.

      Need more information?

      Our team enjoy nothing more than helping you and your business with all tax related issues and if you are a new business, we want to ensure you get off on the right foot! We offer a wide range of services which are unique to businesses who are just getting going! As start-up accountants we have a wealth of experience in all sectors between our team, from restaurants, fashion brands and construction companies. 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

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

        Time for an electric company car?

        Are you thinking of getting a company car? The government has announced that there will be a zero P11d benefit for the drivers of electric cars from 2020/21. This is instead of the 2% scale charge that was originally included in Finance Act 2017 to apply for 2020/21. The legislation for the change will be included in Finance Bill 2020 and it is proposed that the benefit will be 1% of list price in 2021/2 and then 2% in 2022/3.

        The zero taxable benefit will also apply to hybrid cars emitting no more than 50 grams of CO2 per kilometre with a range using its electric motor of at least 130 miles, but only for cars first registered on or after 6 April 2020. For those registered before 6 April 2020 the scale charge will be 2%.

        Rather confusingly there will be two different sets of scale charges from 2020/21, one set relating to those registered before 6 April 2020 and a new lower set of rates for those registered on or after 6 April 2020.

        However businesses are advised to wait until 6 April 2020 as the P11d scale charge for electric cars is currently 16% of original list price for 2019/20.

        ADVISORY FUEL RATE FOR COMPANY CARS

        These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 September 2019. Where there has been a change the previous rate is shown in brackets.

        Engine Size Petrol Diesel LPG
        1400cc or less 12p 8p
        1600cc or less 10p
        1401cc to 2000cc 14p (15p) 10p

        (9p)
        1601 to 2000cc 11p (12p)
        Over 2000cc 21p

        (22p)

        		 14p 14p

        You can continue to use the previous rates for up to 1 month from the date the new rates apply.  For hybrid cars use the equivalent petrol or diesel rate. However, for wholly electric cars there is a new 4p advisory rate from 1 September 2019.

        Need more information?

        We love nothing more than learning about new start-ups and helping you get off on the right foot! We offer a wide range of services which are unique to businesses who are just getting going! As start-up accountants we have a wealth of experience in all sectors between our team. From restaurants, fashion brands, fitness centres and many creatives start their business correctly and ensure they are staying tax compliant. 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

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          By Katie Insights • Tax News 0 Comments

          Radio presenter wins IR35 personal service company case

          In a recent case involving a radio presenter working for TalkSport, it was decided that the presenter would not have been an employee if directly engaged. A key factor was that the the level of control over the presenter fell far below the sufficient degree required to demonstrate a contract of service.

          The accountancy bodies have been lobbying the government to take the decision of the judges in this and the recent case involving Lorraine Kelly into consideration when they update the CEST software used to determine employment status.

          DISGUISED REMUNERATION LOAN CHARGE REVIEW

          The Chancellor, Sajid Javid has commissioned a review of the Loan Charge to consider whether the policy is an appropriate way of dealing with disguised remuneration loan schemes used by individuals who entered directly into these schemes to avoid paying tax.

          The disguised remuneration Loan Charge was introduced to tackle contrived schemes where a person’s income was paid as a loan which did not have to be repaid instead of receiving salary, thereby avoiding tax and national insurance. Such schemes have now been successfully challenged by HMRC in the courts.

          Disguised remuneration loan schemes were used by tens of thousands of people, and concerns have been raised about the use of the Loan Charge as a way of drawing a line under these schemes and collecting tax from the beneficiaries. The government is clear these schemes do not work and that their use is unfair to the 99.8% of taxpayers who have not used them.

          Need more information?

          Our team of Chartered accountants offer a wide range of services which are unique to businesses who are just getting going! 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

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            By Katie Business News • Tax News 0 Comments

            Get ready for the “off-payroll” working rules

            Where large or medium-sized organisations are paying workers via personal service companies or agencies they will need to operate new procedures from 6 April 2020.

            The new rules will apply to partnerships, LLPs and larger charities as well as limited companies. Only those organisations that would be classed as “small” under the Companies Act criteria will be outside of the new rules.

            From 6 April 2020 the end user organisation will be required to determine whether or not the worker would be an employee of the organisation if directly engaged. That determination will need to be communicated to the agency supplying the worker so that income tax and national insurance is deducted from any payments.

            The end user organisation should use the Check Employment Status for Tax (CEST) software on the HMRC website to carry out the determination. A copy of the determination should also be given directly to the worker.

            WHAT IF THE WORKER DISAGREES?

            Where the worker disagrees with the employment status determination they should contact the end user straight away setting out their grounds for disagreement.

            The end user must provide a response within 45 days of receiving the disagreement. During this time they should continue to apply the rules in line with the original determination.

            Need more information?

            Do you need any help with your tax? We offer a wide range of services which are unique to your business. Our accountants have a wealth of experience in all sectors between our team. From restaurants, fashion brands, fitness centres and many creatives start their business correctly and ensure they are staying tax compliant. 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

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

              University tax planning guide for Parents

              It is that time of year again when parents are sending their children off to university. There’s a lot to consider and parents may of course wish to support their children financially, where possible.

              Parents who run their own companies may consider making grown up children shareholders in order to take advantage of the £2,000 dividend allowance and their children’s lower rate tax bands. The dividend allowance reduced to £2,000 from £5,000 from April 2018.

              Many university students like to preserve a bedroom at home. From 6 April 2016 rent-a-room relief is £7,500 per annum.

              For example:

              Peter is 18 and starting university in September. He will have to pay tuition fees of £9,000 per year, his rent at halls of residence is £8,000 per year and he is budgeting for food and other bills of £100 per week.

              If his parents decide to fully support his rent and other bills (leaving him with a student loan to cover his tuition fees), their son could cost them £13,200 per year.

              Peter’s parents own their own company.

              • They re-arrange their share capital.
              • They gift Peter shares in the company, up to the value of their CGT annual exemption, they could alternatively claim hold-over relief.
              • The parents also make an agreement to charge Peter rent for her room at home of £7,500 per year.
              • The board of director’s declares annual dividends to Peter of £20,700 in order to cover his university costs and home rent.

              The arrangement means that Peter will pay tax at 7.5% on her dividends in excess of his £2,000 dividend allowance (or £5,000 allowance prior to April 2018) and any available personal allowance.

              This arrangement potentially saves a higher tax-rate-paying shareholding parent £8,170 in tax per annum (based on 2019/20 figures). Their rental income from their son is effectively tax-free drawings from their company. The alternative is not to rent a room to Peter and to sub-let his room in term time.

              Children under 18

              This arrangement will not work with minor children as the settlement anti-avoidance provisions apply where parents gift shares to minor children.

              Need more information?

              We offer a wide range of services which are unique to any business. We have a wealth of experience in all sectors between our team, from restaurants, fashion brands, fitness centres and many creatives start their business correctly and ensure they are staying tax compliant. 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 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

                Delivering Customer Value

                Understanding what your customers really value can help you to market your products and services more effectively.

                Customer value is the perception of what a product or service is worth to the customer.  Customers don’t buy features – they buy benefits. Your customers will buy your product or service because of the benefits that they get.  If you take the time to understand what your customers value and what they are willing to pay for, you will be able to market your business more effectively. You may also be able to win new customers from your competitors.

                Most businesses make the mistake of thinking about value purely in terms of money. They create special offers to promote their products and services, but all they are doing is cutting their profit margin in a race to the bottom. Sure, there is a place in most markets for a lowest priced competitor but this doesn’t work for everyone. Take the airline industry – there isn’t room for more than a handful of low cost airlines and that is why many of them are in financial difficulty – their costs have gone up, but there is downward pressure on pricing.

                Value is about much more than just money. Put yourself in your customer’s shoes – your customers think of value in terms of goals, benefits and results. They are seeking an outcome and this is what drives their purchasing decision. For example, an accountant might save a customer £6,000 on their tax bill and charges the customer £2,000 for doing the tax work. The monetary value to the customer is therefore £4,000. But what if this is only the beginning? What if the customer wants to grow their business over the next 5 years. The accountant could add value by providing advisory services to the customer over the next 5 years, to help them to achieve that goal. The customer would be willing to pay for that additional service because it helps them to achieve their goal.

                The overall perception of value is, from a customer’s perspective, also influenced by experience. If the accountant in our example is difficult to deal with and the customer has to regularly drive to their offices to sign paperwork, have face to face meetings, etc. the customer will not think that the service is great and may question whether it is worth the money. Conversely, if the accountant offers meetings over Skype, at a time convenient for the customer and provides documents by email with e-signature capability, the customer may value the convenience and efficient service to the extent that they may even be willing to pay more for that service.

                Amazon.com is a great example. The high street is struggling yet the world’s largest online retailer continues to grow. Why? Because its customers value the convenience, the vast range of product choices on offer and the ease of purchasing. Amazon has aligned its business model with the values of its customers and that is why it continues to succeed.

                Need more information?

                We love nothing more than learning about new start-ups and helping you get off on the right foot! We offer a wide range of services which are unique to businesses who are just getting going! As start-up accountants we have a wealth of experience in all sectors between our team. From restaurants, fashion brands, fitness centres and many creatives start their business correctly and ensure they are staying tax compliant. 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

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                  construction workers
                  By Katie Construction Industry News • Tax News 0 Comments

                  VAT changes for Construction Industry – now delayed until 1 October 2020

                  construction workers

                  Following our recent news regarding VAT changes for the construction industry, specifically the VAT Construction Scheme Domestic Reverse Charge, HMRC have now announced it will be delayed for 12 months.

                  The new date for the VAT reverse charge will be 1st October 2020. From this date, VAT-registered firms who are reporting under the Construction Industry Scheme (CIS) will see a major change to the way VAT is collected. The customer receiving the service will now have to pay the VAT due to HMRC instead of paying the supplier.

                  HMRC have provided a brief that explains that the introduction of the domestic reverse charge for construction services.

                  The charge has been set into place to help remove the scope for fraudsters to steal the VAT due to HMRC and follows similar measures introduced in response to criminal threats for telecommunication services and renewable energy certificates. There has been a long lead-in time ahead of the anti-fraud measure coming into force.

                  The long lead-in time, which was first introduced by the government in the Autumn Budget 2019, was to allow for potential cash-flow and administrative impacts the change could have on businesses.

                  Businesses need to adapt their accounting systems for dealing with the VAT changes and there will be a negative impact on the cash-flows for many affected businesses, as they will no longer get VAT payments from customers for services where the reverse charge applies. Our team of chartered accountants at A&C can offer this service to all our existing and new clients.

                   Explanation of the change

                  HMRC have provided an explanation of the change, explaining that some businesses in the construction sector are not ready to implement the VAT changes according to Industry representatives.

                  Therefore, HMRC have confirmed that they are prepared to help these businesses by delaying the change for 12 months. They have also highlighted that this will avoid the changes coinciding with Brexit.

                  It is important to note that HMRC remain committed to the introduction of the reverse charge and has already increased compliance resource. From the new proposed date, HMRC will focus additional resource on identifying and tackling existing perpetrators of the fraud. It will also work closely with the sector to raise awareness and provide additional guidance and support to make sure all businesses will be ready for the new implementation date.

                  What happens if your business has already made the necessary changes?

                  HMRC are aware that there are businesses who have already changed their invoices to coincide with the new changes and will not have to change them back. Thankfully HMRC will take this into account.

                  For those businesses who have opted for monthly VAT returns ahead of the 1 October 2019 implementation date can reverse this by using the appropriate stagger option on the HMRC website.

                  Need more information?

                  HMRC will update the reverse charge guidance to reflect the change in the implementation date.

                  For further information about this announcement contact: indirecttax.vatsncfteam@hmrc.gov.uk.

                  Our dedicated Construction sector team have already implemented these changes for our clients. Those clients can rest assured that our team have already spent the morning working hard to put the changes back to how they were prior to the new rules. If any of our clients do have these concerns, please contact us on 0161 962 1855.

                  A&C Chartered Accountants offer a wide range of services which are unique to your business needs. Our team of specialist construction industry accountants have a wealth of experience in the most effective tax-efficient solutions for your business to optimise growth. If you want to learn more about how the team can help or simply want 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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