Archives for Updates

IR35 – what does it mean?

IR35, also known as the ‘off-payroll’ working rules is changing from April 2020.  It has been in the press a lot lately because it has been affecting TV presenters – and it’s been making headlines because it affects them so much.  What does it mean for you though? The new rules will now affect the private as well as the public sector, from any industry and whether you’re working through a limited company or a sole trader. It’s all to do with the relationship between you and your client and whether that could be considered an employer/employee relationship. Some definitions: An intermediary
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What is bookkeeping?

And is there is a difference between bookkeeping and accounting? The process of bookkeeping is essential for any business.  As an owner you will be able to identify if your business is generating profits or losses. What will a bookkeeper do? The action of bookkeeping is the recording and retrieving of financial transactions for a business.  It can include these most common financial transactions: Paying suppliers Raising sales invoices Recording the receipts from your customers Processing payroll Running financial reports Recording journals And much, much more What is the difference between an accountant and a bookkeeper? Both are necessary for
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In the know…

As part of our strategic partnerships this year we are going to share some content that our partners have created to help you, the business owner. Paul Collins of Croner can be contacted on paul.collins@croner.co.uk or 07812 736262
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Home working allowable expenses

As accountants we’re always going to advise you to not stretch your business beyond its means. And that can mean running your business from home. Working from home can benefit you more than just saving time on the drudgery of commuting every day.  Here is our quick guide to the expenses you can claim. Firstly, you should make the working space comfortable and practical at the same time.  Working from the dining table with the washing machine running in the background and the kettle calling every two minutes isn’t going to lead to a productive day. Working from your home is a
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BREXIT: What does it mean for my small business?

The 31st of January 2020 is an important date for accountants for two main reasons…it’s self-assessment deadline day AND it’s Brexit Day, but what does the latter mean for us and ultimately our clients? I think it’s fair to say, no-one actually knows.  I for one, have read and re-read articles written by “experts” but none have given a definitive answer about what changes the regular small business owner can expect to see. My gut instinct is that we will go through a lean period because of the continuing uncertainty but as a nation we can and will survive it.  If your business
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Car leasing and VAT

HMRC rules state that you cannot claim VAT paid on the purchase of a car if there is any private use at all, this even means when commuting to and from your place of work.  There is of course the exception on cars used as taxis or for a driving school, you will still need to account for the VAT on the private use though.  The rules do not apply to leased and since June 2019, purchases using personal contract purchases (PCPs). The 50/50 rule When you lease or buy a car using a qualifying PCP with the intention that
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Long-term tax planning and your children…

What was your dream when you set up your business?  Was it that you wanted to work for yourself and no-one else?  Did you dream that one day the business would be so much of a success you could pass it down to your children? What if we told you that you can pass some of your business to them now and they’re only 5 and 7? HMRC has wide-ranging anti-avoidance rules which are known as settlements legislation.  This basically means you as the parents as still liable to tax on income derived from assets (unless the income per child
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HMRC fuel rates

New rates. Updated advisory fuel rates (AFRs) from 1 September 2019 for fuel costs when using company cars. Engine Size Electric per mile Petrol per mile LPG per mile Diesel per mile Up to 1,400cc – 12p (12p) 8p (8p) – 1,401cc to2,000cc – 14p (15p) 10p (9p) – Up to 1,600cc – – – 10p (10p) 1,601cc to2,000cc – – – 11p (12p) Over 2,000cc – 21p (22p) 14p (14p) 14p (14p) N/A 4p (4p) – – –
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Employing family…tax dodge or genius tax efficiency?

“Employing” your husband, wife or children for the purposes of increasing your business costs and therefore reducing your tax liability has been widely used by businesses. Whether HMRC will wear it is another matter. Where do you actually stand if the Taxman challenges this decision? An expense normally has to be “wholly and exclusively for the purpose of the trade”, if not then no tax deduction is allowed. If a tax inspector notices the appearance of such payment, questions will more than likely follow. Is it a justifiable expense? You should first establish if the family member actually works for
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When should you transfer your business from trading as a sole trader to incorporating the company?

There are long-standing assumptions around when it will be more tax efficient to incorporate and we explore them hear.  By the virtue that even profits of £25,000 would be better off as an incorporated business as there is no requirement to pay Class 4 NI on dividends but you must weigh this up with the increased costs of running a limited company.  Accountancy fees are normally higher, Companies House levy fees for your annual confirmation statement etc and the time of extra administrative duties all mount up. Smaller business that are trading as sole traders with profits around £18,000 to
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