Management accounts Archives – Slaters & Co Accountants, Newcastle-under-Lyme.

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New additions at Slaters Chartered Accountants

Monday, July 6th, 2015

Slaters chartered accountants have appointed new recruit Steve Mastin who joins the practice as a tax assistant. Steve’s appointment follows recent new starter Dave Johnson, who joined the practice as senior accountant, increasing the workforce to a team of 16. Based on London Road in Chesterton, Newcastle-under-Lyme, Slaters is currently planning to expand its existing premises to accommodate the growing team.

Steve’s background is in the legal profession, prior to joining Slaters he worked for six years at Manchester law firm Pannone, where he was responsible for managing the personal tax affairs and investment portfolios of more than 300 high-net-worth individuals.

Practice owner Steve Slater said: “Steve’s addition to Slaters’ tax department greatly increases our capacity to offer additional tax services, both personal and business, but it also means that we can provide our existing clients with more of a personal service.”

Senior accountant Dave is responsible for client management, including accounts preparation, company formations and accounts finalisation meetings. He joins Slaters from Stoke-on-Trent solicitors J S Williamson & Co, where he spent eight years as an account senior.

Steve Slater added: “We’ve already started to build a portfolio of clients for Dave to manage. As a qualified certified accountant and a senior member of the team, he brings a wealth of knowledge and experience to his new role, which will be of great benefit to his clients, making their accounts more efficient and ultimately saving them money.

“It’s great to see the business grow and everyone at Slaters is looking forward to the new skills that both Steve and Dave can bring.

“I’m personally pleased with how the company is progressing and I’m excited to see our plans for expansion be put into practice later this year. The extended office space will allow us to take on further members of staff; in particular we are hoping to add to our payroll department and also the accounts team.”

Slaters Chartered Accountant specialise in supporting all aspects of owner-managed businesses from sole traders to groups of limited companies. Its range of services includes accounts, management accounts, bookkeeping, payroll, VAT and taxation. The team are dedicated to delivering excellent services through a friendly but professional approach.

This entry was posted on Monday, July 6th, 2015 at 2:34 pm by Slaters and is filed under Accountancy, Accounts - General, Business planning, Company Tax, Consultancy, Employers, Management accounts, Marketing, Personal Tax, Tax, Tax planning, Tax relief, Team, VAT. You can follow any responses to this entry through the RSS 2.0 feed.

New business start ups

Wednesday, May 6th, 2015

This posting lists a few (but not necessarily all) of the tax issues you will need to consider when you are planning a new business:

Get you business registered with HMRC, failure to do this can lead to penalties. If you are incorporating your business, HMRC generally pick up your business registration via their links with Companies House. But if you are aiming to be self employed, as a sole trader or in partnership, you will need to notify HMRC within certain time limits of your commencement date.
In similar vein, if you need to employ staff you must register as an employer with HMRC.
If you intend to register for VAT from the date you commence to trade you can still recover input VAT that you have paid on certain setup costs that you expended prior to the official start date.
If you intend to register your business for VAT could you take advantage of one of HMRC’s special VAT schemes? For example:

Cash accounting: pay over the VAT you have collected on your sales when you are paid by your customer, rather than when you issue your sales invoices. There are turnover limits to registration, but this option can have a significant impact on cash flow if the amounts you are owed is more than the amounts you owe.
Flat rate scheme: using this scheme you calculate the amount you owe as a fixed percentage of your turnover each quarter (including VAT). For smaller businesses, who do not have significant VAT inclusive costs, this scheme can produce additional profits and simplify the calculation of your quarterly returns.
Annual accounting: using this scheme you send in one VAT return a year instead of the usual four. Also for nine months of the year you make agreed payments on account to cover VAT due. The scheme is simple to administer, only one set of calculations per annum, and the monthly payments help to spread the cash flow impact of payments made.

Invest in tax planning. The UK’s tax code is one of the most complex in Europe. We recommend that you take tax planning advice before you start in business and again at certain key moments in your trading year. At the very least you should discuss your trading results with your advisor before the end of your first trading year. It always pays to see what planning options are available before you take action to implement change.

If you are about to set-up a new business please call, we offer a no obligation first appointment to prospective new clients.

This entry was posted on Wednesday, May 6th, 2015 at 12:00 am by Slaters and is filed under Accountancy, Accounts - General, Bookkeeping, Business, Business planning, Company Tax, Consultancy, Employers, HMRC, Management accounts, Pension, Personal Pension, Personal Tax, Tax, Tax planning, Tax relief, Uncategorized, VAT. You can follow any responses to this entry through the RSS 2.0 feed.

April – Monthly Round Up

Tuesday, April 7th, 2015

Budget 2015

George Osborne presented the final Budget of this Parliament on Wednesday 18 March 2015.

In his speech the Chancellor reported ‘on a Britain that is growing, creating jobs and paying its way’.

Towards the end of 2014 the government issued many proposed clauses of Finance Bill 2015 together with updates on consultations. Due to the dissolution of Parliament on 30 March some measures have been legislated for in the week commencing 23 March, whilst others will be enacted by a Finance Bill in the next Parliament (depending on the result of the General Election).

The Budget proposed further measures, some of which may only come to fruition if the Conservative Party is in power in the next Parliament.

The articles which follow summarise some of the key changes.

Internet link: GOV.UK Budget

Personal tax rates and allowances

For those born after 5 April 1938 the personal allowance will be increased to £10,600. For those born before 6 April 1938 the personal allowance remains at £10,660.

The reduction in the personal allowance for those with ‘adjusted net income’ over £100,000 will continue. The reduction is £1 for every £2 of income above £100,000. So for 2015/16 there is no personal allowance where adjusted net income exceeds £121,200.

Tax bands and rates for 2015/16

The basic rate of tax is currently 20%. The band of income taxable at this rate is being decreased from £31,865 to £31,785 so that the threshold at which the 40% band applies will rise from £41,865 to £42,385 for those who are entitled to the full basic personal allowance.

The additional rate of tax of 45% is payable on taxable income above £150,000.

Dividend income is taxed at 10% where it falls within the basic rate band and 32.5% where liable at the higher rate of tax. Where income exceeds £150,000, dividends are taxed at 37.5%.

Starting rate of tax for savings income

From 6 April 2015, the maximum amount of an eligible individual’s savings income that can qualify for the starting rate of tax for savings will be increased from £2,880 to £5,000, and this starting rate will be reduced from 10% to 0%. These rates are not available if taxable non-savings income (broadly earnings, pensions, trading profits and property income) exceeds the starting rate limit.

This will increase the number of savers who are not required to pay tax on savings income, such as bank or building society interest. Eligible savers can register to receive their interest gross using a form R85.

Internet link: GOV.UK Budget

Proposed personal allowances to come

The Chancellor announced that the personal allowance will be increased to £10,800 in 2016/17 and to £11,000 in 2017/18. The Transferable Tax Allowance will also rise in line with the personal allowance, being 10% of the personal allowance for the year.

The higher rate threshold will rise in line with the personal allowance, taking it to £42,700 in 2016/17 and £43,300 in 2017/18 for those entitled to the full personal allowance.

Personal Savings Allowance

The Chancellor announced that legislation will be introduced in a future Finance Bill to apply a Personal Savings Allowance to income such as bank and building society interest from 6 April 2016.

The Personal Savings Allowance will apply for up to £1,000 of a basic rate taxpayer’s savings income, and up to £500 of a higher rate taxpayer’s savings income each year. The Personal Savings Allowance will not be available for additional rate taxpayers.

These changes will have effect from 6 April 2016 and the Personal Savings Allowance will be in addition to the tax advantages currently available to savers from Individual Savings Accounts.

The Personal Savings Allowance will provide basic and higher rate taxpayers with a tax saving of up to £200 each year.

Internet link: GOV.UK News

Help to Buy ISA

The government has announced the introduction of a new type of ISA, the Help to Buy ISA, which will provide a tax free savings account for first time buyers wishing to save for a home.

The scheme will provide a government bonus to each person who has saved into a Help to Buy ISA at the point they use their savings to purchase their first home. For every £200 a first time buyer saves, the government will provide a £50 bonus up to a maximum bonus of £3,000 on £12,000 of savings.

Help to Buy ISAs will be subject to eligibility rules and limits:

An individual will only be eligible for one account throughout the lifetime of the scheme and it is only available to first time buyers.
Interest received on the account will be tax free.
Savings will be limited to a monthly maximum of £200 with an opportunity to deposit an additional £1,000 when the account is first opened.
The government will provide a 25% bonus on the total amount saved including interest, capped at a maximum of £3,000 which is tax free.
The bonus will be paid when the first home is purchased.
The bonus can only be put towards a first home located in the UK with a purchase value of £450,000 or less in London and £250,000 or less in the rest of the UK.
The government bonus can be claimed at any time, subject to a minimum bonus amount of £400.
The accounts are limited to one per person rather than one per home so those buying together can both receive a bonus.
As is currently the case it will only be possible for an individual to subscribe to one cash ISA per year. It will not be possible for an account holder to subscribe to a Help to Buy ISA with one provider and another cash ISA with a different provider.
Once an account is opened there is no limit on how long an individual can save into it and no time limit on when they can use their bonus.

The government intends the Help to Buy ISA scheme to be available from autumn 2015 and investors will be able to open a Help to Buy ISA for a period of four years.

Internet link: GOV.UK factsheet

Pension freedoms for those with annuities

The Chancellor has announced a new flexibility for people who have already purchased an annuity. From April 2016, the government will remove the restrictions on buying and selling existing annuities to allow pensioners to sell the income they receive from their annuity for a capital sum.

Individuals will then have the freedom to take that capital as a lump sum, or place it into drawdown to use the proceeds more gradually.

Income tax at the individual’s marginal rate will be payable in the year of access to the proceeds.

The proposal will not give the annuity holder the right to sell their annuity back to their original provider. The government has begun a consultation on the measures that are needed to establish a market to buy and sell annuities and who should be permitted to purchase the annuity income.

The government recognises that for most people retaining their annuity will be the right choice. However, individuals may want to sell an annuity, for instance to pay off debts or to purchase a more flexible pension income product.

We will keep you informed of developments.

Internet link: GOV.UK News

National Minimum Wage rises

The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid. NMW rates increases come into effect on 1 October 2015:

From 1 October 2015:

the adult rate will increase by 20 pence to £6.70 per hour
the rate for 18 to 20 year olds will increase by 17 pence to £5.30 per hour
the rate for 16 to 17 year olds will increase by 8 pence to £3.87 per hour
the apprentice rate will increase by 57 pence to £3.30 per hour

Penalties

Penalties may be levied on employers where HMRC believe underpayments have occurred and HMRC ‘name and shame’ non-compliant employers.

If you have any queries on the NMW please get in touch.

Internet links: GOV.UK News

This entry was posted on Tuesday, April 7th, 2015 at 9:00 am by Slaters and is filed under Accounts - General, Accounts preparation, Bookkeeping, Budget, Business planning, Company Tax, HMRC, Management accounts, Pension, Personal Pension, Personal Planning, RTI, Tax, Tax planning, Tax relief, VAT. You can follow any responses to this entry through the RSS 2.0 feed.

Some of the Budget changes March 2015

Thursday, April 2nd, 2015

Following last week’s Budget, the government has published the Finance Bill 2015. The bill implements tax changes announced at Budget 2014, Autumn Statement 2014 and Budget 2015.

It includes action by the government to support hardworking families keep more of their hard-earned money by:

increasing the personal allowance by an extra £400 to £11,000 from April 2017 so that a typical rate taxpayer will be £905 better off compared to 2010, and an individual on the National Minimum Wage working up to 30 hours a week will not pay any income tax
exempting children from Air Passenger Duty so that, taken together with measures introduced in Finance Act 2014, a family of four flying to Australia will save £194

The bill also contains key policies to make the UK more competitive for business, such as:

supporting investment in the crucial UK oil and gas industry through cutting the Supplementary Charge by 12%, cutting the Petroleum Revenue Tax from 50% to 35% and introducing two new allowances
increasing the tax credits available for large and small businesses investing in research and development
a new tax relief to promote the production of children’s TV in the UK, and further support for high-end TV and film tax.

Finally, the bill legislates to create a fairer tax system, by clamping down on tax avoidance and ensuring that banks contribute their fair share. This includes:

introducing a new Diverted Profits Tax of 25%, aimed at multi-national companies that artificially shift their profits offshore to avoid paying UK tax
putting a stop to unfair tax avoidance – raising nearly £2.5 billion by 2019/20 to support the economic recovery
increasing the bank levy and introducing new rules for banks – raising nearly £8 billion over the next 5 years

David Gauke, Financial Secretary to the Treasury, said:

The government is committed to supporting hardworking families and backing business. That is why we are making it easier for them to keep more of their hard earned money and access the help they need to grow.

The legislation published today builds on our efforts to create a stable tax system that supports our long-term economic plan.”

The measures contained in the bill were announced by the Chancellor at Budget 2014, Autumn Statement 2014 or Budget 2015.

This entry was posted on Thursday, April 2nd, 2015 at 12:00 am by Slaters and is filed under Budget, Company Tax, HMRC, Management accounts, Pension, Personal Planning, Property, Tax, Tax planning, Tax relief, VAT. You can follow any responses to this entry through the RSS 2.0 feed.

Payment in 30 days

Tuesday, March 3rd, 2015

In a recent speech Business Minister, Matthew Hancock, announced that the government-backed Prompt Payment Code will now promote 30-day terms as standard, with a 60-day maximum limit. Unless signatories can prove exceptional circumstances for longer terms, they will be removed from the Code.

The change will be rigorously enforced by the new Code Compliance Board, which will include people from business representative bodies who will investigate challenges made against signatories to the Code by their suppliers. The Compliance Board will remove signatories found to be in breach of the Code’s principles and standards.

The Prompt Payment Code sets out fair and agreed practices for businesses to follow when dealing with, and paying, their suppliers. More than 1,700 businesses and public authorities have so far committed to these principles, which include paying suppliers within an agreed timeframe and communicating with them effectively.

Business Minister Matthew Hancock said:

“Making small businesses wait an unreasonable time for payment is entirely unacceptable. I know first-hand the great burden that late payment can place on firms – and how it can strain family finances – which is why I am committed to stopping it.

Big companies should lead by example and pay small suppliers within 30 days. I have already written to the FTSE 350 urging them to sign up to the Prompt Payment Code.

Fairer payment practices will help small businesses grow and create jobs. This is a key part of our long-term economic plan to build a better Britain.”

Businesses will be actively encouraged to start complying with the strengthened Prompt Payment Code in the coming weeks. The changes complement the tougher reporting laws in the Small Business, Enterprise and Employment Bill. These new laws will force the UK’s largest companies to publish their payment terms, increasing transparency and empowering small businesses. The Code Compliance Board will be able to use this data to review the status of signatories to the Code and challenge those that either do not pay their suppliers promptly or insist on excessively long standard terms.

The Prompt Payment Code is a voluntary Code to drive a change in payment culture. It is administered by the CICM on behalf of BIS. More information about the Code can be found at Prompt Payment Code website.

This entry was posted on Tuesday, March 3rd, 2015 at 12:00 am by Slaters and is filed under Accountancy, Accounts - General, Accounts preparation, Bookkeeping, Budget, Business, Business planning, Company Tax, HMRC, Management accounts, Payment Terms, Tax. You can follow any responses to this entry through the RSS 2.0 feed.