Archives / 144 post/s found
Brexit may be in limbo, but Making Tax Digital is not
As we have highlighted in many posts to this blog, from 1 April 2019, ALL VAT registered businesses with turnover above the £85,000 VAT registration threshold will have to submit their VAT returns from within software that can link with HMRC’s networks. In techno- speak, your data will need to be transferred using a designated API (HMRC’s application programming interface). The fact that you have always prepared your VAT returns electronically, for example, by using a spreadsheet to record transactions and create the data for your VAT returns, will not be enough. Your spreadsheet will not have the functionality [...]
A possible, unwelcome increase in service charges
From 1 November 2018, owners of properties on estates or sites that are obliged to pay service charges to a management company - for example, for the maintenance of common areas, gardens, or the employment of a site warden or caretaker - may be in for an unwelcome surprise. It would seem that HMRC have applied a concession in the past that allowed the management companies to treat service charges collected on behalf of a landlord as part of an exempt supply for VAT purposes – in other words, when the management company charged a resident, no VAT was [...]
What are you basing your planning on?
One of the difficult things about being a parent is the constant changing. Sometimes it seems as though no sooner have you got yourself sorted, than your child changes. So, the tricks that worked last year no longer seem to work, and the activities that were perfect and enjoyable 6 months ago are suddenly no longer relevant. Planning ahead includes factoring in how your child may change in the intervening period of time. You can’t work out how to entertain a 6-year-old through the holidays based on what you did with a 4-year-old; it simply won’t work. Businesses are similar [...]
Why do I need a management accountant?
Firstly, it is important to understand what a management accountant is and how this differs from the more traditional financial accountant. A management accountant will provide on-going reports into the operation of your business, enabling you to make strategic decisions. A financial accountant provides you with end of year reporting, showing you what has happened over the previous year. A management accountant can generally produce the financial reporting as required by HMRC, but a financial accountant will not necessarily offer the services of a management accountant. While there are many great reasons to use a management accountant, we have picked [...]
How fast can you react?
Are your reactions lighting fast? Or are you struggling to keep up? Fast reactions are useful in a variety of situations; accidents, emergencies, but also in business. The ability to react to changes in the marketplace is one of the main areas where small businesses can beat big businesses. Being able to judge the trends and changes in a marketplace and ensure that you are in a good position quickly can be an indicator of success. But what has this got to do with accountants? Imagine you have a small company that sells blue widgets, and the big company that [...]
What’s the difference?
Choosing an accountant is an important business decision to make. Surrounding yourself with a good team involves picking people that you trust to work with you and help you to achieve the goals that you want from your business. Understanding the type of accountant that you need is an element of the decision. Generally, there are two types of accountants: financial accountants and management accountants. So, what’s the difference? Financial accountants produce quarterly and annual statements showing what has been happening in your business. These reports are viewed by external personnel such as shareholders, and the tax office. They tend [...]
Keep private bank accounts private
Many small businesses, including landlords, use personal bank accounts to lodge business receipts and make business payments. If traders in this situation are subject to a HMRC enquiry into their business affairs, HMRC would be entitled to request sight of all bank accounts that record business transactions even if those accounts are essentially, personal bank accounts. As many of the transactions in these accounts are personal, you may need to explain to HMRC where credits to the account came from and provide evidence that the credits are nothing to do with your business. Without this confirmation or evidence, [...]
How do you eat an elephant?
The answer is, of course, a little bit at a time. Goal, dreams or aims are like elephants, it is far too overwhelming to have your goal as make a million pounds, but breaking that goal down into manageable bite sized pieces will make the obtaining of your goal possible, and certainly more probable. We have reached the time of year when we start to think about next year and what we want to achieve going forwards, so now is a good time to start understanding how to set out good goals, to enable you to reach your final aim. [...]
Receiving your State Pension if you live abroad
If you are about to move abroad and are already receiving a State Pension in the UK, you might like to read this article setting out some of the issues you will need to consider. If you live part of the year abroad You must choose which country you want your pension to be paid in. You cannot be paid in one country for part of the year and another for the rest of the year. Bank accounts your pension can be paid into Your State Pension can be paid into: a bank in the country you’re living in [...]
Struggling with growth?
Trying to achieve increased growth can seem a daunting prospect, but as with most thing in business and life, once broken down it becomes clearer. There are only 4 ways to increase growth. 1.Increase the number of customers or transactions. Increase the average value of existing transactions. Increase the gross profit margin on your products and services Introduce a new product or service So, for each of these we can come up with a strategy that may help. Firstly, increase your customers or transactions. This can be finding new customers or encouraging your existing customers to order more frequently. [...]