accountants / 66 posts found
Exporting goods to the EU with a no-deal Brexit
We previously considered the effects of importing goods from the EU if a no-deal Brexit occurred. This week we are considering matters that government has published for exporters to the EU. A summary of the comments made in recent announcements is reproduced below. After the UK leaves the EU, in the event of a ‘no deal’ scenario, businesses exporting goods to the EU will be required to follow customs procedures in the same way that they currently do when exporting goods to a non-EU country. Before exporting goods to the EU, a business will need to: register for [...]
Is this a good time to invest?
This article considers the question: should businesses invest in new equipment or other long-term capital acquisitions at this time? In truth, no one knows what the impact of the Brexit will be? Brexiteers believe that the floodgates will open, and the rest of the world will rush to buy our goods and services whereas Remainers, expect recession to return when the EU drawbridge is lifted. No doubt the reality will sit somewhere between these two extreme points of view. With these uncertainties nonetheless present, is this a good time to consider investment in new plant and equipment [...]
No money…no problem!
People tend to think that you need a large chunk of capital to start your own business; however it is possible to get started without needing to invest large sums of money into it. You might have a great idea, or just want a change of lifestyle that running your business may allow. Whatever your motivation it is possible to start off with a small budget. Here are three great tips to get you going. Reduce your needs: You don’t need flash offices, or the latest laptop. Take a look at what you really need to get going, bearing in [...]
Exclusivity and tax relief
In order to qualify as a deduction for tax purposes we have to demonstrate that the expenditure was incurred “wholly and exclusively” for the purposes of our business or employment. We will also need to consider a further criterion: where the expenditure has a duality of purpose. In a 1980’s case, a barrister claimed for the cost of business suits which she insisted were only used for business purposes. To her delight, the lower courts agreed, but HMRC were having none of it and pursued their case to the House of Lords where the taxpayer’s claim and appeal was dismissed. [...]
Do you know what you are selling?
We hope that you know what you are selling: watches, cars, hedge cutters…we hope that your accountant knows what you are selling also. But do they? You aren’t selling watches, you are stopping people being late. You aren’t selling cars, you are helping people get from A to B. You aren’t selling hedge cutters, you are tidying people’s gardens. For example, you own and run a bakery. You believe your business is selling bread, cakes, pastries and pies. Of course, people love bread, cakes, pastries and pies, so they’ll buy them. Right? Wrong. Lots of bakeries go bust. Why? Because [...]
Did your goat eat your accounts?
Companies House have published a list of bizarre excuses for the late filing of their statutory accounts. They include: “goats ate my accounts” “I found my wife in the bath with my accountant” “pirates stole my accounts” “we delivered the accounts to the betting office next door to Companies House” “a volcano erupted and prevented me from filing” “slugs ate my accounts” “it was Valentine’s Day” “my company was more successful than I thought it would be, so I was too busy to file” As you would expect, Companies House issued late filing penalties and any appeals were [...]
Not so trivial
Options for reducing the impact of taxation on our earnings are somewhat limited. That said, there are still opportunities that will keep you the right side of the law and will increase the take home pay of employees. One such opportunity available to employers is to pay so-called trivial benefits. The benefits may be of small value, but never-the-less, even small tax-free payments will be gratefully received. To qualify as tax-free, the benefits paid to employees need to fit the following criteria: they cost £50 or less to provide, the payments are not made in cash or by [...]
Powers of attorney
As we will possibly live on until our 80s, and as that may involve coping with disability of one form or another, the need for consideration of support as we get older is ever more pertinent. Readers will no doubt have heard the term “power of attorney”, but not many, we suspect, will have made the investment and appointed someone trusted to act as their representative if they become physically or mentally unable to look after themselves in old age. If you did become infirm and unable to make sensible decisions about your health care or finances, and [...]
7 steps to improving your cash flow
Did you know that more businesses fail because of cash flow problems than profit problems? Don’t let yours be one of them. The problem with cash flows issues is that they can creep up on us. If you are only seeing your accountant once a year, you don’t have the opportunity to react in time. If you are constantly monitoring and reviewing your business and its systems, you are less like to fall into a cashflow crisis. With our Build Your Business Better support system we can help you to improve your cash flow, but to get you started here [...]
Evidence or assertion?
In a recent tax case, three taxpayers asserted that cleaning costs of work clothes amounted to £2,200 a year and HMRC disagreed. The facts were compelling, each of the appellants worked in the drainage or sewage industry and to maintain personal hygiene washed work clothing on a daily basis. Why shouldn’t they claim for the costs of keeping their work apparel clean? Claims were based on the purchase of sanitising and washing products, wear and tear on their home washing machines and an apportioned cost of home electricity charges. Importantly, no receipts were kept. To succeed in their tax claim, [...]