Thinking about starting a business?

Everyone needs a little guidance when starting something new, particularly if you are a new business owner.

Over the years we have helped hundreds of new businesses on the road to success and we can help you too.  We have helped businesses in a variety of sectors from construction and manufacturing to hospitality and leisure.

Most business owners are specialists in their industry in which they wish to launch their business, however they may not be as knowledgeable when it comes to dealing with the associated legal and financial aspects of setting up a business.

This is where we can help!

There are often hidden costs when starting a new business. I am sure you will have thought of salaries, software and rent, however there are other costs such as insurance, licences, taxes and not forgetting unforeseen emergencies.

This is how we can help!

We offer a range of accountancy, tax and business advice services to make sure your fledgling business gets off to the best possible start.

  • Writing a business plan – Writing a business plan is essential for a successful business.  Running a business without a plan, is like driving a car not knowing your destination
  • Preparing cash-flow projections, budgets and trading forecasts
  • Advice on choosing the right business structure – sole trader, partnership and Limited Liability companies. Getting the right structure is important and can help save you money
  • Advice on available financial sources and help with the preparation of proposals
  • Establish a working relationship with your bank
  • Complete all legal registration procedures
  • Deal with all your business taxes efficiently and cost effectively. Engaging a tax expert can often help your business save money
  • Manage all company secretarial issues
  • Manage and run your payroll
  • Advice and help with the choice of accounting software and provide training if needed.
  • Understanding the types of business insurances, some are compulsory and other advisable.  We can help you navigate the insurance world
  • Once your business is established we can help you grow your business.

So, how would you like us to help you make a success of your business?

Contact us for more information or help:  info@wtca.co.uk  01932 868444 or 0207 381 2022.

 

 

 

 

Equality and Diversity

Under our Probate licence, we are required by the ICAEW to complete a diversity data survey and to publish a summary of results on our website.

We have just completed our survey and are pleased to confirm the results of the survey reflect our company policy on equality and diversity.

We do not discriminate against anyone of the grounds of age, colour, race, ethnic or national origin, sex, sexual orientation, religion or disability.

Wellden Turnbull always aims to treat everyone with respect, consideration and for each employee to feel respected and able to give their best.

We are also committed against unlawful discrimination of clients.

Spring Clean your Savings

Now there is some breathing space after the 31 January tax deadline, it’s a good time to give your finances some TLC.

This could be something small – for example, in order to prevent that big January credit card bill after Christmas, I took some advice from the oracle that is my mother and set up a Christmas bank account. I set a weekly standing order transferring £10 (the cost of a few coffees) from my current account to this account. By the end of the year, I save enough to not worry about whacking everyone’s presents, the turkey and the inevitable overspend on drinking during the festive period on my credit card. Simple, but effective!

Suggestion two – we sometimes find that people struggle finding the funds to pay their corporation tax and VAT bill. Say you are a VAT-registered contractor running through a limited company, a simple, yet often ignored mantra, is to set aside 30% of any receipts from customers into a separate bank account as soon as it is received. This will cover the VAT on the invoice, and will cover most of the corporation tax due.

For example, you receive money from a customer of £1,200. £200 of this is owed to the VAT man, leaving you £1,000. If you don’t have any expenses, you’d then generally have to pay tax on this £1,000 at 19%, which is £190. Together, this is £390, and 33% of your original £1,200. Of course, you may have some expenses such as a tax-efficient salary, claims for your use of home as office or travel costs, so maybe save 30% instead, whatever works for you, its better than dreading the bill at the end of the quarter/year.

This way, you can also help to ensure you don’t take out too much money from the company as this can lead you to having an overdrawn director’s loan account (where you owe the company money), which has nasty tax consequences of its own.

Suggestion three – Have a think about what VAT scheme you are on – if your turnover is £1.35million or less, you can join the cash scheme, which means you only pay VAT on your sales when your customers pay you. You do need to consider that you can only reclaim VAT on your purchases when you have paid your supplier, but this can help ease cash flow where people are a bit slow at paying you.

Suggestion four – Go Digital. Lots of businesses are moving their accounting to cloud software such as Xero – this lets you see really clearly, how much VAT you owe at any point and what profits you have made for the year-to-date, so you can estimate your CT bill.

The better, more up to date information you have, the more comfort you can feel that your finances are on track.

You can update your expenses and invoice customers on the go on your mobile, link it up to your business bank account so that keeping on track of who owes you what is really easy, and is MTD (Making Tax Digital) for VAT ready, so you don’t have to worry about the changes coming in April this year.

Its also pretty reasonable – with most business able to use their standard package, which is £22 + VAT per month.

Get in touch if you would like more information, we’d be happy to talk through how Xero could help your business.

e.green@wtca.co.uk

 

 

HMRC remind taxpayers of credit card ban ahead of January deadline

The Institute of Chartered Accountants in England and Wales (ICAEW) has reminded small business owners and taxpayers it’s no longer possible to pay for their outstanding tax via personal credit cards.

Last year, HM Revenue and Customs (HMRC) brought an end to paying self-assessment tax bills using personal credit cards.

The deadline for online self-assessment tax returns for the 2017-18 financial year is 31st January 2019.

There are several different payment options available, including:

  • Debit card
  • Direct debit
  • Online/telephone banking
  • BACS
  • CHAPS
  • Cheque
  • Bank/building society

If are going to have difficulties making a payment, it’s important that you contact HMRC at your earliest convenience, so they can help advise you on what options you have. Caroline Miskin, Technical Tax Manager, ICAEW, suggested the Time To Pay Arrangement and Budget Payment Plans could also be an option for some taxpayers, depending on their unique circumstances. 

The most common reasons a tax return may be required are as follows:

  • You’re self-employed or working in a partnership
  • You have significant savings or investment income
  • You have untaxed savings or investment income
  • You are a buy-to-let property landlord
  • Your household receives Child Benefit and your income is in excess of £50,000
  • You have income from outside the UK
  • You have recently sold or given away asset(s)

If you need help with any of the above, don’t delay, call us today 01932 868 444 or  contact us our friendly and experienced team can work with you to prepare your self-assessment tax return ahead of the 31st January 2019 deadline.

 

 

The Deadline for online self-assessment tax returns for the 2017-18 financial year is 31st January 2019

More than 10,000 self assessment tax returns were submitted online during Christmas Day and Boxing Day, according to new figures released by HM Revenue & Customs (HMRC).

11.5 million UK-based taxpayers are expected to submit a self-assessment tax return for the 2017/18 financial year by 31st January 2019, some 88% of the six million-plus tax returns already filed for the 2017/18 have been submitted online, indicating that the vast majority of UK taxpayers are adapting well to the shift towards “Making Tax  Digital” (MTD).

The most common reasons a tax return may be required are as follows:

  • You’re self employed or working in a partnership
  • You have significant savings or investment income
  • You have untaxed savings or investment income
  • You are a buy-to-let property landlord
  • Your household receives Child Benefit and your income is in excess of £50,000
  • You have income from outside the UK
  • You have recently sold or given away assest(s)

The consequences of filing your tax return late

A late tax return is subject to the following penalty regime.

  • An initial £100 penalty, which will apply even if there is less than £100 tax to pay
  • After 3 months, additional daily penalties of £10 per day  – up to a maximum of £900
  • After 6 months, a further penalty of 5% of the tax due or £300 – whichever is greater
  • After 12 months, another 5% of the tax due or £300 – whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due

Each of these penalties is in addition to one another, so a tax return filed a year late could face numerous penalties.

Don’t leave it until 31st January. The more time you leave yourself to prepare your tax return, the better.

Last year, the busiest days for filing were 30th and 31st January, when 60,596 tax returns were received – a staggering 1,010 per minute.

So don’t leave your tax return until the final day, as HMRC’s website and call centres will be under tremendous pressure.

Wellden Turnbull can help take care of all your tax affairs, so don’t delay, call us today 01932 868 444 https://www.wtca.co.uk/contact-us/

HMRC writes to firms ahead of Making Tax Digital for VAT

Ahead of the roll-out of Making Tax Digital for VAT in April 2019, HM Revenue and Customs has recently sent businesses within the scope of MTDfV “encouragement letters”.

These letters were sent to 200,000 businesses which are eligible to join the pilot scheme.

HMRC must continue to raise awareness of Making Tax Digital, The Economic Affairs Committee has warned HMRC that small businesses “could pay a heavy price” for Making Tax Digital for VAT (MTDfV).  We can support small business making this transaction easier.

In its “Taxing Times” report, The Federation of Small Businesses (FSB) has revealed small businesses spend up to 15 working days a year on average maintaining their tax compliance activities.

“Done correctly”, the roll-out of Making Tax Digital in April should help to arrest this shocking waste of time and money.

For professional advice feel free to contact our friendly team .

Tax-free gifts to employees

Christmas, the traditional time for giving is fast approaching.

Many employers choose this time to reward their staff for the hard work and commitment over the past year by giving them gifts (benefits) in the form of non-cash items. Unfortunately, unless handled correctly the gifts may give rise to income tax and national insurance contribution liabilities for the employee, not quite the consequence that the employer wanted.

A tax exemption is available which should help employers ensure that the benefits provided are exempt, it must satisfy the following conditions:

  • the cost of providing the benefit does not exceed £50 per employee (or on average when gifts made to multiple employees)
  • the benefit is not cash or a cash voucher
  • the employee is not entitled to the benefit as part of a contractual arrangement (including salary sacrifice)
  • the benefit is not provided in recognition of particular services performed by the employee as part of their employment duties
  • where the employer is a “close” company and the benefit is provided to an individual who is a director, an office holder or a member of their household or their family, then the exemption is capped at a total cost of £300 in a tax year.

If any of these conditions are not met then the benefit will be taxed in the normal way subject to any other exceptions or allowable deductions.

One of the main conditions is that the cost of the benefit does not exceed £50. If the cost is above £50 the full amount is taxable, not just the excess over £50. The cost of providing the benefit to each employee and not the overall cost to the employer determines whether the benefit can be treated as trivial benefit. So, a benefit costing up to £50 per employee whether provided to one or more employees can be treated as trivial. Where the individual cost of each employee cannot be established, an average could be used. Some HMRC examples consider gifts of turkeys, a bottle of wine or alternatively a gift voucher.

Further details on how the exemption will work, including family member situations, are contained in the HMRC manual

If you are still unsure please do get in touch before assuming the gift you are about to provide is covered by the exemption.

https://www.wtca.co.uk/meet-the-team/

 

HMRC countdown: file your tax return

The deadline for submitting 2017/18 self assessment tax returns online is 31 January 2019, HMRC is urging tax payers to complete their tax returns early, in order to avoid the last minute rush. An automatic penalty of £100 applies if the return is late.

HMRC advise that last year, more than 11 million tax payers completed a 2016/17 Self Assessment tax return, with 10.7 million completing on time. There were 4,852,744 taxpayers who filed in January 2018 (44.8% of the total), and 758,707 on 31 January, the deadline day.

You may be required to file a tax return if: 

  • You are self employed or a partner in a partnership
  • You are a company director
  • You have large amounts of savings or investment income
  • You have untaxed savings or investment income
  • You own land or property that is being let
  • Your household receives Child Benefit and you have income in excess of £50,000
  • You have income from overseas
  • You have sold or given an asset away (such as a holiday home or some shares)
  • You’ve lived or worked abroad or aren’t domiciled in the UK

If you want to make sure you are paying the right amount of tax, you should contact one of our tax professionals.

Wellden Turnbull will take the worry away when it comes to self assessment tax returns, we can:

  • Complete your tax return
  • Calculate your tax liability
  • File your return online
  • Liaise with you on the amounts to be paid and when they are due

Our tax team will also analyse your tax return to see if any tax savings can be made and review the calculations to see if there are any anomalies that need to be looked into before the return is submitted.

Angela MacDonald, HMRC’s Director General for Customer Services, said:

“The deadline for completing Self Assessment tax returns may be less than 100 days away, yet many of us wait until January to start the process. Time flies once the festive period is underway, yet the “niggle” to file your return remains.”

Let us take the stress of filing your tax return away, contact our tax professionals today.

Capital allowances change

A number of changes to capital allowances were announced at the Budget, including an increase in the Annual Investment Allowance (AIA), for two years to £1 million, in relation to qualifying expenditure incurred from 1 January 2019. The AIA is currently £200,000 per annum. Complex calculations may apply to accounting periods which straddle 1 January 2019.

Other changes to the rules include:

  • a reduction in the rate of writing down allowance on the special rate pool of plant and machinery, including long-life assets, thermal insulation, integral features and expenditure on cars with CO2 emissions of more that 110g/km, from 8% to 6% from April 2019. Complex calculations may apply to accounting periods which straddle this date.
  • clarification as to precisely which costs of altering land for the purposes of installing qualifying plant or machinery qualify for capital allowances , for claims on or after 29 October 2018
  • the end of the 100% first year allowance and first year tax credits for products on the Energy Technology List and Water Technology List from April 2020.
  • an extension of the current 100% first year allowance for expenditure incurred on electric charge-point equipment until 2023.

In addition, a new capital allowances regime will be introduced for structures and buildings. It will be known as the Structures and Buildings Allowance and will apply to new non-residential structures and buildings. Relief will be provided on eligible construction costs incurred on or after 29 October 2018, at an annual rate of 2% on a straight-line basis.

 

Wellden Turnbull Budget Seminar

Another successful budget seminar presented by Robin John, tax partner at Wellden Turnbull.  The seminar was held at the Cobham Curve on Friday 2nd November.

Robin spoke about the budget including sources of revenue and where the money goes! Did you know the VAT threshold is frozen until 2022.

Delegates received responses to a wide variety of questions ranging from Chancellor Philip Hammond’s speech to reinforce that “Britain is open for business”,  Making Tax Digital and Power’s of attorney.

If you would like to watch Robin’s presentation please click here

MAKING TAX DIGITAL – How will it affect your business?

With less than six months to go until the first staging date for implementation, we outline what you need to know about Making Tax Digital (“MTD”) and guide you through what measures to take to prepare for the change.

What’s the reason behind MTD?

The latest figures published by HMRC estimate that the tax gap stands at £33 billion which is 5.7% of tax liabilities. 41% (13.7 billion) of the tax gap is attributed to small businesses.

According to the Office for National Statistics, although 99% of VAT returns are submitted online, only about 13% of those are submitted via software. The other 87% of VAT returns are manually entered into HMRC’s Government Gateway.

HMRC’s ambition is for the UK to become one of the most digitally advanced tax administrations in the world. It is hoped that MTD will help for the following reasons:

  • Digital records should eliminate errors with calculations
  • Help is built-in to the software products
  • Information is sent directly to HMRC from the digital records avoiding errors as data is transferred from one system-to-another

What will change under MTD for VAT?

Under the rules, from April 2019 VAT registered businesses with a taxable turnover above the VAT threshold (currently £85,000) will be required to keep digital records and will no longer be able to use the Government Gateway website.

VAT returns will need to be maintained digitally and submitted via MTD complaint software. Hand written records will be a thing of the past for businesses affected by MTD for VAT.

HMRC have created a list of suppliers who provide MTD compliant software, which you can find here:

https://www.gov.uk/government/collections/commercial-software-developers

Overseas businesses that have UK taxable turnover above the UK VAT registration threshold will also be subject to the requirements of MTD for VAT.

Need help with MTD?

Contact one of our partners who would be pleased to meet with you and undertake an MTD compliance review of your business.

https://www.wtca.co.uk/meet-the-team

Self-employed Class 2 National Insurance will not be scrapped

The government has decided not to proceed with plans to abolish Class 2 National Insurance Contributions ( NICs) from April 2019.

Class 2 NICs are currently paid at a rate of £2.95 per week by self-employed individuals with profits of £6,205 or more per year. The government had planned to scrap the Class 2 contribution and had been investigating ways in which self-employed individuals with low profits, could maintain their State Pension entitlement if this inexpensive contribution had been abolished.

In a written statement to MPs, Robert Jenrick, Exchequer Secretary to the Treasury, stated that:

“This change was originally intended to simplify the tax system for the self-employed. We delayed the implementation of this policy in November to consider concerns relating to the impact on self-employed individuals with low profits. We have since engaged with interested parties to explore the issue and further options for addressing any unintended consequences.”

A significant number of self-employed individuals on the lowest profits would have seen the voluntary payment they make to maintain access to the State Pension rise substantially. Having listened to those likely to be affected by this change we have concluded that it would not be right to proceed during this parliament, given the negative impacts it could have on some of the lowest earning in our society.”

Internet link: Parliament written statement