Will Truss Tax Cuts Save The Country?
“On 6 September 2022, Liz Truss became the new Prime Minister of the United Kingdom. After Boris Johnson, who has served from 2019 to 2022, now, she will take Britain to a new path of success.” Liz Truss spoke her positive mindset to the people of Britain after getting the position of Prime Minister. She…
Why you should use an accountant and bookkeeper
Why Should You Hire A Bookkeeper And Accountant? Accountants manage your taxes, find discounts, and develop your firm. Yes, they’ll return your weekends. Use them correctly to get your money’s worth. There are various services an accountant and bookkeeper can provide for you, but the following are some crucial areas where hiring one will benefit…
The impact of MTD ITSA
Making Tax Digital for Self-Assessment of Income Tax (MTD for ITSA) A new Income Tax Self-Assessment system called Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) will take effect on April 6, 2023. What does MTD for ITSA mean, how will it affect you, and what action will you need to take? We hope…
A Quick Short Guide to HMRC & IR35
A Quick Short Guide to HMRC & IR35 The IR35 remains controversial for many self-employed people, especially after introducing new changes in April 2021. Many contractors are concerned about this issue, but it cannot be easy to understand and follow, so we also understand if this law affects your sanity. Many people may not think…
A Guide to Making Tax Digital (MTD)
A Guide to Making Tax Digital (MTD) With the pandemic streaming at its height, the UK’s economy was adequately locked down to protect the NHS, and there was no other option than to be digital. So millions worked from home, shopped online, and got socialised more virtually, and it became a new normal. Moreover, now…
How Do I Manage My Tax as a Freelancer?
How Do I Manage My Tax as a Freelancer? Freelancing comes with multiple perks, and one of them is freedom. But, like other things, freelancing also has its pros and cons. Thus, anyone looking to start their career as a freelancer should know what these may be. For example, one of the prime concerns for…
How easy is it to change accountants should we want to move to you?
There can be reasons why even a startup business feels that it’s the right time to Change Accountants. To give your business the right direction, switching to a new Accountant can be the first step. The process of switching your Accountant can be simple. The entire process of changing your accountants can be achieved with the…
What to expect when the furlough ends?
The pandemic brought uncertainty and despair to the whole world. As businesses shut down and people had no means of income, it became clear that the government had to intervene to save further economic collapse. In England, Chancellor Rishi Sunak introduced the furlough scheme when the pandemic began. The idea behind the scheme was to…
How to fill the UK tax gap?
On September 16, the HMRC released the figures for the pre=pandemic period of 2019/20. It shows a UK 2bn rise in the estimated tax gap. The reason behind this is the persistent increase in the VAT gap. The annual data evaluates a contrast between the total tax expected to be paid and the amount paid.…
Working through an umbrella company: how does it work?
With more and more people in the UK opting to work on a contractual basis, umbrella companies have gained popularity. And while it is an excellent option for people who want to avoid the administrative burden, some things about working through an umbrella company could be confusing and downright annoying. Let’s find out in more…
Claiming expenses as an Umbrella company employee
When it comes to claiming expenses, it can become a tedious task for the contractors. If you have been working through an umbrella company, you must have heard about claiming expenses. It is one of the most talked-about topics among contractors. So, how does it work? Let’s find out. What expense can an Umbrella company…
How to Choose an Umbrella Company for Contractors
The UK government rolled out the new changes in IR35 in April this year. Unfortunately for the contractors, it made it even more challenging to pick the right umbrella company. However, the contractors currently inside IR35 or those unsure how long they will be contracting might feel that PAYE umbrella companies are great options. Even…
IR35 Guidance For Contractors
The UK’s IR35 has bothered the business community and tax experts since the year it was passed. Her Majesty’s Revenue and Customs introduced IR35 in 2000 with a reform implementation in 2017 and again this year in April. The new reform aims to bring the private sector in line with the public sector. What is…
SEIS Scheme for Startup investment
The SEIS Scheme for Startup investment is a scheme that offers substantial tax benefits to investors. The Seed Enterprise Investment Scheme (SEIS) is intended to help the financial growth in the UK by promoting enterprise and small-scale businesses. Suppose you have started a business and working towards improving it by seeking feedback from early users.…
UK Contractors should use Umbrella Companies.
An organisation or company is termed an umbrella company that contractors choose to work through as an alternative in setting up their own limited company business. The umbrella company acts as their employers and is the intermediary between a contractor and their recruitment agency. It handles all their administrative tasks, such as managing their payments.…
Inflation in post-pandemic Britain
During this pandemic, the UK government has been spending an enormous amount on COVID-19 management. These spendings include support for health services, relief funds for those without income and keeping the local business alive. According to the International Monetary Fund, governments of better economies should spend more to keep their economies afloat during the pandemic…
How do you pick the right Payroll Service that suits your business?
Are you thinking of investing in a payroll service for your small business? Every company that has a hiring process requires a payroll process to pay its staff. With times changing, companies today prefer a payroll service for its process simplification and convenience over processing it themselves or outsourcing the job. Let’s try to understand…
How Management Accounting Can Help Your Business
When you talk about a business organization, management accounting is vital for its efficient functioning. Unfortunately, small business owners and entrepreneurs fail to recognize the importance due to management accounting’s understated role. It provides valuable performance and financial information to allow managers to devise a strategy and take effective decisions. Although overlooked and ignored, management…
Property Tax: Declaration of Trust, Form 17 (HMRC)
Over the years, I have noticed that there is a lot of confusion in matters on how properties should be purchased between two individuals; should the property be purchased on joint names as ’joint tenants’, or ‘tenants in common’ and what are the tax implications if you decide to let the property out? I have…
The Budget 2021 and debate over time off for vaccine appointments heats up.
The Budget on 3 March was a much-anticipated one as Chancellor Rushi Sunak announced the government’s stand on corporation taxes. While the country is still in a complete lockdown until 21 June, finance experts and business leaders appealed to the Chancellor to favour the country’s businesses. The pandemic led to significant losses for large and…
How to manage eCommerce Accounting?
As an eCommerce business owner, “accounting” will be your least favourite part of the job. Still, there are 41% of small business owners who run and manage their accounts themselves. You see, while your business may be small right now, it will grow, and the accounts will grow with it. Your sales, loan amounts, supplier…
eCommerce Accounting Services– Some Basics Before you Start your Venture
Ecommerce Accounting can be dull and prove a significant pain for many business owners. It can become confusing and turn into a headache very quickly. However, if you want to run a successful eCommerce venture, you must ensure you have a good accounting process to manage your online sales. There are many options available to…
How to Prepare Your Business For the VAT Domestic Reverse Charge
The VAT domestic reverse charge procedure is a new way of accounting for VAT in the construction industry. It is due to come into effect in the UK on 1 March 2021, having previously been delayed from 2019 and then October 2020 by HMRC. If your business is affected here is how you can prepare…
Virtual Bookkeeping and Accounting Services V.S. Online services: What’s the difference?
Virtual Bookkeeping and Accounting Services V.S. Online services: What’s the difference? As a small business owner, you have to make several business-related decisions. These include new deals, customer-management, growth opportunities, and work efficiency. But one goal that goes along with every decision is to keep the organisation’s spendings as low as possible. You know what…
Xero: Is it Worth The Money?
Xero: Is it Worth The Money? Xero is a popular cloud-based accounting software. It has been a tough competitor to other accounting software since 2006. Based out of New Zealand, Xero is a powerful accounting tool that comes with a wide range of features, 800+ integrations and provides comprehensive reports. Unlike its primary competitors, Xero…
Personal Taxes vs. Business Taxes
Personal Taxes vs. Business Taxes Comparing personal taxes to business taxes is like comparing apples to oranges. Although the basic concept of both charges is similar, there are some crucial differences between the two. Let’s find more about personal taxes vs. business taxes in the United Kingdom. What is Corporate Tax? Corporate tax or business…
Everything You Need to Know About Virtual Accounting
Everything You Need to Know About Virtual Accounting A lot of businesses outsource essential tasks that don’t fall into the core competencies of their workers, and accounting is no different! Virtual accounting is a new trend that enables qualified accountants to offer their services to businesses of various types remotely. A large number of businesses…
Everything You Need to Know About Making Tax Digital (MTD)
Everything You Need to Know About Making Tax Digital (MTD) Introduced in April 2019, Make Tax Digital or MTD is an initiative by the UK government to make the UK’s tax system one of the most advanced tax administrations in the world. Furthermore, it is designed to help individuals and businesses pay the right tax.…
Why Businesses Should Invest in Xero Accounting Software
Why Businesses Should Invest in Xero Accounting Software Xero is a cloud-based accounting software system that has earned enough popularity over the past few years. Majorly, small and medium-sized businesses prefer this software as its service plans and features accommodate their different needs. Not only the software helps businesses remain organized but also let them…
What is a Virtual Finance Director and Why Should You Hire Them?
What is a Virtual Finance Director and Why Should You Hire Them? If you think your business has grown to the extent where you need a professional who can manage your finance, but you can’t afford to employ someone on a full-time basis, you may consider hiring a virtual finance director. A virtual finance director…
How to Prepare a Statutory Account for a Limited company in the United Kingdom
Also known as an annual account, a statutory account is a set of financial reports presented by companies at the end of each fiscal year for tax purposes. It is required by HM Revenue & Customs (HMRC) to collect and keep the record of corporate taxes. Preparing a statutory account is a daunting task as…
SUMMER ECONOMIC UPDATE
On Wednesday 8th July 2020, the Chancellor Rishi Sunak made a speech entitled “Summer Economic Update” where he unveiled further Government supports and he unveiled the Government’s plan for jobs which he described as the “Second phase in in the Government’s economic response to the crisis.” The “Plan for Jobs” PDF can be seen: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/898421/A_Plan_for_Jobs__Web_.pdf…
Payroll Management Tips for Business Owners
Payroll management is a method for processing workers’ salaries, bonuses, and deductions as per the labour laws and other directives by the government. Regardless of the size of your business, it’s essential that you learn tips for managing payroll effectively. After all, it directly affects your financial welfare of your business and your staff. In…
Cloud Accounting – Cloud Accounting Benefits and Business Guide
Over the past few years, cloud based accounting has gained increased popularity across the world, and why not? This accounting solution is not only reliable and time-effective but also more affordable than traditional accounting systems. According to Forbes, cloud based accounting reduces the labour cost up to 50%. If you’re planning to switch from conventional…
5 Bookkeeping Challenges Faced by Small Businesses
Bookkeeping is a necessary process that ensures that a company’s financial records are on track. It involves the recording of all financial transactions, including purchases, sales, and payment by a company or an individual. Bookkeeping plays a crucial role in reducing the risk of mismanaging funds and helping a business make informed decisions. After all,…