Archive:August 2017

Please find below all the articles from August 2017.

We’re Proud to Have our Head in the Cloud

Tuesday, August 22, 2017

Every industry has its moments of great transformation and modernisation, when ‘the way we’ve always done it’ becomes redundant.

With the arrival of cloud-based accounting, our working world is going through a great sea-change and this is something SME owners should be delighted about.

Thanks to the functionality, the transparency and the instant nature of cloud-based accounting, it has never been simpler to see the inner workings of your business, to spot any potential weak points, to take advantage of untapped areas of opportunity, to react nimbly and to plan…

Is HMRC Knocking? Don’t Be An Ostrich

Thursday, August 10, 2017

Few letters will strike fear into the heart of abusiness owner faster than one from HMRC stating their intention to begin an investigation into the firm.

While the problem of tax evasion or aggressive tax avoidance is hardly a new thing, it has perhaps never been as politicised as it is now, and there is a concerted effort on the part of HMRC to crack down – and to be seen to crack down – on those who play fast and loose with taxes.

One law firm claimed recently…

Savvy Forward-Planning Will Deliver Succession Success

Tuesday, August 1, 2017

If you have been at the helm of your own business for some years, nurturing it from germination to becoming a fruitful concern, your thoughts will, at some point, turn to passing it on – and enjoying the rewards of your hard work.

Long before you start to dream about a relaxing retirement sampling the verdant golf courses of the world, you have another very important duty to perform in order to safeguard the long-term vitality of your business – and…

Mileage rates for electric and hybrid cars

Tuesday, August 1, 2017

Some confusion has been reported over how businesses should calculate mileage expenses rates for electric and hybrid company cars. This confusion has arisen largely because HMRC’s advisory fuel rates, or approved mileage allowance payments, only cover petrol and diesel cars. There are no separate ‘approved’ rates for electric or hybrid vehicles.

Currently, whilst HMRC do recognise that employees should be reimbursed for costs incurred for business travel, they do not currently recognise electric charging costs as a ‘fuel’ expense and do not therefore, currently publish separate rates.

HMRC’s advisory fuel…

Switching to the cash basis

Tuesday, August 1, 2017

Many small, unincorporated businesses choose to use the ‘cash basis’ for working out taxable income. Under this method, participants will be taxed on the basis of the cash that passes through their books, rather than having to undertake complex and time-consuming calculations designed for larger businesses, who generally have to use ‘traditional’ methods for tax purposes. Whilst easing the administrative burdens of preparing ‘traditional’ accounts, using the cash basis can also help with cash flow.

For the 2017/18 tax year onwards, the eligibility income threshold for using the cash…

SDLT on second homes

Tuesday, August 1, 2017

Stamp Duty Land Tax (SDLT) is payable on the purchase of residential property in increasing portions of the property price above £125,000.

Current rates of SDLT on individual and additional properties are as follows:
– Purchase price up to £125,000 – SDLT rate Zero; additional property rate 3%
– The next £125,000 (portion from £125,001 to £250,000) – SDLT rate 2%; additional property rate 5%
– The next £675,000 (portion from £250,000 to £925,000) – SDLT rate 5%; additional property rate 8%
– The next £575,000 (portion from £925,000 to £1.5m) – SDLT…

Paying voluntary NICs

Tuesday, August 1, 2017

There are various reasons as to why gaps may arise in an individual’s national insurance contributions (NIC) record, for example, because that person has been on low earnings for several years, they have been living abroad, or because they have been unemployed and have not been claiming benefits. In certain circumstances therefore, it may be possible, and beneficial, to pay voluntary Class 3 National Insurance Contributions (NICs) as this can safeguard entitlement to a future state retirement pension and certain other state benefits.

Broadly, voluntary contributions may be paid…