Padlock

Banging your head on the desk

On starting up, Windows 10 says it is doing an update.  Without notice, but it seems unavoidable – and it takes over an hour. Glad to get that over with… but there are problems now.  Of my three screens, only one is working now.  Let’s try the usual stuff – removing then reinstalling drivers automatically, […]

Continue Reading
Fetch - HMRC error

HMRC’s “FETCH”

  For the last few weeks we have been using HMRC’s “Fetch” system.  This operates through the commercial tax software we use, and obtains salary and tax details which is already held by HMRC.  The tax software contacts HMRC via an authorisation process, and gets the figures which we would previously have obtained from our […]

Continue Reading
Making Tax Digital

Making Tax Digital

Making Tax Digital is a step towards government tax collection in real time. That may sound fanciful, but we’ve heard ministers and commentators talk about taxing internet transactions as they happen – maybe just wishful thinking. In 2010 the Treasury put forward the idea that employers might pay gross salaries to a government agency, which […]

Continue Reading

Looking through the invoices

When reviewing a set of accounts, it’s sensible to thumb through the purchase invoices in particular – even if someone has already done that in preparing the accounts – because it really does matter that your adviser understands your business. You don’t spend money unless there’s a good reason, and the goods or services you […]

Continue Reading
Email

Communications – Inbox Zero

  Communications forms a large part of our work.  It’s surprising how much time is spent not on traditional tasks like preparing accounts and tax returns, but simply communicating by phone and email.  It’s not often we receive a letter from a client now, in fact most paper letters are from HMRC. The more progressive […]

Continue Reading
MTD

HMRC’s “Making Tax Digital”

MTD is an acronym for Making Tax Digital, HMRC’s proposed way forward. It makes perfect sense – if HMRC could get taxpayers to report their income sooner, let’s say monthly, it leads to the possibility of collecting tax monthly.  This would be a huge improvement over the current system of collecting tax some 9-10 months […]

Continue Reading
Pennies

Saving the pennies

We know the saying “if you look after the pennies, the pounds will look after themselves”.  This might be a principle for every business. I was surprised to hear a client saying she usually throws away pennies and two-pennies, because it wasn’t worth the effort of keeping them.  “You can’t buy anything with a penny” […]

Continue Reading
Internet Purchase

Internet Purchases and Record-keeping

It’s about evidence.  If you get a tax enquiry, HMRC could ask a question like this: “Please provide supporting invoices for the expenditure listed in Repairs and totalling £3,567.” So you bought the office equipment via Ebay.  You know what it’s for, you know it’s genuinely tax-deductible, but can you find the paperwork? You see […]

Continue Reading
Brexit

Brexit, Imports and Exports

Besides the political upheaval and volatility that will follow the decision to leave the European Union, what direct effect will this have on a UK business? Import Duty and VAT Let’s look at a business importing plastic toys from China and then selling these direct to UK consumers.  When the goods arrive in the UK, […]

Continue Reading

Dividends – new tax rules from 1 April 2016

Through the smoke of the March 2016 budget, here is a change which was announced last year.  From 1 April 2016, a new tax will apply to company dividends, with the first £5,000 being tax-free, but above that a 7.5% tax rate will apply for the remainder of the basic-rate tax band.  For higher-rate taxpayers, […]

Continue Reading