Making Tax Digital

As part of the March 2015 budget, HMRC announced plans to replace the Self Assessment Tax return system with digital tax accounts under it’s Making Tax Digital overhaul of the UK tax system.

So what does Making Tax Digital mean to you?

As it stands, and it may change, there will be a need for all businesses to update HMRC quarterly through a digital tax account. The idea is to introduce this for non-VAT registered businesses from April 2018 and then to VAT registered businesses a year later with everyone else following in 2020. It will apply to sole traders, partnerships, limited companies and landlords. It won’t apply to pensioners or employees unless you received additional income which exceeds £10,000.

So what do you need to do?

Firstly, if you log into your HMRC online account, you may notice that you have a ‘Personal Tax Account’ or at least an invitation to set one up, although not mandatory at this time, it will become so in the future. At the moment, it’s just a shiny cover for the existing information but this will change over time.

You will need to keep your records digitally. There are currently discussions going on as to what this actually means and whether a spreadsheet counts as “digitally”, however, it is likely to mean switching to using some form of bookkeeping software if you don’t already use it.

Finally, you will need to submit your information to HMRC quarterly. So the annual Self Assessment Tax return may be no longer, instead it will be replaced by a quarterly return.

This is just a brief outline of what’s happening and it’s important to make this easy as possible for yourself. If you would like some help, or to chat about what this all means to you then drop us a line for a free, no obligation chat.

Budget 2016 – How ill it affect Small Business Owners?

There were lots of measures announced in the Budget 2016 but here are some of the highlights for small business owners:

  • Corporation Tax rate is being cut to 17% by 2020
  • Entrepreneur’s Relief rules were amended. Full details are here.
  • Stamp Duty for small businesses – The stamp duty system for commercial property is being overhauled which introduces a zero rate band on commercial property valued up to £150,000. You will pay 2% on the next £100,000 and 5% over £250,000. This comes into affect on 16th March 2016.
  • Business Rate Relief Threshold increased to £15,000.
  • The first 1,000 of income received from selling services or renting property online will be tax free.
  • Class 2 National Insurance Contributions will be removed by 2018.
  • Lifetime ISAs will be introduced for those under 40 to help with buying your first home or pension planning.

If you would some advice as to how the changes made in the budget affect you, simply get in touch and we would be pleased to help.

 

 

Have you missed the tax return deadline?

Have you missed the 31st January Self Assessment filing deadline?

If you have missed the deadline of 31st January, HMRC will have already given you a fine of £100, there are further fines imposed if you are 30 days late, 3 months late, 6 months late and 6 months late.

In addition to this HMRC charge interest on late payment of taxes.

To avoid further penalties, you need to submit your Self Assessment Tax Return ASAP, ideally by the end of this month.

If you would like help with this, or just want to talk about your situation, please contact us for a FREE confidential chat.

Growth Vouchers – We are approved advisers!

We are an approved Growth Voucher Adviser

We are delighted to announce that we have been approved as a Growth Voucher Adviser.

The Growth Voucher programme was launched by the Government in January 2014 and provides help to small businesses with funding for:Growth Voucher Advisers

– finance and cashflow
– recruiting and developing staff
– improving leadership and management skills
– marketing, attracting and keeping customers
– making the most of digital technology

You can find out more details about the vouchers here.

If you would like to find out more simply fill out our contact form and we help you claim your voucher

Sussex business funding available

Do you need help to grow your business but are struggling to get funding?Sussex Business Funding

Coast to Capital Local Enterprise Partnership and Greater Brighton City Region have launched the Business Growth Grants programme to provide Sussex business funding and is inviting small businesses to apply for a grant.

They will fund between £5000 and £100,000 and can be used to fund up to 25% of an expansion project which can demonstrate how the investment will lead to job creation.

The programme is particularly looking for applications from high-growth, high-innovation companies who wish to expand and diversify.

You can submit your application at any time but must be able to contract by 28th February 2015.

For more information click here: http://www.coast2capital.org.uk/helping-business-growth/regional-growth-fund#sthash.hbOUbvmh.F80O3Oyn.dpbs

If you would like to discuss the best way to raising finance for your business, get in touch.

 

Self Assessment Tax Return Deadline Looming

It may be over two months away but the Self Assessment Tax return deadline is looming.Shore Accounting

All returns, and payment of tax owed, needs to be with HMRC by 31st January 2014. In previous year’s the HMRC website has failed to cope particularly well so it is wise to get your return in early.

If you wish to have any tax owed added to your tax code, (i.e. taken from your employed earnings) you will need to get your return in by 31st December 2013.

If you miss the deadline, of 31st January, there is an automatic £100 penalty even if there is no tax to pay or a refund due.

If you want help with your tax return, get in touch, our Self Assessment tax return service is quick and efficient and includes a check to make sure your tax bill is as low as possible.
 
Self Assessment Self Assessment

Why should I do my bookkeeping regularly?

When a small business owner is busy, we all know that doing the bookkeeping is the last thing you want to do, however, we thought we would share some examples of why you should ‘do the books’ regularly.

A guide to self employed simplified expenses

All self employed people need to keep records of their income and expenses and HMRC have made it that bit easier by allowing you to use simplified expenses.

What expenses can I claim if I am self employed?