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New Starter Checklist R&D Tax Relief
We’re looking for an enthusiastic person to join our fantastic team as an apprentice Trainee Accountant. We use cutting edge technology and are client focused. The role is for a three and a half year fixed term contract which includes working towards the AAT qualification.
The contract commences September 2018 at our Stocksfield office. The successful candidate must be focused, determined and a good team player.
Please email [email protected] for further details and how to apply.
With effect from April 2017 the new Restricted Mortgage Interest Relief came into effect on BTLs.
The Self Assessment Tax Return filing and payment deadline is just around the corner (31 January 2018 for the tax year ended 05 April 2017).
When running a business, it’s important to ensure that all business owners have an up to date Will and Power of Attorney in place.
I would urge you to spend just a few minutes reading this … I’ll do my best to keep this as short as possible, sticking to the key points …
Making Tax Digital (MTD) is a HMRC initiative which is due to come into effect from April 2018. Essentially, all businesses (sole traders; partnerships; limited companies) and individuals who are required to submit Self Assessment Tax Returns with income over £10,000 per annum, will be required to submit details of their income and expenditure to HMRC on a quarterly basis, digitally, in a pre-prescribed format.
Businesses and individuals will inform HMRC of their income and expenditure for a three month period, and HMRC will calculate the tax payable. This calculation will not take account of accounting and tax adjustments, this will be just a simple calculation of income less expenditure, which will need to be submitted within 30 days of each quarter. Larger businesses and those who are VAT registered should not find this too onerous task, as these businesses will already be in the habit of collating information for tight deadlines. However, smaller businesses and those who are, shall we say, a little less organised, need to get organised for Making Tax Digital coming into force.
I have heard some businesses saying “Oh, it doesn’t matter my accountant will take care of it” …. Yes, we shall where clients want us to deal with the additional filing, however …. or maybe “but” would be a more appropriate word, there are a couple of issues:
Firstly, as springs to most smaller business owner’s minds, what will the costs be for this extra work carried out by my accountant? There will be additional fees where we are instructed to deal with the additional quarterly filing. However, at the moment until we can see exactly what the requirements will be we are unable to confirm costs. We generally anticipate though that the smaller the business, the lower the fees.
Secondly, and this is probably the factor of more concern, is the impact on cashflow once quarterly tax payments come into effect. At some point, a date yet to be confirmed, tax payers will be expected to pay the tax payable each quarter (in real time). Clearly, spreading the payment of tax throughout the year is a great idea – not having a large tax bill nine/ten months after a year end is a far improved process. However, the information which will be submitted to HMRC will not take account of tax adjustments and therefore it is far more likely that tax will be overpaid throughout the year, and then refunded once the final year end accounts and tax returns are submitted.
There is also the effect on cashflow on the transitional year where we move from paying tax once or twice a year (depending on the business structure) to paying on a quarterly basis. There will be a year where many are paying tax for the previous year (as we do currently) and also need to pay any tax due every three months, with that same year.
Quarterly reporting is due to take effect from April 2018 for businesses (sole traders and partnerships) and individuals who have income over the VAT threshold (£85,000). Limited companies and those that are VAT registered will move over later. Those with a turnover under £10,000 are exempt. It may well be that in light of Brexit and other challenges that the Government has, that MTD going live is pushed back until 2019. However, it has been made clear that this will go ahead at some stage. The UK are basing their model on that of Sweden, which went live four years. Much of Europe and the US already file quarterly tax returns. The dates are yet to be confirmed as to when quarterly payments will take effect.
I hope that I don’t sound too negative about these changes … I am all for it … At Clarand we work digitally with our clients and we anticipate the transition should be smooth, however there will be some challenges ahead for some businesses and individuals in the transitional years. I think the saying goes …. “By failing to prepare … you are preparing to fail”. Clarand Accountants have already held a seminar about MTD for their clients, and will be holding more later in the year.
Claire Priestley
Great news !!! Not only have we been shortlisted for North East Small Accountancy Practice of the Year, we are also looking to expand our team!
We are looking for an apprentice trainee accountant to join us from September 2016. This is a three year fixed term apprentice contract which includes working toward the AAT qualification through day release and on the job training. The selected candidate will be involved in many projects and experiences due to being part of a small team, which will add to their skills and knowledge. At Clarand we have a strong work ethic and reward well.
The successful candidate must be focused, determined and have a passion to succeed. Candidates must have a minimum of five GCSEs grade A to C which includes Maths and English. A Levels or equivalent are desirable. The role is in a professional office and is client facing, therefore the successful candidate must be self-aware and presentable at all times.
For a detailed job description and application form, please email us at [email protected] The closing date for applications is Friday 24 June 2016.
We are celebrating Clarand’s third birthday this month, and what better way to do so than to sponsor and present at the Community Foundation Women’s Fund lunch on Friday 4 March 2016 in Newcastle Upon Tyne. Over three hundred business women attended the event and over £18,000 raised on the day. We have been delighted to be to involved in the event and it was great to share our journey so far.
This guest post comes from Richard Charnley, Investment Manager at Northstar Ventures.
Five Reasons to Consider Venture Capital Investments
Whether you’re a small business looking to expand or you’re a startup that needs seed funding, you might have considered seeking investment from a venture capital firm. Unlike traditional bank loans or private equity, venture capital can help support higher risk companies in the early stages of development. Here are five reasons why you should consider speaking to a VC Investment Manager if you are looking to grow your company.
There’s a saying that ‘it’s lonely at the top’. If you’re the Managing Director or CEO of a company sometimes it can be difficult knowing who to talk when you’re facing a big decision. This is why it can be helpful to have a VC Investor on your team: you can draw upon their experience with other startups and SMEs.
Venture capital often works through a string of networks, made up of investment firms, consultants, angel investors and of course the startups and SMEs themselves. By raising capital through a funding round you are likely to connect with a strong network of useful contacts. Whether it’s someone who can mentor you through the early stages of your business, or someone who can help raise funds in the future, the network VC investment can link you with can be invaluable.
Venture Capitalists are experienced working with startups and small businesses. This means they understand that each business is different and a ‘one-size fits all’ approach (which you might find with a typical bank strategy) does not work. They are able to evaluate the business requirements and tailor a package that meets the needs, stage and exit route of the business and the management team.
Venture capital typically has a stronger focus on growth when compared with other financing options. This can be particularly helpful for businesses in the early stages of trading who need to focus on quick growth in order to succeed. VC Investors may also accept initial losses for growth purposes – they can see the bigger picture.
This is probably the most obvious reason people consider venture capital investment! Venture capital funds often have the ability to invest larger sums than might be available from a bank or on your credit cards. They also have the ability to fund the same business more than once, if the business has started to grow or is being scaled up.
It is worth noting that not all companies are right for VC investment and vice versa. VC investment is usually only suitable for companies where the management team and shareholders are focussed on the future sale of the business.
About Northstar Ventures
Northstar Ventures is a North East-based venture capital company that has been operating since 2004.
It is currently looking to invest from £50k to £0.5m in innovative high growth businesses and social enterprises across the North East region.
With more and more of our clients turning to using online accounts software to help support them with their day to day finances, we thought we’d share some of the benefits that our clients have reaped from going digital …..
There is now a vast choice of user-friendly online accounts packages for all size of venture and business and there are just a few detailed below, including Exact Online; Xero; Quickbooks Online; Freeagent; Clearbooks; and SageOne.
Many features being …..
Most have free trials/demos so take a look and see what’s out there and how it could work for you. Any queries please contact us as we can help you ….
With effect from 1 January 2015 the EU has brought in a new EU VAT scheme which directly affects UK businesses making digital supplies to customers in the EU.
Essentially the change is to “the place of supply”. Up until the end of 2014 the place of supply was where the supplier is based – ie here in the UK. If you are VAT registered you would charge UK VAT on your supply, and if you are not VAT registered you wouldn’t charge VAT. However, now the “place of supply” is where your customer is based.
Example:
On 1 January 2015 you sell a download of your latest album to a customer in Germany. You now need to charge German VAT on that product!
You have two choices:-
1. Register for VAT in Germany – which, aside from the language barrier, will be an administrative nightmare; or
2. Use the EU VAT MOSS – “mini one stop shop”. This means you declare the VAT charged (at UK rate of 20%) and pay it over for all of your EU sales. This way you avoid registering in each individual country.
If you are not currently VAT registered you will need to register for VAT to be able to use the VAT MOSS scheme. You can register via HMRC website. However, this does not mean that you need to charge VAT on your UK sales going forward (unless over the UK sales threshold). You do need to go through the VAT registration process, include your VAT registration on any invoices to the EU, submit quarterly returns to HMRC, and pay over the VAT in relation to EU digital sales. Payment can be made via HMRC website.
FAQs
My UK sales are lower than the current VAT threshold of £81,000 therefore I won’t have to register will I?
You will have to still register for VAT via MOSS. The UK VAT threshold is based on UK sales only. The EU has not sent a de minimis amount. Therefore, if your sales are £1,000 you need to still register for VAT via MOSS. However, you do not declare your UK sales on the VAT return, just those digital sales to EU countries.
When I complete the form on HMRC website it is asking me what my UK sales are – they are below the threshold and I am not sure what to include. Help?
You need to include £0.00 in the UK sales box.
How do I know where my customer is located?
You can use your customer’s postal address or bank sort code. If you search a bank sort code on the internet it will bring up the branch details. You also need to retain this information for your records for the next ten years.
If I register for MOSS can I now claim my VAT on expenses back?
You cannot claim VAT back on UK purchases, however you can claim VAT back on any EU purchases which are wholly attributable or can be part apportioned to the EU digital sales.
If I register for MOSS and then decide that I am no longer going to supply to EU customers – how do I stop reporting to HMRC?
You need to de-register from MOSS. You need to tell HMRC at least 15 days before the end of the VAT quarter in which you intend to stop using the scheme.
This is the link to HMRC’s website where you can register for MOSS and find out more about it:
https://www.gov.uk/register-and-use-the-vat-mini-one-stop-shop
We hope that this helps gives some guidance to what can be quite a complicated area. Please drop us a line or give us a call if you want to discuss this further.
We’re looking for an enthusiastic person to join our fantastic team as an apprentice Trainee Accountant. We use cutting edge technology and are client focused. The role is for a three and a half year fixed term contract which includes working towards the AAT qualification.
The contract commences September 2018 at our Stocksfield office. The successful candidate must be focused, determined and a good team player.
Please email [email protected] for further details and how to apply.
With effect from April 2017 the new Restricted Mortgage Interest Relief came into effect on BTLs.
The Self Assessment Tax Return filing and payment deadline is just around the corner (31 January 2018 for the tax year ended 05 April 2017).
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