The Making Tax Digital (MTD) reforms represent a fundamental and unprecedented change to the UK tax system, which will ultimately impact all UK tax payers.
MTD has been delayed for all other taxes until at least 2020 but it is a requirement for all VAT-registered businesses with a turnover above £85,000 per annum to submit their VAT returns digitally, using MTD-compatible software, from April 2019. (more…)
When you’re looking for a new accountant, there are a number of business benefits to choosing a local firm. We have many clients in and around our Hoddesdon office, which helps us form great relationships with them.
Here are our top reasons why you need to look for a local accountant:
You may have used the same accountant for a number of years, and you may well be happy with them – we hope you are! But it’s always a very useful exercise to review your accountant from time-to-time just to check that you’re getting the most appropriate service for your business.
When you do your review, it encourages you to think about the service you’re getting and assess whether or not you’re getting what you need from your accountant. Here are the questions we think you need to ask yourself in order to make an informed assessment.
Until recently, an HMRC investigation usually meant one of two things. Either someone, possibly disgruntled business partner or spurned spouse, had tipped off the taxman or you were unlucky enough to have had your tax return picked at random.
All that changed with the advent of HMRC Connect, an £80m software system designed to join billions of dots to create a picture of who may not be entirely honest when it comes to assessing their tax liabilities. (more…)
Doing the payroll is more than just having the bank account details of the people you employ and making sure they’re paid what they’re owed on a regular basis.
Meeting legal requirements is a huge part of the payroll process and the recent introduction of GDPR has made things more complex for most companies when it comes to record keeping, requiring them to protect their data securely and prevent unauthorised access, especially when it comes to transferring sensitive personal information.
Our insights into the working days of HB staff members continue with a day in the life of our Administrator and Marketing Assistant, Charlotte Nicholson. She chose a slightly unusual day – the day of the launch of Ambition 2018, the one-day sales and marketing conference for SMEs in Hertfordshire. HB Accountants is a sponsor and one of the organisers of the event, and Charlotte is actively involved as a result. The launch was coincidentally held on 24th May – the day before GDPR came into force, so it turned out to be quite a busy one…
If an employee is provided with a car by their employer, tax is payable on the cash equivalent of the of car provided.
The cash equivalent of the company car provided is calculated by taking the list price of the car, multiplied by a certain percentage, this percentage depends on the amount of carbon dioxide emitted by the car.
The list price of the car is calculated using the following formula: (more…)
The Criminal Finances Act came into force on 30 September 2017. Part of the Act means that companies and partnerships can be criminally liable where they fail to prevent those who act for, or on behalf of, the business from criminally facilitating tax evasion.
There is, however, a potential defence against this offence by the business putting into place a system of reasonable prevention measures. The penalties for the offence include unlimited financial penalties and ancillary orders such as confiscation orders. The Act doesn’t change what tax fraud is, just who may be liable. (more…)
You’ve made the decision to set up your own business. It’s an exciting time and you’re keen to get going, but you need more startup cash than you have savings, so you’ll have to find an external source of finance to help you with your startup funding. Going to visit your bank manager is probably the first place you think of for a business loan, but it’s a good idea to look at other options available before you apply for any kind of business investment. (more…)
A study undertaken by the Centre for Economics and Business Research study found that SMEs, on average, spend around a million pounds a year on their business operations. Those with more than 50 staff spend an average of £3m every year on goods and services; micro businesses, i.e. those with fewer than nine employees, spend an average of £225,379.
The study was able to drill down into the figures, discovering that the average SME spends 24% of its budget on hiring new staff, 20% paying suppliers, and 19% on technology. The good news is that older businesses tend to spend less on expenditure. However, overall, it shows the importance of managing cash flow at all levels of business.
Here’s our breakdown of these, and other expenditures that make up the majority of an SME’s costs: (more…)