Over the recent years technology has made payroll processing function far simpler. The following may help you decided how you would like to handle your payroll function. … Continue Reading
Mumpreneurs is a relatively new term used to describe mums who want it all and are happy to go out there and work for it. With escalating childcare costs, more and more mothers are turning to self-employment or freelancing, leaving them with the flexibility to care for their children while also still earning a living.
Women in business have struggled for a long time trying to juggle everything and find the enigma that is the ‘work/life balance’. One child does not seem to tip the scales too much but once you have had your second, third or even fourth, the related costs such as childcare outweigh the financial benefits of working the 9 to 5.
In fact, it is estimated that childcare costs have risen by a fifth in the last year, with an average cost of around £12,000 to cover childcare for 2 children. Research carried out by the insurers LV= concluded children were at their most expensive between the ages of one and four mainly due to the spiralling costs of nursery fees. This is why more and more women have turned to self-employment and so the term ‘mumpreneur’ was born…. Continue Reading
Management accounts help those running a company to understand the financial side of their business. Used as a source of information to make strategic decisions, they are often prepared on a monthly or quarterly basis, and can be tailored to a company’s individual needs.
Management accounts are not a legal requirement as with financial accounts; they act as more of a guide. Southside Accountants in Streatham SW16 offer management accounts preparation as part of their service, helping clients to understand their business finances.
What do management accounts include?
They can include any information that would be useful to management, and be as straightforward or as complicated as necessary. It all depends on what information is needed to make long-term decisions…. Continue Reading
If you have a child aged 16, check whether you are still receiving all the child benefit and child tax credits you expect to.
Child benefit and child tax credit both stop automatically on 31st August on or after the child’s 16th birthday, but where the child is in approved education or training, the parent who claims the child benefit is entitled to extend that claim until the child reaches their 20th birthday. ‘Approved education’ means at least 12 hours of supervised study per week, and the training can include an apprenticeship.
From September 2013 children who live in England (the rules are different in Wales, Northern Ireland and Scotland) are required by law to remain in education or training until the end of the academic year in which they turn 17. So there are a lot of families out there with 16 years olds who are in approved education, but who have lost their child benefit.
If you are one of those parents, and you want to continue to receive the child benefit, you need to contact the Child Benefit office at HMRC, to inform them that your child is still in approved education or training.
Similar rules apply for child tax credit. In that case the claimant must contact the Tax Credit office.
Although child benefit and child tax credit are both administered by HMRC, you need to inform them twice, as one section of HMRC cannot pass the relevant information to another part!
You may prefer not to receive the child benefit if you or your partner/spouse earns £50,000 or more, because in that case all or part of the child benefit paid to your family is clawed-back through the operation of the high income child benefit charge (HICBC). HMRC has written to some of the parents who may be due to pay the HICBC, but not all, as they cannot correctly identify every person who may be liable to pay the charge.
If you are the highest earner in a family that has claimed child benefit since 7 January 2013, and your total income is £50,000 or more, you need to declare that child benefit on your tax return form. If you don’t normally complete a self-assessment tax return form, you need to ask HMRC to set you up on the self-assessment tax return system. We can help you with that, but don’t delay, as if you fail to complete the tax return form on time there will be automatic penalties to pay.
- compensation for unfair dismissal, apart from when this is automatically unfair or relates to anti-discrimination law;
- request for time off for studying or training;
- request for flexible working; and
- statutory redundancy pay.
Also the employee must give 16 weeks’ notice (instead of 8 weeks) when returning from maternity or adoption leave. This sounds like an attractive deal for an entrepreneur who doesn’t care about his own employment rights. However, any person who holds 25% or more of the company (alone or with associates) can’t take up employee shareholder status and enjoy the tax-free shares. So this share scheme can only be used to give shares to employees who don’t already have a significant share in the company. Before implementing this scheme you should take employment law advice, and specialist advice on how to value your company’s shares. The employees should also take independent advice before signing away their employment rights, but you, as their employer, can pay for that advice with no tax consequences.
Q. My company pays me the regular mileage rate of 45p per mile for business journeys I make in my own car. However, to reach certain customers I need to drive on mainland Europe which requires extra car insurance which is quite expensive. Can my company reimburse me for the cost of that extra insurance without any extra tax?
A. The regular mileage rate is supposed to cover all the marginal costs of using your personal car for business, including insurance. So if the company reimburses you for the extra cost of this insurance in addition to the mileage payment, that would be a taxable benefit in kind.
We need to look at the distances you are driving in Europe, and for what periods. If the time spent abroad is relatively short, it may be more economical for the company to hire a car for you while you are abroad. However, there is no substitute for crunching the numbers.
Q. I need to get a high-end computer for my business which will cost about £2,200, but I use the VAT flat rate scheme for small businesses which doesn’t allow VAT reclaims. I’ve heard that I can claim back VAT charged on expensive items under the flat rate scheme, is that true?
A. Yes, under the flat rate scheme you can claim back VAT charged on the purchase of capital goods, which are items you will use in your business over a number of years. It must be a single purchase from one supplier with a VAT inclusive total of at least £2000, but that invoice can include several items bought together such as; screen, computer, and printer. The items must not be purchased for resale or for lease or hire.
Q. Please help, I’m so worried. I’ve received several threatening letters from the Taxman demanding money, but I’m sure I’m up to date with my tax payments. I’m terrified the bailiffs will turn up on my doorstep and demand payment. What should I do? A. Let us see the Taxman’s letters and we will try and sort the matter out for you with the Tax Office. In the meantime, keep this number to hand: 0300 200 3862. If bailiffs do turn up ask to see their photo ID cards, take a note of the ID numbers and call that number to confirm whether the bailiffs are genuine. Also collect evidence of the tax payments you have made recently, such as bank statements. These may be enough to prove to the bailiffs that you have paid the tax you owe. If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.