Our concise summary of yesterday’s budget for business owners and taxpayers

Please click on the link below for our summary of items in yesterday’s budget that will affect you.

budget_summary_2016_17_March – Shrewsbury

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Up to date advice on saving tax

Please click on the link below for advice on saving tax in 2015/16

2016_Ways_to_Save_Tax_Guide

Save up to £212 in tax with the Marriage Allowance

I have uploaded our client guide to the Marriage Allowance.

Marriage allowance

Our client guides cover many of the tax and accounting issues faced by owner-managed businesses and tax-payers. Please contact us for further details.

Please be aware HMRC have not got the online registration process completely sorted for the Marriage Allowance. As explained by http://www.thisismoney.co.uk

“There is then an application process to go through and claimants are invited to complete their application online.

It has recruited three private operators to conduct ID checks for the system – Experian, Post Office and Digidentity.

This is being introduced gradually and HMRC admits there are restrictions at the moment that mean it may not work for everyone.

The restrictions you encountered are part of that. In order to transfer personal allowance, HMRC needs to verify who you are.

This requires evidence of the documents you were asked for. If you have them, HMRC says you can complete the process online in about 20 minutes.

If you don’t have these you’ll have to wait longer, although HMRC says it is taking phone applications for those who have tried the online application but hit a snag.”

Read more: http://www.thisismoney.co.uk/money/experts/article-3086308/Why-wait-Marriage-Allowance-tax-break-promised-Government.html#ixzz3cSw6kr3Y

 

How our Web Portal benefits our clients

Web-based portals are increasingly familiar to our clients, since these portals are already commonplace in many industries, including banking and insurance. It’s not surprising that many clients now expect instant access to information via web-based portals in their accounting and tax matters as well.

Now that we have our Portal in place, the benefits to our clients are starting to flow.

There are many benefits to our Portal. Some of the most important are:
Instant, 24/7 access to key financial documents. Clients can upload and store their own important documents as well (e.g Mortgage Statements).

A permanent secure storage facility – allowing you to meet HMRC document retention rules. If you store your documents in the Portal, there is no need to back them up and you will never have to worry about transferring this data when you change your computer.

Encrypted message exchange which is much more secure than e-mail technology. When emails travel to their intended destinations, they traverse an untold number of servers and can be intercepted and viewed by anyone with the proper technological know-how and desire. This inherent security flaw, at present, may place confidential data at risk. For some time now we have used Adobe Document Cloud e-sign (formerly Echosign) to send out sensitive documents. We recommend clients send sensitive information to us via our Portal.

 

The Portal is one of many technologies which are improving the service that progressive, innovative accountants can offer their clients. Please do not hesitate to contact us if you would like more information on this and other new technologies.

Keeping your business records secure

Many business owners have a loft/garage/spare bedroom  full of business records.

Business records have to be keep for 6 years. HMRC can levy fines if the records cannot be produced. These records can also get lost, damaged, muddled and key information lost. The link between the figures on the tax return and these  documents may then become unclear.

We have a simple, inexpensive solution to for you.

When we receive your records, we scan them for you. Then, using advanced software and our skills, we produce your accounts together with schedules of items making up the figures and an image of the documents themselves.  This will satisfy even the most demanding HMRC Inspector.

 

We will send you a copy of the file (which will be in PDF format) and show you how to store it in a free Dropbox or GoogleDrive account.

Price for this additional service depends on the volume of records. Prices start at £30 plus VAT.

Am I a Subcontractor?

Question

I run a limited company and deliver electrical services. I recently did some work for another company and they deducted 20% tax! Is that correct? I’ve never had that happen before.

Answer

The Construction Industry Scheme (CIS) is a set of special rules for handling payments for construction work that contractors make to subcontractors. The scheme covers all construction work carried out in the UK, as well as some other related work. If your business is involved with construction operations then it might operate as a contractor or as a subcontractor- or as both.

Under the rules of CIS you’re a subcontractor if you agree to do construction work for a contractor. Subcontractors can be self-employed individuals, any type of business (such as sole traders, partnerships or limited companies), or other bodies and organisations.

It doesn’t matter how you complete the work – you could do it yourself, get your employees to do it, use your own subcontractors or make some other arrangement. And it also doesn’t matter if you don’t normally think of yourself as a subcontractor; you could still be treated as one under CIS.

So unfortunately, your customer (the contractor) may well have been correct to deduct tax from your invoice.

If you’d like to find about more about the Construction Industry Scheme and how it may be possible to receive your payments gross, please do not hesitate to contact us.

The Shrewsbury Accountant – TaxAssist in Sundorne has summarised yesterday’s Autumn Statement

A summary of the Autumn Statement can be found by clicking on the link below

TaxAssist Accountants – Autumn Statement summary