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New Making Tax Digital (MTD) Penalties Introduced To Encourage Compliance

HMRC have published details of how to avoid penalties for Making tax Digital for VAT (MTD for VAT). Accountingweb.co.uk reported that HMRC has resurrected two rarely used VAT penalty provisions from 1994/1995 to encourage compliance. The MTD for VAT rules state you must use compatible software, keep records digitally and use digital links to transfer or exchange data once you have signed up to MTD for VAT. The process is to ensure that there is no human intervention to change invoices and theref...

Spot Check Inspections For Employers Not Carrying Out Workplace Pension Responsibilities

The Pension Regulator recently announced that they are inspecting employers suspected of failing to meet their workplace pensions duties, these employers include organisations that are believed to be non-compliant or that may be at risk of becoming non-compliant. Non-compliance is brought to The Pension Regulator through various ways: HMRC sharing payroll informationPension scheme alertsWhistleblowing from individuals Some of the responsibilities employers are failing to follow are:Correctly ass...

More Healthcare Professionals Can Now Sign Fit Notes

From today (1st July, 2022), a number of healthcare professionals are now able to certify fit notes, also commonly referred to as sick notes. Now, the following can all legally certify fit notes.:NursesOccupational therapistsPharmacistsPhysiotherapists  The change enables people to access the service without having to see already under pressure GPs. Fit notes provide evidence of an absence of more than 7 days. The changes apply across England, Scotland and Wales with Northern Ireland c...

Workplace Pension – Employers Are Still Getting It Wrong

Workplace pensions have been around for some time now.  Every employer in the UK must put certain staff into a workplace pension scheme and contribute towards it under the Pensions Act 2008. This is called 'automatic enrolment'. If you employ at least one person, you are classed as an employer and as such you have certain legal duties. A business with just a sole director (depending on the circumstances) may be eligible (more to follow below on ‘eligibility’.) However long your business...

Claiming VAT Back On Fuel Costs

As VAT is charged on fuel, employees and business owners may be able to claim some or all of the VAT back. HMRC use their fuel advisory rate (we publish this on our social media platforms and our website every month, click here. Eligibility The business must be VAT registeredThis method can’t be used if you pay a fixed rate under the Flat Rate VAT scheme.If your vehicle is ONLY used for business, then you can reclaim all of the VAT Reclaiming: There are 2 ways to reclaim the VAT: Only rec...

High Wycombe & Surrounding Areas History

May is the Local and Community History month across the UK! The Historical Association, which is a charity registered and incorporated by the Royal Charter, supports education, enjoyment and the learning of history at all levels of teaching and adulthood. Their mission is to “inspire, enable and encourage” people across all walks of life to get involved with history, and the Local and Community history month is one of their ways to do it. In this month, the Historical Association wants every...

What Has Happened To The Reliability Of Xero Bank Feeds?

What Is Open Banking?Open Banking was introduced to encourage competition in banking — giving everyone more choice, and greater control of their data. As a result, businesses can share their bank transaction data securely and electronically with companies, including Xero. No more drudgery filling in forms manually and waiting weeks for a connection.  Open banking allows the automatic bank feeds are the connections that allow your accounting software to download transactions from your ...

Pay Business Bills Simply & Quickly With Pay Wise on Xero Accounting Software

An exciting offer for Xero users! Save time paying bills by using Pay Wise and get your first month free* What Is ItSecurely pay multiple bills at once through Xero without needing a payment file. You pay and manage bills through Xero allowing you a seamless process to pay multiple bills, regardless of your bank. Reconcile transactions easily allowing a more efficient way to manage the bill payment process.BenefitsSeamless process: standardised way to make UK bill payments, creating an...

The Spring Statement 2022 & Business - What It Means

Rishi Sunak delivered the Sprint Statement with a few gains for businesses. He stated that SMEs support 16.3 million jobs – 61% of total private sector employment* – and a strong economy relies on the entrepreneurship of small businesses across the United Kingdom. There were positive statistics for businesses with Rishi stating that the total number of payrolled employees now over 600,000 above pre-pandemic levels total number of payrolled employees in February 2022 2.3% above pre-pandemic l...

Making Tax Digital (MTD) For VAT - Deadline Approaching

All remaining VAT registered businesses must sign up for MTD, keep records digitally (for VAT purposes) and use compatible software for VAT return submission for their first return after 1st April, 2022. Businesses have been urged to sign up as soon as possible to ensure there are no delays to their returns.  MTD Rules Records must be kept digitally and should include: business name and address VAT registration number Any VAT accounting schemes usedcopies of all invoices you issue...

National Insurance Contributions - What Employers And Employees Need To Know

National insurance contributions (NICs) are essentially a tax on earned income. The NICs regime divides income into different classes: Class 1 contributions are payable on earnings from employment, while the profits of the self-employed are liable to Class 2 and 4 contributions and Class 3 are voluntary. National insurance is often overlooked yet it is the largest source of government revenue after income tax. We highlight below the areas you need to consider and identify some of the potential p...

Why Invoicing Correctly Is Vital To Your Business

An invoice is an often overlooked and fundamental part of business, it is a document issued by a business to show the goods and/or services provided to a customer. The main aim of the sales invoice is to request payment however there are other functions this serves which are essential to a business. If both the business and customer are VAT registered, then it is a legal requirement to provide an invoice with certain information. It is important to note that a business can’t reclaim VAT using ...

Tax Return Deadline Extended To 28th February - Interest Will STILL Accrue

HMRC has announced there won’t be: Late filing penalties for those who file online by 28‌‌th ‌February, 2022Late payment penalties for those who pay the tax due in full or set up a payment plan by 1‌‌ ‌April 2022.  BUT interest will still be charged on any outstanding amount from 1st February.The additional time will be good news for those still struggling through their tax return however HMRC is encouraging customers to file and pay on time if they can, we always recommend th...

Statutory Sick Pay – Fit Note Also Known As Dr Note Temporary Changes

Usually, your employer will ask for a fit note (Statement of Fitness for Work) if you are off of work sick for more than 7 days. However, for the purposes of Statutory Sick Pay (SSP), from 10th December 2021 your employer can only ask for proof of sickness, such as a fit note, after 28 days of sickness (including non-working days). Proof of sickness cannot be requested earlier than 28 days. Fit notes do not have to be provided for Department for Work and Pensions (DWP) benefit claims until 27 Ja...

Government Announces Financial Support For Businesses Impacted By Omicron (COVID-19 Variant)

The government have reacted to the growing numbers of Omicron infections which have caused cancellations in the hospitality industry at the busiest time of year and also to support businesses suffering with staff of sick. The Statutory Sick Pay Rebate Scheme (SSPRS) has been reintroduced for small and medium-sized employers (fewer than 250 employees) which reimburses businesses for the cost of SSP for COVID related absences. This is for Covid-related absences, for up to 2 weeks per employee. Bus...

Statutory Sick Pay (SSP) - What You Need To Know In The Season Of Over Indulgence!

The weekly rate for Statutory Sick Pay (SSP) is £96.35*, you can get this for up to 28 weeks. To be eligible for sick pay, the employee must: Be classed as an employee (all employees are workers, but an employee has extra employment rights and responsibilities that do not apply to workers who are not employees.) You are usually an employee if you:work regularly unless you are on leavecan’t send someone to do your hourscan join business’s pension schemeare required to work a minimum amount o...

Tax Return Scams Up 21% This Year - What You Need To know

With the tax return deadline fast approaching, criminals are targeting Self Assessment customers knowing HMRC may genuinely contact customers and try and steal money or personal information from unsuspecting individuals. In the last 12 months HMRC has: responded to 797,010 referrals of suspicious contact from the public - some 357,567 of these offered bogus tax rebatesworked with the telecoms industry and Ofcom to remove more than 1,282 phone numbers being used to commit HMRC-rela...

Global Bookkeeping Week: Why Businesses Fail Without A Bookkeeper

Global Bookkeeping Week has celebrated the bookkeeping profession, the vital work bookkeepers do to support micro and small businesses, how they benefit people, businesses, communities and our economy. As Global Bookkeeping Week draws to a close, we look at why businesses are missing out without a bookkeeper. Why use a bookkeeper? Businesses can do their own bookkeeping, why hire one that will cost the business money? Bookkeepers provide a vital service – ensuring compliance, often savin...

The Bookkeepers Summit: Keeping Cashtrak At The Top Of Their Game

Behind the scenes of a bookkeeper!  Many people don’t realise the work we do isn’t just client facing. Learning and researching is a big part of being a successful bookkeeping practice. Being part of the Institute of Certified Bookkeepers is a great community to belong to, they provide learning, help, support, guidance and empower us to be committed to professional excellence, have robust ethical and technical standards. They run events throughout the year to support us in doing th...

It's Global Bookkeeping Week: An Introduction To Celebrating Bookkeepers

Global Bookkeeping Week was started by the Institute of Certified Bookkeepers (ICB) in 2015 to celebrate bookkeepers and raise the profile of the profession; putting the spotlight on the dedication and support for small businesses. It celebrates the profession and vital work bookkeepers do to support micro and small businesses and how they benefit people, businesses, communities and our economy. There's is a week of special events bringing together everyone passionate about bookke...

Chancellor Announces Autumn Budget: Here's What It Means For Businesses October 2021

Following the much anticipated budget, we review the announcements related to business. Business Rates A discount of 50% on business rates for the retail, hospitality, and leisure sectors in England in 2022-23, up to a maximum of £110,000. Chancellor Rishi Sunak said the government will not be abolishing business rates, however they will "make the existing system fairer" Frequent revaluations every three years from 2023Relief for those adopting solar panels12-month rate holiday on property imp...

Suspicious Emails On The Up - What To Look Out For: Scam Emails

Cyber scams are on the increase again, we have been targeted twice in as many weeks with suspicious e mails and wanted to draw attention to these e mails. We want to raise awareness that these seemingly genuine looking e mails are should not be opened, they are phishing* e mails and should be deleted. *Phishing is a type of social engineering attack often used to steal user data, including login credentials and credit card numbers. It occurs when an attacker, masquerading as a trusted entit...

What Tax Relief Can Employees Claim For Employment Expenses?

You can claim tax relief on things like:Purchasing work uniform* and clothingCleaning work uniform and clothingToolsBusiness travelProfessional fees and subscriptionsRepairing or replacing equipment you need to do your jobTax relief is available on other things depending on your industry and occupation, check here for a table that shows what is allowable.If your employer pays towards your expense, you ned to deduct that from what you claim.Using your own vehicle for workYou’ll need to hav...

Making Tax Digital (MTD) For Income Tax Self Assessment (ITSA) Has Been Postponed For 12 Months

The Government has announced that MTD for Income Tax Self Assessment (ITSA) will be introduced a year later than planned, beginning April 2024. Recognising the challenges faced by many businesses as the country emerges from the pandemic. The later start allows more time for those required to join to prepare and for HMRC using the time for additional customer testing in the pilot.   MTD for Income Tax will now be mandated for businesses and landlords with a busi...

Preparing For The End of CJRS 'Furlough' - Employers FAQ

What should we do when the scheme closes? bring your employees back to work on their agreed terms and conditionsagree any changes to their terms and conditions with themconsider ending their employment. To note: When making decisions about how and when to end furlough arrangements, equality and discrimination laws will apply in the usual way. Can we claim CJRS for employees on notice periods? No, you can’t claim CJRS grants for any days an employee is serving a contractual or statutory noti...