The Employment Tax laws are changing again, and they will take place from 6th April 2018. It is important that all employers are aware of these changes and consider how this will impact your company. You should also make any necessary communication with your staff.

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All employers will have to provide a workplace pension for all staff members that qualify by the April 2018 deadline and most already do.

Take a look at the table below to see the minimum contributions that must be met by both the employer and employee:
 

For more information on work place pension please visit the gov.uk website or click here

National Minimum Wage and Living Wage

There are different hourly rates of National Minimum Wage and this depends on the age of the members of your team. If staff are 25 years and over, then they will get the National Living Wage. As an employer you are legally obliged to pay the National Minimum and Living Wage.
 

Apprentices are entitled to the apprentice rate if they're either aged under 19, or, aged 19 or over and in first year of apprenticeship. Apprentices are entitled to the minimum wage for their age if they are both aged 19 or over and have completed the first year of their apprenticeship. More information can be found here or if you want to see previous years minimum hourly rates

If you would like to speak about these changes that are to come in to place or what steps you need to take, then please call us on 02920 653995

We are well in to 2018 and the financial year is coming close to its end. You should have an indication of how you want to take your business going forward. In our previous blog we talked about goals and achieving them with your strengths and opportunities. This time around we talk about the best ways to expanding your business.

We are finding this is the time of year a lot of our clients are needing budgets and cashflows. A detailed cashflow can inform you when cash is available to spend or if cash is running low ahead of time. Knowing this ahead of time can avert any crisis and indicate to you when action is needed so you are well prepared.

Knowing your cashflow needs at least a year in advance will give you a more accurate picture of your finances. Regular maintenance of this important as you don’t want to rely on old figures in this ever changing environment.

Budgets are equally as important as a cashflow. If you have expansion plans in mind, then you need to master your budget. Are you looking to get a second office? Or are you looking to get a bigger office?, do you need new equipment.   Having an up to date budget can give you clarification on which may be the best way to expand your business. Budgeting is also a great way to indicate where overheads may need to be cut down. You may be over spending on some things but then neglecting the investment in other departments of your business. This is where a budget will help balance your business.

With any expansion plans you may have, you’ll need the cash to back it up. There are many ways to obtain the finance, but the most conventional way is to get a bank loan. With your cashflow and budgets shiny and polished will keep the bank manager sweet. You can then enforce your plans to expand and grow!

Our busiest season has passed with the self-assessment deadline and now it’s the season of love. With love in the air, its time to make your business your valentine. Take the time to make a plan of action for your business. What do you want to achieve in the next 12-18 months?

Are you looking to expand your business and grow a larger list of customers? or are you trying to cut back on the amount of expenses your business pays out ? These are all goals that should be in the clear to you. Write down your plan of action, top tip, something that is written down will be more likely to be achieved than something that you have stored in your mind.

Having it written down and somewhere in sight will give you the reminder and motivation to try and achieve this. Think of the strengths and weaknesses of your business. Refresh and re-train on yourself in terms of, what are your strengths, work on weaknesses to learn and help achieve your goals.

Loving your business will give you opportunities to take it to the next level. However, with opportunities you also must weigh up the risks. This is where you need a forecast for your business, a cashflow can help make the deciding factor whether its time to hold back and watch the spending, or if there is spare cash around to invest back in the business.

We are at the start of 2018.   Make it a good one.

Happy New Year to you all, we hope you’ve had a lovely Christmas. It’s the New Year but some things remain the same, and that’s the deadline of 31^st January for Self-Assessment returns.

Self-Assessment is a system HMRC uses to collect tax. For people who are self-employed, with their own business or others who make additional income. 

The dates for Self-Assessment is 

1^st April 2016 to the 31^st March 2017. With online returns needed to be submitted by

31^st January 2018 and paper returns to have already been submitted by 31^st October 2017.

The best way to keep the tax bill down is to have your paperwork organised. You will need the actual receipts to claim as expenses. Collate your receipts and keep together as HMRC can ask to see evidence at any time. Another great way is to utilise the ISA savings as any interest received is tax-free. You’ll keep your savings on a tax-free basis for as long as you keep the money in your ISA accounts.

Higher rate tax payers benefit from additional tax savings when they contribute in to pension schemes and give to charity.

An example of a list of records you will need are;

•          Business and personal bank statements
•          Records of income
•          Records of purchases
•          P60/P45
•          Rental Income
•          Interest Income
•          Child Benefit and Income Support

You need many other records to keep, here at Cross Accounting we give our clients a more in detail list of records which we require from them to complete their tax return. This also includes a reminder of approaching deadlines to ensure not to be penalised. HMRC fine £100 for anyone who misses the 31^st January deadline.

HMRC have revealed a record number of people are filing for self-assessment this year as the numbers are north of eleven million. If you’re a couple of years behind, then do not worry as you’re not alone, we have taken on a number of clients in this situation, and have supported them and brought them up to date. If you’re not sure if you need to submit a self-assessment or you need to complete a return, you can call us on 02920 653 995 or visit our website on www.crossaccountingservice.co.uk to see how we can assist you. 

Welcome to our latest blog. Christmas is around the corner and it’s our favourite time of the year here at Cross Accounting. It’s the time of giving and is there any other way to give your business a boost a grant to get your finance in place.

A business or an individual will be given a sum of money for a specific project or purpose. A grant usually covers only partial costs involved. Grants are given depending on your business activity, the amount of jobs that will be created due to this investment or if you are in a specific industry sector. Sometimes grants are linked to geographic areas. Such as those areas in need of an economic transformation.

Business Wales can support in finance, take a look at their finance locator to see if grants and other finance your business may be eligible for at https://businesswales.gov.wales/zones/business-finance/funding-search-tool-form

You should ensure that you meet the requirements of the scheme before applying for grants and finance. You’ll have to ensure you are ready to put up some of your own money as grants only cover partial costs. You’ll also need to have a detailed description of your project or purpose and a work plan with full costings. We can assist with a budget and full detailed cashflow to secure the finance you need.

The application process for grants can sometimes be time consuming and there usually is a lot of competition but on the plus side, most grants don’t have to be paid repaid giving your business that extra boost.

If you’re looking for that push to reach some New Years goals, the Development Bank of Wales can support to get the finance your business needs to succeed. Visit https://developmentbank.wales/ to get you ready for the New Year.

You will need to have a polished business plan at the ready.  If you would like us to look at your business plan, then you can book in for a free one-hour consultation where we can discuss how to start the New Year strong. Visit our website on www.crossaccountingservice.co.uk or call us on 02920 653 995. We wish you all a Merry Christmas and a prosperous New Year.

The summer months are coming to an end as autumn closes in. Everyone is returning from their summer break, the children will be heading back to school its back to business.

It’s always great to plan ahead, so this time we talk about the new Making Tax Digital (MTD) that HMRC are set to introduce from April 2019, this has been going back and forth in consultation for some time now, HMRC now have communicated the requirements.

This will be mandatory for businesses registered for VAT with a turnover above the VAT registration threshold of £85,000. Businesses will need to keep VAT records digitally and their VAT returns using MTD compatible software. This will start from their first VAT period starting on or after 01 April 2019.

If you submit a quarterly return for the period 01 March to 31 May 2019 then you will have to comply with MTD rules for the period starting 01 June 2019. Businesses under the VAT threshold will not have to operate MTD but can choose to do so voluntarily, which we would recommend.

Going forward the use of compatible accounts software will be mandatory. The use of spreadsheets can no longer be used.   

HMRC are trying to reduce the number of VAT inspection on businesses that are complying and MTD will make this clearer for all. If you’re struggling and not understanding what to do and how to be ready for the April 2019 deadline, do not panic and contact us, as we are always here to help.

Welcome to our latest blog. Summer has been in full swing here and we have now had great weather for several weeks. There are lots of activities that happen during the summer months and its always great to support your local businesses.

This time of year, we are noticing a larger number of people investing towards a property. This may be a change to the current house or a house to rent. Whatever the reason may be, you might need help financing in the way of a mortgage.

So, what is a mortgage? A mortgage is a loan taken out to buy a property. The loan is secured against the property until it is fully paid off. If you can’t keep up with repayments, the mortgage provider can repossess the house so its extremely vital to crunch the numbers and know if a mortgage is right for you.

Many factors are taken in to consideration to approve a mortgage. Proving your income is usually the deciding factor as the lender needs to know you can repay the mortgage. Here at Cross Accounting we provide our clients with their SA302 to prove their earnings. You can obtain the last three years proof of earnings if you file for self-assessment through your HMRC’s online account, with a tax year overview.   Mortgage companies like to see you are on time when paying your taxes.

Many banks have an online calculator to estimate the interest payment you will need to make, it does help you budget for the new property.

We are authorised and can help obtain a mortgage, please do get in touch to discuss your situation and see how we can help you. A house is one of the largest single purchase you’ll likely make so you want to take care and get it right from the beginning.

Summer has arrived! We have had some beautiful weather recently and the sun has been shining. But just like the sun, you need to make sure you are shining as well. You need to give yourself some TLC, if you don’t, then your business can suffer because of this.

During the summer season, the public generally cuts back. People save for holidays, the children have exam season and it is normally quieter. However, this opportunity should be taken to recharge your batteries. Take time off to de-stress and put a plan in action to set your business off for the rest of the calendar year.

As well as building your business, you should build on your staff. This is perfect time to train or retrain your staff. Improving their abilities will only compliment your business.

Give yourself a breather and to come up with some fresh ideas but remember to take some time off and relax, spend time with family and friends.  You’ll be surprised as how much energy and inspiration you achieve when you come back to work.

We’ve had a lovely few days of weather and summer is around the corner. As the weather heats up this time around we talk about the hottest topic at the moment. By now you probably have heard everyone mention about General Data Protection Regulations (GDPR).

The regulation has been passed to protect an individual’s privacy. If you hold a person’s name, email address, address or contact details, you will now need their permission to hold these types of data. If you do not have permission, then you will have to delete the data you hold. This will be law by the end of this week (25^th May 2018) and there are fines that will be imposed for any sort of breach. If you are worried about GDPR you can read up about it here.

Here at Cross Accounting, we are currently password protecting documents containing sensitive information when sending internally and externally. Since the document has an individual’s data on this ensures we are complying with GDPR rules. All our clients will have their own unique password to open their documents. This ensures privacy in case it is sent to an unintended recipient or a breach in security from hackers. Encryption is the key to adhering to the regulations.

25^th May is when all this starts to kick off, there are companies that can help and provide training for GDPR but it is making sure you’re being responsible with the data you hold. People have the right to be forgotten, so any contacts that you do not have their permission, you cannot keep. If you take car in to applying security to your business, then your are ready to tackle GDPR.