Introduction to Bookkeeping Bookkeeping is an essential part of any business, regardless of its size or industry. It involves the recording and organising of financial transactions, including purchases, sales, receipts, and payments. A bookkeeper’s role is crucial in maintaining accurate financial records that can help a business thrive.  But what exactly does a bookkeeper do? … What Exactly Does a Bookkeeper Do?: Unveiling the World of Bookkeeping Read More » The post What Exactly Does a Bookkeeper Do?: Unveiling the World of Bookkeeping appeared first on Modina ..read more

Late payments continue to be a major challenge for small business owners and freelancers across the UK. In the 12 months leading up to June 2024, nearly half (49%) of all invoices were paid late, an increase from 43% the previous year and even worse than the 46% recorded in 2020. The situation is particularly … UK SMEs Face Growing Challenges with Late Payments Read More » The post UK SMEs Face Growing Challenges with Late Payments appeared first on Modina ..read more

The Labour Party has taken office for the first time in 14 years, promising significant changes to employment law. With an ambitious agenda to improve workers’ rights, businesses may need to prepare for a potential shift in the regulatory landscape. This article outlines the key changes that might be on the horizon and what employers should be aware of. Unfair Dismissal from Day OneCurrently, employees gain unfair dismissal rights after two years of service. The new government might grant this right from the first day of employment, intending to make the job market more dynamic. Employers sho ..read more

After a period of steady increase, inflation in the UK has taken a welcome turn. The cost of living surged notably throughout 2021 and 2022, but recent data from the Office for National Statistics reveals a significant decline, with inflation now resting at 3.2% for the year up to March. This marks the lowest rate in over two years, suggesting a gradual alleviation of the inflationary pressures that have burdened the economy. While the dip in inflation is a positive development, it’s important to acknowledge that prices are still rising, albeit at a slower pace. Noteworthy changes are observed ..read more

Millions of families in the UK will soon benefit from higher Child Benefit payments, announced by HMRC for implementation from April 6, 2024. In an effort to boost household finances, the Government has raised the yearly entitlement for families with one child to £1,331 – a rise of £83.20. Families with additional children will receive up to £881 per year, with no limit on the number of children eligible for the benefit. Under this revised scheme, payments will be structured as follows: ● £102.40 every four weeks (£25.60 weekly) for the first or only child. ● £67.80 (£16.95 weekly) for each su ..read more

Tax Refund Scams have become common in recent years. For example, HMRC received more than 130,000 reports about tax scams in September 2023, whilst almost 60,000 people were approached and offered fake tax rebates from fraudulent sources. Avoid falling for these scheming fraudsters’s tricks by being aware of these 3 clear signs. Unsolicited CommunicationAlways be wary of any unsolicited emails, phone calls, or text messages claiming to be from HMRC. Scammers often use these methods to reach out to individuals, asking for personal information such as national insurance numbers, bank account de ..read more

Jeremy Hunt’s recent Budget announcement unveiled several changes impacting taxpayers, businesses, and households alike. From tax cuts to adjustments in benefits and investments, here’s a breakdown of what these updates mean for you: Taxation: ● National Insurance, a payroll tax, cut by 2p in the pound for employees and the self-employed ● Salary thresholds for income tax and national insurance remain frozen, leading to increased tax payments as incomes rise (fiscal drag) ● Non-dom tax regime, applicable to UK residents with permanent homes overseas, to be replaced with new rules from April 20 ..read more

Payroll year end is not to be confused with PAYE. Every year, after your last pay run but before 19 April, you’ll need to send specific information to HMRC.  Here’s a step-by-step guide to ensure a smooth transition and avoid common pitfalls. 1. Check The End Date of Your Payroll.  Payroll may extend beyond week 52, reaching weeks 53, 55, or 56. Regardless, two key points apply:  ● Payrolls are processed weekly, fortnightly, or four-weekly.  ● The standard payroll date is 5 April.  For a weekly payroll on 5 April, handle a week 53 payroll; for a fortnightly payroll, pr ..read more

On January 27, 2022, HMRC and the government proposed changes to basis period reform rules starting in April 2024, in response to feedback from BDO and others. These changes aim to address unfair impacts, yet they may still lead to accelerated tax obligations for many partnership members. Who’s Affected? This reform affects self-employed traders, partners in trading partnerships, unincorporated entities like trading trusts, estates, and non-resident companies with trading income under Income Tax. It impacts businesses with annual accounts ending on dates other than March 31 or April 5, particu ..read more

Starting April 2024, there are new rules for calculating holiday entitlement and pay for workers with irregular hours (like zero-hours workers) and part-year staff (such as term-time employees). These rules apply from the beginning of your first new leave year on or after April 1, 2024. If your leave year runs from January to December, these new rules take effect from January 2025, and your current system remains in place until then. You’ll have two options for calculating holiday entitlement/pay: the ‘default’ method or the ‘rolled-up holiday’ method. Under the ‘default’ method, workers accru ..read more