If the past 18 months has taught us anything, it’s that each business should have a robust Business Continuity Plan. This time, it was a global pandemic. Next time, it could a cyber-attack, a fire, or the loss of business-critical assets. So, what is a Business Continuity Plan, and how will it help your business. Your Insurance Policy No one wakes us in the morning happy to be paying insurance until something goes wrong, and they find themselves relieved to have it. Well, think of a Business Continuity Plan as your insurance policy without the monthly payments! In essence, it’s a plan that wil ..read more

With more staff working from home, there’s a chance that you’ve paid additional expenses to employees relating to homeworking which, consequently, means they’ll be paying tax on these additional expenses and benefits. As an employer, you have certain tax, National Insurance and reporting obligations that go with any expenses you pay. Consequently, it’s worth understanding what is and what isn’t included. Homeworking expenses include: Equipment, services or supplies This includes computers, office furniture, phones, fuel for business travel and stationery. In fact, it’s anything needed to carry ..read more

Crown Preference is back! Since the Enterprise Act 2002 abolished what was known as Crown Preference in the UK, if a company went into insolvency and unless there were exceptional circumstances, HMRC was an unsecured creditor meaning that tax claims were ranked as ordinary unsecured debts on insolvency. However, things have changed. First, what is insolvency? Insolvency is when an individual or business is unable to pay their debts when they fall due. There are six main categories for insolvency, which are: Administration stops any legal action or process, unless permission is given by the Ad ..read more

In today’s blog we cover the important subject of how to prepare for the financial year end. Year-end is a time for Limited Companies to file their corporate tax returns with HM Revenue & Customs (HMRC) and provide annual accounts to Companies House. Most importantly, as your Corporation Tax is based upon the financial position of your company at year-end, it’s vital to have everything in order. It’s also important to make sure you file them on time, otherwise, you could be subject to penalties! The most effective way to prepare is to try and make these actions part of your every day, or e ..read more

As part of the 2021 budget, announced by The Chancellor on 3rd March, we see a raft of increases in tax thresholds and rates, starting 6th April 2021. Here, we list all the changes to the tax thresholds and rates. PAYE Up from Employee personal allowance £242 per week / £1,048 per month / £12,570 per year £12,500 UK basic tax rate 20% on annual earnings above the threshold and up to £37,700 £37,500 UK higher tax rate 40% on annual earnings from £37,701 to £150,000 £37,501 UK additional tax rate 45% on annual earnings above £150,000 Same   National Insurance Thresholds Up ..read more

In today’s blog we look at how to check a subcontractor’s Construction Industry Scheme (CIS) Registration Online. If you pay subcontractors to do construction work or if your business does not do construction work but you usually spend more than £1 million a year on construction then you must register as a contractor with the Construction Industry Scheme (CIS). You may be a sole trader, in a partnership or own a limited company – if you’re not sure if you need to register, check who is covered by CIS here. You must register for CIS before you take on your first subcontractor. You must also; C ..read more

On the face of it working for yourself and being your own boss is quite alluring – choosing your own hours, no one telling you what to do, where to go and how to do it. Like everything, however, working for yourself has its challenges… and lots of them! In today’s article we look at the pro’s and con’s of being self-employed – but first, what exactly does it mean to be self-employed and what qualifies: The Gov website defines it as follows: A person is self-employed if they run their business for themselves and take responsibility for its success or failure. This includes those who work as fre ..read more

From the 1st March, those in the building and construction services may need to use the VAT reverse charge. The charge applies to standard and reduced-rate VAT services: For individuals or businesses who are registered for VAT in the UK Reported within the Construction Industry Scheme What action needs to be taken? Firstly you’ll need to check when to use the reverse charge on your sales, purchases or both. You must use the reverse charge for the following services: constructing, altering, repairing, extending, demolishing or dismantling buildings or structures (whether permanent or not ..read more

When your current accounting software no longer meets your requirements, you may need to consider migrating or switching accounts packages. However, changing accounting software needs to handled properly as it can cause a serious disruption in your business operations. Subsequently, it’s crucial to have a plan in place before you get started. The biggest part of migrating or switching accounts packages is in the preparation. Whilst most accounting packages offer an ‘easy switch’ option, it is usually best to carry out the migration the old fashioned way by using manual journal entries. This is ..read more

Here’s a list of the important financial and accounting dates for the month of August. PAYE 19th August – PAYE, NICs & CIS posted payments due for month ending 5th August 22nd August – PAYE, NICs & CIS electronic payments due for month ending 5th August Vat 7th August – VAT returns and payments due for Quarter ending 30th June If you would like to discuss any other aspect of your financial position or any of our outsourced services, please drop us a line to set up a meeting on 01761 451244 – alternatively you can email us: info@deadlineaccounting.co.uk The post Key Finacial Dates – Aug ..read more