IR35 public sector reforms: an overview of draft legislation. Top 5 Tax Tips for Individuals Tax Payers. Increased VAT for contractors, lesser savings. Uncovering Hammond’s Naked Autumn Statement with Alan McCappin: Sign up for our event in Dartford. Fancy a bit of networking with like-minded individuals who wish to decode Hammond’s ‘Naked’ Autumn Statement just as much as you do?
Join us and lots of other business owners at 4Networking’s relaxed and friendly meet at The Campanile, Dartford. For this event you will be joined by Alan McCappin, Practice Manager at Bradleys Accountants. Following the government’s Autumn Statement, he has a lot of exciting announcements to share with you, and plenty of ideas to help you get inspired about more efficient ways to manage your personal and business finances.
And there is really no better way than by coming along to a networking meet such as this. Speaker profile: Alan McCappin, Practice manager at Bradleys Accountants Date: Thursday, November 29, 2016 Time: 08:00am – 10:00am Location: 1 Clipper Boulevard West, Crossways Business Park, Dartford, Kent DA2 6QN (Map). We want to hear about the issues facing business owners and Alan will be there to answer any pressing accounting and tax questions. Autumn Statement announced: key tax highlights every individual and business owner should know. Following the unveiling of Phillip Hammond’s first – and last* – Autumn Statement, it’s great that the Chancellor immediately recognised how important productivity is as the UK economy competes with other G20 members.
There were some notable highlights for business and personal taxation this year. In particular, committing to reduce the burden of business rates by £6.7 billion over the next 5 years and cutting the rate of corporation tax to 17% by 2020 (the lowest in the G20), is a much needed boost.These are just a couple of steps that will help keep the small business growth on track.
It’s also great to see the government’s forthcoming commitment to raising the personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of the Parliament. Increases to the personal allowance over the last Parliament took 4 million of the lowest paid out of income tax altogether. Including the above, here are other important tax and money highlights for small business owners. Autumn Statement 2016 Update: What it means for contractors. Autumn Statement 2016 – Winners and Losers. Many eyes were glued to Twitter streams and live feeds for the 2016 Autumn Statement earlier this week. The much-awaited unveiling gave us the most surprising announcement that the Government will be moving to only one budget a year! This is good news as it will give taxpayers more time to prepare for changes ahead of the new tax year. Here are the winners and losers according to Bradleys Practice Manager, Alan McCappin.
Winners Some working families More than three million UK families currently receiving universal credit will be able to keep more of it when they enter work. Home buyers The Government confirmed it will invest a generous £1.4billion in 40,000 affordable homes. Parents The government would begin to roll out tax-free childcare across Britain in early 2017. Workers on minimum wageThe National Living Wage is to rise to £7.50 an hour from April 2017. Some taxpayers Renters With the ban on letting agent fees, renters were given a small cheer.
Aspiring homeowners Phil Hammond. Is the world of contracting under attack? Maybe. A recent study by McKinsey Global Institute revealed that 97% contractors are happier than employees who work full time. The United Kingdom currently has 14m independent professionals. This spectacular figure comprises a quarter of the UK’s working population. Out of these 14m workers, 56% of them follow the mode of self-employment – a fact that greatly emphasizes the recent shift from the traditional employment model to the independent one. There’s no doubt that a huge chunk of the population is choosing to work for themselves in a more flexible setup. However despite the positive slant, all is not hunky dory for such working professionals. The intention is absolutely correct as with this review, the government plans to catch hold of those employers in the market who misuse the mode of contracting. The government’s motives are quite clear as they attempt to harmonize the worker’s right – irrespective of mode of employment.
How are ecommerce retailers preparing for Christmas 2016. Ecommerce sales are becoming more and more effective. In fact, a recent survey by ChannelAdvisor found that 47% of ecommerce retailers are expecting an increase in online sales compared to 2015. Over 21% of these expect an increase of more than 10%. People say Christmas starts earlier each year. Here’s a factual reminder of how far it really is: 50% of the survey respondents said they started their 2016 Christmas campaigns in August or earlier!
When comparted to 2015, only 42% online retailers started preparing for Christmas by summer. Now you can figure how far ahead of Christmas online retailers are. We just want you to prep up. So which days are online retailers gearing up for this year? For 26% of the retailers, Black Friday is the most profitable day. What are the most popular tactics? Digital marketing and advertising remain the most popular tactics. 62% said Facebook was the top social platform for sales conversions. Mobile apps are not far behind. What about payments?
Contractors, brace yourself for April 2017 changes. The fact that from April 2017 the proposed new legislation will move the responsibility to determine a public sector limited company contractor’s IR35 status from the contractor himself to the recruitment agency/end client is now more or less a “done deal”. What irks the most is that the agencies and public sector bodies will surely apply a risk-adverse approach to steer clear of any troubles that HMRC might cause them. This means there is a high chance of them identifying a mass of contractors to be inside IR35 – a problem for the contractors. You must be aware of the fact that if a contract falls inside IR35, a deemed salary calculation should be run to declare PAYE and National Insurance (NI) on 95% of the contractor company’s income, just allowing up to 5% to cover the costs of running the limited company. Since in checking the IR35 status, both the contract and working practices must be reviewed which is why it is necessary for the contractors to seek expert advice.
How much money can you earn before paying income tax? You have to earn a certain income in a tax year (April-April), called a standard Personal Allowance, before you start paying any income tax. For the 2016-17 tax year, everyone gets the same Personal Allowance of £11,000. Your Personal Allowance can be higher if you claim Marriage Allowance or Blind Person’s Allowance. You may get less if you income is over £100,000. So, how much can you earn before tax? Income tax is a progressive tax. This means if you earn up to £43,000 or less but more than £11,000, you fall within the first (basic) rate band.
For example: If your salary is £40,000 this tax year then you won’t pay any tax on the first £11,000; and you will pay 20% on £29,000, which is the portion of your income above your Personal Allowance. The second (higher) tax band covers any income between £43,001 and £150,000; this is the amount above both your Personal Allowance and the basic rate. If you earn over £150,000 a year, you will be taxed at a rate of 45%. Am I paying too much tax? Spam alert: Don't fall for fake HMRC tax refund emails. HMRC tax refund scam emails are doing the rounds again. Even though it is a standard phishing scam, many taxpayers do fall for it.
As you know Bradleys works proactively to ensure you stay abreast with the latest information on tax and related issues. Since email spams that appear to come from HMRC are a matter of serious concern, we thought we should bring them to your awareness again. The worst part is that such emails often contain HMRC’s logo and official style reference which can make it difficult for the individual to detect the fraudulent activity. To save yourself from fraud, please keep in mind the following points: HMRC will never contact you via an email or a text message about anything confidential. For more details, head to this HMRC page on tackling phishing emails. An HMRC report states that it prevented 8 million malicious emails from reaching customers between April 2015 and March 2016. 6 ways to reduce the impact of the National Living Wage on your small business. The launch of Osborne’s flagship policy, the National Living Wage (NLW), was the headline news in 2015. Set at £7.20/hr for workers over 25, the NLW increased pay by £910*per annum for 1.3m of the UK’s lowest paid full-time workers.
While this is great news for employees, the pressure it puts on business growth and job creation has been cited as a cause for concern. Right from reduced profits, age discrimination, hiring freezes, through to a ban on overtime, the increased wage bill is said to be making a significant impact on businesses. We have put together the following steps small business owners can take to mitigate the said negative impact.1.
With business owners across the UK affected, business operating in particular areas, and of certain sizes, will face a bigger burden. 2. With additional employment costs like pension auto-enrolment and the apprenticeship levy round the corner, it important to prepare business forecasts. 3. 4. 5. Is your recruitment strategy fit for purpose? 6. 4 implications of the National Living Wage on small businesses. If you are an employer, you must have heard about the ex-Chancellor Osborne’s National Living Wage (NLW) policy. It is a mandatory rate, which came into effect on 1 April 2016, payable to workers aged over 25.
It is to be paid by all employers, whether large or small. The NLW, 50p more than the £6.70 minimum wage rate, has increased pay for 4.5m UK workers. Yet, many have criticised it, saying it is having a negative impact on the health of small UK businesses. According to a survey by Federation of Small Businesses (FSB)*, here’s what business are saying: 1. Reduced profits Increased wages mean higher costs. 2. Recruitment firm owners have reported a hiring freeze in the wake of this increase. 3. Many employers feel the NLW sends out a poor message as staff under the threshold of 25, feel discriminated against. For some, the impact of NLW can be easily offset by increasing prices or productivity. Sources: How to ensure work-life balance as a contractor. You will agree that a full-time job instills discipline in one’s life.
But after some time, that “discipline” can turn into a “monotonous routine” and that working life isn’t so exciting anymore. Trust us – it happens to a lot of people. So if you have taken the leap of faith and decided to embark on a career as a contractor – good for you! Because no matter what people say, there’s nothing better than being your own boss and not tying yourself to regular working hours.
However, at the same time, you might end up answering calls late at night or working through the weekends which can be quite a pain and hamper your family time. 1. If you are not appointed to work from the office of your client, it is important you be specific about the number of hours you are willing to put in for the client. 2. Working from the comfort of your bed is inviting. 3. A contractor’s life has its own share of job-related risks. Don’t cut yourself short and don’t be easily available to all clients. 4. 5.
Employers beware: new National Minimum Wage comes into force on October 1. Employers across the UK are already worried about the rises in the National Minimum Wage (NMW), which are set to come into force on 1 October 2016. There are good reasons to be. HMRC’s recent ‘naming and shaming‘ of 200 employers for failing to pay their workers the legal NMW suggests that the government is cracking down on those employers who ignore the law. Since the scheme’s introduction in October 2013, HMRC has publicly embarrassed 687 employers, with NMW arrears totaling to £3.5 million. The latest disclosure in August 2016 accounts for approximately £500,000 of arrears. Remember …. ….. to adjust your payroll on 1 October 2016. The NLW rates change April of each year (rather than the usual October change for NMW).
At a glance: Illustration: Low Pay Commission (For the uninitiated, the NMW is the minimum wage you must pay workers under the age of 25 and then the NLW takes over for workers over the age of 25.) So what are the new rates? National Minimum Wage Penalties Final thoughts. How all contractors can learn the art of writing CVs. The world of contracting is brutal. Thanks to cut-throat competition, contractors have to be literally on their toes to connect with potential clients and bag new business projects. Creating a CV is definitely the first step towards it. CV templates were certainly a rage until a few years ago, but not anymore. People are slowly and steadily looking for unique and interesting ways to showcase their skill sets. While not everyone is a Nina Mufleh (Remember her website cum CV for Airbnb?) , you certainly want your capabilities, flexibility and productiveness to come out impressively.
We can’t suggest designs or templates that will do wonders for you, but we can certainly help you with the content so that the potential clients have your attention. 1. Yes – that’s the first thing a potential employer usually checks no matter how creative or brilliant you are. 2. That’s the reason what any company would hire you for!
3. 4. It’s always presumed that a CV will be typed out on a paper. 5. How to find more work as a freelancer. So you have stepped out into the world of freelancing. It’s exciting. You are finally going to start working on your own terms and on projects you actually like. Wow! That’s an achievement and you are proud of yourself – right? You should be! However, being self-employed is equally daunting because well, now you are on your own which means you yourself have to hunt for projects on a continuous basis. So what do you do? 1. You can’t reach out to all the companies in the market. 2. Show people what you can do. 3. If an old client of yours is happy with your work, ask him or her to refer you to other companies or people. 4.
We live in an age where everyone’s really busy and hence, talking on the phone can pose a real hassle. A phone call pushes things forward and will not be easily ignored like an email. 5. This is scary, especially if you are not a big fan of talking. Yes – looking for new projects is challenging. 5 points to remember when you join a new office as a contractor. As a contractor, you have the chance to work on multiple projects in your own time and as per your convenience.
This is great, especially if you feel full-time employment is not your cup of tea. But what if you have landed a particular project that requires you to go to the client’s office regularly or even work from their office? Yikes! Fitting in to a new place of work, among co-workers, can be intimidating even though you know you are going to be around for just a couple of months. Here are 5 tips you can follow if you have just joined or are about to join a new workplace as a contractor: 1. Make sure you communicate the progress of your work to the manager on a daily basis. 2. If you are going to the office regularly, chances are you will be given many responsibilities; from attending multiple client meetings to brainstorming new pitches – you will have a lot to observe and absorb. 3. 4. Highlight areas where you feel more work is required or extra data is needed. 5. Starting the business journey. 5 things that a contractor should know. How to design an accountant's Fakemon.
Contractors & agencies: how to prepare for April 2017's IR35 changes? Enter the Fakemon design contest. Stamp duty on second homes – are couples affected? Are you making the most of Social Media? (FW Create) Should we still wait for the Autumn Statement? Three businesses cashing in on Pokemon Go (plus, what you can do)
4 points to remember before signing the dotted line. Limited companies and LLPs bid farewell to annual returns and welcome in confirmation statements. Tax credits renewal deadline is 31 July.Make sure you don't lose out on £1,000s. Brexit – An update from our Director Pom Chakravarti. Brexit: Opportunity for change. What does it mean for businesses? What is a form P11d return and how has it changed in 2016? Read our brief guide. Public body recruitment agencies, please take note. A guide to SEED EIS and how it can help fund your start up. How can contractors build a personal brand.
Shortage of skilled construction contractors behind increase in bricklayers pay. HMRC’s cyber security team prevents £103m of attempted fraud. Plus 7 tips to protect yourself. New Tax Year: 15 of the biggest changes to personal and business taxes from April 2016. Budget 2016 – PSCs working in public sector targeted. Budget 2016 - what it means for small businesses: The key points explained, from lifetime ISA to cuts in Capital Gains Tax. What taxes do limited companies pay? New dividend tax changes from April 2016 - what limited company owners need to know. What is the IR35 5% expense rule?
Concerns around auto-enrolment are largely unfounded. April 2016 tax changes – 5 things limited company contractors need to know. Puzzled SMEs still figuring how to limit auto-enrolment tsunami misery. 10 things a tax avoidance scheme promoter will not always tell you. These are maybe the most bizarre expense claims taxpayers included in their tax return forms last year. Filing a tax return? 12 mistakes to avoid. Top tips for completing HMRC's self-assessment tax return online. Seven reasons you should file your Selfassessment tax return early. HMRC confirms no changes to IR35 until at least April 2017.
Ahead of self-assessment deadline HMRC launches first digital Personal Tax Accounts. Finance Bill 2016 – Travel and subsistence expenses restricted for contractors. Tax Implications of starting a business. Autumn Statement: 6 major changes affecting small businesses. Watch Pom Chakravarti speaking live at The Business Show on 4 December. Buy-to-let still a smart investment despite changes announced in the Budget, says PWC. HMRC offers small businesses advance assurance service for R&D relief claims. The SME sector’s £92 billion digital opportunity. Small business owners feel fortunate despite the stress. Are HMRCs proposals to tackle offshore tax evasion seriously flawed? SMEs cashing in on valuable R&D tax credits - Are you missing out? Not all advice is good advice.
The importance of a professionally affiliated accountant. HMRC and £43 billion payout - is this correct? Massive increase in online tax credit renewals. Raising finance: Start-ups raise a record £163 million through SEIS. What happened to the new start-up boom in London? Small businesses and late payments, does this sound familiar? Second Budget permanently sets Annual Investment Allowance (AIA) at £200,000. Auto-enrolment pension problems for Kent businesses. What you should know about late filing penalties for Pay As You Earn (PAYE) Limited company contractor – how much salary should I pay myself. Summer Budget July 2015: Have your say. IR35 - What is a Deemed Payment and how to calculate it? Due to unpaid invoices SMEs face an annual deficit of £50,000 a year.
8 internet safety tips for taxpayers filing their self-assessment tax return. Small businesses want the new Government to lighten the burdens of regulation and tax. Small businesses sitting on cash surpluses until the General Election. What a contractor needs to know about The Construction Industry Scheme. April 2015 tax changes – 10 key things small businesses and individuals need to know. When is the right time for a small business to appoint an accounting firm? The end of the annual tax return. How does the 2015 Budget affect small businesses, contractors, and the self-employed? Top 13 items to include on your invoice.
Small businesses get three days grace period for late PAYE filing. HMRC fine for late tax return. How HMRC Tackles Serial Tax Avoiders. Accountant for contractors in UK. How to complete HMRC's online self assessment tax return. Why you should sort your 2013/14 Self-assessment tax return before Christmas. UK self employment rises to the highest level in 40 years | Bradleys Accountants News. Fierce lobbying forces HMRC to amend the 2015 EU VAT Rule | Bradleys Accountants News. Looking for affordable bookkeeping services in Kent. Angry SME owners take to Social Media to protest 2015 EU VAT rule changes | Bradleys Accountants News. Are you ready for EU 2015 VAT changes? Most SMEs are not | Bradleys Accountants News. How to deal with a visit from VAT officers.