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Budget 2018 – It’s Personal!

Today’s Budget brought good news for UK taxpayers.  We’re bringing you our Budget 2018 – It’s Personal!

If you’re a UK business owner too, have a read of our blog:  Budget 2018 – The Business Bits

We’re just bringing the best bits here, otherwise you’ll slope off to Facebook or Insta!

Personal Allowance Increase brought forward

The personal tax free allowance will increase from £11,850 to £12,500 in April 2019. This is a big jump, and has been brought forward from 2020, so great news!

Quick example:

Everyone will be able to earn £1,042 per month before paying any tax. If you’re a company director, this is the amount to pay yourself from April 2019. If you’re a sole director just pay up to the NIC threshold (TBC).

Higher Rate Tax Increase

This has also been increased from £46,350 to £50,000 from April 2019, an increase of £3,650.

Quick example 1:

The extra £3,650 at basic rate tax means a tax saving of £730 for personal tax. If you’re receiving dividends it’s a  tax saving of £912.

Quick example 2:

If you’re a director taking salary and dividends,  you’d pay £2,850 in tax if you take up to £50k, compared with £3,762 now.

National Living Wage and Minimum Wage Increase

Make sure you’re receiving the right amounts from your employer:

National Living Wage increases from £7.83 to £8.21 from April 2019 for over 25s

National Minumum Wage increases from £7.34 to £7.70 per hour for 21s to 24s

Apprentice Rate increases from £3.70 to £3.90

Stamp Duty Cut

This is being cut for shared ownership of homes worth up to £500k. Great news if you’re looking to buy. This is also being backdated to November 2017.

Summary

There will be more devil in the detail, when it comes out, but in all a good budget with extra tax free cash in our pockets. As always, if you’d like to discuss more, please get in touch.

Thank you for reading!

 

Sharon

Professional Services Business of the Year

Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.

We specialise in Security, Design and Indie Hospitality businesses.

@KinderPocock

01432 273400

Contact Us to see how we can help


Budget 2018 – The Business Bits

Today saw the Budget announced.  It can be a fairly dull affair, so we’re bring it to you in manageable chunks!  Here’s The Budget 2018 – the Business Bits!

So that we do make this a manageable read, we’re just bringing you the highlights, and we’re aiming to keep it snappy. If you’d like more detailed info please get in touch!  Please also have a read of our blog:  Budget 2018 – It’s Personal! for personal tax changes.

Business Rates Relief

Business rates will be cut by 1/3 for small retailers for 2 years, for businesses with a rateable value (rent) of £51k or less.

Quick example:

If you’re rateable value is £51k, this could mean as much as £8k saved in business rates!

Weird announcement alert:

There will be business rates relief for public lavatories!

High Street Retail Boost

There will be a £675 mllion “Future High Streets” fund, in recognition of the decline of high street retail. The fund can be used to regenerate our high streets, including change of use to residential for some retail premises.

Annual Investment Allowance Increase

This is currently £200k, but will increase to £1 million in April.  What does it mean? You can currently spend up to £200k on allowable business assets (think equipment, vans, kitting out your shop premises) and all of this comes off your profit before we work out your tax.

£200k already sounds a lot, and in some cases means everything you spend is allowable.  However, for businesses growing fast, the increase is a major advantage.

Quick example:

If you have profits of £30k, and buy a van for £20k, this will reduce your taxable profits to £10k. If you’re a limited company this will reduce your corporation tax by £3,800. If you’re a sole trader it’ll reduce your tax and NIC by £5,800! Tidy!

VAT Threshold Stays the Same

For the 2nd year running the VAT threshold hasn’t increased, so it’s still £85k.  This means that if your sales for any 12 month period are over £85k, you need to register for VAT within 30 days.

Quick example:

If you go over £85k in one month, say October, you’ve got til 30 November to register, then you must start charging VAT from 1 December (and start claiming VAT).

National Living Wage and Minimum Wage Increase

Make sure you’re paying your employees the right amounts:

National Living Wage increases from £7.83 to £8.21 from April 2019 for over 25s

National Minumum Wage increases from £7.34 to £7.70 per hour for 21s to 24s

Apprentice Rate increases from £3.70 to £3.90

Alcohol Duties

This is an important one if you’re business is in hospitality:

Beer, cider and spirits duty frozen again

RPI increases on wine duty will continue

White ciders will be taxed at a higher rate

New Digital Services Tax

This has been introduced to tax big business, like Amazon and Google, and will apply to businesses with sales over £500k. More detail to be announced.

Summary

This budget was delivered with many references to “the end of austerity”.  It’s a welcome budget for help with business rates, and support for our high street, that is suffering badly.

If you’d like more detail on any of the above points, please get in touch!

Thank you for reading!

 

Sharon

Professional Services Business of the Year

Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.

We specialise in Security, Design and Indie Hospitality businesses.

@KinderPocock

01432 273400

Contact Us to see how we can help


Why Are Mileage Claims Such a Bore?

We get it, we speak to lots of our clients, so we know that mileage claims are such a bore!

It’s difficult to keep up to date, and no fun at all, but we have a solution!

 

Do you leave your Mileage Claims to the end of the year?

You’re not the only one.  But how much time does that take?  Longer than it needs to, that’s for sure. You’ve got to go back to your diary or online calendar, then probably go to Google Maps or something similar to work out the number of miles. Oh and before that you’ve got to dig out the correct address.

There is a Better Way!

What if I told you you’d look forward to recording your mileage on every journey? With the Tripcatcher app you can use their GPS tracking feature to record your actual journey, live! You can go back and record a journey you’ve finished, with only a few fields to complete, and you can even save favourite or repeating journeys. So quick and easy!

Claim more expenses and VAT

Because you’ll now be recording all your journeys, and Tripcatcher also records the VAT on each journey, you’ll get more cash back from your business, and more VAT back from HMRC! Tripcatcher pushes your mileage claims to Xero whenever you’re ready, and whatever dates you choose.

You can even record passengers, bicycle and motorcycle mileage – it’s all claimable!

What are you waiting for?

Get in touch right now to see how easy it is to use, and to get set up.

 

Thank you for reading! Please do get in touch if you’d like to know more about our online apps.

Sharon

Professional Services Business of the Year

 

Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.

We specialise in Security, Design and Indie Hospitality businesses.

@KinderPocock

01432 273400

Contact Us to see how we can help


Making Tax Digital – What’s in it for me?

We’re Counting Down to Making Tax Digital day on 1 April 2019. It’s something HMRC need us to do, but it’s only human to ask “What’s in it for me?”

Making Tax Digital is compulsory for all VAT registered businesses, and comes into force from 1 April 2019. Read more about the details here, and how much it’s likely to cost here.

So we know it’s a royal pain, but we have to do it, so what are the benefits I hear you say?  Well there are many, so let’s go through them one at a time:

Your Finger on your Business Pulse

The first step in getting ready for Making Tax Digital is to get you set up on Xero Beautiful Accounting Software. The immediate benefit is having all your business finances at your fingertips. The browser’s super easy to use, but Xero’s app let’s you invoice and receive payments on the fly, check and reconcile your bank balance, check who owes you, and access contact details. All from your phone or tablet, wherever you are! Awesome!

You’ll also have the right info from which to make the right decisions. No more guesswork. You can see with a couple of clicks how you’re doing, and we can use this data to guide you on your business journey, looking forwards not backwards. Our blog explains more about our Strategy Sessions.

We have been 100% Xero since 2012, and consider ourselves specialists. We’ll set you up and train you free of charge!

Never Miss another Expense Claim!

Using apps like Receipt Bank means that you’ll never miss an expense claim again. So any business expenses that you pay cash, or out of your own pocket can very easily be claimed against your profits, and means you get paid back too! Most importantly as you take a  photo as soon as you get a receipt, it also means that you’ll claim more VAT back from HMRC. It’s a win win!

Mileage Claims become a Joy and not a Nightmare!

Tripcatcher is our new favourite app, have a look at our blog here on claiming mileage easier, but safe to say mileage claims will no longer be the pain in the **** that they have always been.

Use GPS to track business journeys, save favourites for regular business trips, and push your mileage claims straight to Xero.

More Cash in the Bank

Once you are up and running on Xero, you can start to really work with the data you have. Connecting apps like Chaser and GoCardless mean that you’ll get paid quicker. You’ll also get more money back from expense claims and claiming all the VAT you’re owed!  I know right, it does sound too good to be true! Have a look at our blog on Getting Cash in the Bank Quicker

More You Time!

Whether this is more time to plan your business, more time with the family, more time at Zumba (oh, that’s me, what would you rather be doing?)  More time learning a new skill, these online apps will provide more time in spades (or hours!).

Sound Good?

Hopefully my blog is giving you some idea as to how Making Tax Digital is the tiny first step on a more streamlined and powerful way of doing business. Actually Making Tax Digital is not the pain it’s made out to be, it’s a bonus to start you on your online journey!

Thank you for reading! Please do get in touch if you’d like to know more about our online apps, and how easy we can Make Tax Digital for you.

Sharon

Professional Services Business of the Year

 

Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.

We specialise in Security, Design and Indie Hospitality businesses.

@KinderPocock

01432 273400

Contact Us to see how we can help


Online Apps Drive Award Winning Client Care

We are absolutely thrilled and humbled to have won the Herefordshire Business Award for Professional Services Business of the Year 2018, and we genuinely believe our online apps drive our award winning client care.

This award takes pride of place next to our Accounting Excellence Client Service Firm of the Year 2017, and they both mean so much as happy clients is what it’s all about!  And numbers, we like numbers.  You can find out more about these awards here.

Online Apps Make for Award Winning Client Care

We moved to Xero in 2012, and this opened up a whole world of opportunities around working online. The next app we discovered after Xero was G Suite, and then Practice Ignition, Receipt Bank and GoCardless.

The rest snowballed from there, and we now use over 50 different apps to run our business, and to provide the best possible service to clients.

How does working online help with client care?

There are many ways that working online helps us look after you better, and provide extraordinary service:

Instant access

By using online apps that we can access (securely) any time, any where means that we can look after your needs wherever you are, or wherever we are.

If you’re stuck up a mountain and having trouble sending a Xero invoice out, we can log in,  see the same data and help you out.

If you want a quote for work you’d like us to do, we can produce a proposal via Practice Ignition on our phones, you can view and accept it on your phone.

You want us to complete a reference for a mortgage – we can log into Xero and prepare up to date figures (no wasting time with data backup and restoring!)

Time savings

Having instant access means that we haven’t got to make our way to the office to get anything done, or to your office for that matter. We can start work immediately, even in the floods or snow!

We make sure that the online apps we use are as integrated as much as possible, so that they talk to each other. This means huge time savings, and no double entering of data.

You snap a photo of a receipt in Receipt Bank – in less than 5 minutes it’s in Xero – BOOM!

Customer hasn’t paid your invoice – Chaser sends out automatic chasers when you’re busy  – YES!

We also make the most of automations, whether these are within the online apps we use, or we have built them ourselves. So things happen automagically in the background.

Our mantra:  If you’re doing it manually – automate it!

Giving it back

If we’ve found an amazing app or automation we will share it with you. If it saves us time and makes us smile, it is going to do the same for you!

Where we save time by automating our work, this is more time we can spend talking to you, and working on your business.

Ready to Automate?

Have a look at some of the amazing apps we work with, and get in touch if you’d like to be a client of ours, or if you’re ready to automate!

Thank you for reading!

Sharon

 

 

Professional Services Business of the Year

 

Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.

We specialise in Security, Design and Indie Hospitality businesses.

 

@KinderPocock

01432 273400

Contact Us to see how we can help