Guest Blog by John T Hughes

For many business owners, year end accounting requirements can be extremely time consuming and often confusing. Being a successful businessperson does not automatically mean that you are a tax and accounting expert.

Unfortunately this does not make your year end accounts any less important. At the end of each financial year, companies registered with Companies House are legally required to submit their year end accounts. These address your profits and losses for the year and show you how much that your company is worth. In addition to this, your year end report will form the basis of your tax returns.

Because of its importance, it is key that the accounts are prepared accurately, in the correct format and delivered to the Companies House on time. Heavy penalties can be incurred for year end accounts which fail to meet the Companies House’s deadlines or requirements.

Avoid the last minute rush

A problem that many companies face is that they do not leave themselves sufficient enough time to think about their year end returns. Especially in the instance that you are unfamiliar with the process, it is important to give yourself plenty of time to get your accounts completed and submitted. Private limited companies could be fined in excess of £1,000 if the Companies House do not receive their accounts on time.

Keep organised

It is important to keep accurate records of your accounts throughout the year. Your finances form the backbone of your business therefore it is good practice to keep abreast with them and ensure that they are in immaculate order. This will help you to remain in control when it comes to the year end accounts.

Seek expert assistance

Good business knowledge and good accounting skills do not necessarily go hand in. Many accountants study for years in order to understand the fundamentals of the trade.

If you are struggling to get your head around your company’s accounts, a professional accountant could help to take the stress away. They could also help you to find the best accounting software packages for your inhouse needs.

John T Hughes writes for Juniper Accountancy, a professional Bristol Accountancy firm. As chartered Bristol Accountants we can provide your business with a complete end to end service to take care of all your accounting and tax needs.

Article Source: How To Take The Woe Out Of Your Year End Accounts

Guest Blog by John T Hughes

Be it returns, plans or self-assessments; managing tax affairs can often seem complex and daunting. Yet with millions of people unsure if they are paying too much tax, it is important that we are well-acquainted with the facts.

As the familiar buzz of payday excitement arrives at the end of the month, we are all looking forward to our bank accounts refilling. But how many of us have endured that heart-sinking feeling as we scan through our payslip to see how much has been eaten away by tax?

Obviously, we cannot deny the benefits that we receive by paying tax but with as many as 10 million people due a tax rebate, it is important that we ascertain whether you are paying the correct amount.

Underpayments and overpayments

Recent press coverage has been abundant with stories of overpayments and underpayments of tax. This has led to many ‘winning back’ hefty excess payments in lump sums. However it is just as important to determine if you have been paying insufficient tax sooner rather than later as you will be obliged to meet the difference.

There can be a number of reasons why you may have paid too much from the obvious ones such as emergency tax to less easily determined reasons such as unclaimed allowances.

Often there is no one to blame for tax confusions. Employees may assume that their employers are tax experts or there may be unavoidable delays or confusions with the processing of documents. However it is the employee’s responsibility to check their tax deductions and take action if they feel that it is inaccurate.

This is not just an issue for employees, many businesses (especially the smaller ones) are also paying excess amounts of tax. Investigating whether your business has been affected could save you thousands.

How do I check if I am paying the wrong tax?

With the HMRC receiving nearly 20 million calls a month, it is no surprise that trying to get hold of them can often be a lengthy process. Because of these high volumes, investigations in your tax payments can often take months to complete.

The good news is that there are other methods which can quickly and efficiently help us to distinguish whether you are owed tax. Speaking to a Chartered Accountant allows you the opportunity to discuss your tax queries and seek expert advice on your tax payments. They will be able to offer guidance and they could help you to claim back any surplus tax efficiently.

John T Hughes writes for Juniper Accountancy, a professional Bristol Accountancy firm. As chartered Bristol Accountants we can provide your business with a complete end to end service to take care of all your accounting and tax needs.

Article Source: Tax: Are You Paying Too Much?

Guest Blog by John T Hughes

Putting money aside and budgeting to spend less than you earn can help build up what might be an invaluable fund should things go wrong, but how can you help you cash earn some interest while you have it stashed away?

Apart from the traditional easy access savings accounts that have seen relatively low rates of return lately, there are a number of other options that you may like to consider.

Improve your capital earning potential:

Special offers. Many banks and other savings providers offer special limited period deals, especially if you are willing to tie your money up for a fixed period. Make use of these where you can, keep track of your savings and shift them around once the fixed period is over. This will ensure you’re getting the very best rates for your savings. Don’t be afraid to change provider if you can get a better deal with someone else.

Tax savings. Make the most of your ISA allowance- even if you’ve seen a better interest rate offered elsewhere. Saving or investing through a cash or stocks and shares ISA could mean significant tax savings on UK Income Tax and Capital Gains Tax, getting you more for your money in real terms.

Investment. Investing your money need not involve risking your entire capital in an all or nothing scenario, and there are a range of investment options that can provide a relatively low risk way of earning a little bit of extra interest on your savings, such as fixed rate rel=nofollow [http://www.savingsbonds.co.uk/]bonds. However it is important to remember that in pursuit of higher returns you may not get back everything that you put in, investment is not the right everyone and you should consider your attitude to risk carefully before you proceed.

Most importantly, make sure that you keep track of your money. Your capital can lose its value in real terms if left to languish in an account that offers little in the way of returns, lagging behind inflation. Many accounts will offer a special rate for the initial deposit period and then switch back to a standard rate later on.

If you are unsure about the right option for your needs you may want to consider speaking to an independent financial advisor who can help talk you through you options when it comes to saving or investment. Just because we live in a difficult economic climate, it doesn’t mean you can’t get your capital working harder for you.

John T Hughes writes for Savings Bonds , a site dedicated to helping you to find leading savings or investment bonds options that may be suited to your needs.

Article Source: Changing Your Accountant: A Step-By-Step Guide

Guest Blog by John T Hughes

It’s a tough market for job-seekers, and continuing reports of a lack of employment opportunities coupled with rising redundancies can make the future look bleak.

Working as a contractor or a temporary worker is one way to help beat the recession blues, by taking your employment prospects into your own hands. However, there is no denying that it can be daunting, especially when it comes to sorting your finances and paperwork. An Umbrella Company can provide you with payroll and employment services, acting as a contractor accountant and taking over some of the administration obligations that you would otherwise be responsible as a sole trader or self-employed individual.

When you join an umbrella payroll you become a flexible employee, making you eligible for benefits such as paternity/maternity pay and holiday pay too. At the same time you will be able to retain some of the great benefits of working as a contractor, such as greater autonomy over where and when you work, as well as developing your own brand and offering your own unique service.

Bringing together a group of contractors underneath a single employment umbrella, joining an umbrella payroll can provide you with the some of the benefits of a limited company without all the hassle.

As contractor accountants, Umbrella Companies can be very valuable indeed. Getting onto an umbrella payroll can increase the tax efficiency of your earnings, enabling you to get tax relief on some expenses, reducing your costs in the long run. This is a benefit you would not find if you were taken on to an agency payroll.

An umbrella company will deduct any taxes directly from you pay and make sure it goes straight to HMRC and allow you to avoid the implications of IR35 or MSC legislation.

You will have to pay a fee to enjoy the benefits of joining an Umbrella Company, usually a small amount per week during periods of work. How much this fee is will depend on the Umbrella Company you choose to operate with, with a wide range of providers available.

It’s proved to be a tough start to the decade for employment opportunities, but as employers cut back on permanent staff it may prove to be a window of opportunity for contractors, as demand for temporary services may rise quickly. Working as a contractor can give you peace of mind that redundancy is not on the cards, operating alongside an umbrella company could prove to be an unbeatable combination.

An Umbrella Company can provide employment and payroll services giving you a helping hand with some of the more taxing elements of self-employment.

Article Source:  Contractors: Making Life Easier With an Umbrella Company

Guest Blog by John T Hughes

It’s time to start thinking of the term ‘umbrella’ as something other than an item that can protect you from our lousy British weather. In today’s society, the umbrella company is a concept which is increasingly thrown around, yet unless you are considering becoming self employed or a freelance worker you are probably unaware of what the term means or what these companies do.

An umbrella company simply brings together different contractors (individuals who are not employed permanently by a company) such as builders or IT engineers underneath one body or ‘umbrella’. Contractors chose join an umbrella company for different reasons.

Why do people choose to contract, go freelance or become self employed?

Lets go right back to the beginning. Deciding to go freelance or self employed is a major decision but as you progress through your career you may reach a point where ‘going it alone’ seems like a better option. One of the main reasons people chose to become self-employed is the freedom if offers. This may mean you are lucky enough to switch between the days and hours you are willing to work. Choosing to contract allows many the flexibility to spend more time with the family or to simply have more time to themselves. The self employed are free from the frustrating restrictions of the all-empowering employer. If you are unhappy with your employer as a contractor you can easily move on. In addition, freelancing offers a wider range of exciting job opportunities. You may be working for a small independent firm one moment or a national company the next, meeting a broad spectrum of people and expanding your client list.

Contractors generally work through an agency to secure contracts with different employers. Often, the agency will add you to their own in-house payroll system. If you live close to where you are being contracted and therefore have little to reclaim on expenses such as transport then this option may be suitable. On the other hand, if you are contracted to different employers in different areas of the city, county or country, you are entitled reclaim expenses for tax relief. If you work away a lot and are spending money on transport, accommodation and subsistence, this could amount to a lot of income being lost if you are with a agency who do not wish to calculate your deductions.

Why work through an umbrella company?

As discussed above, people chose to contract because they want more freedom and independence. Going it alone means that you are solely responsible for filling in all PAYE and tax returns which HM Revenue and Customs (HMRC) legally require you to do. Those who are experienced in accounting and filing tax returns may wish to tackle this themselves. However, despite the government’s claims that ‘tax doesn’t have to be taxing’, completing all the relevant paperwork can add hours to yours to your work schedule; the exact reason why people contract in the first place.

First time freelancers or the newly self employed should be aware of the importance of filling out tax forms accurately and on time. The tax man doesn’t care about mistakes, even if they are genuine errors, and will come down hard on any paper work that is not up to scratch. Such mistakes can be expensive and cost your new venture dearly.

Umbrella companies also put you in touch with your hard earned cash by ensuring you claim back all expenses you are entitled to either from the end client or recruitment agency. In this sense, a contractor and an umbrella company form a unique partnership; as long as you are providing the correct receipts for expenses incurred, then an umbrella company will take the stress out of reclaiming. Relief on expenses consequently reduces your overall tax and NIC contributions, increasing the money that you eventually take home in your pocket. Umbrellas take the weight off you by filing paper work and administration duties on your behalf, giving you peace of mind that the tax man is also a happy man.

Convinced that an umbrella company may give you the support and encouragement you need to forge a career as freelancer? It could be the missing the link to a new independent career.

For the self-employed, tax can be a headache. Using an umbrella company or forming a limited company can be an efficient way to manage tax affairs, but ensuring you get the right structure for your business is essential.

Article Source:  A Guide to Umbrella Companies

When I sign up a new client, I always ask them what has prompted them to move. Very often the trigger to move is something very small, but has been preceded by a catalogue of normally poor client service, mistakes and rising fees.

In our view, every client deserves a high quality service from their accountant – and that’s what we strive to do on a daily basis. Here are some 6 reasons why our recent new clients have decided to change their accountant:

 

1. Never heard from their accountant
Many of our new clients have complained that the only times they heard from their accountant was at year-end and when they sent them an invoice! We believe that clients deserve better than this, and will agree with you at the start of our relationship what level of contact and communication you want from us.

2. Too costly
The fees that every accountant charges, for the same service, can vary widely. We’ve spoken to clients who have realised that with the technology advances in the last ten years, preparation of accounts has become quicker and easier – but they still seem to be paying more for the same service level from their accountant. Or they find that they are paying for a level of service that they no longer require from their accountant. There is nothing more infuriating to find the clock is ticking every time you phone or want to speak to your accountant. We will spend the time upfront with you, at our expense, to really tailor our services to what you need.

3. Their accountant has gone out of business
It’s a sad fact that many accountants are now going out of business and leaving their clients in the lurch. If that’s you, we promise that we will provide a good and loving new home for your accounting needs.

4. Their accountant has made costly mistakes
Engaging a qualified, certified or chartered accountant is no guarantee that they can do their job properly. Far too many of our new clients have told us horror stories about their accountant forgetting to run their payroll, incorrectly advising them on VAT, not filing their companies house returns on time, simple mistakes made in the preparation of year end accounts, badly trained book-keepers who mess up the company’s books.

5. Always seem to have bigger and better clients to spend time with
Some of our clients have talked to us about the fact that their ex-accountant let them know that they were one of their smaller clients. They may not have told them that openly, but it soon became apparent from the service they were being given. It doesn’t matter how big or small a client you are, we will always give you the service you deserve and expect.

6. Their accountant ‘dumped’ them
I remember being heart broken by the many girlfriends in my youth that dumped me! Isn’t that just a necessary rite of passage when you are growing up? Sadly many accountants are doing ‘client portfolio analysis’ and dumping their clients who no longer fit with what they are trying to do. If you’ve been one of those dumped clients, we promise a friendly face, cup of tea and a biscuit. It could be the start of a beautiful new friendship…

The 9 Questions to ask before changing your accountant
It’s a big decision to change your accountant. That’s not in dispute! However, you owe it to yourself and the people in your business, to make sure that you select wisely with your next accountant.

Here is a 9 questions that we encourage you to use to evaluate if your new accountant is really your match made in heaven:

1. Why do you want my business?
2. What does good client service look like to you?
3. Talk me through occasions where you have helped businesses similar to myself, above and beyond the normal day-to-day stuff?
4. How will you, as my accountant, add value to my business?
5. What services, based on my business, do you think I would benefit from using and why?
6. What processes and systems do you have in place to make sure that mistakes don’t happen on my affairs?
7. What is or isn’t included in your fees?
8. Who will be managing the day-to-day running of my accountancy requirements?
9. How often will I be hearing from you?

What else would you add to this list?

Of course, we are happy to answer all your questions!

If this blog post resonated with you, click this link and fill in your details, to see how different life can be with us!
 

From what our new clients are telling us, most clients will put up with significant levels of abuse, poor client service and mistakes before they will even consider moving accountant. Now this makes us angry, as we believe that every client deserves a high quality and responsive service from their accountant. So, we started asking our new clients, exactly what stopped them from changing their accountants.

1. They thought the process of moving would be long and laborious
It needn’t be this way. All you need to do is find yourself a new accountant and tell your existing accountant that their services are no longer required. We even have a standard letter, which you can use to do that – or we can send on your behalf. Your new accountant will then write to your accountant and start the handover process.

If your existing accountant is a professionally qualified accountant, they have a duty (as imposed by their professional body) to hand over all your files, notes and papers to your new accountant within a reasonable time.

2. They are worried that their old accountant will delay the transfer because of a fee dispute
A fee dispute will not delay a handover, as your old accountant is professionally bound to handover your files to a new accountant. We will, if you like, work with you to help you resolve the fee dispute with your old accountant. We have had a good track record of helping our new clients resolve their fee disputes, and in many cases get compensation from their old accountant.

3. They are worried that it will be costly to transfer between accountants
Most accountants will not charge for a handover or transfer. In a small portion of cases, you may find that they charge for 30 minutes of their time. However, most accountants will not do this as they want to keep your good will.

4. They are concerned about their accountant’s reaction if they leave
You can do the whole transfer by email or letter – you need not speak to your old accountant if you don’t want too. Of course, they will probably be upset that you are leaving, but that’s life!

If you would like to have a chat with us about how the process would work for us to become your new accountant, just click here and complete the form. We’ll get back to you like a shot!

Guest Blog by John T Hughes

When considering starting up a business, there are a number of factors to think about. One of the most fundamental is deciding on the type of entity to run your business under. Typically, the most common business entities are sole traderships, limited companies and partnerships.

From Richard and Maurice McDonald, co-founders of McDonald’s to Bill Hewlett and Michael Packard and Steve Jobs and Steve Wozniak, some of the world’s leading and most pioneering companies were based on successful business partnership roots.

Unfortunately setting up a partnership requires more than just a good idea – it involves meeting certain criterion and adhering to a number of legal requirements and obligations. If you are considering starting up a business with a partner, you should ensure that you have all the necessary knowledge before making any decisions.

What is a partnership?

As the name suggests, a partnership as a business structure denotes the coming together of two or possibly more partners in order to advance a business idea with the intent of making profit for both parties.

The partners usually combine labour, share profits and take liability for any losses which may occur however the percentage share which each party owns can differ in amounts.

What are limited liability partnerships (LLP)?

LLPs combine typical features of a standard partnership and a limited company. In similarity to a limited company, limited liability partnerships offer one or more individuals a degree of personal asset protection from business debts. If things should go wrong, the LLP as a whole will be responsible for any debt accrued rather than each person.

Limited liability partnerships are often found in association with solicitors, surveyors and accountancy firms although unrestricted to these sectors. This is because the LLP structure was introduced in 2001 in order to allow the larger professional firms trading as partnerships some of the security of a limited company.

An LLP must have at least two partners who will usually share the responsibilities and profits of the businesses. Each limited liability partnership must have a ‘deed of partnership’ or ‘partnership agreement’ which will give a full outline of each member’s rights and responsibilities. Because of the limited nature of the agreement, partners are not held responsible for other member’s possible misconduct.

At least two ‘designated members’ must be appointed in every LLP who will have a number of additional responsibilities such as; ensuring that the partnership is registered at the Companies House and preparing, signing and delivering the accounts and the annual report to the Companies House. These members will be held legally responsible should agreed activities not be completed.

How do I set up a partnership?

Turning yours and your partners’ business ideas or ambitions into a registered partnership must be done the right way in order to ensure that you are following all relevant legislations and rules. It is best to get this right in the initial stages and avoid any penalty fees further down the line for amateur mistakes.

The first step is talking to the professionals – you may be an expert in a certain field and want to base your business around this however this does not mean your are necessarily an expert in starting up a business and the good news is that you are not expected to be.

Moreover from just registering your partnership properly, there will be a number of requirements along the way such as efficiently preparing the partnership accounts – it is imperative that these are completed accurately as partnership tax returns will be based on these. However these may be completely alien to those starting up their first business. Many professional accountancy firms can not only offer you advice on partnership accounts and tax but also take responsibility for these to ensure that they are in perfect order and submitted on time, which could prove one less thing to worry about.

John T Hughes writes for Juniper Accountancy, a professional Bristol Accountancy firm. As chartered Bristol Accountants we can provide your business with a complete end to end service to take care of all your accounting and tax needs.

Article Source: ‘Just The Two Of Us': Business Partnerships Explained

Guest Blog by John T Hughes

If you have set up a business in the United Kingdom then you’ll have heard about Companies House, however many people are often confused about their purpose.This article covers the who, the what and the why.

Who they are?

Companies House are an Executive Agency of the UK Government, they are the Registrar of Companies in the UK. It is permitted by The UK Companies Act that all forms of companies must be registered with them and file details accordingly.

Where they are?

England and Wales are viewed as one by The Companies House whereas Scotland and Northern Ireland are taken as separate entities. Companies in Wales can choose whether they are ‘Registered in England and Wales’ or ‘Registered in Wales’ whereas others are registered solely by country eg. ‘Registered in Scotland’.

Their office for Wales is in Cardiff, the office for the UK is in London (this office is purely used for the review and filing of documents), the Scotland office in is Edinburgh and the Ireland office in Belfast however this is a satellite office.

What is required of companies from The Companies House?

Legitimate Companies must be registered and provide an official address which Companies House must be advised of. An officer must also be appointed and details of any shareholders and their share capital given.

Those limited companies registered with Companies House, regardless of whether they are trading or not, must file their annual accounts report with Companies House denoting their performance and activities for the financial year. The report will generally need to include a balance sheet, profit and loss statement or income and expenditure for not-for-profit companies and auditor and director reports.

Deadlines for submission will be articulated to companies and penalties are charged automatically to those who fail to submit their reports on time.

The records should be held within the registered office for the company and open to inspection or review.

Who can help?

With the wealth of tasks required by businesses, compiling and filing annual reports to Companies House can sometimes end up overlooked. Moreover, if you do not keep up with this throughout the year, it can become particularly burdensome as the end of the financial year approaches.

You may wish to consider the option of working with an external accountancy firm who will take on bookkeeping and accounting duties and could help ensure that all relevant documents are filed with them on time and accurately to avoid unnecessary fines and penalties.

John T Hughes writes for Juniper Accountancy, a professional Bristol Accountancy firm. As chartered Bristol Accountants we can provide your business with a complete end to end service to take care of all your accounting and tax needs.

Article Source: Companies House: What’s It All About?

If you are starting a new business or are a business struggling with the financial side of things you might want to consider who can help you.

There are a multitude of people out there offering their services to you as an accountant. Not all are what they seem.
 

Do accountants need to be qualified?

No they do not. Anyone can call themselves an accountant, even if they have no qualifications. The onus is on you the owner or director of the company to employ suitably qualified personnel for every role in their organisation. The same applies to your accountant.

Questions to ask during your initial meeting with an accountant:

1. ask to see their relevant qualifications

2. ask them where they trained

3. ask them if they have any clients similar to you

4. ask what services they can offer to you

The above questions will be readily answered by a qualified accountant. In our opinion it is important that you always protect your business and yourself personally by choosing a qualified accountant. Your options are chartered accountants (ACA/FCA) or chartered certified accountants (ACCA/FCCA).

By choosing a qualified accountant you are selecting an accountant who has completed demanding studies and multiple exams while undertaking a number of years relevant work experience before qualifying.

Chartered accountants are committed to undertaking continuous professional development to keep their knowledge, technical understanding and skills up to date. There are clear and enforceable rules which ensure qualified accountants conduct themselves in an ethical and professional manner at all times. Their relevant professional body conducts regular checks on them and their business to ensure compliance.

What can a Qualified Accountant do for your business?

Provide pre-start-up business advice

This is particularly important before you start your business because an accountant can help you decide on the legal structure of your business ie. (sole trader, partnership, limited liability partnership, limited company).

Give advice on raising finance

Every company faces the question, how do I get more money to grow my business? Methods of raising extra finance through share capital, loans, government grants or increasing your overdraft need to be discussed with a professional. A qualified accountant can draw on their experience in other organisations to give you the most relevant advice for your particular needs.

Look after the finances and tax

An accountant can find a practical way that suits you to keep your financial records in order. They can also help with the accounts function of your business and they can assist with the various tax issues (VAT, PAYE, PRSI, CT & CGT) that may arise.

Planning and managing growth

Increased growth can leave you with questions regarding adequate stock levels, or working capital or how to reinvest the profits. You may also need advice on outsourcing services such as IT, finance, HR, Sales & Marketing. Your accountant can offer independent impartial advice on such issues.

Give advice on running and managing a business

An impartial view of your business can be very important to its success. A qualified accountant can turn your plans into viable profit forecasts, break even analysis and cash flow forecasting.

Undertake annual audits

A number of small and medium enterprises may qualify for audit exemption. However it can be extremely beneficial to have a formal independent review of your business. This can highlight areas of concern, fraud, accounting error or other issue which your internal accounting function was unwilling or unable to uncover. Giving you peace of mind that your business is operating as affectively as you envisaged.

if you are an entrepreneur starting a business or an established business unhappy with the level of service being offered by your “accountant”, why not see what a qualified accountant can do for you.

John Wilson ACCA,

Patrick Lane & Co.