Archives for Book-keeping

A simpler tax system for small businesses

The Chancellor is to proceed with proposals to make the tax system simpler for small unincorporated businesses from April 2013. Where a business has a turnover up to £77,000 it will be able to calculate its profits on a simplified cash basis. In addition it will not have to distinguish between revenue expenditure and capital expenditure. A business will be able to continue to use this basis until its turnover reaches £154,000. Flat rate expenses will be available for some types of expense including: Cars, vans and motorcycles For cars or vans the rate for the first 10,000 business miles
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Updated approach to Business Record Checks

HMRC have announced an updated approach to business records checks. Following a pilot programme of Business Records Checks (BRC), which looked at the records of in excess of three thousand SMEs, HMRC have amended their approach to these checks. Businesses which HMRC believe are more likely to be at risk of having inadequate records will initially be contacted by letter. HMRC will then phone the business to go through a short questionnaire. Depending on the outcome of this phone call, HMRC will subsequently confirm to some businesses that no further action is required. Where some issues are identified, businesses will
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HMRC Business Records Checks are back!

The suspension is over. HM Revenue & Customs (HMRC) has relaunched its Business Records Check (BRC) initiative today. The purpose remains the same. HMRC intends to check the adequacy of business records being maintained by Small and Medium sized Enterprises (SMEs), but the process has changed. HMRC now intends to: Write to those SMEs selected for a BRC. Telephone the selected SMEs to talk through their business record keeping. The call is expected to last 10 – 15 minutes. Based on the responses received, HMRC will then: Assess whether a face to face BRC visit is required. If the business
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HMRC issue guidance on IR35

HMRC have released guidance setting out their risk-based approach to checking compliance with IR35. The ‘IR35’ rules are designed to prevent the avoidance of tax and national insurance contributions through the use of personal service companies and partnerships. The rules do not stop individuals selling their services through either their own personal companies or a partnership. However, they do seek to remove any possible tax advantages from doing so. The tax advantages mainly arise by extracting the profits of the company by way of dividend. This avoids any national insurance contributions which would generally have been due if that profit
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Time to ‘Phone a Friend

Over the last four months you might – or you might not have – realised that Business Link, the support service for businesses, disappeared – the victim of the government’s public sector cuts. No longer can growing businesses go to Business Link for advice or one-to-one consultations. Now, all you can access is a Business Link website. Not much help if you’re looking for someone to talk to.  So, now that one less option is available to businesses looking for support, where do business owners go for that essential piece of personal advice? Participants of the UK Business Barometer (UKBB)
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Brisk Prisk issues payment warning

More and more we hear nowadays that SMEs are stymied in their growth plans by late payment. In serious cases late payment can result in job losses and even liquidation of the company. Obviously, in some fragile economic times, the last thing small businesses need is to be waiting months on end for cash for services rendered. But help could be at hand. Mark Prisk the Business and Enterprise Minister, is throwing his weight behind a drive to make sure SMEs get paid on time. Prisk has announced a new working group of business representatives would examine issues behind late
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New approach to records checks from HMRC

HMRC have announced that they intend to make changes to their business records checks programme following a review of the pilot scheme.  HMRC will now postpone making any new business records check appointments until the revamped approach is launched early in April 2012. The delay is to allow further consultation with representative bodies on the implementation of the recommendations in the review and on some details of the new approach.  Remember four out of ten businesses had an issue with their business records, and of those that required a follow-up visit, HMRC found that some 90% subsequently improved their record-keeping.
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Top Tips for Business Start-up Success

In the aftermath of the recession and redundancies, a lot of people are examining the option of self employment. Those starting a business may be faced with many risks, but during a difficult economic climate, there are even more perils to overcome. In this article we summarise some key tips that start-up businesses should take heed of in order to help ensure that their business is a success.   Structure- partnership, sole trade or company? Don’t be fooled by the myths- you do not need to set up a company when you begin to trade! However, it may be tax efficient
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