On our blog last week, we looked at the importance of management accounts for creative businesses – and over the coming days, we’ll be delving deeper into the financial habits of super successful creative agencies to see what really makes them tick.

In this post, we’re looking at how top creative businesses handle cashflow – because however good your profits might look in the pipeline, you always need some spending money in the here-and-now to keep your business growing.

Of course, the key to cash-flow is getting paid quickly. And in the creative industry, where big design projects can easily last for months at a time, it’s particularly important that you’re not waiting forever for the money to roll in.

So, here’s how you can keep control of your cash-flow, without even having to look up from your Mac…

Xero and the cash-chasing add-ons

As a creative business in touch with all the latest tech trends, we’re sure you’re familiar with Xero by now – but if not, it’s an online accounting platform that will genuinely change your office admin for good.

It comes with a whole host of benefits, and through seamless integration with cash-chasing add-ons such as Chaser or Satago, it can even help you get paid faster too.

You’ll be able to automate the send, chase and follow-up of your invoices, getting paid on average 23 days faster than your competition – buying yourself some crucial extra time to work on creative projects in the meantime.

You can set up a schedule of stage payments too – which is essential when you’re working on long projects. Make sure you keep the money rolling in while you’re committing valuable resources to the task.

Even away from Xero, there are online tools you can use to speed up your processes and bring the cash in quicker.

Using Docusign or Echosign for electronic signatures on your contracts means faster approval for your projects, and brings that all-important pay day forward – while having the added benefit of setting you apart from sluggish competitors still stuck in a world of ink and paper.

After all, it’s your job to be at the forefront of new ideas, to do things differently. And there’s no harm applying that principle to your cash-flow as well as your creative pitches.

To learn more on how Inform can help your cashflow fill out the contact form below.

The post Cashflow For Creatives appeared first on Inform Accounting – Xero Accountants in Birmingham.

The creative mind isn’t always the most organised one. That’s why, in a creative business, you most likely have a team of dedicated project managers and account directors working alongside your star studio talent.

As you well know, these roles have a fundamental impact on your business’s bottom line – because the better you manage your projects, the more profit you can make. 

But what’s that got to do with accountancy?

Well, Xero (the cloud accounting software we use with our clients) doesn’t just make for blissful book-keeping, it can also be used to supplement your project management provisions too. It’s compatible with a number of slick add-on applications that help you track jobs, assign tasks and record time, helping you keep your studio as profitable as possible.

As the leading Xero accountant in Birmingham, we’re perfectly placed to show you the ropes – and whether you’re already using Xero or not, we can show you how to get the very best out of the software and its project management add-ons.

Here in advance though, are a few of the benefits you can expect:

Time is money

 Xero’s project management add-ons allow you to track time in multiple ways – against specific team members, departments, task types and of course by project. This gives great insight into how your business makes its money – and as the saying goes, knowledge is power.

Profitability preview

Using add-ons like WorkflowMax, your sales invoices and purchase orders can be pushed straight through to Xero – helping to build a real-time picture of your business’s finances. No more waiting until the end of the year to find out if you’re in the red or the black – you’ll be in the know all year round.

Fun to use

Our definition of fun might be different to yours, but we honestly think Xero and its project management plug-ins make admin less of a chore and more of an enjoyable task. It’s so simple to use that you might well find your designers and art directors taking an interest!

And the more people in your business with a penchant for profitability, the better for your bottom line…

Does Xero sounds like the software for you?  

Get in touch with us and we can show you how it can work for your business!

The post Managing creative projects via Xero appeared first on Inform Accounting – Xero Accountants in Birmingham.

Management accounts for creative agencies

Segways, astroturf and table-tennis tables – just a few of the quirky things that have caught our eye in the offices of creative agencies.

The creative industry is all about standing out, and these uber-cool additions to the workplace are a physical representation of the ‘outside the box’ mindset.

But the truth is, the best-performing digital and design agencies don’t just find their profits by looking outside the box, they do it by looking inside the business – keeping a close eye on their finances through regular management accounts.

Management accounts are a set of financial statements prepared every month or quarter, giving you a clear picture of the shape your business is in. They’re not mandatory, and they’re for your eyes only, but they can have a big impact on your bottom line.

Pro-active v Reactive

If you run a creative agency, you’re probably more passionate about social media strategies than you are about spreadsheets – and that’s totally understandable!

But it means your approach to the ‘serious’ side of the business may well be more reactive than pro-active – chasing debts only when cash is tight, paying invoices only when chased, and ramping up your marketing activities only when work is slow. Sound familiar?

Being better organised will inevitably lead to bigger, better profits – and management accounts are the ideal way to up your game.

Compiled by your accountant (we have somebody in mind), management accounts use real-time data from your accounting software to set budgets and targets, cash-flow forecasts and KPIs, which can then be discussed via regular meetings.

The reports and recommendations that arise give you an excellent basis on which to make your business decisions – and provide the insight that allows you to plan confidently ahead for the future.

Fill out the contact form below to find out more about management accounts, or stay tuned to the blog for more information on how to get the best out of your creative agency.

The post The Strong Link Between The Creative Industry And Management Accounts appeared first on Inform Accounting – Xero Accountants in Birmingham.

‘Making creativity pay’
Networking event
5pm to 8pm
18th June at Fazeley Studios, Birmingham

When you run a company in the creative industry, your profit depends entirely on the small decisions you make each day. Highly profitable companies always know their numbers and use the insight to make the right choices when it comes to things like pricing, project management and cash flow.

If you want to learn exactly what the top firms do to make ridiculous profits, join us at our next networking event on 18th June at Fazeley Studios. Creative industry experts from Inform Accounting, Xero, Receipt Bank, Market Invoice and Spotlight will share best practices covering areas such as:

• Estimating accurately and controlling scope-creep
• Increasing rates, client spend and margins
• Getting paid quicker
• Effective resourcing & planning

You’ll also have lots of opportunity for networking with other creative company leaders and we’ve laid on some drinks and nibbles too. Places are limited so please register as soon as you can.

We look forward to seeing on the 18th!

Click the link below to sign up to this exclusive networking event as seats are limited!

http://content.informaccounting.co.uk/making-creativity-pay-management-accounts-event

The post ‘Making Creativity Pay’ Event appeared first on Inform Accounting – Xero Accountants in Birmingham.

Do you need to release some cash for your business?
Do you need to raise some capital quickly?

We, at Inform, maybe able to help you with our invoice finance service, offered by Market Invoice. 90% of applications are approved. Once you are approved you don’t need to keep applying each time you want to use the service – and it integrates with our cloud accounting software, Xero – and you can finance one invoice at a time.

Quick, easy and online

You are able to sign up online, at no extra cost and with no obligation. The process only takes 15 minutes and you are ready to upload the invoices you want to raise finance against. After approval within just 24 hours you are able to access the funds. It really is that easy and hassle free, no debentures or personal guarantees are required.

No re-applying

You only need to be approved once after that you can use it as and when you require this is different to other invoice factoring services where you need to jump through several hoops each time you want to use the service.

Links to Xero

This service will integrate seamlessly with Xero keeping you in control.

No long term contracts

We offer a Pay as You Go service which means you’re not tied into a long term contract with monthly fees as you are in traditional invoice financing.

Interested? Get in touch with us by filling out the form below for more information. 

The post Do you need to release some cash for your business? appeared first on Inform Accounting – Xero Accountants in Birmingham.

Streamline your sales process with quotes

Keep your business moving by creating and managing quotes and turning them into invoices when the work is done. Quotes tell your customers about the goods and services you will provide them.

• Drive faster decisions with online quotes
• Quickly find quotes to follow up or invoice
• See the status of quotes at a glance
• Design professional-looking templates
• Streamline your sales process
• Create quotes online – from anywhere

Simple inventory management software

Inventory management in Xero tracks the value of your inventory and improves stock control.

• Do more with our inventory management partners
• Track the profitability of your inventory
• Get real-time stock valuation
• Easily track quantity on hand
• Speed up your quotes and invoicing

Find out more about how Xero accounting software can help transform the way you do business, get in touch and we’ll tell you all about it.

The post Xero All-in-one Accounting: Quoting and Inventory Feature appeared first on Inform Accounting – Xero Accountants in Birmingham.

Through Inform Only! Following their recent integration with Xero, iZettle are offering a free iZettle Card Reader and Transactions allowing you to take card payments when out and about with no monthly fees!

Why would you want to use it?

• Accept card payments – The more you sell, the less you pay: 2.75%-1.5%. That’s it, no other costs.
• Sell on the go or in your store – Run your business on a smartphone or tablet.
• Save time with great tools – Easy bookkeeping tools and smart sales reports gives you more time to focus on your business
• No monthly fees

What can it do for you?

• Offers your customers a choice – customized receipts via email or in print.
• Organises your products in a slim and beautiful product library.
• Completes your iZettle setup with cash drawers and receipt printers with kitchen printing options.

It is easy to get started!

With a 5-minute sign up and the acceptance of card payments right after registration. iZettle has a fully automated process! Simple on boarding of staff with staff accounts makes it a lot easier.

How will it make your life easier?

• Daily, weekly and monthly data reports
• Analyse top-selling products, daily rate of activity and staff performance
• See share of recurring customers, cash & card transaction data and deposits to bank account
• Available both in-app and on web
• Export relevant data to excel

Seamless integration to Xero accounting

iZettle sales and payout data seamlessly integrated into your Xero account Register an account at izettle.com to get started.

Pricing

• Free Point of sale app
• You only pay per transaction!
• No lock-in contracts
• No fixed fees

For a limited time only, iZettle are offering a free iZettle card reader and one month of free transactions if you sign up your business. Take advantage of this limited offer. Register your interest through Inform Accounting below.

How to take a card payment with iZettle from iZettle on Vimeo.

The post iZettle – Free Card Reader And Transactions Only Through Inform appeared first on Inform Accounting – Xero Accountants in Birmingham.

In a previous blog we had highlighted some points made from the Budget 2015. Below are a selection of extra points that followed.

Zero Tax Rate On Savings 2015/16

As reported a year ago there will be a zero rate on the first £5,000 of investment funds salary from 2015/16 onwards. Nevertheless, note that this will just give full advantages to those with assessable salary between the fundamental rate band £10,600 and £15,600.

£1,000 Interest Income Tax Free 2016/17

Starting April 2016, a tax-free allowance of £1,000 (or £500 for higher rate taxpayers) will be brought in for the interest that people acquire on savings. If you are a higher rate taxpayer and earn between £42,701 and £150,000, you’ll be eligible for a £500 tax-free savings allowance, but those with income in excess of £150,000 a year will be taxed in full on their interest income. On the other hand, if you are a basic rate taxpayer and have a whole income up to £42,700 a year, you will be eligible for the £1,000 tax-free savings allowance.

Tax Diary Of Main Events

1st April – Corporation tax for year to 30/6/14

6th April – 2015/16 Tax year begins

19th April – Final RTI FPS due by this date. Indicate that this is Final Submission for the Tax Year but note that the end of employer questionaire is not included this year.

1st May – Corporation tax for year to 31/7/14

19th May – PAYE and NIC deductions, and CIS return and tax month to 5/5/15

If you have any questions regarding the Budget 2015 fill out the contact form below and we will get in touch with you.

The post March 2015 Budget Highlights Continued appeared first on Inform Accounting – Xero Accountants in Birmingham.

The Chancellor’s 2015 March Budget was clearly aimed at winning the votes of savers and pensioners in the May General Election.

The key points are highlighted below.

Personal Allowances

• Confirmation that the basic personal allowance for 2015/16 will be £10,600.
• Above inflation increase to £10,800 for 2016/17 and £11,000 in 2017/18.
• Those aged 75 and over will continue to receive a personal allowance of £10,660 for 2015/16 and by 2016/17 they will receive the basic personal allowance.
• If your adjusted net income exceeds £100,000, the personal allowance is reduced by £1 for every £2 over £100,000 giving an effective rate of 60% on income between £100,000 and £121,200 for 2015/16.

Income Tax Bands

• 20% basic rate band is £31,785 for 2015/16 increasing to £31,900 for 2016/17.
• It is proposed that the higher rate tax threshold will increase to £43,300 for 2017/18.
• The 45% top rate continues to apply to taxable income over £150,000 for 2015/16.

Further Changes To ISAs

• The current £15,000 ISA limit is increased to £15,240 from 6 April 2015.
• The Junior ISA limit increases to £4,080 from 6 April 2015.
• In the 2015/16 tax year individuals will be able to take money out of their ISA and put it back in within the same year, without losing their ISA tax benefits as long as the repayment is made in the same financial year as the withdrawal.

Further Pension Flexibility

• From 6 April 2016, Government plans to bring in new legislation to allow people who are already receiving income from an annuity to agree with their provider to assign their annuity income to a third party in exchange for a lump sum or an alternative retirement product.
• Current 55% charge to be abolished.

Pension Fund Lifetime Allowance Reduced

• From 6 April 2016 the pension fund lifetime allowance will be reduced from £1.25million to £1million.
• The lifetime allowance will then be indexed annually in line with CPI from 6 April 2018.

Capital Taxes

• It had already been announced that the CGT annual exempt amount would increase to £11,100 for 2015/16. With a top CGT rate of 28% this allowance potentially saves £3,108 a year, or £6,216 for a married couple.

Further Restrictions To CGT Entrepreneur’s Relief

• It has now been announced that from 18 March 2015 CGT entrepreneurs’ relief will be restricted on certain “associated disposals”.
• The 10% CGT rate will no longer be available on the disposal of personal assets used in a business carried on by a company or a partnership unless they are disposed of in connection with a disposal of at least a 5% shareholding in the company or a 5% share in the partnership assets.

Tax Relief On Small Donations

• From 6 April 2016 the maximum annual donation amount which can be claimed through GASDS (Gift Aid Small Donation Scheme) will be increased from £5,000 to £8,000 allowing charities and Community Amateur Sports Clubs to claim Gift Aid style top-up payments of up to £2,000 a year.

Corporation Tax Rate

• A single corporation tax rate of 20% will apply from 1 April 2015 whatever the level of your company’s profits.

Annual Investment Allowance

• The Annual Investment Allowance (AIA) which provides a 100% tax write off for the cost of most plant and machinery (exception motor cars) increased to £500,000 per annum for expenditure between 1 April 2014 to 31 December 2015, was due to fall to £25,000 from 1 January 2016, but a new limit has been delayed until later this year.

Research And Development Tax Credit

• Increase in corporation tax reduction to 230% from the 1 April 2015 for SME’s carrying out qualifying research and development.

VAT Registration Limit

• Increased by £1000 to £82,000 from 1 April 2014.
• The de-registration limit increased by £1000 to £80,000.

Tax Returns

• The Government proposes to transform the tax system over the next Parliament by introducing online tax accounts to remove the need for individuals and small businesses to complete annual tax returns.
• Taxpayers will still need to provide any details HMRC does not have and will be responsible for checking that the information is correct.

Tax Diary Of Main Events

1st April – Corporation tax for year to 30/6/14

6th April – 2015/16 Tax year begins

19th April – Final RTI FPS due by this date. Indicate that this is Final Submission for the Tax Year but note that the end of employer questionaire is not included this year.

1st May – Corporation tax for year to 31/7/14

19th May – PAYE and NIC deductions, and CIS return and tax month to 5/5/15

If you have any questions regarding the Budget 2015 fill out the contact form below and we will get in touch with you.

The post March 2015 Budget Highlights appeared first on Inform Accounting – Xero Accountants in Birmingham.

Now that the worst of the decline appears to be behind us, many business owners/managers are converting their attention to expanding their businesses. Growth can be a complex suggestion for any company. There are many “organic” options such as obtaining new clients, employing new staff, constructing new product and so on. While organic growth is definitely part of the plan, it is often a slow series of actions. If your growth goals are more aggressive, a strategic acquisition might be the right route to take.

An acquisition is meant to create cooperation that makes the value of the combined business greater than the sum of its original parts. Through the strategic acquisition of another business, the buying-related company can accomplish economies of scale, efficiencies and enhanced market visibility. The aquisition can also increase the size of the firm‘s client base, help increase shareholder value and add new market opportunities . You must secure that your business is appropriately positioned to own another firm. Here are a few key points consider.

Your business needs to be in good financial health

If your company needs to finance your acquisition, a bank will want to see a strong track record before they will be willing to lend to your firm. If you’re financially solid with a proven track record of achievement, you are well positioned to take advantage of acquisition opportunities.

A stable business model

A stable business model should be mirrored in a strategic plan that labels acquisition as a key piece of the management team’s plan. Target your business on what it does best and allow adaptability within that focus so your business can adjust as the market alters and as acquisition opportunities emerge.

Solid management team

Surround yourself with a team of individuals who understand your business and administer your company’s corporate culture inside and out. They should understand the marketplace in which you operate and your customers’ key drivers. Connect the services of a good lawyer and accountant to help you to finalize your acquisition transaction properly.

Access to capital

Unless you already have the money, you’ll need to make sure you have means of entry to capital and the borrowing capacity to finish your acquisition. Regardless of the state of the economy, shop around and talk to different banks. Research banks who are knowledgeable of your business, your market sector and can use their expertise to help you to plan ahead for all the capital you will need during and after the acquisition.

If you would like more information, Please contact us.

The post Grow Your Business Through A Strategic Acquistion appeared first on Inform Accounting – Xero Accountants in Birmingham.

The £2,000 “employment allowance“introduced in 2014/15 continues to be available for 2015/16. Note that this allowance provides relief from paying employers NIC on the first £2,000 of inputs. The £2,000 allowance is set against employers NIC on a increasing basis during the tax year.

The allowance is available to most employers, although those under common control are restricted to just the one £2,000 allowance. Husband and wife companies with no other employees charged to national insurance may find it tax efficient to change the mix of salaries and dividends to take advantage of the £2,000 allowance. From 6 April 2015 it may be advantageous to increase directors’ salaries to the new £10,600 personal allowance instead of the NIC threshold of £8,060 (£155 a week).

The extra £2,540 will save £508 (20%) corporation tax (£1,016 for two directors) whereas the additional employees NIC would be just £305 each.

Husband and wife company – from 2015/16:

Salary £10,295 net = Gross £10,600 

Dividend up to BR band £28,606 net = Gross £31,785

                                                                 Top of BR band £42,385

                                                                 Net cash extracted (each) £38,901

Total extracted £77,802 for couple

There would however be 20% corporation tax payable. Profits before tax £71,515 @ 20% = £14,303 corporation tax, thus profits before salaries and tax would be £92,715.

This results in an overall tax and NIC rate of just 16.1%.

A salary in excess of £10,600 would attract income tax (at 20%) and employee’s NIC at 12%.

And No Employers NIC For Those Under 21 From 6 April 2015

A Government policy to reduce the number of school leavers not in employment, education or training is to abolish employers NIC for those under the age of 21. This exemption starts 6 April 2015 and will not apply to those earning more than the Upper Earnings Limit (UEL), Employers NIC will be charged as normal beyond that limit.

Tax Diary Of Main Events

1st April – Corporation tax for year to 30/06/14.

5th April – End of 2014/15 tax year, 2015/16 Tax year begins.

19th April – PAYE and NIC deductions, and CIS.

If you have any queriers, don’t hesitate to contact us here.

The post The £2,000 Employment Allowance Continues For 2015/16 appeared first on Inform Accounting – Xero Accountants in Birmingham.

Have you used your 2014/15 annual exemption of £11,000? Consider selling shares where the gain is less than £11,000 before 6 April 2015. Also, if you have any worthless shares consider a negligible value claim to establish a capital loss. You may even be able to set off the capital loss against your income under certain circumstances.

Make Charitable Payments Under Gift Aid To Save More Tax

Higher rate taxpayers should make any charitable payments under Gift Aid so that you obtain additional tax relief. The charity will also be able to reclaim the basic rate tax from HMRC.

Take Advantage Of Your 2014/15 Isa Allowances

Your maximum annual investment in ISAs for 2013/14 is £15,000. Your investment needs to be made before 6 April 2015. In addition, have you thought about investing for your children or grandchildren by setting up junior ISAs or pensions? In the 2014/15 tax year, you can invest £4,000 into a Junior ISA for any child under 18 who does not have a Child Trust Fund.

To find out more, contact us here.

The post Year End Capital Gains Tax Planning appeared first on Inform Accounting – Xero Accountants in Birmingham.

Are you taking advantage of the pension carry forward rules? Are you benefiting from any unused allowances from the previous three tax years? This is generally the difference between the old £50,000 limit and the pension input each year and can be added to your relief for 2014/15. Note that the annual pension allowance is £40,000 from 6 April 2015.

For example if your pension input was £20,000 in the 2011/12 tax year, then there is potentially up to £30,000 unused relief from that year available to add to your £40,000 2014/15 pension allowance. You would need to make gross pension contributions of at least £70,000 (£40,000 plus £30,000) to avoid losing this generous relief.

Avoid Losing Your Personal Allowance

For every £2 that your adjusted net income exceeds £100,000, the £10,000 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%.

Get Ready For The New Flexible Pension Rules

For those aged 55 and over and with a SIPP or other money purchase schemes, the new flexible pension rules commence on 6 April 2015. The new rules allow such pensioners to withdraw as much or as little income as they like from their fund but the income drawn will be taxed at their marginal tax rate.

Those affected should discuss the options with an Independent Financial Adviser who will need to work closely with us as the tax payable on the pension will depend upon their level of other income.

To find out more, contact us here.

The post Year End Pension Planning appeared first on Inform Accounting – Xero Accountants in Birmingham.

The rise and rise of online technology is taking the world by storm, and in our world (the world of online accounting) the technology that has taken us by storm happens to be cloud-based software that goes by the name of Xero.

Information is held securely via the ‘cloud’ (an online accounting platform) so business owners and their accountants have instant access to important financial data as well as a range of performance reports remotely; which means that it doesn’t matter if your accountant is based in the Midlands and your business is based firmly in the north or down south, distance just isn’t an issue. In fact, with cloud based software like Xero, business owners can choose their accountant based on the services they offer rather than choosing one which is nearby.

So now might be a good time to mention that we’ve recently been awarded Xero Accounting Partner of the year 2015 and we’re the first and only Xero Gold Partner in Birmingham, making us experts in using Xero and helping our clients to use it too.

Sian Kelly, our Director here at Inform has been using Xero to help transform the way her clients run their businesses.

“The speed at which you can access your financial information is amazing, it’s helpful for business owners and for us as accountants too,” Sian says.

“Since we’ve introduced our clients to Xero, they can’t imagine going back to anything more traditional. It has literally transformed the way they see their finances and, with a bit of help and guidance from us, it’s given them the confidence to make decisions about their business going forward.”

Those who’ve been using more traditional accounting methods don’t know what they’re missing but it’ll soon be difficult to ignore the hum of positivity around online accounting software, and since great news travels fast business owners will be telling each other about the benefits of online accounting and how they can’t believe how they ever managed without it.

Xero is perfect for small and medium-sized businesses, helping them to understand their finances and take control of them while making the best use their accountants skills and knowledge to really develop and grow their business to achieve all their business, and personal financial goals.

So, that said, even though we just love numbers (we are accountants, after all), we think it’s probably quite clear to see why here at Inform Accounting, our favourite number just has to be Xero!

Find out more about how Xero accounting software can help transform the way you do business, get in touch and we’ll tell you all about it. 

The post Why Our Favourite Number At Inform Is Xero appeared first on Inform Accounting – Xero Accountants in Birmingham.

How to take a card payment with iZettle from iZettle on Vimeo.

iZettle presentation for customers

Following their integration with Xero, iZettle are offering a free iZettle Card Reader and Transactions allowing you to take card payments anywhere.

Point Of Sale As It Should Be

• Wrap Up Nicely – Offer your customers a choice – customized receipts via email or in print.
• Get Organised – Organise your products in a slim and beautiful product library.
• Complete your set-up – Complete your iZettle setup with cash drawers and receipt printers with kitchen printing options.

It is easy to get started!

With a 5-minute sign up and the acceptance of card payments right after registration. iZettle has a fully automated process! Simple on boarding of staff with staff accounts makes it a lot easier.

Reports and Statistics

• Daily, weekly and monthly data
• Analyse top-selling products, daily rate of activity and staff performance
• See share of recurring customers, cash & card transaction data and deposits to bank account
• Available both in-app and on web
• Export relevant data to excel

Seamless integration to Xero accounting

iZettle sales and payout data seamlessly integrated into your Xero account Register an account at izettle.com to get started.

Pricing

• Free Point of sale app
• You only pay per transaction!
• No lock-in contracts
• No fixed fees

For a limited time only, iZettle are offering a free iZettle card reader and one month of free transactions if you sign up your business. Take advantage of this limited offer. Register your interest in the link below.

http://bit.ly/1zKqzau

The post iZettle – The Easy Way To Take Card Payments Integrated With Xero appeared first on Inform Accounting – Xero Accountants in Birmingham.

People who’ve gained success often have some really useful experiences that they can impart to others so that they might use them on their own journey to gain success, after all, wise words are always welcome in the tough world of business. This is exactly what happened at Xerocon in February.

Xerocon is an annual conference for those in the accountancy industry to get together and learn more about how to help their business clients using the leading cloud-based accounting technology – Xero, and one of the guest speakers at this year’s event was Karren Brady.

You may know her as former managing director of Birmingham City FC, or you might have seen her on The Apprentice but at Xerocon, Karren Brady looked back over her many years and experiences in business and imparted some tips aimed at helping small businesses to achieve some success of their own.

She was quite clear about the things you need so we thought you might like to read about them for yourself. Here goes…

• Having the right attitude is one of the most important things that can carry you forward. But remember, if you don’t like something – change something (and if you can’t actually change it, then you need to change your attitude towards it)
• If you don’t know where you’re heading, how can you expect your workforce to support you? Get some direction and don’t give up
• We all have different ideas on what makes a good leader, but one thing that sets a good leader apart is how they behave in a situation where they’re unsure what to do. Karren Brady noted that a good leader is one who listens to their customers and also one who makes decisions based on what needs to be done rather than what they might want to do
• Ambition – without it, we would not have achieved as much as we have, or wanted to keep going to achieve even more. Never ever leave home without it
• Have confidence in yourself and in your abilities and others will have confidence in you too
• Having the determination to carry on in the face of adversity and times of defeat is key to success. It’s a well-known fact that every successful business owner has failed in the past, but what makes them different is their determination to keep going
• And last but not least… be positive

So there you go, a few wise words from one very successful business owner.

We almost forgot – one of the first things Karren Brady did when she bought Birmingham City FC was to hire her accountant who, incidentally, is still her accountant. We can definitely help you there.

If you’d like to find out more about how our experts at Inform Accounting can help you take your business to a new level of success, contact us.

The post Lessons For Business Success – Tips From Those At The Top appeared first on Inform Accounting – Xero Accountants in Birmingham.

This video tutorial shows you how to add and edit employee contacts when using the this feature.

Taking the pain away from small business payroll from Xero Limited on Vimeo.

With UK Payroll you can:

• Save precious time & increase productivity when payroll and accounting software work as one. You’ll decrease the amount of time spent on data entry. You’ll increase productivity and reduce mistakes. Payroll journals are automatically created on posting the payroll.

• Relax with the peace of mind that Xero automatically looks after the important tax calculations for you. Updates to any UK payroll regulations and tax rate changes are handled automatically so you don’t have to worry.

• Invite employees to access their pay history, payslips, view time off requests and request new time off via the employee app without seeing the rest of the business or financials. Available via the web on release along with iOS and Android phones shortly afterwards.

• Easily make RTI submissions  and view the status and history of submissions made on an RTI Filings dashboard. Access a P32 to easily stay on top of your tax obligations.

• Print P45s and P60s for your employees. Close an employee’s payroll record and create their P45 in a couple of steps. At the end of the tax year, you can do all your P60s in one go, easily.

• Get ready for Auto Enrolment. On release Auto Enrolment will give you the ability to enter details of your chosen pension scheme and contribution arrangements. The next phase will include output files for the pension providers, detailed reporting and assessment of employees.

• Collaborate with your accountant or bookkeeper on payroll. Allow them to manage payroll on your behalf by giving them the Payroll Administrator user role.

Payroll in Xero is designed to help make running your business easy. If you work with your accountant or bookkeeper they can be invited in to manage payroll for you or invite someone in to manage payroll without seeing the rest of the business financials. Integrated accounting and payroll is inevitable. Information from payroll seamlessly flows into the accounts – no more manual data entry, no more manual processing. The way it should be.

The post UK Payroll In Xero Is Bringing Seamless Payroll And Accounting appeared first on Inform Accounting – Xero Accountants in Birmingham.

Xero’s easy to use functionality keeps you up to date with your accounts and allows you to access them from work, home or on the go.

Xero works hand in hand with Receipt Bank, so with a few clicks you can quickly and easily send your expenses data from Receipt Bank directly to Xero. We do the data entry for you, so you don’t have to, saving you even more time and money!

• Scan your receipts – Receipt Bank has the option to upload single or multiple receipts at any time
• Log into your receipt bank account which we will link to Xero for you
• Once on your account, click on the ‘add items’ tab
• Follow one of the submitting options to upload your receipts
• Your receipts now automatically appear as ‘general expenses’
• This can be changed by clicking the ‘suppliers’ tab
• Once happy there are two options: Publish to Xero and Add to expense report
• If published to Xero it will now be available in your account
• When logged into Xero, your receipt will be in the ‘draft bills’
• If you’re happy with the receipt then click ‘approve
• If not then changes can be made or the receipt can be deleted
• To add more receipts, follow the same process:

1. Scan receipt
2. Chose upload method
3. Wait 24 hours for the receipt to be processed
4. Check accuracy in receipt bank and process to Xero
5. Check accuracy in Xero and approve

The post Receipt Bank – The Essential Guide To Xero Add-On’s appeared first on Inform Accounting – Xero Accountants in Birmingham.

Something very exciting is happening in the world of accounting – there has been a renewed focus on customer services and much of this proactive approach is down to the new technology that many accounting firms, including Inform Accounting, have invested in.

Thanks to cloud-based software such as Xero, accountants are able to offer their clients a complete value for money service which, as well as all the usual services that you would expect from your accountant, also includes additional services such as enhanced and meaningful business advice.

As your virtual chief financial officer (VCFO) your accountant wants to deliver the financial and non-financial information that will help you run your business in the most effective and efficient way. Using a Xero add-on such as Spotlight, account information can be drawn out and presented in attractive easy-to-interpret reports so you can make informed decisions on how to manage your business going forward.

This kind of information is invaluable to businesses and, thanks to Spotlight, any reports created are ‘board-ready’ so there’s no need to mess about changing them into an easy to understand format – leaving your accountant more time to dedicate to you and offering insightful business advice and increased focus on helping you achieve those targets you’re so passionate about.

At Inform, we can’t tell you how much Xero has transformed our business and the way we’ve been able to help our clients, and just to prove how much we rate it, we attended this year’s Xerocon London, (10th and 11th February). Xerocon is an annual conference for those in the accountancy industry to get together and learn more about how to help their business clients using the leading cloud-based accounting technology – Xero, and how it will be supporting them to help their clients reach new heights in 2015.

Our very own Director, Sian Kelly, was at the Spotlight stand on Wednesday 11th February and talked to visitors who stopped by to chat about the benefits and advantages of Spotlight reporting and how it can transform performance reports and also decision-making for businesses. It was really worthwhile, we only wish we’d had more time!

If you’d like to find out more about how Xero can help your business, contact us, we’d love to help.

The post Aiming To Make Ourselves Essential To Our Clients appeared first on Inform Accounting – Xero Accountants in Birmingham.

It’s not uncommon these days for people to work from home and run their businesses from home too. These days more than 4 million people work from an office in their home, working anything from one to five days a week minus the dreaded commute.

There are loads of perks to working from home (not least working in your pj’s if the mood takes you!) and if you run your business from home you’ll be entitled to a deduction (tax relief) for the extra expense this brings in terms of both fixed costs and running costs for your home. Fixed costs

Typical fixed costs are classed as those you have to pay regardless of the type of business you run from home and they include:
– council tax
– mortgage interest
– insurance (buildings and contents)
– rent
– ongoing repairs and maintenance

A reasonable proportion of each of these fixed costs can be deducted as a form of tax relief when working out the profits from your business.

You can claim relief for fixed costs if you use an area or room of your house for business – but remember to make sure this space is available to the rest of the family at non-working times such as evenings and weekends or it may impact capital gains tax.

As well as fixed cost deductions, a proportion of the running costs of your home can also be deducted too when you use your home for running your business.

Running costs

Running costs include things like electricity, gas and water and you’re allowed a deduction for the amount you use for your business while working from home.

There are different ways of working out your business fixed costs and running costs as separate to your own private usage. As an example, if you work out the total number of hours you spend in your home office during the week you can estimate the amount of electricity or gas used in relation to your total bill.
It’s important to remember that you can only claim for things specifically related to work such as business phone calls and the extra cost of gas or electricity. You can’t claim for things you use for both private and business use like broadband access or rent.

It’s also worth noting that you don’t need to provide records for claims of up to £4 per week (£18 per month) but for claims over this amount you’ll be expected to have proof of what you’ve spent so it might be best to stick to the simple (and hassle-free) £4 a month flat rate!

If you’d like to find out more information about fixed cost tax relief for your home office, our experts at Inform would love to help you make the most of the tax reliefs available when you run your business from home. 

The post Running Your Business From Home? Make The Most Of Those Fixed Cost Deductions appeared first on Inform Accounting – Xero Accountants in Birmingham.

Inform Accounting is thrilled to have won the Accounting Partner of the Year for the Midlands at the Xerocon Awards Dinner tonight in Battersea Evolution, London.

We’ve said before that all numbers being equal, we shouldn’t really have any favourites. But we’ve definitely got a soft spot for Xero. We’re the first and only Xero Gold partner in Birmingham, which means that we’re experts in Xero, so you can be too in your business.

Just a reminder that Xero is an online accounting platform that allows you to deal with your business finances on the go and in real-time. It means that if you were sitting at the awards dinner tonight, you could check your cash flow just as easily as you could tweet about our win.

We’re looking forward to new and exciting opportunities for you with Xero this year!

The post Inform Accounting Wins Xero Accounting Partner Of The Year (Midlands) appeared first on Inform Accounting – Xero Accountants in Birmingham.

For many people, VAT is something you pay on services and products (and maybe the odd pasty or two). For others, particularly business owners, VAT is a quarterly bill they have to pay and the thought of it fills them with apprehension. Although it’s only three little letters, VAT (Value Added Tax) can often feel huge for small businesses.

VAT returns are usually due every quarter and since 2012 both the return and payment can be made electronically – although it’s important to note that payments need to be received by HMRC seven days after the end of the month following the end of the VAT period (it’s not enough to have sent it, it must have been received by this date too).

Late returns and late payments result in penalties called ‘surcharges’ which may be as much as 15% of the total VAT due. As painful as this may be it can be avoided – after all, who wants to pay more than they need to?

There are lots of ways to tackle your VAT bill and keep those lovely people at HMRC happy. Here are a few we thought we’d share…

Cash Flow Clever

Making sure you’ve got enough money at the end of each quarter for your VAT return needs a certain amount of discipline but being ahead of the game needn’t be complicated, although it does require a bit of organisation. Why not calculate your net VAT liability at the end of every month then move the amount straight into a high interest account so you have what you need when quarter end comes round again.

Easier still would be to set up a monthly direct debit into a high interest account so your VAT money is transferred automatically without any ongoing effort required. If you’re using Xero, simply run the VAT report to see your VAT liability instantly (or ask one of our experts at Inform if you need a bit of help). That’s the beauty of Xero, it provides really useful information at your fingertips.

Top Tip – Apply the same logic to your corporation tax and you’ll be laughing at year end – it makes great business sense and it takes no time at all to set up.

Can’t Pay Up On Time?

If you’re going to have a problem paying your VAT on time it’s best to let HMRC know about it as soon as you can. Get in touch with the business payment support service and explain the situation. You should be able to sort out a payment schedule that you can afford and hopefully avoid any penalties for late payments too.

It makes sense to ensure you’ve always got enough money to pay your VAT return on time and avoid penalties. It’s your responsibility so why not make it easy for yourself using the tools available such as setting up a direct debit so the money is automatically deducted from your account by HMRC.

Cash Accounting

Alternatively businesses with a turnover of less than £1,350,000 each year can use a system called cash accounting where you only need to account for the VAT on sales you’ve actually been paid for (no need to pay the VAT on money not yet received), very useful for cashflow management.

If you would like any further information, please contact us.

The post No More VAT Nightmares – Top Tips For Paying Your Bill On Time appeared first on Inform Accounting – Xero Accountants in Birmingham.

Point Of Sale As It Should Be

• Wrap Up Nicely – Offer your customers a choice – customized receipts via email or in print.
• Get Organised – Organise your products in a slim and beautiful product library.
• Complete your set-up – Complete your iZettle setup with cash drawers and receipt printers with kitchen printing options.

It is easy to get started!

With a 5-minute sign up and the acceptance of card payments right after registration. iZettle has a fully automated process! Simple on boarding of staff with staff accounts makes it a lot easier.

Reports and Statistics

• Daily, weekly and monthly data
• Analyse top-selling products, daily rate of activity and staff performance
• See share of recurring customers, cash & card transaction data and deposits to bank account
• Available both in-app and on web
• Export relevant data to excel

Seamless integration to Xero accounting

iZettle sales and payout data seamlessly integrated into your Xero account Register an account at izettle.com to get started.

Pricing

• Free Point of sale app
• You only pay per transaction!
• No lock-in contracts
• No fixed fees

For a limited time only, iZettle are offering a free iZettle card reader and one month of free transactions if you sign up your business. Take advantage of this limited offer. Register your interest here.

How to take a card payment with iZettle from iZettle on Vimeo.

The post Free iZettle Card Reader And Transactions For One Month appeared first on Inform Accounting – Xero Accountants in Birmingham.

HM Revenue and Customs (HMRC) have a new campaign. The disclosure campaign is aimed at traders who accept payments by debit and credit cards but who haven’t declared all transactions. The Credit Card Sales campaign provides an opportunity for individuals and companies accepting debit and credit cards (but have not reflected all transactions in their tax return) to bring their affairs up to date in a simple, straightforward way and take advantage of the best possible terms.

Traders wishing to use the scheme must first notify HMRC. They will then have 4 months from the date they receive HMRC’s acknowledgement of notification to make a disclosure and pay any tax due. If, however, you do not come forward and HMRC finds later that you are behind with your tax, it may be harder to convince them that it was not a deliberate act. The law allows HMRC to go back up to 20 years and in serious cases HMRC may even carry out a criminal investigation.

HMRC is targeting tax evasion through Debit and Credit Card Sales and will use information it holds on its digital intelligence systems to identify taxpayers who might not have declared all their income. Where additional taxes are due, HMRC can charge higher penalties than those available under the Credit Card Sales campaign.

For more information on this campaign and how it may affect you, please contact us.

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Failing to plan, plan to fail. We all know this. However, many businesses that create a strategy or business plan fail to execute it to a significant degree. This may be because it requires change, commitment, innovation, leadership and numerous other things to get your business ready to execute your plan. The steps below will help you to successfully execute your business strategy:

A clear vision

Define what the business will look like if your strategy is executed successfully. Develop a summary of that vision and communicate it to all stakeholders. Communication must also be consistent – remind your team about it regularly and make it a part of their daily lives. People cannot follow you successfully if they don’t know where you want to go.

Set some goals

As part of your planning process, you should develop 4 or 5 critical goal categories. Each one should be broken down into achievable tasks and given specific goals with delivery dates then tracked for progress. Don’t forget to assign the names of the people who are accountable for their completion.

Align systems and people

This is the step where most businesses fall down. Strategy execution and aligning people and processes to attain their vision is critical. They just assume that the firm will “figure it out”. All systems, people, incentives and business processes must be aligned with the new strategy. People must understand what they need to do and how their role relates to executing a successful strategy. They’ll need help to establish priorities on what to do, as well as what not to do, to ensure that the overall strategy doesn’t get lost in the day-to-day.

Review

The business should hold annual reviews of their current strategy and how outside forces have impacted on it. The aim of the review should be to determine whether the strategy is still valid, to assess progress made and customer feedback. Strategy execution doesn’t just happen; it must be driven with the same commitment that built the business in the first place.

To find out more about how we can help your business achieve success, get in touch.

The post Executing strategy appeared first on Inform Accounting – Xero Accountants in Birmingham.

Xero works while you sleep from Xero Limited on Vimeo.

Small business owners can now grow their business and revenue even faster with Quotes in the latest version of Xero. Xero now puts SMBs completely in control of their sales workflow and allows them to easily collaborate with their advisors to scale their business without ever having to leave their accounting platform or pay for costly add-ons.

“Quotes is another step in our journey to establish Xero as the complete platform for small businesses growth,” said Rod Drury, CEO, Xero. “As online accounting is starting to exceed the features of desktop software we’re now able to look specifically at how to help small business make more money. Robust and integrated processes around quotes and estimates are a great way to improve small businesses performance.”

In a recent global survey* 61% of Xero’s small business customers experienced revenue growth in the past 12 months compared to 33% of the total small business market. Successful businesses are already using Xero and Quotes will further enhance this revenue growth by having more visibility and control over the sales process.

Quotes enables small businesses to:

• Improve visibility of their sales pipeline: A quote can be tracked through its lifecycle, making it easy to create, manage and follow-up outstanding quotes, before they can easily be turned into invoices for billing. By providing better management, Xero users have more opportunities to secure more work for their business.

• Rapidly respond to business opportunities: Quotes can be created anytime, anywhere – on the customer’s site, even. Xero makes it easy to create a new quote, copy a previous quote, or to convert a quote into an invoice. Fast turnaround of quotes improves the likelihood of winning new business – and getting more time to work on tasks that add value.

• Get paid faster: Using quotes allows small businesses to agree terms with their customers, reducing ambiguity and ensuring that everyone is clear on what it is delivered, and when the job is to be paid. Integration with Xero’s invoicing capabilities ensure that work can be seamlessly tracked and charged for. The end result: small businesses get paid faster.

• Sell value not hours: Agreeing on a price for a job up front allows small businesses to concentrate on selling value not time.

Pricing & Availability:

• Quotes is available now at no additional cost as part of Xero’s small business accounting solution.

*The results of this study were taken from a random global sample of over 3,000 Xero customers based in Australia, New Zealand, the United States and the United Kingdom. The research was commissioned by Xero and independently conducted by market research company, Perceptive Research.

The post Xero helps SMBs grow with integrated quoting feature appeared first on Inform Accounting – Xero Accountants in Birmingham.

Currently, HM Revenue and Customs (HMRC) can collect tax debts of up to £3,000 by adjusting your Pay As You Earn (PAYE) tax code. HMRC refers to this as ‘coding out’. The effect of this is to recover the debt from your income, by increasing the amount deducted from your income during the tax year. This only applies if you have a debt with HMRC and:

• you are an employee paying tax through (PAYE), and/or
• you receive a taxable UK-based private pension

HMRC are now increasing the amount of debt that can be recovered through your tax code if your annual earnings are £30,000 or more. To do this, HMRC will apply a sliding scale to your main PAYE income.

The maximum amount that can be coded out is being increased to £17,000 (where earnings exceed £90,000 a year). These changes will only apply to underpaid Self-Assessment and Class 2 National Insurance debts and Tax Credit overpayments.

Changes will be reflected in your 2015-16 tax code and you will be notified before collection of any debts through your PAYE code from April 2015. If your earnings are less than £30,000, there’s no change to the £3,000 coding out limit.

It’s worth noting that coding out the unpaid 2013/14 tax is only possible if you submitted your paper tax return by 31 October 2014 or you file your tax return online by 30 December 2014.

If you would like any further information, please contact us.

The post Collection of unpaid tax through your tax code appeared first on Inform Accounting – Xero Accountants in Birmingham.

New business and increased revenue

This is the ultimate sign of a successful marketing campaign. While driving traffic to your site, gaining relevant social media followers and building your base of inbound leads are all steps in the right direction, the main goal is to grow your firm. When you see an increase in new business and revenue from leads which originated online, it’s a safe bet that your online marketing is successful. However, if you aren’t gaining new business opportunities as a result of your marketing efforts, it could be time to take another look. For instance, if you notice an increase in the amount of traffic to your website, but not a higher number of inbound leads, it might be time for a website redesign.

Why? Because bounced traffic suggests that your homepage lacks clarity and/or engaging conversions. Or, if your content is frequently being read and downloaded but your prospects aren’t taking the next step, you might want to reassess your calls-to-action and make them a little more dynamic!

Followers and shares

Before beginning a new marketing campaign, it’s a good idea to take a moment to track your existing number of followers across each of the social media platforms you currently use. Use this as a benchmark to assess the degree to which your latest marketing efforts have increased the firm’s visibility. It’s also helpful to know the average number of shares your content generates (this will tell you which types of content generate the most interest).

Website traffic

The main goal of online marketing is to drive traffic to your website, so it’s essential to know traffic numbers prior to any campaign. If your website begins to see more traffic after the initiation of a campaign, this is a good indicator that your marketing efforts are working. Monitor the sources of your inbound traffic to identify the sites or pieces of content that are bringing in the most traffic, and use this information to plan future campaigns. Clever eh?!

Inbound leads

The actions your prospects take in reaction to your marketing efforts are one of the best ways to measure your success. When more people reach out to your firm for consultations or fill out contact forms, it’s a sign of a successful campaign. If your list of prospects and influencers is growing, your marketing is doing its job. All your online activity — from the content you produce, to your social media interactions — should work towards driving more prospects and influencers to reach out to your firm and show interest in the services you offer. Your prospects might show interest by simply sharing their contact information or signing up for a webinar, or asking for an appointment with you.

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So what’s in store for your business in 2015? The good news is that the economy is growing and consumer confidence appears stable. So what should you be doing to maximise your success in 2015? After you’ve enjoyed your festive break, sit and spend a morning thinking about what you want to achieve and how you’re going to do it. The most successful clients have one thing in common – they set strategic targets, work out the actions they need to take, and regularly monitor how they’re doing throughout the year. There’s an old saying “A sailor without a destination will never get a favourable wind”. This is so true, and in a world where the frenzied pace of the high-tech revolution is getting faster and faster, it’s important to take stock and examine your market and customer base and work out where you want your business to be at the end of the year. So how do you set a strategic plan?

Firstly, work on your personal objectives. If you’re an owner-managed business, outlining what you want from it has to be the key starting point. This process may look simple at first, but it can have amazing results if action is taken and results monitored. Ask yourself and your fellow owners:

• what do we enjoy doing and what do we not want to do next year?
• how much income do we need / want next year?
• are we happy with our work / life balance?
• what do we need to change in the business to meet personal objectives?

Once you’ve got those sorted, turn your attention to the business and ask:

• what turnover and net profit do we want next year to help us achieve our personal objectives?
• how are we going to attract new customers and get existing customers to buy more from us?
• what changes do we need to make to achieve our targets?

Once you’ve asked these questions, draw up a list of actions you need to take and GET ON WITH IT!

Measure the results monthly and prepare for success. We’ve seen loads of success stories and have helped a number of clients put their strategy in place. So if you need a helping hand, come and talk to us. We can also help design monthly key performance indicators to keep you on track.

If you are interested, please Contact Us

The post What will your business look like in 2015? appeared first on Inform Accounting – Xero Accountants in Birmingham.

Although we may still be a little fuzzy-headed from the recent festivities, we must not forget the next important date in the diary – the online tax deadline for 2014.

Tax for the year 2013-14 is due on 31st January if you’re filing online and, let’s face it, more and more people are choosing to do it online these days. In fact, going digital has quickly become a trend that’s here to stay for businesses and accountants, with the benefits clear to see. And with HMRC are now geared up for receiving online tax returns and the availability of great cloud-based software such as Xero, there’s every reason to switch to online and ditch the tedious and slower traditional accounting methods and sorting through those paper receipts.

So what are the benefits?

• Well, everything’s done electronically so there’s less of a paper trail and less chance of things going astray
• Filing returns online means less administrative tasks and more time for your accountant to spend advising and helping you plan your future strategy towards success!
• Another advantage is that a lot of the preparation for your tax return can be done over time rather than leaving it all until the end of the year and the inevitable scramble for the deadline

This technology is secure, it has to comply with regulations, it’s instant and it’s easy to use. It’s also easily accessible on any device which means you’re always in control and can use it to get the best from your management accounts which can be extremely valuable in influencing business decisions and reviewing our accounts going forward.

So let us embrace the cloud, online accounting and all its advantages and benefits – because thanks to this technology we’re all able to make better use of our accountant’s time and expertise, not to mention having instant access to vital financial information. We’re no longer stressed when that tax time of year rolls round again – and that’s got to be worth celebrating!

If you are interested, please Contact Us.

The post Filing tax returns online – infinitely less taxing with the cloud appeared first on Inform Accounting – Xero Accountants in Birmingham.

The Autumn Statement part 2 – what we couldn’t fit in last week

There was so much in George Osborne’s Autumn Statement on 3 December that we couldn’t possibly fit it all into one blog so we thought we’d write another one to cover all the areas we missed – we are accountants after all and attention to detail is definitely our thing! So without further ado…

VAT’s life!

VAT obligations are about to change big style – from 1 January 2015 businesses of all kinds (including creative’s) will feel the impact. VAT will apply depending on where you are when you buy a product and not where the product is actually bought from. This could have consequences for those businesses who have customers across a wide geographical area (we all know how extensive the online arm is). It might be useful to get some expert advice about your VAT obligations to make sure you’re fully aware of how this could affect your company, whatever industry you’re in.

Ah yes, the car fuel benefit charge

This one affects directors and their employees with company cars who are lucky enough to have part (or all) of their fuel paid for by their company. A fuel benefit charge is worked out by multiplying a notional list price of the car by the correct percentage for the car based on its CO2 emissions.

The notional list price of a car will rise from £21,700 to £22,100 from 6 April 2015 regardless of any change in fuel price. As an example, a reasonably priced company car emitting between 121g and 125g CO2 per km would incur 20% of the £22,100, resulting in taxable fuel benefit of £4,420 as well as £1,768 income tax for a 40% taxpayer. When you work out the pence per mile you’d need to drive in order to make the private fuel benefit worthwhile, you probably wouldn’t even feel like starting the engine!

One man and his van

When it comes to company vehicles, employees given a company van (they’re not always white!) will find that their taxable benefit is to go up from £3,090 to £3,150 in 2015/16. In addition, there’s a benefit (taxable of course) of £594 where private fuel is provided by their employer – beware though, because this is a charge that only applies to those who use their company van for private journeys…

CGT you say?

There’s always something about CGT in the Autumn Statement and December’s was no exception. This year it came via an announcement that CGT is to be set at £11,100 in 2015/16 so if you’re one of those higher rate taxpayers affected by the 28% rate, you’re going to find yourself with an extra £3,108 in your pocket. No complaints there then.

CGT and the great UK residential property debate

After much talk and consultation, the introduction of a capital gains tax charge is to come into force from 6 April 2015 affecting non-residents selling UK residential property. Although the finer details have yet to be decided, the general idea is that unless a non-resident individual spends a ‘substantial’ amount of time each year in their UK property (at least 90 nights) they won’t qualify for the CGT relief when they do sell.

Now that we’ve managed to fill you in on a few more things that came out of this year’s Autumn Statement, we can finish by offering our expert advice on any of the items we’ve mentioned. So, if you’d like to know if or how any of them affect you or your business, get in touch and we’ll be more than happy to help.

The post George, the Autumn Statement, your business, and you – Part 2 appeared first on Inform Accounting – Xero Accountants in Birmingham.

Read on for a rundown of some of the important highlights mentioned by Mr O in his latest Autumn Statement…

What a relief! – Business rates discount continues

Small businesses were happy to hear one golden nugget from Mr Osborne’s Autumn Budget – the news that the Small Business Rate Relief will be extended to April 2016. It means that around 385,000 businesses will continue to get 100% relief from business rates until 2016 with a further 190,000 feeling the benefits of tapered relief.

A helping hand for innovative businesses

Encouragement for business innovation in the UK was given a boost in the Autumn Statement with an increase in Research and Development (R&D) tax relief. It will rise from 225% to 230% from 1 April 2015.

The future looks rosy for employers hiring apprentices

From April 2015, employers National Insurance Contributions (NICs) for their employees under 21 years old (and not earning more than the Upper earnings Limit) will be wiped out. And to encourage businesses to take on apprentices, there is to be no employers NIC payable for apprentice wages (as long as they are under the age of 25 from 6 April 2015). It could be the boost your business really needs.

Stamping out SDLT

The showstopper of the Autumn Statement was the announcement on stamp duty and the change in way it is now calculated, with immediate effect, a whopping 98% of homebuyers the UK are expected to feel the benefits of a much fairer system. In a nutshell the changes look like this:

• no stamp duty on the first £125,000
• 2% stamp duty payable on the remaining amount up to £250,000
• 5% from £250,001 to £925,000
• 10% on £925,001 to £1.5m
• 12% payable on anything above £1.5m

Personally, allowances are looking up

Good news was also delivered on the topic of annual personal allowance which will rise to £10,600 from April 2015 – a whole £100 more than originally expected bringing a tax free amount of £883 a month, and better than a poke in the eye with a sharp stick!

And for the higher rate taxpayers out there, news that the threshold will rise to £42,385 for April 2015/16 and the basic rate band will be set at £31,785. The 45% will still apply to taxable income over £150,000 – cheers George!

Oh, and not forgetting the introduction of the transferable personal allowance for married couples and those in civil partnerships who can choose to transfer up to 10% of the basic personal allowance of £1,060.

ISA ‘bout time!

A surprise change to Individual Savings Accounts (ISAs) and that news that, as well as increased limits to £15,240, with immediate effect, if someone dies, their husband or wife can now inherit their ISA and keep its tax free status.

Also worth mentioning…

• No rise in fuel duty
• No increase in NICs rates for employers, employees or the Class 4 rate for the self-employed for 2015/16 – though watch out for increased thresholds
• Air passenger duty for kids under 12 is to be abolished from 1st May 2015, followed the year after by abolition for under 16’s
• A single 20% rate of corporation tax will be put in place from April 2015 onwards, regardless of a company’s profits. Also, a new ‘diverted profits tax’ charge at 25% will apply to profits which have been artificially moved from the UK to a system in a lower tax country

Obviously, there were lots of other changes covered in the Autumn Statement and we have only brought you a select few but if you’d like to find out more about how these, and other changes delivered by George Osborne could affect you as an individual, or as a business owner, please do get in touch.

The post George, the Autumn Statement, your business, and you appeared first on Inform Accounting – Xero Accountants in Birmingham.

A partnership between leading private sector business growth experts, Grant Thornton, Pera, Oxford Innovation and Winning Pitch and backed by government, GrowthAccelerator will get your business to where you want it to be – faster.

Inform Accounting, an approved coach for GrowthAccelerator, can arranged matched funding of up to £2000 per senior manager. To qualify for GrowthAccelerator you must be a UK registered company and based in England, have fewer than 250 employees and have a turnover of less than 40 million pounds. If you are interested and would like more information please contact us:

Contact

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If you are using Xero as your accounting software, you know how much it puts you in control of your finances. Do you know a business that would like to benefit from this offer? If you do please get in touch with us:

Contact

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Once upon a time, well, 2012 actually, auto enrolment seemed like a tiny speck far off in the distance that it was said would affect all UK business owners and employees. For most, it seemed too far in the future to worry about.

Well it might have seemed like a long way off back then but lots of bigger companies have already enrolled their staff into workplace pension schemes (that’s what the ‘I’m in!’ adverts were all about) and by 2018 smaller companies will have to be on board too, with their own pension schemes sorted out.

Auto enrolment is a government initiative which offers millions of people the chance to save for their retirement into a pension scheme provided by their employer.

But why is this all so important? Well, because we are generally living longer and (sadly in many cases) under­saving, so the law has been changed to help people save for their retirement through their company (this is the ‘automatic’ enrolment bit).

The onus here is on the most senior person within an organisation (usually the owner) to put a pension scheme in place for their staff to join and hopefully to save enough money for their retirement helped along by an additional (minimum) contribution by the company for each member of staff in the scheme.

Although it might not seem all that complicated, there’s a lot to be done before a business is ready to offer an automated pension scheme that satisfies HMRC and the Pension Regulator, not to mention all the changes that will need to happen behind the scenes at work (we’re talking payroll, a load of admin and collecting of information, notifying staff and having the system software that can cope with the changes).

When you’ve got enough on your plate with a business to run, it makes sense to speak to the experts who can provide you with all the auto enrolment information you need, when you need it.

So whether you’re a business that likes to plan, or a fly­by­the­seat­of­your­pants kind of business, we’re here to help you and your staff get on board with auto enrolment.

We will be sending out information about Auto-enrollment over the coming weeks through our Twitter and LinkedIn accounts. Please feel free to follow us on Twitter and connect with us on LinkedIn. If you need information before this please do not hesitate to contact us.

The post Auto enrolment – it’s coming soon to a business near you! appeared first on Inform Accounting – Xero Accountants in Birmingham.

There ain’t no Christmas party like a tax exempt Christmas party!

Ah yes, the Christmas party season is here again and it’s time to join in the festive spirit and dust off your dancing shoes for the annual work Christmas ‘do’.

With the tax exemption on annual events like Christmas parties, there’s absolutely no reason for your boss to go all Bob Cratchett on you this year because they can claim up to £150 for each member of staff ­ this allowable tax deduction for business annual events is surely cause for celebration!

To make the most of this great benefit make sure:

• the event is open to all employees
• it doesn’t cost more than £150 per person, including any guests or partners invited too

Remember, this is an exemption not an allowance, so if you spend even a penny more than £150 per person you’ll be taxed on the full amount (not just the amount over £150), got it?

Actually, this tax exemption can be applied to any annual business event, from summer BBQs to Christmas parties ­ so as the boss, you can enjoy it a little more knowing that there’s less of a tax bill the morning after.

But don’t forget, £150 is the whole amount you can spend on each person each year for ALL events you hold, not for EACH event you hold ­ getting this wrong could end up costing you quite a bit!

Think of it like this; if you treat your staff to two regular events every year (lucky things!), as long as the combined cost doesn’t go over £150 per person, you’re a winner!

You can spend your £150 on whatever you choose – fine food, great wine, a dodgy DJ in a sparkly waistcoat, or similar cheesy entertainment, it’s up to you, but it’s all included in the exemption cost.

So go ahead and deck the halls with boughs of holly, banish the ‘Bah humbugs!’ and have yourself a merry little tax exempt Christmas party!

For more information, get in touch with us:

http://www.informaccounting.co.uk/contact-us/

The post There ain’t no Christmas party like a tax exempt Christmas party! appeared first on Inform Accounting – Xero Accountants in Birmingham.

With the rise of online accounting software (you might know it better as cloud based accounting) many businesses, including start-ups, are opting for this kind of accounting over more traditional, some may say out dated, accounting methods simply because of the benefits it offers.

So when it comes to business accounting, is your head up in the clouds or are you a traditionalist?

If you’re unsure or thinking of making a change then taking a closer look might just help you decide…

Getting at your financial data (and your accountant)

These days we want everything instantly and we don’t see why we should have to wait for it. Online accounting is your answer. You can access your data from your laptop, desk computer, tablet or even from your mobile phone, basically anywhere, anytime. With traditional methods you wait until your accountant can prepare your accounts (still waiting?).

The flexibility test

The beauty of online accounting means you can take your key financial data with you wherever you go, which could be very useful. Traditional accounting is a tad more restrictive since you need to wait for the figures from your accountant and you may not always get it as soon as you’d like.

Back it all up!

Manual backups and traditional accounting go hand in hand, that’s when and if you remember to do them! Online backups are performed automatically (magic word) so there’s no need to remember – we know which we’d prefer.

So what’s the cost?

Cost is always a huge factor when it comes to choosing an accounting system. Paying for an accountant as well as an accounting package equals a hefty bill. Online accounting software is so much cheaper – no license fees and no need to buy expensive software. Maybe that’s why it’s so popular with small businesses.

There are loads of benefits to online accounting software but it isn’t right for everyone so it’s up to you to do your own research and decide whether the benefits of moving to the cloud outweigh opting for traditional accounting.

For a growing number of businesses there’s just no contest – it’s up, up and away…

For more information, get in touch with us:

http://www.informaccounting.co.uk/contact-us/

The post Online accounting vs traditional accounting – is there really any competition? appeared first on Inform Accounting – Xero Accountants in Birmingham.

We’ve been big fans of Receipt Bank for a while now, and the Xero add-on just seems to get better and better. A brand new Receipt Bank App has just been launched for Android (an iPhone version is available too) – and it seemingly achieves the impossible by making expense claims…fun. OK, almost fun.

For the uninitiated, Receipt Bank is an application that links up with online accounting software like Xero to speed up the process of submitting receipts to your accountant. It replaces that old journey you had to do every few weeks or so (taking a plastic bag full of receipts to your accountant) with a slick and swift online interface that allows you to submit via email and mobile app.

We use it here at Inform, and recommend it to clients as a great time-saving tool. The mobile app makes life even easier, too.

You can take photos of your receipts on the go – in the coffee shop, or on the petrol forecourt – and submit them there and then. Receipt Bank then extracts the data from the image, with the figures feeding straight into your online accounting software.

So what’s new in the latest version of the App?

Well for a start, an already-easy process has been made even simpler, with fewer taps of your smartphone screen now required to submit a new receipt. You can also submit double-sided receipts and multi-page invoices for the first time, and submit multiple receipts simultaneously.

New publishing features allow you to then publish the extracted data straight to your Xero accounts, without having to log in on a computer.

In short, it’s all geared towards saving you yet more time, and making sure you never have to go scrabbling around for ‘lost’ expenses receipts ever again.

You’ll find the new Android app in the Google Play store now – just search for ‘Receipt Bank’. The iPhone app is available from the App Store.

For any help using the App or integrating your Receipt Bank account with your Xero accounting software, just give us a shout and we’ll be more than happy to show you the ropes.

Submit your receipts and invoices here:

http://www.informaccounting.co.uk/receipt-bank/

Get in touch with us:

http://www.informaccounting.co.uk/contact-us/

The post New Receipt Bank App. Expenses made even easier. appeared first on Inform Accounting – Xero Accountants in Birmingham.

With the Xero Dashboard, you can easily see your overall business performance. You can also keep a close eye on key financials from your Chart of Accounts.

See how much money you’re expecting to come in from customers, easily create invoices at the click of a button, review what’s due to go out to suppliers and see when payments are due.

You can also manage expense claims and receipts, see all your bank activity and reconcile transactions with ease.

Check out this video tutorial http://vimeo.com/57035032 to learn how you can use the Dashboard in Xero to manage your small business finances.

To find out more on how we can help, contact us here and we will be happy to arrange a free demo.

The post The Xero Dashboard – keep track of small business finances appeared first on Inform Accounting – Xero Accountants in Birmingham.

If your thinking of moving to Xero please call us on 0121 667 3882 for a free no obligation demonstration.

All your Sage 50 data including historical transactions can all be moved across to Xero.

If you would like to know more about this feel free to contact us.

The post FREE SAGE TO XERO DATA CONVERSION appeared first on Inform Accounting – Xero Accountants in Birmingham.

Under the revised timetable announced back in February, automatic penalties were due to start from 6 October. This will still apply for companies that employ 50 or more people, but smaller companies will get an extra five months until the automated regime starts from 6 March 2015.

The Revenue said it will send electronic messages to all employers shortly to let them know when the penalties will apply to them, based on the number of employees shown in the department’s records.

If you would like to know more about this, please don’t hesitate to contact us.

The post AUTOMATIC RTI PENALTIES DELAYED AGAIN FOR SMALL COMPANIES appeared first on Inform Accounting – Xero Accountants in Birmingham.

The Purchases tab in Xero gives a complete, easy-to-understand overview of your bills and purchase orders. Here you can create a new bill, repeating bill or purchase order.

Source documents can be uploaded to attach or simply drag-and-dropped in. Bills can be saved as a draft, submitted for approval, sent off and even batch-paid.

Click here to watch the video tutorial so you can see how easy it is to manage bills and purchases within Xero accounting software.

To find out how it can work for your business, enter your details here and we’ll arrange a no-obligation trial.

The post Manage bills and purchases in Xero appeared first on Inform Accounting – Xero Accountants in Birmingham.

Firstly, R&D tax credit relief provides companies with an enhanced corporation tax deduction of up to 225% for qualifying R&D expenditure. For example, £100,000 qualifying expenditure attracts a tax deduction of £225,000. Qualifying expenditure would include scientists’ and engineers’ salaries involved on the research project.

Many companies involved in R&D are making a loss in the early stages and rather than carry the loss attributable to the enhanced R&D spend forward they are able to claim a repayment from HMRC. The repayment was increased to 14.5% from 1 April 2014, turning the £225,000 loss into a £32,625 refund (32.625% of the qualifying spend).

The second generous tax break is the “Patent Box” which entitles the company to a lower corporation tax rate on profits from the sale, licensing or other receipts from patented products. This lower rate is currently being phased in but will decrease to just 10% from 1 April 2017. In order to qualify for the Patent Box the company must register a UK or European patent over their invention.

Although software development can qualify for R&D tax relief, it does not currently qualify for the Patent Box.

If you would like to discuss whether either of these tax breaks apply to your company, feel free to contact us on 0121 667 3882.

The post IMPROVED TAX BREAKS FOR INNOVATIVE COMPANIES appeared first on Inform Accounting – Xero Accountants in Birmingham.

For example, if the company pays tax at 20% and the director/shareholder pays tax at 40% this would clearly not make sense!  If the loan is made to a company, the company will normally also need to deduct 20% tax at source and pay this to HMRC quarterly.

If the lender only has a small amount of other income, such as a small salary or pension below £10,000, the first £2,880 of savings income is only taxed at 10%.

Next year, however, the first £5,000 of savings income will be tax free which will provide a planning opportunity for some, as shown by the example:

Mr Smith needs £100,000 to expand his sole trader business. His wife has just inherited a similar amount from her mother and decides to loan it to her husband’s business at 5% per annum. Her only other income is a small salary of £10,000 a year from her husband’s business. The £5,000 interest would potentially save up to 45% income tax plus national insurance for Mr Smith, whereas Mrs Smith would receive £5,000 interest tax free.

Although the loan to the business in the example above is tax efficient (in that there is no income tax due from 6 April 2014) it would also be important to consider the CGT and IHT implications of the loan.

Should the business default, it may be possible to obtain relief as a capital loss against capital gains in the same or future years. There would, however, be no inheritance tax business property relief should the lender die with the loan in place.

Please contact us for further advice in this area.

The post INTEREST ON LOANS TO YOUR BUSINESS appeared first on Inform Accounting – Xero Accountants in Birmingham.

In keeping with our ethos of making your life easier, we’ve redesigned the site to make it simpler to use and more comfortable to read.  We hope you like it as much as we do.

If you’d like to take a look, please visit www.informaccounting.co.uk. Let us know what you think! 

The post EXCITING TIMES AT INFORM appeared first on Inform Accounting – Xero Accountants in Birmingham.

As we move closer to the end of  summer – a time we can use to both reflect on the year so far and look towards the next few months and beyond.

It is a well-known fact that the businesses that plan tend to outperform those that don’t and yet many businesses owners fail to perform this important task. We are great believers in the planning process; in our opinion, the time needed to create a proper business plan is worth its weight in gold.

The most important plan is the strategic plan as this helps to clarify key goals, facilitates the reporting of the most important performance indicators, provides the specific actions needed and  creates accountability.   These 4 areas significantly increase our chances of doing what is necessary to arrive at where we want to be.  Indeed, it is the “doing” that is the number one factor to a successful business.

If you are looking to undertake some strategic planning and would like any help, we would be pleased to show you how the process works.

If this is something you would like to discuss with us, give us a call on 0121 667 3882

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Ask any independent small or medium sized business if the banks are lending and many of them will give you a very short answer (that’s a ‘no’). It’s a well-known fact that banks are not exactly being free with their money these days and this has resulted in businesses finding alternative routes to secure the finance they need in order to expand or develop.

Alternative lending is basically a bunch of individuals (a crowd) who see the potential of a project, investing an amount of money each to finance it so that it can become a reality. There are three types of crowdfunding: ‘equity’, ‘reward’ and ‘debt’ and each one has its own pros and cons.

The results have transformed some businesses beyond recognition towards successes that would not have been possible if their bank had been the only source of funds (and had said ‘no’). So much so that we have seen the rise of many crowdfunding websites in recent times, the biggest and possibly the best being Kickstarter, Indiegogo, Quirky and Crowdcube to name but a few.

But in such a fast-growing sector, it’s no wonder that legislation is just around the corner but for now, the Financial Services Authority (FSA) have issued guidance to crowdfunding which is actually quite useful as it offers advice on what to look out for.

Though crowdfunding is not going to be right for every independent business looking for that extra finance to boost a project, it could be the way forward for others.

If you have any further questions don’t hesitate to contact us.

The post The rise of alternative lending appeared first on Inform Accounting – Xero Accountants in Birmingham.

Since Xero began, in 2006, the products have evolved dramatically. Many new features have been added and there are many more to come.

If you want to find out more about Xero, give us a call and a member of the team will be happy to assist you.

The post Xero’s New pricing Plan appeared first on Inform Accounting – Xero Accountants in Birmingham.

Great conference held today by the Xero team. Sian Kelly, Director at Inform Accounting, was asked to share her experience with Xero and how it has helped Inform offer higher value services, through running Client’s account in the Cloud on Xero.

If you would like to know more about Xero, please contact us on 0121 667 3882 or send an email to info@informaccounting.co.uk and a member of our team will be happy to help.

The post Xero Roadshow appeared first on Inform Accounting – Xero Accountants in Birmingham.

Businesses, Charities and Community Amateur Sports Clubs will be able to reduce their Employer Class 1 NICs bill by up to £2,000 per year. The Employment Allowance will be straightforward to claim using standard payroll software.

More details on how to claim the Employment Allowance will be available in the New Year.

If you would like to know how we can help, please contact us on 0121 667 3882 or send an email to info@informaccounting.co.uk and we will do the calculations to reflect individual circumstances.

The post What’s New – latest news from HMRC: EMPLOYER’S £2,000 NIC ALLOWANCE appeared first on Inform Accounting – Xero Accountants in Birmingham.

To find out more about using Purchase Orders in Xero, click on the following link http://vimeo.com/76927573 or give us a call on 0121 667 3882 and a member of our team will be happy to help.

The post Purchase Orders in Xero appeared first on Inform Accounting – Xero Accountants in Birmingham.

You can now store all your Business documents securely in Xero. Just drag and drop.

Click here to watch a short video on how to uplaod your documents.

Alternatively, feel free to contact one of the team on 0121 667 3882.

The post Files in Xero appeared first on Inform Accounting – Xero Accountants in Birmingham.

Inform Accounting are proud to announce that we are moving to new offices to accommodate our rapid growth.

We will be operating at the new premises from Monday 28th October 2013.

Please could you update your records for the new address. All other information will remain unchanged.

New business address:

11 Wrens Court,

46 South Parade,

Sutton Coldfield,

West Midlands.

B72 1QY

Phone : 0121 667 3882

Website: www.informaccounting.co.uk

This is located opposite TGI Fridays.

Thank you to all our loyal customers for your continued support and referrals which have enabled us to grow.

As always customer service is at the core of our business, so if you have any questions please don’t hesitate to call us, or even drop in for a coffee so you can see our new offices.

Please note that the old telephone number for Boyden Associates will no longer be in use.

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When Inform Accounting was first set up in 2010, two main objectives were core to the business:

– to use safe and secure accountancy software

– to offer Clients the best service and advise, tailored to each Clients’ need.

Following the introduction of a new cloud based accountancy system, called Xero and looking at the benefits the software offered, we felt it was the right choice for our Clients and we have never looked back.

Why the cloud and accounting software works?

– Xero, as a cloud based software, can be used from any device with an internet connection. The Data is stored securely and safely off-site and backed up automatically, it even has daily bank feeds!

– Online accounting means small business owners have a clear overview of their financial position in real time, stay connected to their data and their accountants

– It’s cost-effective and easy-to-use.

Inform Accounting have now 100+ Clients using Xero. As Xero’s Gold Parnter, Sian Kelly (our Director) was asked to take part in a panel discussion on stage at the Xercon London 2013 event, see picture below:

Sian Kelly and Rod Drury – Founder and CEO of Xero:

It’s our commitment to give our Clients the service they deserve by working together.

If you would like a free demonstration of Xero and would like to know more about how we can help you grow your business, give us a call on 0121 667 3882 to arrange a one to one meeting.

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If you would like to get more information about the Xero app and what features it has to improve efficiency in your business, then don’t hesitate to contact us.

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Here at Inform Accounting we understand that the time you spend on your bookkeeping and expenses could be better spent building your business.

Therefore, we’re pleased to announce our adoption of Receipt Bank, the Xero add-on which removes the burden of data entry and gets rid of your boxes of paper.

No more storing receipts and invoices!

Your bank feed supplies Xero with the latest information on your cash in / out. The Receipt Bank feed adds to this by inserting your    receipts and supplier invoices into Xero. By adding transactions that have yet to hit the bank account and the supporting documentation of your bank transactions, Receipt Bank ensures that your data in Xero is richer than ever before!

How to submit your receipts and invoices

You can submit your receipts and purchase invoices to Receipt Bank in a variety of ways! Via iPhone and Android apps, Dropbox, email-in, or upload from computer etc. You can even post your paper to Receipt Bank for them to scan and upload directly to your online account.

Receipt and invoice processing

Receipt Bank extracts the necessary data from the transactions and securely stores the scanned copies in your online account, ensuring your business has its records saved in an easily retrievable way.

Inform Accounting and Receipt Bank

Inform Accounting will have access to your Receipt Bank account enabling us to manage your expenses from there. The partnership with Receipt Bank is an example of how Inform Accounting is continually taking advantage of new technology to help our clients improve their businesses!

If you would like a Receipt Bank account please contact us on 0121 667 3882 or click here to set up an account: www.receipt–bank.com .

If you aren’t currently a client of Inform Accounting please contact us on 0121 667 3882 and we can help you to set up a Receipt Bank account and give you further information on our other services.

The post Inform Accounting Ltd adopts Receipt Bank appeared first on Inform Accounting – Xero Accountants in Birmingham.

For 2013/14 the trap potentially applies to even more taxpayers with the increase in personal allowance to £9,440:

For 2014/15 the trap is even wider with the increase in personal allowance to £10,000:

If you think you could fall in the this trap,  contact  Inform Accounting and we can advise you of all the possible ways of keeping well clear.

The post Personal Allowance Trap! appeared first on Inform Accounting – Xero Accountants in Birmingham.

The average pension savings pot in the UK will last just 7 years, based on what most people believe they need as a retirement income. More people then need to do more to plan for their retirement and pensions remain one of the most effective ways to provide for your future. The annual allowance of £50,000 is the maximum amount of pension contribution in a year on which an individual can receive tax relief. A £50,000 pension contribution for a higher rate taxpayer saves £20,000 in Income Tax.

Can you make pension contributions of over £50,000 this year?

It may be possible to use ‘carry forward’ to make larger contributions now. Those using their allowance for 2012/13 have until 5 April to carry forward unused allowance from 2009/10. If you have used up these allowances yet want to maximise contributions to secure 50% tax relief you should consider accessing the £50,000 allowance for the 2013/14 pension input period. This could be particularly helpful for individuals or companies who had an especially good year.

Are you an additional rate taxpayer?

Although the reduction in the additional rate of Income Tax that applies to income in excess of £150,000 from 50% to 45% is good news, it also means that from 6 April 2013 there is a corresponding reduction in tax relief to 45%.

The 5% reduction in tax relief has the effect of increasing the cost of pension contributions by 10%. A gross contribution of £20,000 currently costs an additional rate taxpayer £10,000 after tax relief, but from 6 April 2013 the net cost will increase to £11,000 – 10% more.

You can save 10% on pension contributions by taking action before 5 April.

For more information on maximising your Pension Allowance or any Tax saving related affairs, don’t hesitate to contact us!

The post Maximising Your Pension Annual Allowance appeared first on Inform Accounting – Xero Accountants in Birmingham.

“We want the smallest businesses to be able to choose the method of accounting that works best for their business. The simplified system will provide this flexibility, give greater certainty, and simplify the tax calculations for many small businesses.”

There are some restrictions with regard to who can use the cash basis regime:

• Companies
• Limited liability partnerships (LLPs)
• Lloyd’s underwriters
• Businesses with a current herd basis election
• Persons with a S221 profit averaging election
• Some specific trades are also ineligible. Please contact us for more details.

Businesses need to be aware that by using a cash basis, they cannot claim for capital allowances. Nor can they carry businesses losses back or set them off “sideways” against other sources of income. We can advise you on the best decision in your circumstances before this new option comes into effect.

Another interesting development is that from the 2013/14 tax year, unincorporated businesses can take advantage of a number of flat-rate allowances to account for various expenses. These include:

• Business mileage
• Expenses associated with using the home for business purposes
• Interest on cash borrowing, up to £500

These allowances will be available to qualifying businesses regardless of whether they use the cash basis regime or not.

If you have any questions about the latest announcements and how they may affect you please contact us.

The post Simpler Income Tax for the simplest small businesses appeared first on Inform Accounting – Xero Accountants in Birmingham.

1) Paying expenses can supplement your salary, tax-free?

Expenses payments can be made tax-free, but only if they meet certain criteria.

The Golden Rule, according to the HMRC, for allowances and expenses is:

“An employee may deduct expenses incurred wholly, exclusively and necessarily in performing their duties.”

So, expenses can and should be used to reimburse employees, but if you’re making payments over and above the employee’s salary that do not meet the Golden Rule, then these should be treated as a benefit and you would be required to report on these payments to HMRC as part of the employee’s P11D.

Some examples of expense items that could be tax-free

For your information – here’s a list of examples of expenses that typically qualify to be paid tax-free.

Travel (including business mileage)

Accommodation

Subsistence

Protective clothing

Training

Eye tests

Professional subscriptions

Charitable donations

2) staff parties and events are totally tax deductible?

When it comes to staff parties and special events, there is some margin to claim tax back, but the rules are very strict.

Your annual employee event will be exempt from tax, NICs and reporting only if it meets the following three conditions:

it’s an annual event, such as a summer barbeque or an end-of-year party

the event is open to all of your employees

the cost per head of the event isn’t more than £150.

So, you can have the party of a life time as long as it doesn’t exceed £150 per person. You can also spread it over two or more events, but remember: the cost of the event that takes you over the threshold will have to be taxed in its entirety. Oh yes, and it must be open to all your staff, from the most senior to the most junior members.

3) You must have original paper receipts to meet HMRC requirements?

The common error is that VAT can’t be recovered without the original paper receipt and that companies have to retain all hard-copy receipts for expenses, in order to comply with HMRC rules.

The good news is that it is possible to collect receipts digitally and retain these electronic images of the originals instead. However, they must be are clearly legible, easily accessible, printable and not manipulated or editable.

Also, you can claim VAT back using the digital copies, and you can even get companies to audit all of your receipts if you have a clever digital process for submission and approval.

If you require any further information with regards to Digital receipts, then don’t hesitate to contact us and we can discuss what application we use to make our bookkeeping process quick and simple!

The post An Introduction to What Expenses are claimable in the UK appeared first on Inform Accounting – Xero Accountants in Birmingham.

RTI or Real Time Information

As an employer

• you will have to submit information about PAYE to the tax office on or before the pay date every time a payroll is run. This could be weekly, monthly or at any other interval of time.

• your records have to be more accurate than ever to avoid the new penalty regimes.

There’s a lot of time before the April deadline so contact us now do discuss any questions you may have.

The post Is your business ready for RTI appeared first on Inform Accounting – Xero Accountants in Birmingham.

The penalty is £100. You’ll still have to pay this even if

• your tax return is just a day late
• you have no tax to pay
• you pay all the tax you owe before 31 January 2013

The longer you delay, the more you’ll have to pay. There are additional penalties when your tax return is three, six and twelve months late. Together these could add up to a penalty of £1,600 or more, so make sure you get your tax return in on time.

Don’t send a paper tax return now – the deadline was 31 October 2012. You’ll have to pay a £100 penalty straight away if you do and the daily penalties above will start even earlier. Send it online instead.

If you are late filing your 2011-2012 Tax Return, please contact us to discuss minimizing your penalties.

The post What happens if you miss the tax return deadline appeared first on Inform Accounting – Xero Accountants in Birmingham.