The UK tax system is convoluted and keeps changing every now and then. Moreover, these tax rules apply differently to different sorts of businesses. However, we here will be discussing all about Corporation tax that all Limited companies have to pay. We will discuss what Corporation Tax, when is the due date and what rates apply?
Let’s start the discussion with briefly describing what a Limited Company is.
What is a limited company?
Setting up a limited company means that you are running a business but your personal finances will be treated as a separate entity. This means that Limited company owners are protected by ‘limited liability. A single person can run the company as both the owner and the director also. Any profit that you make via the Limited company will be the company’s profit solely after Corporation Tax has been paid.
How much corporation tax does a limited company pay?
Once you start your own Limited Company, the first legal thing to do is to get your business registered to pay Corporation Tax. All Limited Companies are required to pay the Corporation Tax on the profits earned. The current rate of Corporation Tax stands at 19%.
How does tax on dividends work for limited companies?
If your limited company has made a profit after taking away business expenses and corporation tax, it can distribute these earnings to its shareholders with something called a ‘dividend’. However, it’s to be noted here that you are liable to pay shareholders a dividend only if you have sufficient profits to cover it.
Note: From April 2018, the dividend allowance was reduced from £5000 to £2000. This means that as a shareholder, you can draw down £2000 in dividends before they are subject to income tax. This allowance is tax-free, but still takes up £2000 of your basic rate tax allowance (up to £34,500 for 2018/19).
Do I need to register my company for Value Added Tax (VAT)?
If you are likely to turnover £85,000 or more during any 12 month period (this is the 2020/21 threshold), you must also register your company for Value Added Tax (VAT). Limited Company owners collect VAT on behalf of HMRC by adding the prevailing rate to your invoices (the standard rate is 20% and hospitality is currently reduced to 5% during Covid). Once you deduct any VAT your company may have spent during a VAT quarter, you pay the balance to HMRC.
You can of course voluntarily VAT register, this may be beneficial if you are paying VAT on your purchases and want to claim this back. It also adds prestige to your business if you have a VAT number. Remember on the other side you will have to add 20% (or 5%) to your sales so make sure you factor that into your pricing when making the decision to VAT register.
Do I need to pay PAYE/National Insurance Contributions?
If you and any employees receive a salary, then income tax and National Insurance Contributions (NICs) are deducted at source and paid to HMRC on a monthly or quarterly basis. This the other initial task you (or your accountant) will have to set up within your company payroll.
Even if you don’t pay any salaries which breach the lower threshold for tax or NICs, you must still notify HMRC that no tax is due for that period (this is a simple process).
What are other taxes I need to know about?
Other taxes that you are liable to pay if you are a Limited Company owner include:
Payments on account:
You may also need to make ‘Payments on Account’ towards the following tax year, if your personal tax tax bill is over £1,000 and you haven’t paid more than 80% of all the tax you owed directly, i.e. through your tax code on your PAYE salary. For the tax year ending 5th April 2021, there would be a payment due 31st January 2022 and 31st July 2022.
Capital gains tax:
You may also be liable to personal or company Capital Gains Tax on any assets you have disposed of during the tax year (such as shares, investments, or property).
If you sell your own company and have owned the shares for at least 12 months, then you may be eligible to pay Entrepreneurs’ Relief on the proceeds – at a flat rate of 10%.
To qualify for Entrepreneurs Relief you must have owned the business (at least 5% of the shares and voting rights) for at least 2 years before the date you close it. You should also be an employee or officeholder of the company. Your company’s main activities should be trading (rather than something like an investment company).
Capital Gains Tax on shares without Entrepreneurs Relief is 10% if you’re in the basic rate tax band, and 20% in the higher rate. Capital Gains Tax on properties would be either 18% or 28%.
For more information, feel free to get in touch with us.
Call us at: +44 7535 6176 81
Email us at: [email protected]
From full formals to pyjama bottoms and a smart top, from anxiously counting the number of attendees on the Zoom meeting & waiting for the red mute button to be switched on when your turn comes up to pampering your dog while sharing your opinions, the transition to remote work culture has been an exciting one for many.
Setting up home offices, working from your local coffee shop, sipping down the Dalgona coffee has been a bumpy ride for employees.
But how well has it served the company leaders?
We can’t speak for all but we have always been remote and it has turned out so well that we are happy to announce that we are soon opening up our branch in Dubai as well. That’s great news for us!!
Wondering how we do what we do? Let’s start with Who we are and then we will share our expertise on how we can help you scale with our remote team.
Who are we?
“Making accounting understandable.”
Yes, that’s our tagline and we believe and deliver the same. Our journey began back in 2017
When Latha & Suzy joined forces to make accounting a completely paperless industry. They involved more & more modern technologies & fused them with their Accounting competencies to help their clients go beyond just numbers.
We took Accounting out from the traditional accounting age of paper to a paperless profession, fueled by technology. Technology not only allows us to deliver accounting operations more easily but also allows us to work from remote locations and save both money & time for our clients. This is just a brief of who we are, now let us share how we leverage our remote culture to help businesses out.
Make the best use of remote work with Zyla:
Remote working is gaining popularity quickly. And after the COVID-19 outbreak, remote culture has already become a ‘new normal’ that all sorts of organisations are transitioning to. Working remotely gives employees increased flexibility and autonomy while employers tend to save on business costs.
Here are a few points to give you a brief overview of how Zyla has grown from a toddler to a teenager, in a remote culture from day 1.
Available in multiple time zones as per your convenience:
Even though, until now we have been serving clients in the UK only, our remote working ways allow us to settle with clients from different time zones. This has played a major role in Zyla spreading its wings in Dubai as well. We have been working from Dubai for quite some time now but the time zone differences have only helped us deal with both setting up here as well as continuing to serve our clients back in the UK.
Tech pushed us a step ahead & helped reduce errors and speed things up:
We have said time and again that we are tech-savvy Accountants and this has acted as a catalyst to our growth. With the technologies that we use here at Zyla, our deliverability & quality assurance have only gotten better. While helping our clients remotely, we have used technology to bring out the best of ourselves. By leveraging various accounting software, we are able to eliminate manual human error and speed up things.
Hiring the best people:
Working remotely allows us access to a larger pool of talent, going beyond the boundaries of nations to hire talented individuals. We promote a diverse work culture at Zyla where the only criteria is talent.
Hiring the most cost-effective people:
Since we open-heartedly welcome talented individuals, we can hire them in the most cost-effective way. We save on costs significantly but don’t compromise on the talent-level of our new hires.
What type of Software makes remote work most effective:
In our growth as a remote accounting firm over the past few years, we have come to realise three main areas of our business where technology has helped us grow. These are:
In our line of work, constant communication & collaboration with the client is of the utmost importance. But even while working remotely, we have never compromised with that. On the contrary, technology has brought us even closer to our clients as we always stay connected with them. We use various tools like Slack, Whatsapp, Accountancy Manager, and Google Hangouts to be always present for our clients.
We are a paperless accounting firm and Accounting software are the primary reason why we operate that way. Accounting software helps us access our client’s financial data from anywhere in the world via secure cloud servers. Accounting automation further allows us to share to and from our clients on the agreed date. Xero Accounting software is one of our many specialties.
We have heard many company leaders say that remote culture can be really hard to manage at times since they have no real-time insights on their employees’ performance and what’s the status of work/project. Well, with us it’s pretty simple!!
We have always preferred using task management software to help us keep track of the current progress of every project. This way we have a progress report with us at all times which we use to streamline our priorities & meet deadlines. We also save hours of manual labour this way and use it to benefit our clients instead.
How remote culture can reduce cost?
During the last year alone, the remote work culture has seen a spike as more and more countries are adopting the approach. This has given employees the liberty to work from anywhere while it has allowed employers to reduce costs significantly. From paying office rents to electricity bills to commute reimbursements, businesses have saved enough. And this saved amount can be smartly transferred in keeping the clients happy while obtaining new clients.
Get started with Zyla today!!
Zyla’s remote culture has not only helped us grow but also our clients grow. You can do the same if you are looking for tech-savvy Accountants that can keep your accounts clean & balanced. We can help you find your next best full-time accounting employee at a much cheaper cost.
We make sure that the person is qualified as per the UK standards and also take care of all employee’s hassles and issues. By now you are well-aware of us and how we operate. If you also want to position your business/ accounting firm as we did, get in touch.
As a small business owner if I ask you what are the major problems faced in running a business profitably, what will be your answer?
If we go by the stats, “there were 5.9 million small businesses at the start of 2020, in the UK.” This points us to a clear indication that the marketplace is fiercely competitive and standing out against all the competitors is not easy and many businesses lose out on this.
Moreover, the end-consumer is becoming more & more demanding every day & businesses that miss out on this interaction will suffer. Mark Waid put it very aptly when he said “ Especially in the digital age, people want everything now, now, now.” That sounds about right!!
However, this is just the tip of the iceberg. What lies deeper is managing everything efficiently with limited capital. A small business owner is like that juggler who, if misses out catching even one ball, the show is ruined. Both have to manage it all with limited resources.
Time and money for a business are the most critical elements to its growth.
What do you think can help save both for a business?
The answer is technology!
We are living & breathing technology. From tirelessly scrolling through the Tik Tok videos to promoting your business on the same platform, technology is omnipresent. My point here is that we are living in Digital Age and not investing in the same means you have already invested in digging a grave for your business.
We are done with the ‘Why’ & ‘What’, now comes the important part of this discussion which is the ‘How’. Let’s deep dive into technology and see how small businesses can save time and money to see positive growth graphs consistently.
Technology trends for Small businesses
Let’s break down the influence of technology into five major components of a business model. Go full digital from day 1 and eliminate the risks of the transitional process.
Marketing & Sales:
There are over 4.66 billion active internet users(Source: Statista) as of January 2021 & over 3.8 billion social media users (Source: Baklinko). This makes digital platforms the first stage to grow your business. Another report suggests “63% of small businesses believe that social media helps to find and maintain more loyal customers.”
Small businesses missing out on this opportunity just to save a few bucks initially need to understand that this is a long-term investment that will fetch results when the disaster hits. The year 2020 has already shown how early adopters of digital platforms have profited when nations all around the globe were under strict lockdown restrictions.
Marketing online will help you reach your target audience faster, generate more leads, eventually generating more revenue.
Streamlining Finances & Accounting:
We have been waiting to say this – “We come in here. We are the tech-savvy remote Accounting professionals that can save your business both time and money.”
Finances are a core part of every business and managing them in the most efficient way is no walk in the park. Accounting is no more the age-old practice of just adding up a list of numbers to match the accounts, it has evolved into an enormous giant that can both hurt your business as well as be your savior. From Accounting software to invoicing tools to filing taxes online to sharing confidential financial data through encrypted cloud servers, technology has been deep-rooted in the Accounting industry now. To support my claim, “82% of companies reportedly saved money by moving to the cloud instead of older, more outdated digital storage systems.”
Why are you still waiting to go paperless?
Just let us know and we can be Your Tech-savvy Accountant & Advisor.
Productivity while managing a remote work culture:
Productivity of the team collectively lays the foundation of a strong business. However, according to Deloitte, “40 percent believe that digital tools are “not relevant for my business,” and 38 percent that “they are not effective for my business.”
Is it true? No is the answer.
Small business owners can easily leverage the power of digital tools like time tracking software, project management tools, Human Resource Management Systems, etc to streamline their work processes. Moreover, most of the businesses are currently working remotely and this seems to be the future as well since it allows businesses to save cash. And with technology in place, businesses can save both time-saving & money. A lot of both these resources are wasted when manual processes are in place.
Collaboration & Communication:
“14% of small businesses fail because they don’t respond or communicate with their customers.”
This brings us to collaboration & communication with the clients. Customer behaviour has changed a lot over the years and today’s customer isn’t just looking for service but 24/7 support. This issue can be sorted out by simply choosing one of the many collaboration tools out there. Also, collaboration isn’t just an external factor, even the in-house team needs to be communicated well enough to get the desired results.
We ourselves use tools like Slack, Accountancy manager, Google Hangouts and WhatsApp to stay connected with our clients at all times. Client Relationship Management:
The evolution of the CRM industry has had a massive impact on helping businesses grow. Statistically speaking, “CRM software is now the biggest software market in the world and the growth isn’t slowing down. In fact, CRM is now expected to reach more than $80 billion in revenues by 2025.”
It’s a no-brainer realising the fact that CRMs allow businesses to have access to their client data in real-time. Moreover, technology has made it possible to access this cloud-based software from mobile devices. Keeping track of all your business leads and personalising automated workflows to reach out to them has become a key business growth tactic nowadays.
To keep in mind:
As we move forward in this digital age, cyber-attacks have also grown. “43% of all cyberattacks target small businesses.” Again, no business owner wishes to lose their hard-earned money & time to these fraudsters. What they can do instead is leverage the power of highly encrypted technologies & undertake other security measures. As an example, Lastpass allows us to encrypt all of our passwords to ensure our client’s data security.
- Technology costs:
Softwares while they help you be productive, may result in cost overruns if not managed efficiently. Do not subscribe to softwares’ that you are not going to use. Always measure the ROI of your investment in the software. If done wisely, it’s a win for you!
We have saved enough using cloud technologies & other software. But we do this only after proper research around the benefits that our firm will get. As an example, we use My Quick Cloud so that our remote team can work from the same cloud computer. Our server is in Ireland and we have peace of mind that all data is secure in our working environment. We even partnered up with cost management consultancy Reducer to offer our clients free and easy savings on business utilities. Technology has been our best friend!!
So, when you hear the word technology, let the echo be time-saving & cost-cutting. In order to stay ahead in the race, you need to start early or be the fastest runner. Technology offers you both.
The Spring Budget is out!!
On March 4th, UK Chancellor Rishi Sunak made the much-awaited Spring Budget public.
In the budget that was announced at the house of commons, Mr. Sunak revealed how the government has planned to overcome the country’s largest economic annual slum in more than 3 centuries. After a 10% depreciation in 2020, Rishi Sunak announced the budget that forecasts to get the economy on track in 2021 with predicted annual growth of 4% this year.
The key highlights of the Spring Budget are as follows:
- Furlough to be extended until the end of September. Employers to be asked to contribute 10% in July and 20% in August and September.
- Support for the self-employed also to be extended until September. 600,000 more self-employed people will be eligible for help as access to grants is widened.
- Minimum wage to increase to £8.91 an hour from April.
- No changes to rates of income tax, national insurance or VAT.
- Tax-free personal allowance to be frozen at £12,570 from April 2021 levels to 2026.
- Corporation tax on company profits above £250,000 to rise from 19% to 25% in April 2023.
- Rate to be kept at 19% for about 1.5 million smaller companies with profits of less than £50,000.
- Inheritance tax thresholds, pensions lifetime allowances, and annual capital gains tax exemptions to be frozen at 2020-2021 levels until 2025-26.
- £20 weekly uplift in Universal Credit worth £1,000 a year to be extended for another six months.
- Working Tax Credit claimants will get a £500 one-off payment.
- No changes to rates of income tax, national insurance or VAT.
- Corporation tax on company profits above £250,000 to rise from 19% to 25% in April 2023.
- Rate to be kept at 19% for about 1.5 million smaller companies with profits of less than £50,000.
- Stamp duty holiday on house purchases in England and Northern Ireland extended to 30 June.
- No tax charged on sales of less than £500,000.
- Inheritance tax thresholds, pensions lifetime allowances, and annual capital gains tax exemptions to be frozen at 2020-2021 levels until 2025-26.
- £1.65bn to support the UK’s vaccination rollout and £50m to boost the UK’s vaccine testing capability.
- £19m for domestic violence programmes, funding network of respite rooms for homeless women.
- £40m of new funding for victims of 1960s Thalidomide scandal and lifetime support guarantee.
- £10m to support armed forces veterans with mental health needs.
- Tax breaks for firms to “unlock” £20bn worth of business investment.
- Firms will be able “deduct” investment costs from tax bills, reducing taxable profits by 130%.
- Incentives for firms to take on apprentices to rise to £3,000 and £126m for traineeships.
- The lower VAT rate for hospitality firms to be maintained at 5% rate until September.
- Interim 12.5% rate will then apply for the following six months.
- Business rates holiday for firms in England to continue until June with 75% discount after that.
- £5bn in Restart grants for shops and other businesses in England forced to close.
- £6,000 per premises for non-essential outlets due to re-open in April and £18,000 for gyms, personal care providers and other hospitality and leisure businesses.
- New visa scheme to help start-ups and rapidly growing tech firms source talent from overseas.
- The contactless payment limit will rise to £100 later this year.
Client’s books piled up, account reconciliations, tax deadlines to be met…
This is how a day in the life of an accountant used to look. Limiting them to focus on petty tasks like keeping track of the financial records, matching them, and updating them on a regular basis.
However, from the age of the abacus to the present times where Accounting software has become a wand every Accounting wizard must know how to work around with, technology has been playing a vital role in redefining the working ways of an Accountant.
With the rapid infusion of technology, today’s accounting professionals aren’t merely number crunchers but an organization’s most trusted business advisor. Internet, availability of analytical tools, and cloud-based software sit at the core of an Accountants transition into tech-savvy business advisors.
We at Zyla are no different. Tech-savvy, number-loving Accountants & business advisors for small businesses. We are now Xero Gold Partners as well!!
Zyla Accountants – Tech-savvy number handlers with solid IT expertise
We are new-age accountants who not only enjoy doing our client’s books but also have expertise in leveraging the power of technology. This is the core of how Zyla works. It allows us both time to focus on more revenue-generating Accounting tasks as well as analyze in-depth data that we can use to help grow our client’s business.
From the very beginning when Zyla was founded, we wanted to take Accounting a step ahead. And our millennial tech-friendly mindset allowed us to incorporate a fully-fledged tech ecosystem in our Accounting practice.
Look at us now, transforming and redefining the basics of the Accounting industry. Our clients see us as their Accountant, trusted advisor, mentor, and trainer as well.
Was it easy?
Not exactly but surely an innovative approach to Accounting.
Technology in Accounting – Changing the dynamics of the industry
While traditional accountants were still figuring out if technology can be a costly affair to handle, we envisioned the future of Accounting and fell in love with it. You love it or hate it, but you can’t ignore the fact that technology has become an important part of every business aspect. Now, even our clients expect us to be up-to-date with the latest technology trends.
Accounting softwares like Xero have allowed us to increase our efficiency and productivity. Be it collaboration, be it real-time analysis of our client’s financial position, or be it a data-driven approach to cash flow forecasts, technology has made decision making easier.
Accounting on the Cloud while client’s revenues touch the sky
Who would have thought Accounting professionals would have to become software gurus? But again adaptability has always been the thin line that differentiates mere survival from growth. The same holds true when it comes to using Cloud Accounting software to grow your practice.
Cloud Accounting offers us to access our client’s data remotely via highly encrypted servers. We don’t need to rely on manual calculations anymore since automation is already taking care of it for us. We are able to save ample review time and use it to focus on ways to generate more revenues for our clients. Integrations further allow us to keep track of all our client invoices, keeping their balances accurate at all times.
How do we become tech-savvy?
We have a variety of tools, assisting us with different processes so that we can invest our Accounting skillset in helping our clients. Some of the tools that have made us tech-savvy are:
- We use Slack, Whatsapp for communication.
- Xero Accounting software is our magic wand.
- Google Sheets help us with sharing data via the cloud.
- Accountancy manager is where we meet and greet our clients & managed our own workflow.
- Our remote team work from My Quick Cloud from locations around the world.
- All of our passwords are encrypted in Lastpass to ensure our client’s data security
- Workflow Max helps our clients in better managing their Projects.
- We prefer Startling Bank for mobile banking.
- Taxfiler helps us keep our clients tax-ready always.
- We also specialise in Zoho, Clearbooks, Sage, Quickbooks, and a ton of other software as well.
How becoming tech-savvy helps us help you?
It’s a mutual relationship that benefits both of us. We can:
- Invest more time helping your business rather than number-crunching:
Gone are the days when Accountants were next of kin to Bookkeepers. Technology has changed this relationship a lot and Accountants now aren’t dealing with just numbers but real-time data. With this data, we have been able to help businesses minimise their losses and maximise their profits whilst meeting their financial and tax obligations.
- Prioritise client communication and experience:
Technology has brought us closer to our clients. With end-to-end encrypted communication channels, we are always in touch with our clients. Remote is just another word for efficiency for us.
- Reduce human errors:
As Automation with Accounting software continues to get better, it has immensely supported us in replacing the erring human nature. Reduced error means lesser review time and perfect reconciliations.
When we have technology helping us with other day-to-day human-intensive tasks, we are better equipped to hand over our client’s work before the deadline dies.
- Harness data to provide sound advice & make quick decisions:
Numbers have encrypted stories to tell and technology allows us to decrypt them and make better-informed decisions based on the available data. It also helps us to figure out the right solution much quicker. Had we been still relying on Excel, we would have found it hard to excel at what we do!!
It’s all about choosing the right tools for the right process. We’re not just here to make sure you’re meeting your accounting deadlines – we also help you operate your finances in a more efficient way, so you can grow your business confidently and sustainably.
Finding the right accountant, no less than a running joke in the small business domain. Why so??
Well, the major reason is that now it isn’t just about finding an Accountant who can take care of your day-to-day data processing needs. Instead, businesses need an accountant who is a jack-of-all-trades. But is it really possible without being a master of none? Maybe!!
Accounting softwares have made it quite possible for accountants to take over a wide range of roles. However, when business owners step into the market in search of Accountants that are both good with numbers as well as tech-savvy, it isn’t easy. What’s even more troubling is a dilemma of accolades that makes an Accountant the right choice for a business.
With over 2,000,000 users and being a primary accounting solution for over 16,000 accounting firms, Xero has made choosing an accountant easy. Our Xero Gold partner status has made it even easier!!
Experience, expertise & excellence, shining brightly like stars studded on our Xero Gold Partner badge. Let’s tell you more about what we’ve achieved and what benefits this achievement brings for your business.
What does it mean to be a Xero Gold Partner?
Xero is cloud-based accounting software that businesses all around the world are in awe with. The extensive list of features that Xero offers has made Accounting on the cloud so much fun. Connecting people, sharing files on highly encrypted servers and ease of accessibility are a few features that have made Accountants switch over to Xero. But how do business owners know if an accountant/ accounting firm really knows their way around maintaining and managing Xero software?
‘The Partner system is designed to recognise advisors who scale within Xero’s network, and it’s there to help small and medium-sized businesses to better identify and connect with the advisor that suits their needs. Xero Gold Status is an achievement that reflects our level of experience with our customers using Xero.’
Initially starting with a Xero partner status when we and our clients use Xero products, we receive points that help us increase our partner status. Basically, now we can flaunt our Xero Gold Partner badge to showcase our expertise and hands-on experience with our clients using Xero.
While Platinum Partner status is the highest, we are already Xero Gold Partner now with just one more star left to be added.
How our Xero Gold Partner status benefits you?
The Gold Partner status isn’t awarded to just one accountant, it is a collective achievement that defines the capabilities of Zyla as a firm. It means that all the members of our firm are at par with one another when it comes to handling Accounting using Xero software. By leveraging the powers of Xero, we can help small to mid-level businesses sort their finances, thereby making their business more profitable.
Our Accounting knowledge combined with our level of Xero expertise allows us to gather in-depth knowledge of your business, allowing you to dedicate resources on growing your business. We can take care of a wide range of accounting needs like payroll, bookkeeping, and other man-power intensive tasks while you are focused on handling your core business competencies.
From setting up Xero to advising you what will work best for your business (including setting up Xero add-ons), we know it all!!
We can also train your in-house team and offer support as and when needed. Moreover, we can flaunt our Gold badge to get you subscription discounts as well. You can consider us as the Xero search engine that has answers to all your queries.
As Accountants, we realise that we aren’t just data processors but in a way for your business growth as well. And with our tech-savvy Accounting model, we bring a solid business model to take your business to the next level of growth
Want to get started with Xero? Need help setting up your Accounting processes in the Xero cloud? Get in touch with our experts to see how we can unlock your business’s potential.
And so the Furloughed Accountant has reached the end of his time with Zyla Accountants it is time to reflect on the past seven weeks. It’s been a steep learning curve, but one with many highlights and I thought I would take this opportunity to discuss two of these.
The undoubted highlight for me was actually allowing Suzy and Latha time to take a well earned break. A couple of weeks ago they both took the week off leaving yours truly in charge of the firm…. And yes the firm didn’t collapse. Seeing how hard they work for their clients, and how passionate they are about their work, it was great to see them both take a well earned rest.
The other highlight has been the clients I have gotten to know over the course of my time with Zyla. Despite only ever being in here as a temporary member of the team, all of the clients have made me feel like a welcomed part of the team, and been happy to come to me for advice. Be it working my way through Management Accounts, year end Accounts, Payroll or Tax work, every client buys into the Zyla way of operating which is that of a true partnership between advisors and clients and it is great to see that.
The biggest highlight, I know I said two, has to be working with Latha and Suzy. Even though I have only met Suzy before, and I am based over 400 miles away in Scotland, from day 1 both Suzy and Latha welcomed me to the firm, took time to give me the background on the clients, and even trusted me with their firm for a week. I was even told off for using the words ‘working for’ in the early days.
All that leaves me to say is thank you, and to encourage anyone that wants to experience the positivity themselves to get in touch with Suzy and Latha at [email protected]
Mar Sin Leat
The Furloughed Accountant
Whilst it may seem strange to be talking about personal tax returns in May, especially in the middle of a pandemic, there are many reasons why now is the perfect time to talk about it. I have spent a lot of my week working on personal tax returns for clients who are keen to know what their tax liabilities are for the next year, and likely payments on accounts for July 2021. Yes I said it, over twelve months away.
Early completion of your returns gives you the opportunity to plan ahead to determine how you will be able to pay your tax liabilities. Whilst the payments on account in July can be deferred, as things stand, these still need to be paid by the 31st of January 2021, and these payments will need to include the July 2021 payments as well. For many people that is going to be a large outgoing, and the sooner you know the bill the more time you have to prepare for this. There is nothing worse than getting a large tax bill in January and not having the cash to pay it. That said, we all keep money back for our tax bills don’t we……
The other reason why we, at Zyla are keen to discuss your tax returns with you as early as possible is that if you are out of work just now, or working limited hours, then this is the time when you can pull the information together, and we can sit down and have a socially distancing chat about you, and your business. This could be the time when real and significant changes could be made to you and your business.
Don’t let Hector the Inspector catch up on you, drop us an email at [email protected] and let us advise you how best to keep on Hector’s good side.
Wow what a reaction to last week’s blog, some great and some interesting feedback – I do like the name ‘the mysterious Scottish CA’ but I promised Suzy and Latha this wouldn’t be about me. Over the course of the next couple of weeks what I said I would write about for them is the various different softwares that they use to make their cloud based firm so accessible for someone joining them, even from 400 miles away.
This week I thought I would focus on ‘Slack’ which was the one I was most interested in starting with them. As David Menzies commented ‘great to see collaborative working’ and this epitomizes what Slack is all about. At Zyla, Slack is used as the internal collaboration and communication tool between all of us here at Zyla.
Every client has a channel set up, every software and topic as well as key subjects all have individual channels set up to allow both communication and tracking of progress on work. When I’ve finished a bit of work, and want to send it to Suzy or Latha for review, I message them via Slack, and include a link to the Google Drive where the work is stored thus creating a to do task for the them, as well as making it as easy as possible for the person who is reviewing it. Not only that – it keeps your inbox clearer and lets be honest, who doesn’t want their email inbox clearer!
As well as using it for internal workings above, they have taken it one step further and created an online community and help hub for their clients through a second community. I should mention at this stage that a community is essentially a hub where you login into to see what communications you have access to. So for all of their clients, there is a one stop shop for updates and information – which has been greatly received by clients during this current pandemic. With emails there is always a chance a spam filter will not like a word in the email and send something to junk, and by using Slack, clients know this won’t happen and get notifications when updates are shared. And what’s even better – clients can share their experiences through here without concerns.
All that leaves me to say is are you getting this service from your current accountant, and if not, would you love to be part of the Zyla Community? If so, drop us an email at [email protected] and let us introduce you to Slack.
Who is eligible?
If you are self-employed or partner in a partnership firm and have been adversely affected by the recent Coronavirus pandemic you are eligible to claim using this scheme. The grant need not be paid back but needs to be included and taxed in your Self Assessment Tax return for 2020-21.
How much will you get?
You will get a taxable grant based on your average trading profit over the 3 tax years
- 2017-18 and
HMRC will work out the average by adding the profits of the three years and dividing by 3
The grant will be 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. The amount will be paid by HMRC straight into your bank account.
Check if you are eligible to claim
You can check online to find out if you’re eligible to make a claim. Your tax agent or adviser can also check your eligibility on your behalf using the link https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
You’ll need your:
- Self Assessment Unique Taxpayer Reference called the UTR number
- National Insurance Number
You should be able to find both on your previous year’s tax return or contact your tax agent or advisor who would have it.
Once you have established your eligibility you need the additional information below to make the claim using the same link as mentioned above.
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- UK bank details (only provide bank account details where a Bacs payment can be accepted) including
Bank Account Number
Name on the account
Your address linked to the bank account
How to claim
- You have to make the claim yourself. Your tax agent or advisor cannot make the claim for you but you can contact them for support or information.
- You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus
- You should not claim the grant if you’re a limited company or operating a trade through a trust
- HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate
After your claim
HMRC will check your claim and pay your grant into your bank account in 6 working days from the date the claim is made and will also send you an email when your payment is on its way.
Record Keeping and Reporting
You must keep a copy of all records in line with normal self-employment record keeping requirements, including:
- the amount claimed
- Claim reference number
You should also keep any evidence that your business has been adversely affected by coronavirus such as:
- business accounts showing a reduction in turnover
- confirmation of any coronavirus-related business loans you have received
- dates your business had to close due to lockdown restriction
- dates you or your staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities due to school closures
Report the grant
- on your Self Assessment tax return
- as self-employed income on any Universal credit claim
Please conact [email protected] if you need any help on knowing more about the scheme and wanting to make your claim to HMRC