Richard Hotchin, the director of Qube Specialist Maintenance Solutions LTD, inflated the value of his purchases and drew up invoices for equipment he had never bought. Hotchin pleaded guilty in court on the 22nd of June 2016 and was sentenced to 21 months in prison. Confiscation proceedings are underway to recoup the proceeds of his crime.
HMRC has updated its guidance on what happens when employers fail to report their business’s payroll information on time.
All employers (including those with nine or fewer employees) must now submit their completed and accurate RTI forms to HMRC online either on or before their staff’s payday. Failure to do this could result in penalties, which start at £100 per month.
If you’re an employer, this means that it’s more important than ever to file your payroll on time.
Are you using Xero files ? At your year end e.g March , a good way to ensure cloud bookkeeper have access to all your necessary documents is to upload them to the Xero files. This could include things like dividend paperwork or any purchase invoices for fixed assets that rant already uploaded.
Xero files are also a great way to declutter your office. Upload and store any documents you need of easy access anywhere and to save on space recycling the paper copies. HMRC and other tax authorities accept electronic copies as being equivalent to paper copies.
Stamp duty is going up for landlords and those buying second homes: They will face a 3 per cent surcharge on the existing price bands from 1 April 2016. (See the box opposite for the full list of charges.)
Wear and tear allowance is going: The allowance allowed landlords to offset 10 per cent of their rental income against tax for maintenance, regardless of whether they carried out any repairs or not. From April 2016, they will only be able to claim for maintenance they can prove has taken place. That means that careful record keeping of receipts and invoices is essential. The government says the measure will have effect for expenditure incurred on or after 1 April 2016 for corporation tax payers and 6 April 2016 for income tax payers.
As the new tax year looms upon us , its important that sole traders and the self employed empower themselves by starting the new tax year in an organised way. We can help at Cloud Bookkeeper to take away the stress, worry , errors and time of doing your tax return and organise your financials from the very begining of the Tax year.
Following consultation in 2014, the latest set of changes decided upon by HMRC are about to take effect, writes Howard Royse.
By far the most significant of these is the move to mandatory online filing of monthly CIS 300 returns. There has been a steady move away from the submission of paper returns by contractors and now HMRC has decided that the minority must comply with the norm. To be fair though, disputes over late-submitted returns have tended to involve paper versions. Therefore around 20,000 contractors (or potentially, their agents) ought to have made preparations for this new method, or need to act very quickly.
From 1 April 2016 workers aged 25 and over will be entitled to a new minimum pay rate of £7.20 per hour, called the National Living Wage (NLW).
If you’re working and aged 25 or over and not in the first year of an apprenticeship, you’ll be legally entitled to at least £7.20 per hour. That’s an extra fifty pence per hour in your pocket. The Government is committed to increasing this every year.
If you’re an employer, you’ll need to make sure you’re paying your staff correctly from 1st April 2016, as the National Living Wage will be enforced as strongly as the current National Minimum Wage.
for more information visit the Living wage website
There will be new changes implemented to taxation laws from April 2016. Pension and ISA dividends will not be affected by the new regime and will remain free of tax, but the new dividend rules are likely to have an adverse effect on company directors and share holders of small incorporated companies.
The new proposals will reportedly bring in an extra £2.54 billion in revenue for the year 2016/2017 tax year, with smaller amounts continuing to bolster the public purse in future years. The changes are an effort by the government to equalise tax laws for those who run unincorporated business.
Changes which will be introduced
- A maximum annual dividend allowance of £5,000 is too come into force after taking the personal allowance.
- The existing 10% national dividend tax credit will be scrapped.
- 7.5% on dividend income in the basic rate band
- 32.5% (for higher rate band)
- 38.1% (Additional rate band)
People with a low dividend income will see a reduction in there tax bill, but the new measures are likely to hit small business the hardest.
Insighly is an advanced CRM system which now integrates with Xero. whilst your invoices and bills live in Xero, your prospect , customer and partner information lives in Insighly , bringing both of these vital systems together makes life a lot easier. the Insightly Xero integration gives you a complete picture of your business from early prospect communication, through the sales process to invoicing and payments. From Insightly you can specify which users have access to Xero information and your sales team can even create Xero invoices from Insightly. With a single operational and financial view of your customers
for more information contact us
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