Bank of England February 2016 Inflation Report Summary

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This report is courtesy of the Black Country Chamber of Commerce.

Bank of England February Report significant points:

  • There has been a softening of UK growth forecasts from 2.5% to 2.2%
  • Spare capacity in UK is 0.3% of GDP and unemployment is below 5%, which leaves little room for manoeuvre within the current downturn – this may lead to price pressure
  • A corporate cash balances are high (lessons learned from the recession) and because lending from the non-banking sector has grown, any issues within the financial sector are not expected to have a catastrophic effect on a globally resilient UK
  • Global growth outlooks are fuelling the 7% drop in equity; growth expectations amongst emerging economies have dropped significantly as a result of the drop in commodity prices (Less investment and bank lending tightening). Growth expectations in advanced economies has risen (where 75% of our exports go to)
  • Oversupply is the reason why the oil prices are dropping. Some commentators are expecting prices to drop to $10 a barrel
  • Productivity in the UK is rising but more business investment is required to consolidate

Click here to view the full Bank of England February 2016 Inflation Report.

We will continue to keep you updated with all of the latest financial and accounting news and hope that you have found our Bank of England February 2016 Inflation Report Summary useful.

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If you require any tax or general accounting advice, feel free to call us on 01902 837 408 or you can request a free of charge call-back from our website.


Will UK Consumers Reject Technology in 2016?

Will UK Consumers Reject Technology in 2016?

I recently read a report – 2016 predictions – that UK consumers will increasingly reject tech in favour of a more traditional in the year ahead, creating new opportunity for businesses.

For Britons, 2016 will increasingly be about balancing the technological with the human element. We’ll continue to enjoy technology that gives us greater control over entertainment, purchasing, consumption, our work and personal lives.

We’ll use technology to learn; to sidestep traditional rules and behaviours and to speed up our lives using all the wearables, smart technology and internet led services that will be available in the year ahead.

But 2016 will see a growing reaction against the omnipresence of technology. More and more of us will want to balance our tech use with romance, relaxation, creativity, tradition, sensuality, rawness and honesty.

More and more of us will lose our “fear of missing out” and actually gain some pleasure from missing out. We’ll find time to switch off gadgets and seek out older, quieter, less urban environments in which to enjoy some ‘me time’. Or even take some tech-free we time with our closest friends and family.

More employers will embrace relaxation, digital detoxing and mindfulness.

The year ahead will see the “Slow Living” movement gain momentum, as more young people embrace old fashioned, inefficient ways to do things.

Many will start enjoying the traditionalist lifestyles and “Olde England” attitudes of village life and good neighbours, feeling a call of duty and encouraging others rather than making fun of them.

Reacting against the logic and ‘perfection’ of technology, some Britons will start championing flaws, randomness and a sense of danger. As with the trends we’ve seen in 2015, will all of the above have implications for business community?

Well maybe, but I think this is a utopian and perhaps unrealistic dream – technology will continue to be a massive part of our lives and our businesses and it’s up to us to stay in control: use it and don’t let it use us. How do you see 2016?

Will UK Consumers Reject Technology in 2016?

Written by: Andy Coleyshaw, Partner at Omni Tax & Accountancy Solutions Ltd


Tax relief restricted for many contractors from April 2016

Are HMRC digital tax accounts a good or bad thing?

HMRC has confirmed that people working through umbrella companies will no longer be able to claim tax relief on travel expenses.

Only those who can pass a test of being genuinely self-employed will be allowed to set these costs against expenditure in their accounts.

From April 2016, tax relief will be stopped if an individual is employed by an intermediary but is under the “supervision, direction and control” of an end user.

In addition, tax relief will be stopped if services are provided through a personal service company (PCS) and the engagement is caught by the Intermediaries Legislation (IRS35).

Once the definition and further guidance has been issued on the term, “supervision, direction and control” has been published by the HMRC, businesses will need to review the way they use temporary labour and all or any existing documentation that may be in-situ between them and employment intermediaries.

Contractors will need to take appropriate advice and make their decisions about which supply model to use.

Could you be affected by these new changes? Will your business have to take a look at how you manage your temporary labourers? Omni Chartered Accountants are here to provide advice and guidance and welcome any queries that you may have on this topic.

Tax relief restricted for many contractors from April 2016

You can request a free of charge call-back from our website www.taxandaccountancysolutions.co.uk or call us today for a chat about your circumstances on 01902 837 408 – we will be happy to help!

 


Are HMRC digital tax accounts a good or bad thing?

Are HMRC digital tax accounts a good or bad thing?

Taxpayers will start to be able to manage their tax affairs online with the formal launch of personal tax accounts by HM Revenue and Customs (HMRC).

By mid-December 2015, more than one million taxpayers completing their self-assessment will have been directed to their online personal tax account, HMRC has said.

These personal tax accounts, which will work in a similar way to online banking, promise to give people a “clear and joined-up view” of the tax they pay and enable them to update their tax details, supposedly removing the need to resubmit information.

Personal tax accounts

The launch of personal tax accounts is part of a drive towards a fully digital tax service. Two million businesses are already using their digital accounts and by April 2016, all of the UK’s five million small businesses will have access to their own digital account.

Every individual taxpayer will also have access to their own digital account by April 2016.

HMRC have said that by 2020 businesses and individual taxpayers will be able to register, file, pay and update their information at any time of the day, and at any point in the year, to suit them. For the vast majority, there will be no need to fill in an annual tax return. This will make it hugely important that you take the right advice from a professional or firm of Accountants.

At the moment, the information that HMRC receives from a range of sources is held on separate systems. This can mean taxpayers being asked to give information to the taxman that it already holds on another system.

The new digital tax accounts will join up the information HMRC holds in one place.

HMRC additional information and control

However some see it as not only being unable to cope but as an ulterior way of gleaning additional information and control.

One such quote from a tax blog;

“The real objective is to spy on your financial affairs 365 days a year and take what they think is the tax you owe directly from your bank account whenever they feel like it. After all these years, the present on-line system is a hopelessly unreliable mess.”

This may be an extreme view, but it is certain that the current systems and advice lines are struggling to cope with demand, wait times are increasing and historic legacy systems have not delivered as promised.

So, do you know what this means to you? Are you concerned, and if so by what?

Are HMRC digital tax accounts a good or bad thing?

Let us have your comments, views and concerns @OmnitasTax – we would love to hear your thoughts! Of course, if you require any tax or general accounting advice, feel free to call us on 01902 837 408 today!


2015 Autumn Statement from an SME perspective: Smoke and Mirrors?

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Mercurial Chancellor’s Autumn Statement treads fine line between smoke, mirrors and political sleight of hand.

 Chancellor George Osborne’s smiling face delivered a customary, skillful declaration of Government intent unveiling mouth-opening surprise in a ‘rabbits out of the hat’ delivery designed to trample over the critics of his financial and political aspirations.

 Determined to maintain his battle with Austerity the chancellor unveiled headline grabbing measures fuelled by a reduction of £8 billion in Government borrowing; robust growth forecasts for the next four years reducing Government debt as a share of GDP.

Opposition voices complained the ‘less generous’ Universal Credit benefit system introduced in stages between 2013 and 2017 but, as ever, the engine driving Treasury optimism is the performance of business, generating sufficient revenues to enable measures protecting front line budgets such as defence, policing, health and international aid.

 Yet small businesses continue to gnash their teeth about liquidity or rather the lack of it. Orders and production satisfactory, but getting paid?

 The old adage Cash is King never truer than today.

2015 Autumn Statement from an SME perspective: Smoke and Mirrors?


Timing bad debt relief

Timing bad debt relief, Accountancy advice, Accountant, accounting, accounting directive, accounts, affordable accounting, Blog, bookkeeping business, Businesses, business owners, chartered accountant, chartered accountants, companies house, company law, EU accounting, financial reporting, general election, HMRC, HMRC online system, HM Revenue & Customs, Income Tax, limited company structure, majority shareholder, minority shareholder, Omni, Omni Chartered Accountants, partnerships, PAYE, self-employed, self assessment, self employment, shareholder, agreement shareholder, rights small business, small business accountant, small business owners, small company accounts, SME, SMEs, tax, tax advice, tax affairs, tax return, VAT, Omni Chartered Accountants, Chartered Accountant Wolverhampton, Tax Advice Wolverhampton, Payroll Services Wolverhampton, CIS Accountant Wolverhampton, Accountant Wolverhampton Whatever accounting method your company uses, its profits have to be calculated on a “true and fair” basis.

That means including the value of invoices issued even where they won’t be paid until the following accounting period – or perhaps not at all. Accounting rules get around this apparent unfairness by allowing a deduction for the value of invoices you think won’t be paid i.e. Bad debts.

Bad debt relief

HMRC allows you to make a deduction from taxable profits for bad debts. However, it takes a tougher approach to it than accounting rules on what is classed as bad debt.

It isn’t just a case of estimating the value of debts you don’t expect to be paid, even if it’s a virtual certainty based on what’s happened historically; you have to carry out a review of each and every specific debt.

Chasing your debts

HMRC will expect you to have made a reasonable and proportioned effort to recover money you are owed.

This will be relevant to the amount of debt of course, e.g. if you are claiming a tax deduction for a £15,000. HMRC expects you to have been very thorough in your attempts to recover it, by using debt collection services for example, or taking court action.

Timing bad debt relief

You should claim relief for the accounting period in which you decide the debt has become irrecoverable.

If you suspect a debt may ‘go bad’, try to establish this in the same accounting period. This ensures that you won’t be taxed on unpaid bills. It is essential that you review your debts regularly – not just when the end of an accounting period is looming!

Post-accounting period

If the status of a debt you thought was bad at the end of your financial year changes, and before you sign your company’s accounts it is paid, HMRC will not accept a claim for bad debt relief.

This works both ways and if a good debt turns bad you can claim relief. Given this, it is well worth reviewing the debts during this period before signing and filing your accounts.

Seeking help

If you would like to talk about your bad debt situation, we would be delighted to hear from you – we are happy to provide expert advice that is totally free of charge. Simply request a call-back from our website, call on 01902 837 408 or click here to contact Omni Chartered Accounts.


Do I need an accountant?

Do I need an accountant?You might think that a start-up or small business isn’t big enough to warrant an accountant.

But unless you’re an expert in tax and finance – or in short, an accountant yourself – this simply isn’t the case. An accountant provides your business with a great deal of essential support.

If you are just starting a business, your accountant will take the form of another business adviser. They will be able to give advice on your business plan and the tax issues of registering a new business.

Some accountants offer book-keeping services, but if they don’t or if you wish to handle this yourself, you can get help with setting up manual or computerised book-keeping systems. And most importantly, you need an accountant to assist on things like whether it is necessary to register for VAT or PAYE and the procedures involved.

As your business grows

An accountant isn’t just there to help you manage your money. Whether you are starting up or a growing business, they can advise you on the best way to arrange additional finance without putting your business at risk.

Once you have the finance in place there needs to be some control to ensure growth of your business is handled in the right way. Many of your concerns will be financial – adequate working capital, good stock control, invoicing and so on – an experienced accountant’s advice will be invaluable in such matters.

Do I need an accountant?

And can you honestly say that you are on top of all the essential business tax issues? Well probably not – but that’s an accountant’s job. Taxation is a large business expense and an accountant can effectively minimise these costs.

Finding a competitive professional chartered accountant

Omni Chartered Accountants, Wolverhampton, offer a highly competitive and professional service to clients across the UK. We pride ourselves in giving advice on a one-to-one basis and we are very happy to provide you with a free initial consultation – you can request a free of charge call back from our website or call 01902 837 408 – alternatively, click here to contact us online and we will come straight back to you!


What is the best way to expand your business?

What is the best way to expand your business?As a UK SME, getting up and running is only half the battle – at some point, when your business becomes a success, you will need to expand your operation and employ more people.

The cost of employee turnover

For this reason, it is important to choose what staff roles are important and also the consideration of the extra outgoings of wages and of course, PAYE. Company cars may be part of the package and of course, there is the issue of pensions.

It is important to understand the cost of staff turnover; if your company changes employees regularly, this can cost valuable time and money when it comes to replacing them and training new people to carry out the role.

Inevitably, this can lead to downtime and loss of productivity during the time that the training is taking place.

What is the best way to expand your business?

Of course, offering an affordable yet enticing package to new employees will not only attract talent that could prove very valuable for your business but in the long term, it will help employee retention.

Expanding your business

If you are considering expanding your business venture, why not give us a call for a free initial consultation? Omni Chartered Accountants are specialists in helping UK businesses with their expansion plans – click here for more information, call 01902 837408 or request a free of charge call back from our website today.


National Insurance £2000 up for grabs

NI TaxFind out how the new employment allowance EA could cut your NI bill by £2000

Yes, there’s usually no such thing as free lunch but in plain black and white, HMRC has published a guide on how and when you can claim it: www.gov.uk/claim-employment-allowance.

Who can claim £2000 new employment allowance EA

Most companies can claim the EA even where their only employee is a Director.

However, if your business is caught by IR35 (i.e it’s classed as a personal service company) you can’t claim the EA in respect of deemed PAYE income. Other excluded employers are government bodies, some businesses which supply services to the government and employers of domestic workers.

Claim one EA allowance only

You can’t double up on the EA by paying wages through two businesses that are controlled by the same person. Only one of the businesses will be able to claim the allowance.

How to claim new employment allowance EA National Insurance

After you have sent your RTI full payment submission for payrolls run since 5 April 2014 you can file an employer payment summary (EPS) specifically to claim the EA.

Most payroll software will show a yes/no indicator asking if you want to, i.e. are you entitled to, claim the allowance. You must select YES where your payroll software asks if EA applies, if you use an agency or outsource your payroll ensure they have done this for you.

Omni Chartered Accountants can help your business money

Unlike some other businesses, we are here to save you money – in the long run, our ethos is simple: if we help increase your profitability, we retain business and encourage referrals.

And that, as they say, is the way to do it!

Call us today to find out more on 01902 837408, request a free call back from this site or click here to make an online enquiry.


HMRC eases stance on late PAYE filings

Tax and AccountancyUK businesses with less than 50 employees will now be allowed three days’ leeway by HMRC before being penalised for late filing of PAYE submissions.

HM Revenue & Customs has confirmed that late payment penalties will carry on being reviewed on a “risk-assessed” basis as opposed to being issued automatically.

No change to PAYE filing deadlines

HMRC have confirmed that there will be no change to the actual filing deadlines, which usually means that businesses need to file them actually on or before each payment due date.

HMRC will be closing close to 15,000 PAYE schemes in March 2015 in a bid to prevent unnecessary penalties being issued, for companies that have not filed a PAYE report since April 2013, and as a result, look to appear to have ceased trading.

These company schemes will be written to, advising them about the planned closure and what they should do if they are – or should be – operating PAYE.

Employers with less than 50 employees are also reminded that late filing PAYE penalties will apply from 6 March.

A discussion document has been published by HMRC in order to gauge views by the deadline of 11th May 2015. Suggestions concerning potential improvements to the way in which penalties apply for PAYE payment failure or to meet deadlines for registration or returns will be considered.

How to run your PAYE smoothly and avoid penalties

Of course, it is not always easy running a business and PAYE is something that a good accountant like Omni Chartered Accountants can help you with.

Seeking help with your PAYE affairs may work out more cost-effectively than you may think, especially when you consider the time saving and potential problems that your company could face if deadlines and payments are not made by the dates as set out by HMRC.

For more information, contact us now by clicking here or request a free of charge call back from our website by clicking on the link at the top of this page.