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.

Follow us on Twitter @OmnitasTax and like our Facebook page – we are happy to help with any queries that you may have.

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.


Taking early action on debt for SMEs

Small business owners that are struggling to make ends meet should seek early advice from the Business Debtline while they still have a chance to turn things around.

Taking early action on debt for SMEs

The Business Debtline is a free, Government-backed service run by the Money Advice Trust, which offers one-to-one advice sessions for those struggling to cope, helping them produce an action plan that could prevent insolvency.

If your company is struggling with cash-flow due to debts, it makes sense talk to them first before you go down the slope that could lead to bankruptcy. If you have debts and/or owe HMRC monies then give them a call – you can visit their site at www.moneyadvicetrust.org

Taking early action on debt for SMEs!

Omni Chartered Accountants also offer free impartial advice to UK SMEs and our competitive pricing plans are designed to help your business stay right on track.

For an initial chat, call us today on 01902 837 408 or click here and we will come straight back to you!


Referral scheme: earn commission or credits!

Referral scheme: earn commission or credits!

From day one Omni Tax and Accountancy Solutions Ltd has received referrals.

So we have decided to introduce an official thank you!

You already know how good we are, we like working with and for people and businesses the are recommended to us. Now everyone can benefit with our clear and simple referral programme.

Choose your reward!
Credits:
Every time you refer a client that takes our service we will give you a voucher to be redeemed against our own services.
A: You can get your full years accountancy costs covered.

Commission:
If you would rather be paid for each referred client that takes our services, we will pay you 10% of the first years charges.

In addition we will also give your referred client a 5% reduction on their first years fees!

Referral scheme: earn commission or credits!

Just request a free of charge call back, email andyc@omnitas.co.uk or speak to Andy on 01902 837408 or 07812 988065 today!


Are you addicted to the busy drug?

Are you addicted to the busy drug? We see many clients during a working week and understand what commitments mean to anyone who is running a business. As such, we are very happy to accommodate working around our clients’ individual business needs.

What we also see is a whole variety of “I’m really busy” scenarios.

When you are your own boss, on occasions it is well worth reminding yourself of certain things. One pivotal and critical element is your own time – you as a resource. Are you being productive? Are you focusing on the correct and most efficient parts of your business?

Are you addicted to the busy drug?

It appears that many of us can, at times, become addicted to the ‘being busy drug’. But let’s be really clear.

Being busy doesn’t necessarily mean that you are being:

  1. Effective
  2. A success
  3. Important

Being busy could actually mean that:

  1. You have poor organisational skills and fail to delegate
  2. You are a people pleaser who cannot say no
  3. You are suffering from a lack of clarity regarding your actual purpose

So please, never ever confuse being busy with being effective. Instead, spend a little more time trying to stop and understand what you’re aiming to achieve, before you move on to take action.

At Omni Chartered Accountants, we are not just here to ensure we assist with your accountancy needs; we also care about your success and want to see your business flourish.

So as well as taking our Accountancy Price Challenge, to see how we could save you money with your accountancy bills, why not give us a call today on 01902 837 408 for some free of charge business advice?


Self-employment tips – part two

Self-employment tips – part one

In part two of our special self-employment feature, we take a look at some more important factors that you should consider.

Get a business bank account

As a sole trader, although your business income will be taxed alongside your personal tax, it is vital to keep your business records and finances separate from your personal affairs.

For this reason, we recommend you open a separate business bank account. Shop around, as you can usually find deals offering you up to 24 months free business banking.

Typically, your new account will be “John Bloggs trading as, or T/A, your Business Name”. Once again, it looks more professional to have your business name on cheques and invoices.

If you’re likely to hold cash for some time, you should also open a business deposit account to get a little interest on your money, even if rates are still at historic lows.

Keep accurate and up-to-date financial records

To be a successful sole trader, you must keep on top of your books.

From the start, you are obliged to keep clear and accurate records of all your business transactions. Not only will this ensure that you keep the tax authorities happy, but you’ll find it so much easier to operate your business if you are organised and your paperwork is constantly updated. Check out online systems like cashflow, sage and Xero.

When the time comes to submit your VAT return (if you’re VAT registered), pass your accounts information to your accountant and complete your annual self-assessment tax return, you’ll be able to get these done quickly and efficiently – giving you more time to work on your new business.

Need advice?

We hope that you enjoyed our Self-employment tips – Part Two and found it useful – don’t forget to check out part one of our special self-employment feature too, if you did.

If you need guidance about becoming self-employed, Omni Chartered Accountants are happy to help – request a free of charge call back from our website today or click here and we will contact you to discuss your situation.