If only we knew! However, what we can do is keep you informed of financial rules and useful speculation of what is to come from an accounting and tax perspective.

Hopefully, Government help available during these unprecedented times has supported you through the storm. If you haven’t managed to yet obtain any assistance and want to run through your situation, please do get in touch just to check you haven’t missed out.
The Chancellor presented the Winter Economy plan at the end of September.

During his speech in Parliament, the Chancellor announced measures to continue to protect jobs and help businesses through the uncertain months ahead. This includes a new Jobs Support Scheme to protect millions of returning workers, extending the Self Employment Income Support Scheme and 15% VAT cut for the hospitality and tourism sectors, and help for businesses in repaying government-backed loans.

This effectively tweaked the previous furlough scheme and self-employment grants, which are ongoing at reduced rates now, but still out there to benefit from! If you require any further information regarding the new Job Support Scheme, which begins on 1st November 2020, please contact [email protected]

For those self-employed and currently eligible for SEISS, an initial taxable grant to cover three months’ worth of profits for the period from November to the end of January next year will soon be released. This is worth 20% of average monthly profits, up to a total of £1,875. An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April.
 
Bounce back loans are readily available and HMRC does have spontaneous flash grants available for different industries so always worth keeping an eye out for updates on the HMRC website.
https://www.gov.uk/search/news-and-communications
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VAT remains at 5% for the hospitality and tourism sectors until March 2021.
Apprenticeship schemes are very generous currently to encourage companies to entrust and train up young people. The Job retention bonus of £1,000 will also be available to Companies faithfully retaining their staff. There is only a 6 week window to claim this from 15th February 2021 – 31st March 2021 so please don’t forget! Here’s the link to check eligibility for this bonus:
https://www.gov.uk/guidance/check-if-you-can-claim-the-job-retention-bonus-from-15-february-2021
 
Please contact Jen on the above email for any questions regarding HR or payroll related matters.

This is a huge debate with far too many words and discussion floating around. So what does Philip Hammond’s budget actually change? Here is a summary of his proposals of relevance to the average self-employed person.
Personal tax implications are as follows:
·         Tax-free allowance on share dividends to reduce from £5,000 to £2,000
·         Personal tax-free allowance to rise to £11,500 this year (from £11,000), then slowly up to £12,500 by 2020.
·         The higher rate tax bracket will rise from £43,000 to £45,000.
·         A new £1000 allowance against property income and the same for trading income will be introduced from 6th April 2017.
·         Class 4 National Insurance contributions for the self-employed to increase from 9% to 10% in April 2018 and 11% in April 2019.
·         Class 2 National Insurance, currently applicable once self-employed people make a profit of over £5,965 a year, will be scrapped in April 2018.
·         The above will cost the average self-employed person around £240 extra per year, although those earning below £16,250 will end up paying less.
·         Employed people will not experience any change to their National Insurance contributions and nor will the employers.
A useful budget calculator tool to see how you will be affected can be found on http://www.bbc.co.uk/news/business-17442946
Another important change to note is that Corporation tax is being reduced to 19% from 6th April 2017, with the goal of reaching 17% by 2020.
If you would like to discuss this further or to discuss your accounting needs for 2017/18 please feel free to get in touch with our friendly team on 01275 873948 or by using our contact form.
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EXCITING NEWS: We're moving office on 7th November 2016!

Our new premises will offer more space and are located just off the prestigious Hill Road, hopefully ensuring that our clients have a pleasant experience when popping in to visit us.

​The new address is 6 Hill Road, Clevedon, North Somerset, BS21 7NE
​Our telephone number and email addresses will remain unchanged

So the craze of avoiding expensive hotels and for individuals to make a bit of extra spending money has taken of with the huge and rapid expansion of the Airbnb network!

​It's easy to do, relatively safe as people are vetted and money taken through a secure website and a good way to meet new people whilst making pocket money on one side and saving money on expensive accommodation on the other side.

Should this income be declared? YES!
​Is tax due on all the income received? NO!

There are 2 different types of rental: a room within your property or an entire self contained property (house, flat, etc.)

​If you're renting out a room within your home then this income qualifies for "Rent a room relief" meaning that the first £7500 is tax free.

​If you're renting out a separate property from your home then you will need to produce rental accounts. This takes all the income received over the tax year, then all relevant expenditure is removed from this income total to give you the taxable profits that need to be declared to HMRC.

​If you would like any help with calculating your accounts to check whether you should be paying tax on your Airbnb income then please get in touch with our friendly team who shall be happy to assist you further on 01275 873948 or by email at [email protected]

As you're probably aware, some changes were made affecting Landlords with affect from 1st April 2016. Notably, these concern the purchase of buy to let properties and the calculation of tax due from rental income.

​Stamp duty has risen by 3% from previous price bands. To explain this in numbers, historically a property purchased with a value of under £125,000 would have incurred 0 stamp duty, now this will incur 3% of the value thus £3,750. This is now 5% for the following £125,000 and 8% for values above this.  Quite an unfortunate rise.

​With regards to the tax calculation at the end of the tax year, please note that the wear and tear allowance of 10% of rental income has now gone. This means that careful records need to be kept of actual expenditure incurred on the property and renewal of equipment and other relevant costs. Please keep all receipts and invoices. If in doubt, best to have the documentation and show us to ensure that everything allowance is claimed. The tax calculation will be based on actual income and expenditure.

​Please feel free to call one of our friendly team members on 01275 873948 or email us at [email protected] if you need any further guidance on this and we shall be happy to assist you :)

Good news for limited companies as a nice little time saving idea has been created by Companies House to simplify administrative requirements. As from the 30th June 2016, the current Annual Return will be replaced by the new "Confirmation Statement".

​This all new statement can be updated as many times as needed during the year yet only charged once.  For many companies this means that it will simply now be a task of clicking to confirm that the company details havent changed during the year.

​The main change though will be the addition of the "PSC" (Persons with significant control) information which now needs disclosing onto the public register.

​As always, here at Mendip Accounting Solutions we're here to help, advice and to make your life easier:) Any questions please feel free to call us on 01275 873948 or email us at [email protected]

 
You creative people have the ideas and drive to get yourself out in the market. Well done for living your dream and taking this brave step.

Here at Mendip Accounting Solutions, we’re ready to help you: to support your business growth and to take care of the accounting element which so often gets left behind. Our passion lies in providing all the accounting support a growing business needs to allow the key driving forces behind the trade to focus on their core work.

We have devised a user-friendly tool to help you get off the ground and to keep good accounting records so that you can track your financial position, keep an eye on expenses and even work out whether accepting a job is profitable for you. Please get in touch now on 01275 873948 or by email at [email protected] to request your FREE personalised accounting workbook.

Contact us also for some friendly guidance and advice in how to manage your accounts to comply with legal obligations, to be meaningful and tax efficient.

​So you’ve started out your own business, everything is very exciting and times are busy! Lots to get in place, ideas flowing, obligations mounding, life is great but so hectic. You don’t necessarily want to pay an accountant, just need to get that bookkeeping done which is a simple enough job so can be handled in house.
If in doubt always ask for a second opinion.  If advice given sounds surprising or amazingly beneficial or detrimental to the business there may be a problem.  Somethings in life you just can’t afford to play with. If you diddle the tax man or file incorrect accounts this is ultimately your responsibility and can lead to massive fines and imprisonment. A risk definitely not worth taking. Use your intuition and find the right person who clearly understands your business and is excited and enthusiastic to work with you over the long term.

If you would like to run your business accounting needs by us then please get in touch using the contact form or by calling our friendly team on 01275 873948