Accounting Issues Archives - Page 6 of 8

News,May 2018

Find Out How Does Tax Affect a Business?

George11/03/2021Accountants , Accounting Issues , Business Growth Ideas

How Does Tax Affect a Business? Taxes may affect your business on a sectoral basis and government legislation. Whichever sector you are working in, you should make sure to know about your tax obligations. There are various ways to reduce tax costs. In this blog, we are going to discuss how does tax affect a business? If you are an employee, your taxes are automatically deducted from your gross salary. However, if you’re a business owner, it is imperative to pay taxes levied on you by the state. Key Business Taxes to Pay: Environmental taxes affect almost all businesses but have a major impact on those businesses which are directly involved with them. These include power companies, airlines, quarries, landfill operators, and aggregate importers. The businesses dealing with alcohol, tobacco, oils, and gambling have to pay excise duty. Likewise, those businesses who are related to import and export may also be affected by excise duty or customs duty. Similarly, financial taxes affect banks and financial institutions. The taxes may vary in accordance with their responsibility and size. In addition, insurers and insurance companies have to register and pay insurance premium tax. Do Businesses pay Tax? If your company is making a profit, a corporate tax or business tax is levied on it. It works the same as income tax, but it is only for businesses who start making profits and they have to pay a business tax at a certain rate. Business tax affects your business cost. If your corporation tax is rising, it means that your total cost is increasing simultaneously. It can cause price hikes within the business. Does Interest Rate Affect Business? In the UK, the Monetary Policy Committee works under government supervision to determine the level of interest rates. The rise in interest rate could increase the cost of businesses’ borrowed money. Consequently, the buying power of consumers declines which lead to a fall in business sales. The government’s spending priorities also affect businesses. So, if a government spends money on schools, the subsidiary industries related to schools will start growing and earning. In addition, the government also provides subsidies for companies. For instance, the government provides employment subsidies to reduce unemployment. These subsidies encourage businesses to grow. Understanding Taxes in your Sector: For a general understanding, if you’re a UK citizen you can visit the HMRC website or your respective government’s site to know the tax implications related to your sector. However, your accountant would be the best source for understanding taxes in your sector. As accountants, working on taxation, are well-versed with sectoral tax issues and other legal obligations related to it. There are other sources too, as local business support organizations and trade associations, though they are not as expert as accountants. Conclusion: We do hope that you have understood how does tax affect a business? If you are looking for the professional services of an accountant to solve your taxation issues, Cruseburke is here for your help. We’re an accountancy firm in London working for the financial growth of individuals, contractors, businesses, and landowners. You can leave your query here!

The Role of the Adjudicator’s Office

George02/03/2021Accounting Issues , Tax Issues

The Adjudicator’s Office (AO) was established in 1993 to provide independent oversight of complaints about HMRC and the Valuation Office Agency (VOA). Since December 2019, its remit has extended to reviewing decisions under the Home Office’s Windrush Compensation Scheme. AO’s Purpose and Limitations The AO does not overturn departmental decisions. Instead, it assesses whether HMRC, VOA, or the Home Office: Handled complaints appropriately and in line with policy Acted with fairness, consistency, and transparency It can only investigate complaints received within six months of the department’s final response. Types of Complaints Covered The AO investigates the following issues: Mistakes or errors Unreasonable delays Misleading or poor advice Inappropriate staff behavior Inconsistent use of discretion Before an AO review, a complaint must go through two internal stages of review by the relevant department. Latest Performance Data (2023–24) According to the AO’s 2023–24 Annual Report: Total complaints received about HMRC rose to 1,046 (from 950 in 2022–23). Complaints about the VOA stayed steady at around 58. HMRC complaint cases closed increased by 34%, totaling 843. Complaints fully or partially upheld were 41%, a slight drop from 47% in 2022–23. Case resolution times: 82% closed within 4 months in 2023–24 Dropped to 76% in 2024–25 with 1,667 of 2,181 cases resolved on time. Compensation Awarded The AO continues to recommend compensation for: Financial loss Anxiety or distress However, payouts remain modest. Specific figures have not been disclosed in the 2023–24 report. As of 2019–20, the highest awarded was around £13,896, which illustrates the typically limited financial remedies. AO’s Emerging Insight and Feedback Service delays remain a significant concern in the 2023–24 cycle, particularly with HMRC’s phone and post service performance. The AO published a Level‑3 insight report (“Applying Customer Circumstances to Decision Making”) aimed at improving how HMRC considers vulnerable individuals in its processes. An ongoing Complaints Insight Board helps to identify strategic improvements across departments.

3 Common Accounting Errors Small Businesses Should Avoid

George26/02/2021Accounting Issues

Every business owner is bound to make financial mistakes, but you should avoid them to stay profitable. Sometimes, just one costly error can lead to a significant loss and even bankruptcy filing. Due to this reality, you should have a good grasp of the common accounting errors most small business owners undergo and find relevant solutions to address them. This article will discuss four accounting errors commonly associated with small businesses. Take this as a starting point to resolve any issues with your finances, payments, and investments. This way, you can find yourself in a more competitive advantage and find ways to grow quickly with a larger, more established customer base. Mistake #1: Doing the Bookkeeping Yourself You may already be doing the bookkeeping and other accounting tasks because you believe you can do so since it’s your business, and you know your cash flow model, profit margins, and other related financial terms. However, you are putting yourself at grave risk since you highly likely are either missing out on certain dues or failing to record things properly. There can also be no way of verifying or comparing records, which is highly irresponsible for a growing brand. As a preventive measure, you should hire a professional accountant to help you with your bookkeeping and ensure you meet all the necessary dues. You can also access software and other technological solutions to ensure you can do financial obligations online without the need to browse through paper-based records. Through these improvements, you can have a more accurate view of your business’s quarterly performance and look for ways to either scale or stay financially sustainable. Mistake #2: Taking Care of Small Transactions with Your Cash and Not Recording it Business owners using their money for meeting daily needs is a common practice for small enterprises. It is due to the general belief that since it is your money, it will go back to you eventually as the investor. This reasoning is also used to justify why the owners don’t pay themselves. These accounting errors can cause miscalculations and low compensation for services, leading to your small business’s negative reputation and significant losses. You can also become bankrupt and fall into personal debt. When this happens, you have to close your business even if it’s making profits since you have to sell all its assets to meet your dues. From the start, you should have a record of your outstanding business debts and have a monthly salary. It enables you to have economic security and have a good-natured, healthy outlook on your business. As a result, you can expect less stress running your daily operations and focus on working hard for you, your employees, and the target customers. Mistake #3: Claiming Profits on Immediate Cash Flow You may pat yourself on the back once the cash register or business bank account becomes loaded, but it requires a necessary, healthy reality check. Remember, what you receive in cash is not immediate profits. It is called cash flow, which refers to the cash you have on hand without subtracting expenses, like daily operation costs and taxes. It may be simple to keep track of these details at first, but it can be more complicated as your business grows. As such, you should have a small business accountant to walk you through it! Conclusion Small businesses thrive through effective financial management and streamlined operations. It’s also easy to fall for misconceptions until you realise it’s too late as you incur losses. Due to this, you must find ways to ensure your enterprise does the same. Note all the previously mentioned mistakes and talk to a proper accountant for reliable assistance! CruseBurke offers you the best small business accounting services to guarantee you are on top of your expenses and assets. We also provide affordable accounting solutions to prevent you from spending more as you take control of your bookkeeping, taxation calculations, and the like. Claim your quick quote from us to have a better idea of how else we can help you!

Why is record keeping important?

George16/02/2021Accounting Issues , Tax Issues

Why is record keeping important? Imagine that one day you decide to file your taxes, and don’t find anything in your records. That’s the worst thing anyone can think of. What if you lose your tax records, and what help can you expect from HMRC in this regard. HMRC may check all the details to make sure you’re paying the right amount of tax. Let’s dig up more scenarios that deal with record keeping, and answer your question ‘why is record keeping important’ in the best possible way. What Happens if your Returns Get Late? What to do if your returns are late? If you’re sending your returns 4 years after the deadline, you need to keep your records for 15 months after you’ve sent in your return. What Action Will HMRC Take if your Records are Stolen or Destroyed If it’s not possible for you to replace your records, you must do every effort to provide relevant figures. Make sure you’re telling HMRC that you file your tax return if you’re using: You give your best guess to HMRC. What are your temporary estimated figures when you’re waiting for the exact ones? If there are any chances that you might get your records back, you need to mention the probability. In case, you don’t find your records, your best guess will do the job. Let’s Dig Into Record Keeping So one question everyone asks is what records do you need to keep? These records include: All income coming in from your sales. The expenses incurred in your business. VAT records if you’ve registered for VAT. PAYE records if you’re employing people. Further details of your personal income. The grant you’ve already claimed through the self-employed income support scheme. We hope we’re pretty clear about what happens when you’re losing your tax records, what happens if your returns get late and why is record keeping important? Disclaimer: The information about why record keeping is important provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.

Here’s All You Need to Know About UK Split Year Treatment

George10/02/2021Accounting Issues , Tax Issues

The number of people who left the UK in 2020 was unprecedented. A lot of people considered the coronavirus as one of the main reasons for the departure. According to credible stats, around 700,000 people left the UK in 2020. The exact period was around 15 months to September 2020. One of the main concerns of people in this regard is tax residence. You’ll find all about the split-year treatment here: Let’s Find Out More About Residence and Split Year Treatment When you take a look at a respective tax year, you figure out that someone is a UK resident or a non-UK resident for a period of time. This is sent out by the statutory residence test sent out by Finance Act 2013, Sch. 45. However, if they part ways throughout a tax year, it’s important to note that the tax year will split into UK and overseas part. Please note that the personal allowance is allowed to you for a complete year. This is completely irrespective of the fact that it will be allowed to you in the coming years. Take into account the fact that this personal allowance will be available to you for a full year. You might not be able to avail this offer in the coming years. So maybe, its a good idea to take an opportunity to avail it this year. Let’s Find Out More About Income Tax and CGT It’s important to note that all the income coming from abroad if they’re charged in the UK part, and not any other EU part. All the foreign gains will be charged CGT only in some parts of the UK. If you’re considering only the UK gains, the only gains charged will be that on the property that cannot be moved. That’s considered immovable UK property in the overseas part. It’s completely subject to all the rules allowed for temporary non-residence. Please note that it’s applicable if the residence is resumed within five years. If you’re looking forward to avoiding double taxation, now is the right time to go for it. You might want to save more. This is profoundly valuable for staying away from double taxation. Also, extensive reserve funds might be made by timing income and gains to correspond with the abroad piece of the year where the country the individual is getting occupant in has more positive tax rates than the UK. In any case, split-year treatment doesn’t apply in all cases (however where it does it is programmed and not discretionary), so it is vital to comprehend the standards and be sure of the date the abroad period begins to keep away from botches. The tax position in the new nation of occupant should be thought of, so guidance should be taken likewise. The pertinent double tax treaty (in the event that one exists) ought to likewise be consulted. Note that the split-year administers possibly should be thought of if the individual is an occupant in the UK under the SRT. On the off chance that the test gives a non-resident result for the year, non-UK pay and gains won’t be dependent upon UK tax at any rate – regardless of whether they are gotten or emerge before the flight date. Available UK gains are confined to those emerging on undaunted UK property. Recollect that if again on UK property emerges, it should be accounted for utilizing the UK property gains announcing administration inside 30 days of completion. There could be not, at this point a possibility for non-residents who complete self-assessment gets back to postpone detailing the gain until the return is recorded – the change was made for removals made on or after 6 April 2020. It ought to likewise be noticed that the split-year treatment doesn’t influence genuine residence under any double tax treaty.

where do you find the best financial advisor

Here’s How a Financial Advisor Helps you Out with Long Term Financial Security

George29/01/2021Accountants , Accounting Issues , Budgets & Other

Getting all your financial goals sorted is still an alien concept for many of you. They may sound more like a luxury to most of you. Keeping things simple, best financial advisor helps you sort out your business like a pro. They tell you where and how you must spend your money. Professional help goes a long way. This will also give you the confidence you need to make your financial decisions. You’ll be certain to spend all your money wisely. People tend to resolve all their accounting problems on their own, as they don’t want to spend money on things that won’t pay back in the long run. Why You Need Best Financial Advisor? Talk to your financial consultant about your future plans. Let’s understand the role of a financial advisor first, and let’s figure out whether he’s the best financial advisor? People don’t emphasize much on it, because they consider themselves as financial planning experts. Normally, when you’ve got a lot of money coming in, you want to figure out the right channels you want to spend the money on. This happens typically for business owners, retired personnel and divorcees. They risk losing money when they’ve invested in one specific channel, and there’s a chance that their inexperience may make their money go down. You don’t want your business to fall in inexperienced hands, therefore it would be a good idea to get some expert help. Types of Financial Advisors There’s a chance that you might end up with a financial consultant that specializes in your industry and knows all the problems you might face with respect to that particular industry. We’ll help you find a specialized advisor as per your needs. We’ll help you find just the right advisor who’ll help you out with your financial needs. So what areas do our financial advisors specialize in? They deal with taxes, insurance, and some detailed work in real estate planning or retirement planning. If you’re someone who owns multiple businesses and needs help with each one of these, consider it done with amazing financial experts. It would be a great idea to get expert accountants onboard. Talk about pro-services delivered at your end in no time. It’s important to make sure that you find the right man to get the job done. Once you’ve done your basic research. Go on and take a step forward. Make sure you’re checking out reviews and calling these customers too. Talk to your friends, and get the right recommendations. The best help you can get are the reviews definitely. What’s the Most Reliable Method to Find Best Financial Advisor You’ll definitely need help with mortgages, investments and general financial planning. Personal Finance Society, Chartered Institute of Securities and Investments, and Accounting Firms are some great platforms to look for financial advisors. Specialized advisors never disappoint. It’s never a bad idea to go for a best financial advisor that may not specialize in one specific industry, but industry specialized financial planners have a better grip at the problem. So its always a better idea to get a financial planner on board to resolve your financial problems, so that you’re on the road to success with all your business ideas.

The Benefits Of Hiring An Accountant When You’re Self-Employed

George26/01/2021Accountants , Accounting Issues , self-employed accountant

Considering that you are self-employed, there are many reasons as to why you would be questioning the need for an accountant for self-employed. You might believe that having an accountant would only mean that you are only increasing your annual costs; however, the benefits could only speak for themselves! Having an accountant would mean that all of your financial, legal, and governmental requirements and paperwork would be dealt with promptly and in accordance with regulations. Now imagine avoiding all of those responsibilities—wouldn’t that be a dream come true? To cement that point even further, here are a few more reasons why you should hire tax consultants in London. They Are Experts At What They Do Just like any occupation, accountants have all the necessary experience and skills to thoroughly deal with whatever paperwork that you throw at them. Self-employed accountants also aid you in making decisions that would greatly affect your business—and there should be no doubt in believing in what they say since they are sure to have more business experience than you do! Having someone to deal with and organize your requirements will also help you with preventing loss of revenue, making your work an all-around better experience to deal with. Their Services Will Save You Time Aside from letting them do all the hard work that comes with various documents, the primary reason for hiring tax accountants in Croydon would be to assist you in managing your time. Having someone reliable handling your invoices and other processes will be a great way for you to focus more on working on your operations and garnering revenue. There are a lot of accountants that you can find and hire for your business; however, you must find one that offers a wide variety of services—services that are imperative for any successful business. They Can Provide Accurate Planning Working with an accountant would mean that you will be able to monitor an accurate view of your earnings and your tax obligations. You must be able to plan out your tax strategy since you are self-employed, and having an accountant would mean that you have someone to confide in when it comes to long-term plans. As the client, you even have the authority to ask your accountant to create a financial plan for your endgame—including your retirement and various financial optimization methods. They Help Small Businesses Flourish Taking care of the paperwork isn’t the only responsibility that your accountant has. They also help you in avoiding making decisions that could lead to financial complications, giving you an outsider’s perspective of your business to help you improve on what needs improving. Conclusion There truly aren’t a lot of reasons that should make you shy away from hiring an accountant other than having an extra cost to pay; however, you should mind that having an accountant for self-employed would only mean that your business is sure to be successful! The benefits that come from an accountant’s expertise is exactly why it is so worth spending that initial cost since you are then able to make so much more money in the long run. Before you hire an accountant, make sure that they specialize in the type of business you have. Cruse Burke has tax consultants and accountants for SMEs, the self-employed, limited companies, and contractors. We are fully equipped to deal with the particular needs of small business accounting. Schedule a consultation with us today!

Plan Your Long-Term Financial Security with the Right Financial Advisor

George19/01/2021Accountants , Accounting Issues , Business Growth Ideas

Getting your financial goals with financial advisors may sound strange for some of you. You may consider them a luxury. But in simple terms, these individuals help you achieve your financial goals by telling you where and how to spend your money. Talk about long term financial security. Getting a professional hand involved in your financial affairs is not a bad thing at all. This will give you more confidence with where you are spending your money and give you more options to invest it. Here’s a guide for you to save more money with the right financial advisor by your side with absolute financial security. Determine Why You Need a Financial Advisor Financial advisors may prove to be a big help in case you are trying to devise your future plans. People usually misunderstand the role of financial advisors. You don’t have to necessarily require a financial advisor to achieve your investments and savings goals. You may need help if you are retiring or getting through a phase of divorce or encounter an unexpected death of a spouse. In situations like these, you may need someone to advise you on your financial decisions and work long term on your financial security. Types of Financial Advisors You will not find every other financial advisor specialized in your need. Different individuals offer different services. You can find a specialized advisor according to your need. Some deal with taxes, insurance and some work in estate planning or retirement planning. A lot of people encounter difficulties managing education financials and there are people who are specialists with these kinds of affairs. The thing is that you may want to go with one who knows about your worry and its solution well. Do Your Homework Don’t go in randomly and hire someone. Do your homework and find the right man for the right job. Put together some names. Ask around and make inquiries. You will find people with a good reputation and history. Talk to your family and friends and gather some recommendations. You can use the internet to search the location-based advisors near you. Check their History Make sure that you are going with an individual who has dealt with a similar kind of cases successfully in the past. Reputation plays a vital role in determining your success. You can check their history by going through their cases and consultation with some people who used their services. How to Find a Financial Advisor If you want an advisor on the matter relating to mortgages, protection insurance, investments and general financial planning, Personal Finance Society may prove to be a good platform. You can also explore the Chartered Institute for Securities and Investments (CISI) platform which is really good to find location-based advisors. To deal with your financial affairs and accounts you can explore our location-based search engine which will find you an expert under 30 seconds. Specialized advisors You will find plenty of specialists termed as ‘financial advisor’, ‘mortgage planner’, pension adviser’ or ‘financial planner’. Restricted advisors will focus only on only one area. Some may give advice on many areas. Look in the market to evaluate carefully.

5 Things you Must Look for in an Ideal Bookkeeping Software

George18/01/2021Accountants , Accounting Issues

The number of software offering accounting services has increased over the years. The wide variety of software has somewhat increased the demand for accounting software over the years. You’re on a mission to find a bookkeeper when you’re stuck with all the transactions at your end. Of course, some of the features are relatively different from others, but it totally depends on what you’re choosing for your business. Let us find a bookkeeper, accounts reporter, tax calculator and submitter for you. Then there are softwares that offers different scalability too. Let’s dig into more details of why do you need accounting software. Talk to our best accountants and bookkeepers in the UK at CruseBurke. You will get instant help about who owns a private limited company. What’s the Value of Accounting Software? So what is the importance of accounting software, you ask? Talk about getting help with payroll and other solutions, cutting operational costs, getting more productive and minimizing your expenses. Not only will you get help with calculating yearly transactions, but you’ll also get help with getting your taxes submitted on time. You won’t have to worry about getting other accountants on board to get the job done. The software is accessible to everyone and your team can always count on one to get the job done. Having accounting software also guarantees you transparency and accuracy, because if a human works on similar tasks there is always a chance of human error. You’ll eventually end up getting everything delivered on time and with complete accuracy. In the long run, you’ll come across strategies that are completely relevant and specific to your needs. So what are the other things an accounting software can take care of? These include financial data collection, software that helps you organize and analyse data, compliance software that helps you out with payroll management too, and get all your taxes registered on time. One of the most important bonuses you can always count on is customer satisfaction. Of course, when you’re more productive, your customers are ten times more satisfied with your service. They’ll definitely appreciate the fact that your company is sending out all their invoices, billing reports, and other finance-related requirements on time. Once you’re doing everything, this also helps you build credibility in the market. So what’s the list of features you must look out for in your accounting software: User-friendliness: As a business owner or even an accountant (although accountants are good at digesting heavy information) you’ll definitely need your accounting software to have all the right feature which makes your job ten times easier. You don’t want to end up buying accounting software that has all the right features, but it’s not very easy to comprehend. We’ll make sure you’ve got multi-dimensional reporting features, this means that your team can enjoy the ease of reporting anytime, any day. Count on these reports to be highly customized as per your needs and targets. Integrate Billing and Invoicing Features: Among all the basic features offered by accounting software, are billing, invoicing and inventory management. However, there are times when you don’t have everything integrated into one system. Make sure you’ve got inventory management embedded in your app too. Make Sure You Identify and Prevent Errors The right accounting software can help you prevent errors and bring more authenticity to the services you’re offering. Your software should be smart enough to identify errors at your end, before you submit your records to the higher authorities. We’re sure we pretty much summarized all the right features that your accounting software must have. If you’re looking for an answer to the query of how to find a bookkeeper, how to find a payroll manager, and how to do your taxes right, we’re sure we’ve come up with answers to all of your questions. One good accounting software with all the right features is good enough for you. Disclaimer: The information about the tax on how to improve tax compliance burden provided in this blog includes text and graphics of a general nature. It does not intend to disregard any of the professional advice.

How to Setup a Small Business without Applying for a Loan or Grant?

George14/01/2021Accounting Issues , Business Growth Ideas

Starting a new business needs a substantial amount of cash and backup amount. You may not be able to obtain this amount from the bank or in the form of grants. It really depends on your business and its risk factor. In that case, you will have to turn to alternate options. Funding for a startup business may sound like a task but you can approach it in a simpler way. We will see some alternate on how to get funding for startup business options that are better suited for your business Invoice finance Sometimes it takes longer for your invoice’s payments to clear. If these invoices are due from stable companies that are financially strong and secure then you can sell your invoices. You can do it through auction platforms. This way you can get some big percentages upfront. After that, you can get the full amount in exchange for the administration fee and interests. Overdraft If your business’s nature is cyclic and you have a cash flow that is constantly changing, you may need short-term startup funding. You can consider a bank overdraft facility. The bank can facilitate you by giving you the option to pay interest as you drawdown. Merchant Cash Advance A merchant cash advance can be a good alternative. You can take credit card payments and lend against your future revenue on a short-term basis. Peer-to-Peer Lending Peer-to-peer lending will enable you to lend money on better terms and interest rates. You can also get loans with high-risk factors involved in your business. Peer-to-peer lending is different from bank loans where people will grant you loans and you can get loans at a better rate than a bank. To secure the loan you will have to put the business information and key data of your company on the website. This trend is getting more popular due to its flexible nature and platforms like Zopa and lending works are getting famous in the UK. Asset Financing Asset financing lets you secure funding against any asset’s value you need to acquire. It can be equipment, real state, or any other asset. There are some specialists who work in this area and you can get to them. Also, a lot of banks have an asset finance facility. Equity Funding If you are willing to sell a stake in your business, then this option is for you. Equity funding comes in a variety of forms. Some may work individually or you can find a group. Business angels and venture capital funds and private equity houses are also different forms of the same thing. If you want cash at the early stages of your business, an angel investor might save you by giving smaller cash amounts. This will keep you going. Venture capitalists also come at the initial stage but they may be your second priority. You can get help from private equity in the later stages of your business when you prepare for stock market listing. They will come in larger amounts. Crowdfunding You can boost your business with crowdfunding. In crowdfunding, you extend shares or rewards in your business in exchange for funding. You can go to the crowdfunding or crowd cube to explore crowdfunding options. Require more assistance in funding for a startup business? Drop us a message!