Misc Archives - CruseBurke

News,May 2018

How Much is Maternity Allowance for Self Employed?

Mia Hamilton04/04/2023Finance , Misc , self-employed accountant

This turns out to be quite a simple process to navigate what are the ins and outs of maternity leaves when you are working with the company as an employee. However, in the case of being in the role of a self-employed individual, it is challenging to find out facts and rules about the maternity allowance for self-employed. The good news is that there are quite good and possible options open for self-employed mothers who are seeking maternity leaves. The best is to apply for the maternity allowance while you are offering your services through freelancing. You will find out multiple ways of getting yourself paid and keeping protected while you are on maternity duration or failing the maternity leave. Further in the discussion of this guide, we will share the details of everything basic that you need to learn as a beginner in freelancing and want to avail of the maternity allowance or the leave period. This could possibly include what is maternity pay, what is the eligibility criteria to apply, how is maternity allowance beneficial, and how can you apply for the maternity allowance. Reach out to one of our professionals to get to know about your tax liabilities in the Uk for your earnings. Get in touch and you will be provided instant professional help! What Refers to Statutory Maternity Pay? By the word statutory we assume something that is related to the law requirements. So the term statutory maternity pay refers to the pay that the employees are required to give to the employees of the company during the period of maternity leave. The condition to pay the statutory maternity pay is that the employee is contracted and eligible to get this payment from the company or the employer. However, before you plan to apply for this, you must learn the eligibility criteria to have a successful experience in this regard. What is the Eligibility Criteria for Statutory Maternity Pay if I’m Self-Employed? Unfortunately, if you are self-employed, you are not allowed to get any benefits from the statutory maternity pay. This is because you will have to be in the abstract with a company being their employee to get the benefits like maternity leave with pay through the PAYE system. Also, ensure that you must have worked for 26 weeks to get the maternity leave and avail it with pay. Can Maternity Allowance be an Alternative Option? You do not need to worry about the fact that you are not eligible to get maternity pay because you are not associated with a company as a full-time employee. The good news for the self-employed individual is that you can avail the benefit of the maternity allowance. Even if you are not self-employed, you can check on the eligibility criteria and apply for the maternity allowance or your unique case and get the most out of these benefits of allowances offered by the government. How to Check My Eligibility for Maternity Allowance if I’m Self-Employed? When you are working as a self-employed individual in the UK the chances are that you are possibly eligible to get a maternity allowance. There can be two main types of maternity allowance in the UK. These are known to be the full-rate maternity allowance and the reduced-rate maternity allowance. The criteria that you need to meet to be eligible include the following points: You must be working in the role of a self-employed individual in the UK for a duration of a minimum of 26 weeks. The minimum earning limit for a week must be £30 or more than this figure. This should possibly be for 13 weeks. If the weeks are not consecutive, this will not matter in the process of maternity allowance applying. How can I Apply for a Maternity Allowance? It is easy to apply for the maternity allowance. All you will have to do is to get in touch with HMRC. After this, you will be required to get the form MA1 from the website of the HMRC, get it downloaded and printed, do the needful requirements, and post it. This document will have to accompany the document that can give the due date of the baby. In the case of being a self-employed person who is registered and has paid enough as national insurance contributions, you will be considered to be eligible for the full rate maternity allowance. This will not require you to give proof of your income later in the procedure. How Frequently Can I Get Maternity Allowance Payments? Well, you have a choice to make in this regard. Whether you can opt to get the maternity allowance within four weeks or you can get it within the duration of a fortnight. You can choose just according to your suitability. You can simply mention this in your document and fill it in accordingly. Am I Allowed to Freelance While on Maternity Leave? Several cases are on maternity leave from the employer or the company they are associated with. However, they seek ways to get additional income during the free time of their maternity leave. This could be one of the options from freelancing or any other income source. There is no way that anyone can afford to work in the first two weeks of the maternity due to medical conditions. Also, this is not medically and officially legal to work like freelancing in two weeks of maternity leave. This time duration of maternity leave is known to be compulsory maternity normally. After you have passed this period, you are allowed to work for freelancing services after this duration. The Bottom Line Now that you have gathered a piece of fair information about maternity allowance for self-employed in the UK, we can bring the discussion towards wrapping up. So the maternity allowance and other relevant benefits are allowed for self-employed individuals, however, the applicable rules can be different for the difference of scenarios from one …

Claiming Marriage Allowance – Are You Eligible?

Mia Hamilton05/09/2022Dividend Allowance , Misc

It will be beneficial for you to know exactly how a married person’s allowance works if you are residing in the UK. This allowance for married couples tends to increase every year. As soon as the new tax year begins on the 6th of April, the increased implications are also working with the date. Whether you are living in a civil partnership or a married relationship, you will find yourself entitled to the marriage tax allowance. Several couples nowadays are missing out on this beneficial opportunity due to the lack of awareness. The way to access this allowance and get yourself and your spouse advantageous is possible through an easy way. If you are still wondering how? We have got you covered here as this guide will help you to develop an understanding of the basics of a married person’s allowance, how to apply for it, and what happens if your spouse or civil partner dies. Do get in touch with one of our experts to get your queries answered quickly. We will help you decide about a married person’s allowance with a clear mind. What is a Married Person’s Allowance? If you are residing in the UK and living in a married relationship or a civil partnership, the personal allowance can transfer up to £1,260 for one of you to your partner. In the tax year 2022-23 where your allowance is £12,570, the transferred amount is just 10% over the regular allowance. Your basic personal allowance refers to the amount of money you are earning on which you do not have to pay any tax. The marriage allowance is also known by the name Marriage Tax Allowance. There are a few conditions on which you can make yourself entitled to getting the marriage allowance. These include the following: You are living in a married relationship or a civil partnership and have not yet applied for any marriage allowance. You are not entitled to pay income tax because your income is less than the personal allowance and you do not have to pay. This means your income is less than the amount of £12,570 in the tax year 2022-23. The income of your partner or spouse is between £12,571 and £50,270. So he has to pay the basic rate of income tax. Learn How to Apply for the Marriage Allowance The method to apply for the marriage tax allowance is simple and easy. All you have to do is apply online and for this purpose, you can go to the website GOV.UK. To complete the process, you will have to provide your national insurance number and the basic documentation to prove your identification. The other accessible option is to reach out to HMRC by phone call. The calling number for this regard is 0300 200 3300. This you can do between Monday to Friday. The working hours are 8 AM to 6 PM. There are call charges applicable on this as well. You can seek more information from the government website also and see the convenient option for yourself. How to Claim the Marriage Allowance for the Previous Years? If you have missed out on the marriage tax allowance in the previous years and now you are looking for ways to make a claim. For each year to make a successful claim, you are required to meet certain criteria. This is imperative for you to understand here that the threshold limit varies from one person to another and it depends on whether you are a basic taxpayer or a non-taxpayer. Also, consider the tax year you aim to claim the marriage allowance. Your backdate claim is possible for up to four years only. You have the opportunity to apply online here as well on the website of the government. How to Claim the Marriage Allowance After Your Spouse’s Demised? In case your partner was demised after the year 2016, but you meet all the criteria standards of the marriage tax allowance, you are entitled to apply for the allowance still. You even have a chance to apply to backdate but only for four years. You can make a call on the number 0300 200 3300 to make approval of your application. Consider the days and timings open for the phone call service as mentioned above. Your claim will still be considered if you can prove that you meet the required criteria which will make you entitled to the allowance easily and you will start to get the benefits once you are approved. The Bottom Line Now that you have gathered a fair amount of information about a married person’s allowance, we can say that the marriage allowance turns out to be beneficial for married couples or civil partners in the UK if they meet the criteria and their income is as low as they do not have to pay the income tax for that. Even if your partner has died after 2016, you can still be entitled after considering the required criteria. If you have missed out on the allowance in the previous years due to unawareness, you have the opportunity to claim backdates up to four years. We hope these few minutes of reading have helped to develop an understanding of how to get the benefits of the marriage tax allowance if your income is low and you are living in a marriage relationship or a civil partnership in the UK. Our team of professional members loves to hear about your business problems. Call us on 02086868876 or email us today. We will come up with fine solutions. Disclaimer: The information about a married person’s allowance provided in this blog includes text and graphics that are general. This does not intend to disregard any of the professional advice.

Defined Benefit Pension Scheme – A Basic Guide for Beginners!

George23/09/2021Business , Finance , Limited Company , Misc

In a defined benefit pension scheme, the amount of money you get in retirement is based on the number of working years for the company and your earned salary. So if you are looking for a significant source to know about DB pension, then you have just found the right post. This blog will inform you about what is DB pension and how it is worked out. We have skilled financial advisors at CruseBurke that can assist you with pensions and retirement plannings! So, get an instant quote now! What is a Defined Benefit Pension? It is also known as a final salary pension. It is a pension scheme that promises to hand over a secure income. This income is based on the number of working years for your company and your final salary at the time of retirement. You will directly get this income, and it will increase every year. The company for which you have worked until retirement will contribute to this scheme. It will also make sure that there is a sufficient amount of money to pay your pension income at the time of retirement. But, of course, you can contribute to this scheme too. When you die, your life partner, civil partner, or dependents will continue to get this pension. What are the Types of DB Pension? The following are the two types of DB pension. Final Salary Schemes – It depends on your final salary at the time of retirement Career Average Schemes – It depends on the average of your salary over your career. These both types of DB pension provide valuable benefits. Your pension income will increase each year. In this way, it can keep up with the increasing prices in the future. The other benefits of this pension scheme include: You will get a full pension in case you get retirement because of poor health. Your life partner, civil partner, or dependents will get your pension income in case you die. Defined Benefit vs Defined Contribution Pensions The following infographics will show you the difference between them. How are Defined Benefit Pensions Calculated? On behalf of a company, usually, DB schemes are run by trustees. They are responsible for all aspects of this scheme, including paying out income to retired employees. The scheme administrator carries out the DB scheme’s daily management and then gives the report to the Trustees. These pensions are calculated on the basis of the following: 1) Final Salary Scheme If you are in this scheme, your pension will be calculated by: Number of years you worked for the company multiplied by the final salary (this could be the average of your salary over your career) divided by a fraction of your pensionable pay. 2) Career Average Scheme If you are in this scheme, then your pension will be calculated by using a fraction, usually 1/60th or 1/80th. The final pension will be calculated by summing up all the revalued pension (that is earned in each year over your career). Final Thoughts We hope now you understand what is defined benefit pension scheme is and how to calculate it. While calculating your pension income, you need to see whether you are in the final salary scheme or the average career scheme. We recommend you to take professional help in calculating your pension income as it is complex. In addition to that, you may also require professional advice while transferring your pension to your dear ones. Are you looking for a professional to help you calculate your pension income? Then look no other than CruseBurke! We have a team of skilled chartered accountants and pension advisors that will calculate your pension income as per your salary scheme in no time and at an affordable price! Contact us now! Disclaimer: This blog contains general information about the DB pension scheme.

Is Technology Cost or an Asset?

George08/03/2021Misc

Just take a second to think about the present world without technology. So, it’d be right to say that we can’t survive without technology in this modern world. From schools, offices to grocery stores everywhere there is technology. In the last two decades, technology has taken hold of the whole world, and even beyond that. Nowadays, you’d find the technology in almost every field. As without it, you’d be unable to catch up with the fast-moving world. You could only reap the benefits from your assets if you have the latest technology. In the world of business, you must be equipped with the latest technology to manage, maintain and utilize your assets and services effectively. Large businesses to small firms are investing in the latest tech solutions to boost their sales and to generate more revenue. Is Technology an asset or a cost? Now with the huge impact technology is leaving on us; one will, definitely, ask whether technology is a cost or an asset? The answer can be difficult, as technology can’t be called a cost or an asset by itself. There are certain conditions required for it to be called a cost or an asset. Technology as a cost Cost is the amount spent to obtain something in a form of a product or service. We’d only consider technology a cost if the amount spent on it is being used for getting profit. The money, a business utilizes tech solutions for business drivers, customers’ experiences, system up-gradation, employees’ learning, and training, and software expansion is the cost. In this way, technology can be marked as a cost. Technology as an asset If an outdated machine or technology having no use can not be taken as an asset. Its value depreciates with each passing year. And it creates difficulty for accountants and CFOs to calculate the value left out from the depreciated amount. Technology, itself, can not be called an asset, rather it is a tool. If this tool is utilized effectively and enables a business to grow and increases its profitability, then it can be called an asset. Conclusion So, is it the right decision to overlook technology in your business? Obviously No, it carries vital importance for your business growth. The ambiguity, calling Technology a cost or an asset, doesn’t imply that the technology is something useless. Therefore, with the changing trends, business owners need high consideration and critique while deploying business technologies. As it is going to be an integral part of the business in the coming years just like accounting, sales, and marketing. A proper analysis is required regarding the costs, requirements and the results technology is bringing. In this way, we can make technology a true asset to our business.

The Importance of Webinars for Business Promotion in the COVID Times

George01/01/2021Accountants , Covid -19 , Misc

With corona on the rise going out has decreased and the only thing that has traveled this year seems to be COVID 19. This virus has flipped everyone’s life upside down and would not be wrong to say when once we had a choice to stay at home, we’d run for it but now we just want to run away from our homes because it has just gotten too much. Many see work from home as a blessing in disguise, let’s be honest sitting back on your sofa in your pajamas while you do your work in your own comfort; there definitely is a plus side to this pandemic too. However, there have been many other things that have rose in this pandemic and one of those is; business webinars i.e. web conferencing. The COVID-19 circumstance has made it difficult to lead face to face gatherings, presentations or meetings. Accordingly, the prevalence of webinars expanded impressively. Numerous webinar software previously existed on the lookout. In any case, there is consistently space for a market top choice. However, in the long haul, business owners have various perspectives on supplanting face to face gatherings with webinars. Because of the Corona-virus pandemic, promoting activities of organizations moved to online stages. webinars were at that point being utilized, yet they went to the spotlight during the lock-down. As business activities couldn’t be closed down totally, proprietors and advertising chiefs began leading webinar platforms for their meetings and associating with customers and their audience. Business webinars are the most secure choice for the momentum situation, yet a significant speculation sum goes into facilitating a consistent webinar. The venture is the ideal opportunity for arrangements and the capital for purchasing/leasing the gear. However, in many cases, you really don’t require much just a laptop and good WiFi. In any case, it is likewise important to make sure the webinar locks in. Include surveys, Q&A meetings, and visual guides to make the introduction fascinating. A webinar should be forthright and of a sensible time span with the goal that the participants don’t lose interest.

Work from Home Expenses

George06/05/2020Accounting Issues , Misc

Computing business expenses has always been a hazy prospect, especially if you’re working from home or are self-employed—the concept of work and home has already been blurred, after all. You’re very much entitled to receive certain amounts of expenses, but what are you specifically entitled to. List of Work from Home Expenses that can be Claimed Some expenses are clear-cut, but you may be surprised that plenty of your monthly living costs can also be claimed! Here are four Work from Home Expenses you’ll be able to claim: 1 – Internet expenses You may be using your internet connection mostly for leisure, such as binge-watching movies for hours at a time or mindlessly scrolling on social media or downloading. While the case may be true, don’t forget that you also use it for answering emails, contacting clients, and of course, accomplishing the entirety of your work. To receive a claim for your internet expenses, work out proportionately how much you spend doing work online and how much you use it for leisure. After doing so, divide your total bill accordingly—whatever the result will be the expenses you’re entitled to claim. 2 – Electricity and gas bill costs Your home also plays a crucial role in your work. Without lights, proper heating, and the means to cook, you will not be able to do your job. It can be difficult to work out how much of your utilities should be charged—calculating your energy consumption every day is a huge feat, but the expenses you can claim will be well worth it. To start, figure out how much of your time is spent on working. From there, equate how long your job requires you to benefit from the use of electricity or gas. After that, carefully take a look at your home. If you’re heating your entire house but are only working in a single room, claim one room’s worth of utilities. By doing this, you will be able to save up on money! 3 – Phone bill If your work requires you to constantly communicate with clients or receive call advisories, your phone bill is another expense you can claim. The easiest way to identify expense work calls is by having a separate work phone. By doing this, you will be able to track your phone bills effectively enough to receive claims. 4 – Transportation If you’re delivering products, meeting with clients, or in need of traveling away from home from time to time, you are also entitled to claiming transportation expenses. Work out your total expenses by totaling gas use. To claim this, however, make sure that your vehicle isn’t declared as capital allowances! Conclusion Working remotely is a setup not many get to enjoy, but the amount of money you can save is undeniable. More than saving up on daily expenses such as commute, food, and coffee, you’re also entitled to claim more expenses. Keep in mind that these things remain subject to approval. For help in claiming, check with HMRC or an accountant. If you’re looking for Accountants in Croydon, then we’re the ones to call. With over 100 years of combined experience, our professional team offers quality service to various clients, ranging from self-employed individuals to small and medium-sized businesses. Contact us now for more information!

Government launches new small business micro-loan scheme

George28/04/2020Misc

28 April 2020: the chancellor has announced a new Bounce Back loan scheme, allowing small businesses hit by the impact of coronavirus measures to apply for up £50,000, with the government guaranteeing 100% of the advance. Billed by chancellor Rishi Sunak as a “simple, quick, easy solution for those in need of a micro loan,” businesses can apply from lenders using a two-page standard form with no forward-looking business viability tests or eligibility criteria. According to an accompanying government press release, businesses can apply for a minimum of £2,000 up to a maximum of £50,000, or 25% of business turnover, with the government paying the interest for the first 12 months. The scheme will open from 9 am next Monday (4 May 2020), and according to the Chancellor most loans will be paid within 24 hours of approval. Businesses will be able to access loans through the existing network of accredited lenders. Speaking in the House of Commons, where he had earlier announced the micro loan scheme, Sunak said the new scheme would help “bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.” Reacting to the announcement Michael Izza, ICAEW chief executive, said: “We’re very pleased to see the government is listening to concerns and continuing to refine its business support measures where problems arise. These new loans should help speed up the process of getting money to small businesses, which our members tell us has been an issue until now. “However, we still believe that taking on debt is not going to be suitable for some, especially smaller businesses, and we would like to see greater use of grants as part of the overall support package.” Chancellor ‘unconvinced’ by a universal government guarantee In his House of Commons Statement, Rishi Sunak reiterated that he “remained unconvinced” of the case for rolling out a 100% government guarantee across all the state’s coronavirus loan schemes. “We shouldn’t ask taxpayers to bear all the risk of lending almost unlimited sums to businesses who may have very little prospect of paying those loans back – and not necessarily because of coronavirus, said the Chancellor. “Instead, the new micro loan scheme carefully targets the extraordinary level of state support at those who need it most.”

4 Ways to Keep Your Business Running

George23/04/2020Misc

The coronavirus disease (COVID-19) outbreak is putting local and international businesses at financial risk. In a bid to decrease the risk of transmission of the disease, this health crisis forced stores and companies to work remotely and use digital platforms to serve their customers continuously, even while observing physical distancing. While remotely working can be possible for some businesses, others with unique or unusual business natures do not have that kind of luxury. As such, this concerning health issue affects their day-to-day operations, reduces their productivity, and disrupts their supply chains, which, in turn, impacts their sales significantly. If you are running a business amid the pandemic, you might be concerned about overcoming this health crisis and keeping your business running at the same time. To address your worries and secure your financial future, read the tips below. 1- Create a Budget for Emergencies During these trying times, you need to cut down your costs and conserve your cash as much as you can more than ever. You can do this by minimizing your non-essential expenses. From these savings, set aside a budget you can use for emergencies or other times of uncertainty. On the other hand, if you are having a hard time managing your finances and do not know where to start, then you may consider looking for reasonable bookkeeping services in Croydon. You are guaranteed to have a clearer view of your finances and learn more about your financial statements by having them do your books. 2- Consider Getting a Loan If you are looking for various funding sources for refinancing, then you may consider getting a low-interest loan. By doing this, you can have higher chances of reducing your monthly payments and pay off your debt faster. 3- Talk to Your Lenders, Vendors, and Suppliers In these trying times, businesses are more prone to face financial problems. If you are working with lenders, vendors, or suppliers, make sure to talk to them as soon as possible if you are experiencing any financial difficulties. This way, you can discuss potential workaround solutions and other arrangements that are beneficial to both of you. They may even allow you to skip payments or have your late fees waived. In short, the keys to working with your lenders, vendors, and suppliers effectively are by being honest and communicating with them openly about your financial situation, especially if your business is affected by COVID-19. Always exhibit professionalism by responding to their emails, messages, and phone calls. 4- Consult your Accountant and Tax Advisor Equip yourself with the latest information regarding payroll taxes, tax credits, paid sick leaves, direct cash payments to affected employees, and other financial assistance programs. To do this, you need to stay in touch with your tax advisor or hire a competent accountant who offers affordable accounting services. Conclusion Running a business is challenging as it is, and all the more amid this pandemic. Keep in mind that it is normal to feel overwhelmed during these trying times. Even so, you don’t have to worry as there are various ways to keep your business afloat and financially sound during this health crisis. For starters, you may consider hiring a skilled accounting team to help you deal with your finances. If you are looking for Accountants in Bromley, then you have come to the right place. Contact us to learn more about what we can do to help your business.

5 Common Mistakes When Calculating Business Profits

George06/08/2019Accounting Issues , Misc

Avoiding Common Errors When Computing Business Profits HMRC produce a range of Toolkits for agents, which highlight errors commonly made in returns so that agents can take steps to avoid them. The business profits toolkit provides guidance on Common Mistakes When Calculating Business Profits for small and medium-sized businesses. They are helpful to anyone computing taxable business profits. Risk Area 1 – Recordkeeping Good record-keeping is essential for business profits to be calculated correctly. Poor records may result in sales or allowable expenditure being omitted from the accounts, with the result that the level of profit or loss is incorrect. Risk Area 2 – Business Income The profit or loss will only be correct if all income is included in the accounts. Unless the business is an unincorporated business that has opted to use the cash basis, business income should be included on an accruals basis, matching the income to the period in which it was earned. Not all sources of business income will be immediately obvious – the income of the business may, for example, include scrap sales, contra sales, or barter arrangements. Cash sales may also be overlooked. Risk Area 3 – Expenditure To ensure that the profit is not overstated, all allowable expenditures should be taken into account. However, a deduction is only permitted for expenses that are wholly and exclusively incurred for the purposes of the business. Attention should also be paid to specific prohibitions, such as for business entertaining. Purchases and expenses should be reviewed to ensure that they have been included. Sole traders and partnerships comprising individuals can use simplified expenses rather than claiming actual expenses. Risk Area 4 – Stock and Work in Progress Where the business is one that holds stock, care must be taken to include it at the correct value – this is the lower of cost and net realizable value. Errors will arise if stock is overlooked or valued incorrectly. Work-in-progress can be a complex area and advice should be taken to ensure that the treatment is correct. Risk Area 5 – Miscellaneous Items Miscellaneous areas should also be considered. These may include a review of post-balance sheet events and consideration as to whether any adjustment to the accounts is required. Staff costs should also be reviewed and the amount unpaid nine months after the end of the period should be added back. As far as directors are concerned, consideration should be given to the date on which amounts are credited to the director’s loan account. Additional Info: HMRC’s Business Profits Toolkit – see www.gov.uk/government/publications/hmrc-business-profits-toolkit.