Misc Archives - CruseBurke

News,May 2018

Claiming Marriage Allowance – Are You Eligible?

George05/09/2022Dividend 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.

What is a Final Salary Pension – A Basic Guide for Beginners!

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

If you are on the verge of your retirement, you need to know how to plan a retirement. Let’s make your challenge a breeze for you. You are definitely asking yourself, “what are pensions” and how they can help you secure your old age. Pensions are simple savings plans that enable you to get income after your retirement to meet your living expenses. Among the different types, the defined benefit pension plan is reliable as one of the traditional options that is considered by many individuals. This guide will elaborate on all you should know about the defined benefit pension, commonly known as db pension, in easy terms. If you are considering long-term financial security, knowing more about a defined benefit pension can improve your decision-making. Let’s get started! We have skilled financial advisors at CruseBurke that can assist you with pensions and retirement planning! So, get an instant quote now! What is a Defined Benefit Pension Plan? We will begin with the simplest tone: what is a defined benefit pension or final salary pension? The defined benefit pension refers to a category of retirement plans under which your employer will pay a certain amount of money every year for your retirement. This amount is determined by your salary, the length of service that you have served the company, and, in some cases, your age at retirement. The defined benefit pension is characterised by the employer’s responsibility to give the workers peace of mind. Role of Defined Benefit Pension for Retirees in the UK A defined benefit pension plan is predictable and guarantees a certain fixed income after retirement. Unlike other types of pensions, in which the final pot is conditional on investment performance. Defined benefit pension scheme is not a new concept, especially in employment in the UK government, such as in teaching or civil service, etc As also called a final salary pension since the payment is mostly linked to what you earn at the end of your career. This is what makes the defined benefit pension so appealing to the employee. It takes away the risk from your shoulder and that of the employer. This is different from a personal savings account or other retirement schemes. Furthermore, it is basically an employer-sponsored plan in which the company makes the investments. The company ensures that there is a sufficient amount of money to cover the benefits promised. How Does A Defined Benefit Pension Work? Well, as we have covered the basics. It is time to know how a defined benefit pension really works. When you start working with a company with a defined benefit pension, you generally pay a certain amount of your salary every month, and your employer also contributes, usually a lot higher than in other plans. The contributions are placed safely in a large fund, which is invested and managed by professionals. The key benefit of a defined benefit pension is that the amount is defined in advance. It is not a lottery whether you will win it or not. Your retirement sum is calculated by a set formula. In this pension scheme, the employer is fully responsible for maintaining a sufficient pension fund that ensures enough for the pensions of retirees. Let’s see how it works: Pension = Years of service × Accrual Rate × Final Salary For example, 30 years of service with a final pay of £30,000 at 1/60th accrual rate. This means that a sum of £15,000/year is your pension payment. This is what is commonly called a defined benefits pension. This is because the benefits are already defined and secured. Moreover, these pension funds are invested in stocks, bonds, and other assets to increase the amount of money required to pay pensions. When the investments are flourishing, that is good. Otherwise, the employer will replenish the fund. Pros and Cons of Defined Benefit Pension The defined benefit pension scheme comes up with lucrative advantages for employees. Where there are benefits, there are challenges as well. Worry not, most challenges fall on the employer’s shoulders. Let’s discuss the pros and cons of this pension scheme: Pros It guarantees a certain income after retirement. Investment risk is the employer’s responsibility. The defined benefit plan is indexed to inflation. Complete financial security for retirees. Lifelong pension facility. Cons Usually non-transferable from one employer to another. Benefits once fixed cannot be changed. Employers can apply caps or some other conditions. Is a Defined Benefit Pension the Right Fit for You? You must be familiar with the common saying that “not every fruit is sweet”. But still it’s a fruit. Therefore, the defined benefit pension is not a ‘one-size-fits-all’ financial solution. If you are in the public sector and have availed of the defined benefit pension, you are lucky. You will have a certain predictable income after retirement. But on the other hand, if you are in the private sector and change jobs quite often, or go on an early retirement, this might not be a good fit for you. If you are working in a private organisation, you might face a few problems. As this pension scheme is not very common in the private sector nowadays. But, do get professional advice and have a careful thought before opting for this pension. A defined benefit pension scheme is a wonderful investment to consider when a person wants to remain financially stable after retirement. It is a useful addition to your retirement plan because of the predictability and certainty it provides. The fact that the burden of fund management lies with the employer, and also the possibility of protection against inflation. Bottomline It’s a matter of fortune to be in a defined benefit pension plan; it is worth valuing. It is the kind of financial anchor that guarantees a form of income that can be used to meet basic needs such as living expenses, bills, and housing in retirement. You can add to this base of other savings (ISAs or personal pensions) to make your …

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!

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.