Category Archives: accountants

Could your business be claiming more tax relief?

Whatever your business, you might be eligible to claim more tax incentives than you currently do. Sometimes tax incentives are available on things you might consider to be mundane in your business, so it would be wrong to assume that your business won’t qualify.

Here is a list of the most common incentives you could be missing out on:

Research and Development

You might think this would only apply to companies with multi-million pound research operations, but this is often not the case. As long as your business researches or develops new processes, products or services in science or technology, you might be eligible.

SMEs with less than 500 staff and a turnover of under €100m or a balance sheet total under €86m can be eligible for R&D tax relief. If you qualify, you can deduct an extra 130% of your qualifying costs from your yearly profit, as well as the normal 100% deduction, to make an overall 230% deduction. As well as this, you can claim a tax credit if your company is loss making. This is worth up to 14.5% of surrenderable loss.

Annual Investment Allowance

You can get tax relief on the plant and machinery you purchase in the year before you purchase them. If you’re eligible, relief will be on 100% of the cost. You can also claim on the demolition cost and alterations to plant and machinery. It’s important to note that this tax relief doesn’t apply to repairs.

In his recent Budget, Philip Hammond announced the annual investment allowance has increased from £200,000 to £1 million. This comes into effect on January 1 2019 and is aimed at preventing investments in British businesses stagnating because of Brexit.

Tax relief on green equipment

In order to encourage businesses to be greener, the government’s Energy Technology List (ETL) and Enhanced Capital Allowances (ECA) offer relief on high-performance energy efficient equipment. Products on the ETL deliver a high standard of efficiency, defined as performing within the top 25% of all similar equipment available in the UK market. ECA lets you claim 100% capital allowance on products on the ETL.

Employment Allowance

Employers can get up to £3,000 a year off their National Insurance bill. The allowance will reduce your (secondary) Class 1 National Insurance payments each time you run your payroll until the £3,000 has gone or April, when the tax year ends (whichever is sooner).

Speaking to a qualified accountant will give you your best bet of finding what relief applies to you. Often the processes for claiming aren’t very transparent, so getting some expert help is recommended.

What is Making Tax Digital (MTD)?

HMRC is striving to revolutionise the UK tax system and plans to do that through the Making Tax Digital (MTD) initiative. HMRC wants to be the most efficient tax authority in the world, and embracing the use of digital data appears to be the path towards that. The current system can be scrutinised for not being effective enough, efficient enough or straightforward enough for taxpayers. By bringing in a completely digitalised tax system by 2020, HMRC aims to make those problems a thing of the past whilst also bringing down the overheads involved in managing UK tax affairs. Continue reading

4 tips for keeping your books in order in 2018

Whether you’re someone who prides themselves on having their accounts in order every year, or you’ve just had yet another last-minute scramble to submit your tax return before the deadline at the end of January, the start of a new calendar year is a great time to review your books and ensure they’re all in order for the twelve months ahead. Here are our top four tips for 2018 in terms of your accounts, ensuring your bottom line is secure and most likely giving it a bit of a boost too. Continue reading

How can you tell if your accountant is embracing the future

When choosing an accountant, there are obvious factors that you’ll take into consideration. Of course you’ll want someone who is completely trustworthy and highly competent, but one area you may not think of straight away is whether your accountant is someone whose methods are stuck in the past. A good accountancy firm will be open to adapting their practices in order to keep up with modern business practices. Here’s a rundown of five things to look out in an accountant who is ready for the world of tomorrow. Continue reading