Blog posts tagged in Year Ends
When it comes to financial information, many small businesses keep to the basic quarterly or annual statements from their accountants. Aside from dealing with the daily financial and cash flow issues, owners can make the mistake of neglecting valuable information—information that can be used to manage their businesses successfully now and optimise its health in the future. FRS102 - "The Financial Reporting Standard applicable to the UK and Republic of Ireland" fundamentally reforms financial reporting in the UK could further affect how you remeasure the assets and liabilities of your business..
To truly understand the current state of your business and to plan for the future, you need to understand your financial statements. Financial statements assist you to:
An interesting consultation document has been issued by HM Treasury which looks at the possible restriction of the UK personal allowance entitlement for non-residents. Currently, many non-residents with taxable income arising from the UK can benefit from the personal allowance.
The personal allowance has increased significantly over recent years and is currently £10,000. The increase in the personal allowance was one of the main policies of the new coalition government when it came into office in May 2010.The allowance is set to increase further to £10,500 from April 2015.
HMRC has issued a final version of their guide for completing a company tax return form (CT600). A company tax return must be submitted using HMRC's company tax return form (CT600) or another approved method. The submission must include the company's Self Assessment return alongside details of any trade and other losses such as capital losses.
Online Corporation Tax filing became compulsory for company tax returns delivered after 31 March 2011 for accounting periods ending after 31 March 2010. The accounts must be submitted using the iXBRL data standard.
The deadline for filing the 2013/14 returns of benefits and expenses paid to employees is 6 July 2014. Note that there can be significant penalties for incorrect returns so they need to be completed with great care.
The most common benefits in kind that need to be reported are company cars and loans over £5,000 on beneficial terms. Remember that unless the employer holds a dispensation from HMRC employees’ and directors’ reimbursed expenses, such as travel and subsistence, also need to be reported.
As we continue into 2014, many businesses and their teams are taking a step back, looking at the business, considering how the market will develop over the next 12 months and creating plans to grow the firm and take advantage of changes in the business environment.
A typical approach to planning suggests multiplying last year's financial results by an acceptable growth factor. Industry standards vary, often from 5% to 25%. Add to that number any enhancements to your product or service lines plus solutions to key problems you've been meaning to address, and that will essentially give you an outline of a business plan.
Although we are now at the beginning of a new calendar year (2014) we are in the last quarter of the current personal tax year (2013/14).
Whether you are a business person, property landlord or pay significant amounts of tax as an employed or retired person there is now a short window of opportunity to examine your likely earnings for the 2013-14 tax year and, more importantly, see what can be done to minimise those liabilities.
Taxpayers are reminded that the deadline for submitting 2012/13 Self Assessment tax returns online is 31 January 2014. Taxpayers should also be aware that payment of any tax due should also be made by this date. This includes both the payment of any balance of Self Assessment liability for the 2012/13 plus any payment on account due for the current 2013/14 tax year.
Any taxpayers that are filing online for the first time should ensure that they register to use HMRC’s Self Assessment Online service as soon as possible. Once registered it can take up to seven working days for an activation code to be sent by mail. All filings should now be made online as the deadline for submitting paper returns was 31 October 2013.
Caught between a rock and a hard place, George Osborne pleaded his case for continued austerity in his fourth Budget whilst maintaining the UK economy was on track to recovery.
Overall his budget was fiscally neutral – any tax savings to be funded by decreases in public expenditure.
There were a few surprises including: the £10,000 tax free personal allowance, brought forward to April 2014; financial support for prospective home owners; if you are a beer drinker, there will be a 1p reduction in beer duty and the September increase in petrol duty has been scrapped.