Davis Grant Launch Powerful App

The Brand new App from Davis Grant

As a firm we are constantly looking for ways we can improve the service we offer our customers and we are proud to announce the launch of our brand new Davis Grant App. It’s completely free of charge and it’s available for iPhones, iPads and Android devices.

So the next time you need to look up a tax rate or work out a VAT calculation, our new App can help. It provides you with up to date, important accountancy data at your fingertips.

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PLUS:
Photo Receipt Management, Email and Store

Never lose a receipt again! Using the latest App, you can track receipts and expenses literally at the touch of a button. With minimal effort you can take a picture of any receipt and save it to your App. Any additional information can be added later and receipts stored by amount, category, and date. It can help you track all your expenses with ease and enable us to interact digitally with you.

GPS Mileage Tracking and Management tool

When it comes to mileage tracking, half the battle is keeping an accurate tab on your journeys. Using the built-in GPS on your device, it will automatically track your mileage, helping you to record every single trip at the touch of a button. It also manages trips as well, storing them and allowing you to view, edit or email them with complete ease.

Keeping in touch via ‘Push Notifications’

As a firm we are committed to finding ways to communicate and interact with clients in the most efficient possible way. The new App enables us to send push notifications to all App users. We will be using this feature to share important news, deadline reminders and financial updates with you.

This App was designed to provide every service you could ask from us. We’ve put your favourite business systems, invaluable tools and features such as calculators, tax tables, logbooks, receipt and income management, instant access to the latest financial news and information and valuable company info, directly from us. With all this on one App, our App will likely be your go-to tool in the future.

It’s available for iPhone, iPad and Android devices completely free of charge right now!

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Enjoy our App with our compliments!

August Tax Tips and News

Welcome to August’s Tax Tips & News, designed to bring you keep you one step ahead of the taxman.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice on your own specific circumstances. We’re here to help!

HMRC Annual Report Published

The National Audit Office has published a report on the 2015-16 accounts of HMRC. The report shows that HMRC raised £536.8bn of tax revenues during 2015-16, an increase of £19.1bn (3.7%) on 2014-15 and paid out £40bn in benefits and credits (approximately one-fifth of the government’s total benefit expenditure). The taxes that contributed to most of this increase were income tax and National Insurance Contributions (NICs), which together increased by £10.3bn (3.8%); corporation tax, which increased by £4.1bn (9.9%); and VAT, which increased by £2.1bn (1.8%). Capital gains tax and Insurance premium tax also recorded significant increases, by 28.1% (to £7.3bn); and 27.6% (to £3.7bn) respectively. The annual cost of running HMRC was £3.2bn in 2015-16 (£3.1bn in 2014-15).

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Spotlight on Tax Avoidance Schemes

HMRC have published Spotlight 31: change of date for withdrawal of transitional relief on investment growth, which covers the extension of the date of withdrawal of transitional relief currently available under FA 2011, Sch. 2, para. 59 from 30 November 2016 to 31 March 2017.

The withdrawal of the relief was announced at the 2016 Budget, as part of the package of changes to tackle the use of disguised remuneration avoidance schemes (such as Employee Benefit Trusts (EBTs) and contractor loans) and ensure that those who have used these schemes pay the correct amount of tax and National Insurance contributions.

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HMRC Focus on Contractor Loan Schemes

HMRC have recently published new guidance on contractor loan schemes, which have been widely marketed by scheme promoters as a method of receiving non-taxable income. HMRC are adamant that such schemes do not work and they are likely to challenge anyone using them.

In a contractor loans scheme, an individual is paid in the form of a loan from a trust or company, sometimes referred to as a remuneration trust. The payment is not made directly by the engaging company, and will be diverted through a chain of companies, trusts or partnerships. Scheme promoters have claimed that payments are non-taxable, because they are just loans and don’t count as income. However, since the loan is not paid back, the payments are to be treated as normal income and should be taxed accordingly. Those who use such schemes are highly likely to be regarded by HMRC as participating in tax avoidance arrangements, and this could result in additional taxes, penalties and interest becoming due.

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Casual Employees

Some employers will be considering taking on extra staff on a ‘casual’ basis to cover the summer period. There are a few issues which employers should think about when taking on people on a temporary basis.

Firstly, the employment status of the worker needs to be carefully considered. The term ‘casual worker’ is not precisely defined in statute. It is often used to refer to individuals who are engaged on an ‘as and when required’ basis, and often, the intention is that the individual will not have employment status and all the legal rights which permeant employees enjoy.

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August Questions and Answers

Q1. I have five employees who I recently took out for dinner to celebrate the success of the company. The total cost of the meal was £225. Do I have to report this as a benefit-in-kind to HMRC?
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Q2. Is there any update on Finance Bill 2016 Progress?
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Q3. How long do I need to keep VAT records for?
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August Key Tax Dates

2 – Last day for car change notifications in the quarter to 5 July – Use P46 Car
19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/8/2016

Need Help?

Please contact us if we can help you with these or any other tax or accounts matters.

In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list. If you are not already a client and are interested in becoming one, we would love to come to meet with you to discuss how we can help and provide you with a competitive quote for our services.

 

New Clients Welcome

All new client consultations are provided free of charge and without obligation.

Visit our website www.davisgrant.co.uk for more information.

Young Founder Bootcamp: Retrospective

This time last year our very own Steven Sandford was helping the budding entrepreneurs understand the world of accounting at the Young Founders Bootcamp. We love supporting this two week immersive enterprise education programme for 16-18 year olds.

We wish the whole Young Founders team success with their next event this week in Newcastle.

At Davis Grant we love to support Entrepreneurs and Start-ups of all industries and stages. Just ask attendees of our recent event “Lead Your Startup to Success

Need Help with Accounting or Tax? Contact us today for a free consultation…
www.davisgrant.co.uk

Tax Tips and News for July

Welcome…

Speaking to many of you this week the result of the referendum has been a hot topic!

Whilst the details or potential impact of Brexit are still unclear and any impact will be a minimum of two years away, you can rest assured our expert team is poised to make sure you make the best of any future changes. In the meantime here’s our tax tips and news for this month.

If you need further assistance just let us know or you can send us a question for our Question and Answer Section.

Please contact us for advice on your own specific circumstances.

We’re here to help!

Trivial benefits

Employers will be aware that various changes have been made to the reporting requirements for employee benefits and expenses from April 2016, which mean that some employers will no longer have to complete annual return forms P11D. The three main changes are:

  • The dispensations regime has been replaced with an expenses exemption – broadly, where an employee would have been entitled to tax relief in full for a benefit or expense, the employer does not need to deduct tax or NICs, and they do not need to report it to HMRC

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HMRC guidance on senior accounting officers

HMRC have published Brief 12(2016), which contains information on changes to their senior accounting officer guidance (SAOG). The Brief aims to clarify HMRC practice and reflects administrative changes to their operational procedures. These include:

  • A change of practice allowing submission of certificates by electronic means in addition to the currently accepted methods;
  • Extensive updates to reflect organisational change within HMRC and the role of Wealthy and Mid-Size Business Compliance (WMBC);

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Help-to-save consultation launched

HMRC have launched a consultation on the government’s proposed ‘Help-to-Save’ scheme, which is designed to encourage people on low incomes to build up their savings.

Broadly, the scheme will be open to some 3.5 million adults in receipt of universal credit with minimum weekly household earnings equivalent to 16 hours at the National Living Wage, or those in receipt of working tax credit. It will work by providing a 50% government bonus on up to £50 of monthly savings into a Help-to-Save account. The bonus will be paid after two years with an option to save for a further two years, meaning that people can save up to £2,400 and benefit from government bonuses worth up to £1,200. Savers will be able to use the funds in any way they wish. HMRC say that Help-to-Save accounts will be available ‘no later than April 2018’.

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FRS 102 guidance on directors’ loans revised

HMRC have recently updated their online toolkit on directors’ loan accounts to help tax advisers and agents preparing 2015/16 company tax returns. The update reflects the changes to reporting requirements under UK GAAP, as taxing debt will now be largely driven by FRS 102 requirements for financial instruments.

If an entity makes loans to/from directors/employees where there is no explicit interest rate or the interest rate charged is not at a market rate, then the prescribed accounting treatment will depend on which accounting framework the entity has adopted.

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July 2016 Questions and Answers

Q1. My mother died last year and left my brother and me a commercial business unit. Probate is nearly complete now. If we sell the property in the future, what are the capital gains tax implications on the sale?
Answer

Q2. I have recently registered for VAT. I am not very good when it comes to administration and I have heard that the flat rate scheme might help me. How does the scheme work? Answer

Q3. I have a part time job and I earn about £8,000 a year. As my earnings are less than the tax-free personal allowance, can I transfer the unused amount to my husband?
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July 2016 Key Tax Dates

5 – Deadline for PAYE settlement agreement for 2015/16

6 – Deadline for 2015/16 forms P11Db, P11D and P9D to be submitted and copies of P11D and P9D to be issued to relevant employees

Deadline for employers to report share incentives for 2015/16 – form 42

14 – Return and Payment of CT61 tax due for quarter to 30 June 2016

19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/7/2016 or quarter 1 of 2016/17 for small employers

Class 1A NIC due in respect of the tax year 2015/16

31 – Second self assessment payment on account due for 2015/16

Second 5% penalty surcharge on any 2014/15 outstanding tax due on 31 January 2016 still unpaid

Deadline for Tax Credits to finalise claims for 2015/16 and renew claims for 2016/17

Half yearly Class 2 NIC payment due

Penalty of 5% of tax due or £300, whichever is greater for 2014/15 personal tax returns still not filed.

Need Help?

Please contact us if we can help you with these or any other tax or accounts matters.

In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list.

New Clients Welcome

If you are not already a client and are interested in becoming one, we would love to come to meet with you to discuss how we can help and provide you with a competitive quote for our services.

All new client consultations are provided free of charge and without obligation.

 

Top Tech Entrepreneurs Share Their Secrets

Last night we presented another of our events for TechHub and this was the best yet! Over 100 eager tech entrepreneurs came together at Campus London with the promise of learning how to lead their startup to success by learning about critical tax incentives and financial insights.

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By the time the event officially got underway it was standing room only and so Neil Driver (Davis Grant) didn’t waste any time introducing the expert speakers!

Steven Sandford (Davis Grant) shared some key insights regarding futureproofing your business including potential VAT complications. The message that stood out to us was to have knowledgable and trusted support services and keep them in the loop ahead of your business decisions.

Mutaz Qubbaj (Squirrel) took to the stage next to talk through experience of raising funding for his amazing product. Perhaps the most crucial lesson from Mutaz was to raise investment, not when you most need it, but when you least need it.

Next up was Dr Sarah Malter (Grant Central/Harvey) who spoke about unlocking funds through grants and R+D tax credits. She spoke about the need for good preparation by StartUps. Having a clear idea of the end product, projected cash flow and understanding your technology readiness level (TRL)  gives you the ability to assess the options open to you.

Sarah also spoke about R+D Tax Credits open to Limited Companies and the importance of talking to your accountants to prepare eligible costs and to receive cash. This is something we know well at Davis Grant – we helped our clients receive over £600,000 last year and we’re already on track to beat this in 2016.

Last to the stage was the highly anticipated Frank Meehan (SmartUp). Speaking from long experience he spoke about the importance of finding the right co-founders from your business. It’s crucial to understand that investors make decisions based on the people not the product. If you are on your own, Frank’s golden rule means that you aren’t going to get investment.

The event was rounded out with a very productive Q+A session and then some really engaging networking with everyone keen to get more information from our experts and share their thoughts.

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Davis Grant would like to thank everyone for making the evening such a success. Particular thanks to our amazing speakers and our friends at TechHub!

Resource Links
R&D Tax Credits Factsheet (Davis Grant)
Futureproofing Your StartUp (Steven’s Deck)
Funding made simple  (Sarah’s Deck)

Free Consultations This Week – Tech Sector

Anyone can request a free initial consultation with us to discuss how we may be able to help with accountancy or business support.

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We particularly love working with Tech Startups and host a bi-monthly clinic at TechHub. Anticipating a lot of interest after our event on Tuesday we have added some more slots just around the corner at Chartered Accountants Hall in Moorgate.

Thursday 30th June 2016

TechHub @ Campus London
4-5 Bonhill Street London EC2A 4B

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Wednesday 6th July 2016

Chartered Accountants Hall,
One Moorgate Place, ECR2 6EA

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There are a limited amounts of 30 minute slots available and they are first come first served.

If you would us to get in touch or make an appointment outside these session please just visit our website www.davisgrant.co.uk