It’s the end of the year and its time to enjoy and be in the Christmas spirit. It’s not long until we get to enjoy the food and drinks to last to the New Years celebrations. It is one of our favourite times of the year here at Cross Accounting. The darker evenings are given a little colour with the neighbourhood Christmas lights. While this is the time of giving and enjoying yourself, we would like to remind you of the financial aspect over the festive period.

Without trying to put out a negative mood, we do want to address the reality of credit card bills and debt and the very high interest charges they carry.

We have been speaking to a number of liquidators in the last couple of months and all have mentioned that it is this time around were people use their credit cards or store cards the most. This would make sense as we get ready to buy gifts and as the High Street stores accommodate their opening hours for the Christmas rush.

A survey by uSwitch finds that Britons borrow an average of £452 each at Christmas. Heading in to the New Year, this can cause a bit of a problem for some.

It is perfectly fine to go out and spend for loved ones and friends, but please stick to your budget. You want to end 2018 on a high and have the best possible start for the New Year.   

Let’s start the New Year in the best way possible. With positivity and new inspirations to keep both your personal life and business life in prosperity for 2019.

We would like to wish you a Merry Christmas and a prosperous 2019, from all at Cross Accounting Service.

The Budget 2018 has been released. The chancellor has put together how money will be spent for the forthcoming future. It is looking positive as there are predictions that the economy will grow as the forecast for 2019 raised from 1.3% to 1.6% and annual forecasts raised to 1.4% in 2020 and 2021, 1.5% in 2022 and 1.6% in 2023.

This Government has prioritised getting people into work as the best way to help people is to provide them with stability and a pay packet every month. Since 2010 over 3.3 million more people are in work and predicting 800,000 more jobs by 2023.

To provide the jobs, you will need businesses, and therefore the Chancellor has vowed to back another 10,000 entrepreneurs by extending Start-Up Loans funding to 2021 and following representations from the FSB, extending the New Enterprise Allowance. Which will provide mentoring and support for benefit claimants to get their business ideas off the ground.

UK to be in the digital era

Digital Platforms delivering search engines, social media, and online marketplaces have changed our lives. Digital platform businesses can generate substantial value in the UK without paying tax here in respect of that business and to make this fair, there has been an introduction of UK Digital Services Tax.

This will be a narrowly-targeted tax on the UK-generated revenues of specific digital platform business models. It will be carefully designed to ensure it is established tech giants – rather than the tech start-ups - that shoulder the burden of this new tax.

The Digital Services Tax will only be paid by companies which are profitable, and which generate at least £500m a year in global revenues in the business lines in scope.

The tax will come into effect in April 2020 and is expected to raise over £400m a year.

Help for the High Street

There is also support for the High Street retail businesses. With many small retail businesses struggling to cope with the high fixed costs of Business rates, in 2016 there was an introduction of business rates relief measures worth £12bn.

Going further, at the next revaluation in 2021, rateable values will adjust to reflect changes in rental values. This will help retail businesses as for the next two years, up to that Revaluation, for all retailers in England with a rateable value of £51,000 or less, this will cut their business rates bill by one third.

That’s an annual saving of up to £8,000 for up to 90% of all independent shops, pubs, restaurants and cafes.

Stamp Duty and Housing

The Budget is committed to keeping family homes out of Capital Gains Tax, but some aspects of Private Residence Relief extend it beyond that objective and is to provide relief for people who are not using the home as their main residence.

From April 2020 Lettings Relief will be limited to properties where the owner is in shared occupancy with the tenant and reduce the final period exemption from 18 months to 9 months.

All first-time buyers purchasing shared equity homes of up to £500,000 will be eligible for first-time buyers’ relief, an increase since the last budget abolished Stamp Duty for first-time Buyers on properties up to £300,000. This relief will be made retrospective so any first-time buyer who has made such a purchase since the last Budget will benefit.

Personal Allowance Thresholds

Delivering higher wages for those in work is core to the chancellor. The poorest 20% have seen their real incomes grow faster than the richest 20% and the proportion of jobs that are low paid is at its lowest level for 20 years. This is largely due to the National Living Wage introduced in 2016.

From April the National Living Wage will rise again, by 4.9%, from £7.83 to £8.21, handing a full-time worker a further £690 annual pay increase, with the ultimate objective of ending low pay in the UK.

In April 2018, the personal allowance is the current of £11,850 and £46,350 for the Higher Rate Threshold. However, from April 2019 the Personal Allowance is raised to £12,500 and the Higher Rate Threshold to £50,000, a year earlier than planned.

A tax cut for 32 million people and £130 in the pocket of a typical basic rate taxpayer.

With the leaves turning brown, darker evenings, it is time to bring out the quilts and cosy up in front of the fire as Autumn is here. It is one of our favourite times of the year as the horrors of Halloween and the blasts of Bonfire night approach. A great time to spend with family and friends to have fun.

During this time, you want to avoid a fright and get the benefits of filing your tax return as early as possible. This will ease any pressure off as it is one task out of the way and you can solely focus on your business, giving it the final push to end 2018 on a high. The deadline of 31^st January never changes and HMRC reported last year that an estimated 2.6 million people had not filed their tax return two days before the deadline.

You risk an automatic £100 fine if you miss the deadline and there are more consequences for more delayed time. If your tax return becomes more than 3 months late then £10 daily penalties will accumulate. This is a situation you do not really want to be in as the penalties can be massive.

It really helps filing your tax return earlier, just because you do this early does not mean that the tax liability will have to paid over straight away. It is still the normal due date of January, so you have plenty of time to budget for however much you may need to pay over to HMRC. If you are due any refunds, then you will also get this earlier, where as any returns done in January, will take a lot longer for HMRC to process any refunds as it is their busiest time.

With a bit of organisation, you can get your paperwork in order and get your tax return over and done with all the while enjoying your Christmas and New Year’s plan stress free. You could pay too much or even too little tax, so the help of an advisor is vital. Contact us on www.crossaccountingservice.co.uk if you have any concerns regarding you tax return as we are always here to help.

The summer months are coming to an end as autumn closes in. Everyone is returning from their summer break, the children will be heading back to school its back to business.

It’s always great to plan ahead, so this time we talk about the new Making Tax Digital (MTD) that HMRC are set to introduce from April 2019, this has been going back and forth in consultation for some time now, HMRC now have communicated the requirements.

This will be mandatory for businesses registered for VAT with a turnover above the VAT registration threshold of £85,000. Businesses will need to keep VAT records digitally and their VAT returns using MTD compatible software. This will start from their first VAT period starting on or after 01 April 2019.

If you submit a quarterly return for the period 01 March to 31 May 2019 then you will have to comply with MTD rules for the period starting 01 June 2019. Businesses under the VAT threshold will not have to operate MTD but can choose to do so voluntarily, which we would recommend.

Going forward the use of compatible accounts software will be mandatory. The use of spreadsheets can no longer be used.   

HMRC are trying to reduce the number of VAT inspection on businesses that are complying and MTD will make this clearer for all. If you’re struggling and not understanding what to do and how to be ready for the April 2019 deadline, do not panic and contact us, as we are always here to help.

Welcome to our latest blog. Summer has been in full swing here and we have now had great weather for several weeks. There are lots of activities that happen during the summer months and its always great to support your local businesses.

This time of year, we are noticing a larger number of people investing towards a property. This may be a change to the current house or a house to rent. Whatever the reason may be, you might need help financing in the way of a mortgage.

So, what is a mortgage? A mortgage is a loan taken out to buy a property. The loan is secured against the property until it is fully paid off. If you can’t keep up with repayments, the mortgage provider can repossess the house so its extremely vital to crunch the numbers and know if a mortgage is right for you.

Many factors are taken in to consideration to approve a mortgage. Proving your income is usually the deciding factor as the lender needs to know you can repay the mortgage. Here at Cross Accounting we provide our clients with their SA302 to prove their earnings. You can obtain the last three years proof of earnings if you file for self-assessment through your HMRC’s online account, with a tax year overview.   Mortgage companies like to see you are on time when paying your taxes.

Many banks have an online calculator to estimate the interest payment you will need to make, it does help you budget for the new property.

We are authorised and can help obtain a mortgage, please do get in touch to discuss your situation and see how we can help you. A house is one of the largest single purchase you’ll likely make so you want to take care and get it right from the beginning.

As we step closer to April 2025, change is on the horizon. This is when the new financial year starts and we discuss what could impact our business in the coming months. We’ll explore what is ahead and how to prepare effectively.

National Minimum Wage

The most notable one is the rise in National Living Wage and National Minimum Wage. We are probably familiar with this rising every April.

Take a look at the table below for the hourly rate changes.

The apprenticeship rate applies to apprentices under 19 or 19 and over in the first year of apprenticeship.

Personal Allowance

The freeze continues on personal tax thresholds. Your personal allowance is the amount you can earn until you start to pay income tax. The personal allowance is currently £12,570 and set to be until April 2028 where the government will look to review.

 Employer’s NI

Employers NI is also set to rise from 1 April 2025. Currently employers pay NI on employees wages at 13.8% when it hits the threshold of £9,100 however, from April the rate increases to 15% and the threshold falls to £5,000.

 To combat against this, the government have increased the employment allowance. The employment allowance is a credit against the Employer’s NI. Currently it is £5,000 for the year and will increase to £10,500. Once you have used up your Employment Allowance, then you will start to pay Employer’s NI.

Corporation Tax

There are no changes in the rates of Corporation Tax. This means that, from April 2025, the small profits rate will stay at 19% and will be payable by companies with profits of £50,000 or less.

Companies with over £250,000 profit will pay corporation tax at 25%.

Companies with profits between £50,001 and £250,000 will pay tax at the main rate reduced by a marginal relief, providing a gradual increase in the effective Corporation Tax rate.

If you're concerned about budgeting for the latest tax changes, let us know! We are experts in managing budgets and identifying trends to help you make the most of your resources. We can work out whether the Employment Allowance is going to save you money, or cost you money and provide insights and solutions tailored to your needs. Additionally, if you require any extra services, don’t hesitate to reach out—we’re here to accommodate your requests and provide the best possible support. We’re always ready to assist in any way we can!

For those of you watching the Glastonbury Festival over the weekend.     

It was a great boost to our UK economy.   Some £40 million turnover taken over the 5 day event.  Over 200,000 people attended and 3 million people tuned in to see Kylie Minogue, with Stormsy and The Killers pulling in great ratings too.

Donations to Oxfam, Green Peace and Water Aid were the main charities benefiting from the event.

The area I want to draw to your attention was over 200,000 attended the event this year, and over 400 small food and merchandise providers helped make the event a great success.

Whether you love it or hate it,   its provided a great boost to what has been so far quite a difficult 2019 for many retail and service outlets.

Those 400 food and merchandise providers will be providing jobs to thousands of people, creating work for not just the Somerset area but all over the UK, as a lot of the suppliers would have travelled to the area for work.   

There was also 2,000 volunteers mainly representing and supporting the three main charities.

With our continuing confused political market at the moment, with uncertainty with what is happening with Brexit.    A lot of small businesses are struggling to keep a float,  they are finding it harder to gain long term contracts, and being able to gain fixed prices for goods that may be coming from overseas.    The uncertainty affects everything.    The exchange rate of the Pound Sterling to Euro is also still highly volatile.

Please keep supporting your local businesses, they are keeping millions of people employed at the moment, we most definitely need them into 2020.

We never hear about them in the news when they suffer, they just go about their business quietly.       We only hear about the larger companies finding things tough at the moment.

Our economy and stability we all like to take for granted heavily relies on them.

Give your local business whoever they are your full support in 2019 regardless of the political outcome.      Lets keep our economy robust to ride the storm.

#shop local

Our busiest season has passed with the self-assessment deadline and now it’s the season of love. With love in the air, its time to make your business your valentine. Take the time to make a plan of action for your business. What do you want to achieve in the next 12-18 months?

Are you looking to expand your business and grow a larger list of customers? or are you trying to cut back on the amount of expenses your business pays out ? These are all goals that should be in the clear to you. Write down your plan of action, top tip, something that is written down will be more likely to be achieved than something that you have stored in your mind.

Having it written down and somewhere in sight will give you the reminder and motivation to try and achieve this. Think of the strengths and weaknesses of your business. Refresh and re-train on yourself in terms of, what are your strengths, work on weaknesses to learn and help achieve your goals.

Loving your business will give you opportunities to take it to the next level. However, with opportunities you also must weigh up the risks. This is where you need a forecast for your business, a cashflow can help make the deciding factor whether its time to hold back and watch the spending, or if there is spare cash around to invest back in the business.

We are at the start of 2018.   Make it a good one.

Summers out and its back to business

Summers out and schools are back in. Those 6 long weeks of entertaining the children are over and it’s truly back to business. As summer comes to an end and we prepare for darker evenings, the new season is the best time to plan for your business.

The lead up to Christmas is best to note down and plan for the next couple of months. Its best to hand in your paperwork for self-assessment and year end to your accountant so that you can fully concentrate on the build up to Christmas and New Year. There will be no stress on your behalf to meet HMRC’s deadline, leaving you to focus on what matters most, your business.

Since everyone is back from holiday, it is a good opportunity to go out networking. This will build connections and get your business name out there. Meeting new people and old familiar faces will keep your business from being forgotten.

Get your cashflow and budget up to date, this will help you plan for the seasonal events to come. Having an idea of your businesses ins and outs can shape your business for the busy Christmas and New Year period. There will be a lot of people spending during this period, so make sure your business is always on its ‘A’ game.

As mentioned earlier, note your plans down, as it is better to have something written down and in front of you than in your memory. This will help you achieve your goals and remember planning is key!

Methods of Finance

In our latest blog, we talk about the best methods of finance for your business. Sometimes it’s great to have that extra push to take your business to the next level. To attract the best funding for your business, you will need a business plan. We are experts in the field of preparing a cashflow and a business plan and can assist you in achieving the best method of finance for your business.

Finance Wales

Finance Wales are set up to aid in funding. They offer bespoke debt and equity investment packages designed to boost your business and accelerate growth. They offer three types of packages, micro loans under £10,000 have an easy two-day process. Have a look at their website, 

http://financewales.co.uk/business-finance-/growing-a-business/micro-loans-under-%C2%A35,000.aspx 

for more information.

Bank Loans

Bank loans are probably the most common types of finance for you and I. These types of finance are an amount of money borrowed for a set period with an agreed repayment schedule. The repayment amount will depend upon the size and duration of the loan and rate of interest. The terms and price will vary between bank providers. There isn’t just one type of loan, there are many different types, which I will look in to and describe the differences.

·         Working Capital Loan – This type of loan is usually required at short notice or emergency situations. This will usually incur the highest percentage of interest.

·         Fixed Asset Loan – For buying assets, where the asset itself is used as a security for repayment.

·         Factoring Loans – This type of loan is based on money owed to your business by customers or clients.

·         Hire Purchase Loans – For long term purchase of assets such as vehicles or machinery.

It’s best to talk to your bank or bank manager, as they will let you know the exact amount you can get for finance. The bank managers love an excellent business plan and cashflow, so make sure yours is current and polished to get in the good books of your bank manager!

Overdraft

This method of finance is a sum of money extended to you as credit by your bank, set at a pre-arranged limit when your account balance drops below zero. Usually charged interest on any amount of overdraft you use. The terms and price, like the loans, vary between providers. This is a good source to manage cashflow, but it is probably not suitable if you’re looking for long term financing.

Crowdfunding

Crowdfunding, also known as crowd financing or crowd sourced capital is usually carried out online. This allows several investors to individually invest smaller amounts of money in to a business. The individual investments are then combined to help a business reach its funding target. Crowdfunding is an excellent option for businesses that struggle to raise finance through loans or the conventional funding methods. Since crowdfunding is conducted online, you should make sure your idea is protected. In return of the funding, investors usually get a percentage of share of the business.

You can find more information by visiting http://www.crowdfunder.co.uk/help/what-is-crowdfunding

Government Offers

Governments usually offer support to businesses in all different shapes and sizes. https://www.gov.uk/business-finance-support here you can find from funding and finance, to grants and to mentoring for your business.

Caerphilly council are offering a business development grant. This grant can provide up to 45% of eligible expenditure to a maximum of £2,000. Business must be based in Caerphilly and be in the manufacturing or service to the manufacturing sector, or have a minimum of 60% business to business. For businesses in the Caerphilly area, please look at this link http://www.caerphilly.gov.uk/Business/Business-grants-and-funding/Business-development-grant to get more information.

Remember the key to accelerating your business in the positive forward thinking way to get that extra push is to have a business plan and cashflow in place. We offer a one hour no obligation consultation, where we can sit down with a cup of coffee and discuss your business. 

Visit our website on www.crossaccountingservice.co.uk or call us on 029 20 653 995 to see how we can assist you.