De-stress and Prepare for payroll year-end

Prepare for payroll year-end to avoid stress

22-03-2023

With the payroll year-end fast approaching on 5 April, clashing with the tax year-end, many businesses find this time of year particularly stressful. The deadline for submitting details to HM Revenue & Customs (HMRC) is 31 May. You must be aware of the critical dates when you prepare the payroll year-end, including: 5 April -

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Spring Budget 2023

15-03-2023

Just a few days short of the third anniversary of the first Covid lockdown, Chancellor Jeremy Hunt rose to the Despatch Box to deliver the first full Budget to have taken place in 504 days and the first unaffected by the immediate impact of the pandemic since October 2018.

Find out more

Why reviewing your back-office accounting can be profitable

Review your back-office accounting for efficiency and profitability

03-03-2023

Do you have a lengthy manual process for invoices or expenses approval? Are you sending out paper purchase orders? Do you have a streamlined process for paying suppliers? Are your sales orders and other admin duties carried out on spreadsheets? You are not alone. For many business owners, regular reviews of back-office accounting functions aren’t

Find out more

How can employers avoid the redundancy pitfalls?

02-03-2023

The COVID-19 pandemic and the cost of living crisis have created a challenging time for businesses, and as various industries evaluate their cash-flow situation, many employers are still making difficult decisions concerning their staff. Unfortunately, for some businesses, redundancy may be the only option. Even the most diligent employer can get caught out by redundancy

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Self-Assessment taxpayers warned of next payment deadline

02-03-2023

This a reminder for Taxpayers that a penalty deadline for unpaid Self-Assessment tax is imminent. HM Revenue & Customs (HMRC) will automatically add a penalty to your tax bill equal to five per cent of the Self-Assessment tax you owe for 2021/22 if unpaid after midnight on 2 March 2023. So urgent action is needed. The

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forensic accounting for you and your clients

How can forensic accounting help you and your clients?

28-02-2023

A forensic accountant is a valuable connection to have in your arsenal. However, why is it essential for you to have access to forensic accounting? You want a trusted professional who delves deep into the inner-financial workings of a business and gathers impartial unbiased evidence. A forensic accountant can help to uncover the truth and

Find out more

Avoid these costly VAT mistakes

06-02-2023

Small business owners must avoid costly mistakes when calculating, reporting and paying Value Added Tax (VAT). The best way to prevent errors and stay on the right side of HM Revenue & Customs (HMRC) is to have an expert take care of your VAT affairs. A qualified accountant or bookkeeper can ensure that all calculations

Find out more

What you should include in a business plan

06-02-2023

Why do I need a business plan? Your business plan delivers the goals to work towards, helps you identify potential pitfalls, gives insight into your competitors and highlights possible opportunities. A great business plan should include a concept, strategy, executive summary, market analysis, competitor analysis, the company's financials and a clear action plan. What is

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MTD for ITSA. Why you need cloud accounting software?

MTD for ITSA is delayed. Why you still need cloud accounting?

06-02-2023

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) comes into effect from April 2026 for businesses, self-employed individuals, and landlords with gross business or property income over £50,000. MTD for ITSA will follow in April 2027 for those with similar incomes over £30,000. The question? How soon should your business use cloud-based compatible software

Find out more

Tax quick wins - crossing the tax finish line

Tax ‘quick wins’ before 5 April

06-02-2023

With the end of the tax year fast approaching (5 April), you should assess your current tax situation and utilise the reliefs and allowances available. Here are a few tax quick wins you can consider to help reduce your liabilities now and in the future: Inheritance Tax (IHT) Each tax year, individuals can give away

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Tax planning is an ongoing process with Spring Budget looming

Spring Budget: Tax planning is an ongoing process

06-02-2023

With the Spring Budget looming in March, it is easily tempting to delay tax planning until afterwards in hopes of favourable tax cuts. However, the Chancellor has made it clear that significant cuts to taxation are not likely to be in his speech. So businesses should prepare for the changes introduced in the months ahead.

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Daniel Proctor returns as Audit Manager

24-01-2023

In August 2013, Daniel Proctor interviewed for Wilder Coe’s audit trainee programme after being introduced through the HAT Group. Now, nearly a decade later, Daniel has returned to where it all began as our newest Audit Manager. After graduating from the University of Surrey with a first-class degree in Economics, the appeal of accountancy and

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How The Autumn Budget Impacts You

The Budget 2025 Yesterday, the little red box with big red implications was finally opened, as the Chancellor delivered the 2025 UK Budget against a backdrop of slowing global growth, tightening fiscal conditions, and continued pressure on public finances. With inflation forecast to fall to around 2.5% next year and a renewed emphasis on […]

Category: Accountancy

With the payroll year-end fast approaching on 5 April, clashing with the tax year-end, many businesses find this time of year particularly stressful.

The deadline for submitting details to HM Revenue & Customs (HMRC) is 31 May.

You must be aware of the critical dates when you prepare the payroll year-end, including:

5 April – End of the 2022/23 tax year
6 April – Beginning of the new tax year (2023/24)
19 April – Deadline for the final submission of the 2022/23 tax year
By 31 May – Employees need to receive their P60s

The late filing of payroll information could attract penalties.

To make sure the process is as smooth as possible, check the following has been dealt with:

Staff details: Are all staff details correct and updated on your payroll software?

Pay details: Have you submitted information showing how you have reported staff pay correctly?

The final pay run: When processing your last pay run on or before 5 April 2023, check you are happy with your employee’s year-to-date figures.

Process leavers: Before your final submission, have you processed any leavers? And is this information recorded in the correct tax year?

Extra payroll week(s): If you run a weekly payroll (including fortnightly or four-weekly), you may have to complete an extra pay run.

Final submission: This allows HMRC to finalise figures for this tax year for each employee. If you do not pay a staff member in that last period, you must submit an employer payment summary (EPS).

Process employee P60s: This is important as every employee is legally entitled to this document.

Please check, double-check, and triple-check your payroll reporting. Getting this wrong can cause financial problems for your business and your employees. Prepare for payroll year-end with the help of our team. Chat with us today.

Managing your payroll can be complicated and time-consuming. Many organisations take this burden away by outsourcing their payroll requirements to a professional payroll bureau. If you want to learn how this could work for your business, speak with our payroll advisors for an independent consultation.

Category: Accountancy

As we approach the third anniversary of our first Covid lockdown, Wednesday, 17 March, saw Chancellor Jeremy Hunt rise to the Despatch Box to deliver the first Full Budget in 504 days. The Spring Budget 2023 is the first unaffected by the immediate impact of the pandemic since October 2018.

Over the past few years, we have had several fiscal statements and mini-Budgets, but never a full Budget Statement.

Against a Brexit backdrop, Covid flux, and domestic political instability, Hunt hopes his first full Budget Statement marks a return to a somewhat more normal footing for politics and the economy.

However, the Chancellor has plenty to deal with. Inflation, excruciatingly high fuel bills, stagnant growth, economic inactivity and the post-Covid damage to the public finances have not gone away.

OBR Forecasts and the Public Finances
“Back to Work” Measures
Cost of Living, Childcare and Fuel Bills
Business Taxation
Pensions

OBR Forecasts and the Public Finances

The Chancellor began his “Budget for Growth” speech by saying he will deliver on an aim to make the UK one of the most prosperous countries in the world by removing barriers to investment, tackling labour shortages, breaking down barriers to work and harnessing British ingenuity.

He said the Office for Budget Responsibility (OBR) expects inflation to fall from a 10.7% high in the final quarter of 2022 to 2.9% by the end of 2023, achieving the Government’s aim of halving inflation.
The OBR no longer expects the economy to enter a technical recession, with the economy expected to shrink by 0.2% during 2023 before growing by 1.8% in 2024, 2.5%in 2025, 2.1% in 2026 and 1.9% in 2027.

Moving to the public finances, the Chancellor said that public sector net debt is currently 100.6% of GDP but expects to fall to 94.6% of GDP by 2027-28.

“Back to Work” Measures

The Chancellor declared that we currently have one million vacancies in the economy and seven million working-age adults who are not currently employed. Encouraging more people from this group into the labour market would be vital for growing the economy.

He announced various measures to get people back to work, including disability reforms and out-of-work benefits intended to remove certain constraints and disincentives to work.

He also noted that there are now three million working-age people over 50 who are not working – a figure that has increased by more than 300,000 since the pandemic. To tackle this, he announced further career support for the over-50s and a dedicated program of apprenticeships to be known as “Returnerships”.

Meanwhile, five occupations in the construction sector will be added to the Shortage Occupation List, making it easier for employers to employ skilled workers from outside the UK.

Cost of Living, Childcare and Fuel Bills

The Chancellor confirmed that the Government’s Energy Price Guarantee remains in place for three more months from April to June 2023, effectively capping a typical household bill annually at £2,500.

At the same time, he declared that fuel duty remains frozen and retained the existing temporary 5p cut for an additional year.

Another significant measure announced ahead of the Budget is the commitment to extending the provision for 30 hours of free childcare for the children of working parents to the parents of all preschool children aged from nine months. These reforms will phase in gradually from April 2024 to September 2025.

There will also be changes to staff-to-child ratios in nurseries and incentives for new childminders to encourage increasing provisions in the sector.

Business Taxation

The Chancellor announced two significant changes for businesses.

The introduction of a new “Full Expensing” scheme to help mitigate the impact of April’s increase in the Corporation Tax rate, which he confirmed will go ahead, and further reforms to Research and Development (R&D) Tax Relief.

1 April 2023 will see the Full Expensing introduced, replacing the Super Deduction. It allows companies to write off the total cost of qualifying plant and machinery investments in the year of the investment. The measure initially applies for three years, but the Chancellor said he hoped to make it permanent “when fiscal conditions allow”.

The Chancellor announced a significant increase in the relief available to loss-making R&D-intensive SMEs, which will now receive £27 from HM Revenue & Customs (HMRC) for every £100 of R&D investment.
Prompted by reforms, the move will take effect from April 2023 and reduces tax relief rates and tax credits available to some SMEs.

Additionally, the Chancellor announced the creation of 12 investment zones across the UK. In England, these zones can access funds worth £80 million over five years, with a five-year tax offer equivalent to Freeports.
The zone locations are in the East Midlands, Manchester, Liverpool, the North East, South Yorkshire, Tees Valley, the West Midlands and West Yorkshire, as well as Wales, Scotland and Northern Ireland.

Pensions

In a surprise move, the Chancellor announced that the Pensions Lifetime Allowance will get scrapped entirely in April 2023. At the same time, he also increased the Pensions Annual Allowance from its current level of £40,000 up to £60,000 from April 2023.

Do any of these measures affect you or your business? Our tax and advisory teams are on hand to help. You can contact us here.

Link: Spring Budget 2023

Category: Accountancy

Do you have a lengthy manual process for invoices or expenses approval?

Are you sending out paper purchase orders?

Do you have a streamlined process for paying suppliers?

Are your sales orders and other admin duties carried out on spreadsheets?

You are not alone.

For many business owners, regular reviews of back-office accounting functions aren’t necessarily a priority when focusing on business growth.

However, this could mean that your accounting processes are stuck in the dark ages and unable to keep up with the day-to-day functions of running a successful business. Fortunately, we are all becoming increasingly more comfortable with cloud technology.

From mobile banking to Dropbox for file-sharing and Google apps (for example, docs and sheets), now more than ever, we understand the importance of using ‘the cloud’ to access our data remotely.

Therefore, many business owners are now considering ways to utilise technology to improve their day-to-day accounting duties. From data capture software to assist with supplier invoices or credit card expenses to an approval workflow solution to manage digital approval processes, we see more businesses embrace new accounting systems.

A benefit of moving to cloud accounting software, such as Xero, is that your account data is no longer stored on various staff members’ computers where it could be lost, deleted or inaccessible, but on remote, secure servers.

Increase efficiency and visibility.

As a result of utilising accounting software throughout your business, you can maintain and produce live and accurate records. You will also increase visibility between internal finance teams and external financial providers.

Improve staff productivity

Administrative functions are time-consuming, and manual processes can easily get delayed. You and your team will benefit from more time to focus on more lucrative work, such as advisory services, consulting and business development.

Access anywhere, anytime.

Implementing cloud accounting software will allow you to access your company’s financial information on any device, wherever you may be.

In the current climate, the ability for your business to have remote access to accounting systems will also support any flexible working arrangements for your teams.

Have a better handle on your finances.

Not only will you have the benefit of managing live financial data anywhere through automatic software systems updates, but you can also reduce your IT and administrative costs.

Xero will link with your business bank account through Open Banking and automatically pull through your bank transactions.

Undertaking a thorough review of your current systems will open up opportunities for your finance teams to have input on potential risk areas that may previously have gone unnoticed.

We understand that each business has its accounting systems in place.

As an accredited Xero Gold Partner, we successfully use cloud technology and implement new processes for clients of all sizes.

Do you want to arrange for a review of your current back-office accounting systems? Faye Thompson can advise you to become a more efficient and profitable business. Arrange a chat today.

Category: Accountancy

Unfortunately, for some businesses, redundancy may be the only option. Even the most diligent employer can get caught out by redundancy pitfalls.

Head of HR, Bal Dhesi, shares her overview of a few things you should consider to help guide you through the process.

Please note that this article will focus on the individual rather than collective consultation.

Planning Stages

Be clear on your reasons for redundancy and focus on roles.

A redundancy situation might occur if a position no longer exists within the business due to the following:

Changes in the way in which your company now operates
Investment in new technology or machinery leaving a role that is no longer necessary
Relocation or closure of a business unit

So, start by assessing whether redundancy is inevitable before you begin the process.

Regardless of the employee’s length of service, you must show that there is no other resolution to the matter other than through redundancy.

In our experience, the main reasons for redundancy in small businesses relate to cash flow problems, restructuring, or changes to the way the company needs to operate.

During your planning stages, it is advisable that you do not draw up a list of names but, instead, focus on the roles required within the business.

If you start noting names down, this information may be disclosable in any subsequent tribunal proceedings and can demonstrate that the process was pre-judged whilst running the risk of an unfair dismissal judgment being made against you.

A word of caution: the current climate cannot be used as an excuse to terminate under-performers – remember, it should be a genuine redundancy.

If the decision is challenged and an unfair dismissal claim is made, the employer must demonstrate that the role was correctly deemed redundant.

A redundancy plan will help you manage each stage of the redundancy process and show how you’ll:

avoid compulsory redundancies
consult staff
select staff for redundancy
give staff notice
work out redundancy pay
support staff and plan for the future

Consider alternatives to redundancy.

Before making any redundancies, explore alternatives to redundancy.

For example:

Could you put a freeze on recruitment?
Would a freeze on salary reviews or overtime help the business or the situation?
If you have temporary staff, do you still need them?
Would short-time work be an option?
Explore whether, as a temporary measure, you could reduce the working hours.
Could you offer voluntary redundancy?

If the above options aren’t viable, proceed with your redundancy plan(s).

Identify your selection pool and apply fair selection

Two key things to note here.

First, employees should be treated fairly and equally.

If you need to make three sales consultants redundant, consider all sales consultants across the business and include them within the pool of people at risk of redundancy. The redundancy selection pool must incorporate the correct group of employees.

Second, do not automatically select furloughed staff for redundancy.

Failure to identify all employees at risk will result in a flawed process and may lead to claims of unfair selection.

Ensure that you apply a fair process by using objective redundancy selection criteria, such as skills and standard of work. Your best approach is to share the draft selection criteria with at-risk employees during an initial group meeting.

You should explain how the criteria are applied and invite employees to comment.

With employees working in standalone positions, the selection criteria are not applicable. Review the job specification to check no one else in the business is in a similar role.

Meetings

When considering redundancies, employers must demonstrate that they have acted reasonably and have adopted a fair process, including the legal requirement to consult with the affected employees.

If an employer fails to consult in a redundancy situation, redundancies will almost certainly be unfair, and an employer could be taken to an employment tribunal.

Therefore, ensure that you carry out meaningful consultations/meetings and do not prejudice the outcome, share information with the employee(s) and listen to any comments raised.

You never know, one of your team may have a great idea as to how you could avoid the need for redundancies!

Be open and transparent on everything that can come up during consultation and use it for the correct purpose to ensure that all relevant factors are considered before making any final decisions.

There is no set number of meetings that must be held during the individual consultation process. However, a fair procedure typically includes at least two consultation meetings with the individual. You may find that more consultations are required depending on the questions asked or suggestions put forward.

1. a) Group meeting

In group meetings, share as much information as you can.

Explain the rationale for the proposed redundancies, share the proposed number of redundancies, outline alternatives you have considered and details regarding the “pool” affected, and provide a copy of the draft selection criteria whilst explaining how the scoring will work and what will happen next.

1. b) Consultation meeting

Once you have had the group meeting, hold an individual meeting with those in the selected ‘pool’.

Confirm the details in writing and advise the employee of their right to be accompanied. Ask your employee for comments on the criteria, explain how the scoring process will work and share additional information, such as redundancy entitlements.

Do also discuss whether there are any suitable alternative vacancies which can be offered.

1. c) Second consultation meeting

Once you have scored those in the selected “pool”, host a meeting with those at risk of redundancy.

Once again, confirm the meeting in writing and advise the employee of their right to be accompanied. Go through the selection criteria and explain how the individual was scored (you do not have to disclose anyone else’s score).

Ask for feedback and allow the team member to question how their score has been reached. Follow up on any questions relating to any suitable alternative vacancies.

If any points are raised, explain that you will consider these concerns before the final decision. If necessary, you can adjourn the meeting and reschedule for a later date to go through these raised issues.

If no issues are raised, or the team member has no further points to make, advise the team member the redundancy decision is confirmed.

Again, follow up the final meeting in writing, confirming the reason for termination and outlining the redundancy terms, notice period and any associated benefits.

I am often asked how long should the consultation period last – there is no statutory fixed consultation period if you are making fewer than 20 employees redundant. In my experience, in straightforward cases, you could complete the process in approx two weeks.

Where you have a larger pool of employees, it may take longer.

ACAS notes that “if you are making 20 to 99 redundancies within 90 days in 1 workplace – you must begin consultation at least 30 days before giving the first redundancy notice. If you have 100 or more redundancies within 90 days in 1 workplace – you must begin consultation at least 45 days before giving the first redundancy notice”.

Include an appeal process.

In the termination letter, include the right to appeal.

Should an employee appeal, this will be an early warning that the employee is unhappy with the process. It can help to deal with any complaints early, thus mitigating the risk of an employment tribunal claim.

Conclusion

Remember that it is good practice to ensure regular, open and transparent communication throughout the redundancy process.

If you mishandle redundancies, you can easily face unfair dismissal claims that will be hard to defend.

Common pitfalls relate to:

Not following the correct procedures or departing from the published timetable
Using unfair redundancy selection criteria or methods
Failure to consult with the individuals involved

Redundancy legislation changes

Under the new proposed legislation, expectant employees will receive protection from redundancy during pregnancy.

In March 2023, the House of Lords will hold a second reading of the Protection from Redundancy (Pregnancy and Family Leave Bill. The initial consultation found evidence that new parents regularly faced workplace prejudice with an estimated 54,000 new parents forced to leave jobs due to maternity or pregnancy discrimination.

If introduced, the new regulations will enable redundancy protection to apply to employees from the moment they inform their employer that they are expecting a child and six months after returning from maternity. Parents taking adoption or shared parental leave will also receive protection whilst on leave, and for 18 months after their return to work.

When an employee is on maternity, adoption or shared parental leave, an employer must give that employee first refusal on any suitable alternative roles.

Whilst the Bill is progressing through Parliament, it is unclear when this legislation will come into force. Employers should be mindful of their obligations towards employees expecting a child and act accordingly.

Are you currently making difficult decisions around redundancy?

We deliver practical HR support and guide you through the process, from creating a redundancy plan and timeline and assisting with the selection criteria to preparing the relevant paperwork and calculating redundancy payments.

If you need assistance with any of the points raised in this article, email Balbir.dhesi@wildercoe.co.uk or give us a call at 0207 724 6060.

Category: Accountancy

This a reminder for Taxpayers that a penalty deadline for unpaid Self-Assessment tax is imminent.

HM Revenue & Customs (HMRC) will automatically add a penalty to your tax bill equal to five per cent of the Self-Assessment tax you owe for 2021/22 if unpaid after midnight on 2 March 2023. So urgent action is needed.

The deadline for sending most online 2021/22 Self-Assessment returns to HMRC and paying the related tax was 31 January 2023.

More time

Due to the coronavirus pandemic, HMRC previously allowed taxpayers more time to file their tax returns and pay the tax before charging penalties.

There was no such relaxation this year, and taxpayers should have filed their returns for the 2021/22 tax return online and paid what was owed by the end of January.

Taxpayers who had not settled their unpaid tax by that date have started to accrue late payment interest. Taxpayers who have difficulty paying the tax due may be able to arrange a payment plan online.

Interest charges

Individuals who want to make regular monthly or weekly payments towards their tax bills can set up a budget payment plan with HMRC online. Late payment interest will continue to apply to the balance that remains outstanding.

Daily penalties will kick in if a return has not been filed online or remain submitted by 1 May 2023.

According to HMRC figures, more than 11.7 million taxpayers filed their tax returns before 31 January 2023, but 600,000 taxpayers still missed the deadline.

HMRC expected around 12.1 million filed tax returns for the 2021/22 tax year. Of these expected returns, 11.4 million submissions were on time, along with 0.3 million unsolicited returns and late registrations.

Need advice with Self-Assessment and related tax matters? Contact us today.

Category: Accountancy

A forensic accountant is a valuable connection to have in your arsenal.

However, why is it essential for you to have access to forensic accounting?

You want a trusted professional who delves deep into the inner-financial workings of a business and gathers impartial unbiased evidence. A forensic accountant can help to uncover the truth and quantify the impact of any unusual transactions or suspect agreements. Additionally, a forensic accountant can help to bring clarity in the event of business disputes so management can focus on the key issues.

During an economic downturn; market disruption, financial strain and uncertainty often correlate with an increase in opportunistic fraud and legal disputes. Even after the pandemic, the stresses of handling COVID-19 fallouts continue to impact personal and business relationships and increase disputes and fraudulent activity.

Businesses facing various difficulties may find themselves in need of a forensic accountant for assistance in investigating fraud and resolving shareholder or partner disputes. Fraud investigations typically require quantification of the financial impact on the victim to progress a claim and that is where forensic accountants are typically well-placed to assist.

The additional stresses of inflation on business relationships could result in a break-in partnership or between shareholders: valuations are a necessary step for business owners finding themselves in such situations. Utilising a forensic accountant can help quantify the loss of profits.

A forensic accountant is also instrumental during marital disputes, particularly in valuing the family business, assessing the efficiency of lump-sum payments and advising on liquidity.

At Wilder Coe, our forensic accounting and litigation support team deliver a practical, partner-led solution to problems. We have experience in acting as expert witnesses, single joint experts, party advisors and expert determiners across a wide range of requirements including valuations of business interests for civil and matrimonial disputes, investigation of fraud and theft for criminal as well as private proceedings, acting as an expert determiner for contractual disputes.

Bee-Lean Chew heads up the team and has circa 25 years of experience in the SME corporate arena. Her practical approach combines commerciality and technical expertise to provide a pragmatic solution for her clients. The breadth and depth of Wilder Coe’s offering allow us to address the vast majority of issues faced by SMEs, directors, partners, and High Net Worth Individuals requiring forensic accountant services.

How can Bee help your clients?

Bee is a Joint Managing Partner of Wilder Coe, a practising accountant, and a registered auditor, maintaining her professional audit and accounts portfolio alongside her expert witness work. She acts as a forensic accountant and expert witness in civil, matrimonial and criminal matters.

“I find that maintaining my portfolio of OMB (Owner managed business) clients keeps me up-to-date with current issues which naturally feeds back into my forensic accounting and expert witness work,” explains Bee.

She has given expert oral evidence under cross-examination in Court and First-Tier Tax Tribunal and provides forensic accountancy service in an advisory capacity.

“Ms Chew was very thorough, very smart … and also followed her instructions.” […]” The Hon. Mr Justice Paul Matthews (Ashdown & Ors v Griffin & Ors, 2017)

Bee is happy to have an initial no-obligation discussion to discuss any issues you or your clients may be facing. Please get in touch to schedule an online or telephone consultation with Bee on a no-obligation basis today at bee.chew@wildercoe.co.uk.

Category: Accountancy

Small business owners must avoid costly mistakes when calculating, reporting and paying Value Added Tax (VAT).

The best way to prevent errors and stay on the right side of HM Revenue & Customs (HMRC) is to have an expert take care of your VAT affairs.

A qualified accountant or bookkeeper can ensure that all calculations are correct, up-to-date, and submitted on time and in line with the latest VAT regulations, including Making Tax Digital.

Employing an accountant to keep on top of record keeping will go a long way in preventing expensive mistakes and financial penalties related to VAT.

Some of the most common VAT errors include:

Entertainment: You can claim back VAT on entertaining employees, but not always for clients.
Split usage: Where you provide items such as cars or phones, you can only claim the VAT back on business use.
Inaccurate information: Entering the wrong figures on a VAT return can leave you liable for an HMRC investigation or lead to you paying too much or too little tax.
Filing late: Ensuring that you file the necessary VAT information on time each quarter is essential to preventing the accumulation of penalty points, which can lead to a fine.
Failing to register: If you reach a taxable turnover of £85,000 or more in any tax year, you will need to register.

To cut down on errors, here are a few things you can do to improve VAT reporting:

Take time to update – Keep on top of VAT by setting aside a regular time each week – or each day – to update your accounting records.
Maintain accurate records – You must retain invoices and receipts to report VAT accurately. You can achieve this by implementing the latest cloud accounting software and apps.

Speaking to an expert will help you avoid many of these VAT mistakes, which can be easy to overlook but could be costly to you and your business. Our VAT team can guide you through the complexities and ensure you do not encounter future VAT risks. Arrange a consultation with us today.

Category: Accountancy

Why do I need a business plan?

Your business plan delivers the goals to work towards, helps you identify potential pitfalls, gives insight into your competitors and highlights possible opportunities.

A great business plan should include a concept, strategy, executive summary, market analysis, competitor analysis, the company’s financials and a clear action plan.

What is your concept?

This part of the business plan has three elements:

Executive summary
Company description
Products/services

The executive summary will highlight the business mission by describing its products and services.

It is a good idea to briefly explain why you are starting your business and include details about your experience in the industry that you are entering.

What is your business plan strategy?

You must understand the scope of your business and the amount of time, money, and resources you need to get started. Writing it down will help clarify your ideas.

Do you have a market analysis?

You should identify your target customer’s needs, desires and pain points and understand how you meet them. You also need to understand what else is available on the market and how your offering differs.

Don’t forget your competitor analysis.

While you must understand the market you are operating in, it is also crucial you assess the success and weaknesses of competitors within your market to spot gaps and beat the competition.

Financials are a must!

A vital area. Outline projections for short-term growth and long-term profitability. You should include forecasts of your profit and loss statements, balance sheets, and cash flow statements for the next three years.

Setting these matters out should help you create a clear set of definable actions to grow and flourish your business. A detailed, well-prepared business plan will increase your chances of survival and success in any venture. If you require advice with balance sheets, forecasting profits or cash flow statements, we can help. Contact us today.

Category: Accountancy

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) comes into effect from April 2026 for businesses, self-employed individuals, and landlords with gross business or property income over £50,000.

MTD for ITSA will follow in April 2027 for those with similar incomes over £30,000.

The question? How soon should your business use cloud-based compatible software before that deadline?

The answer? The sooner, the better.

Beyond compliance, the benefits of MTD cloud accounting software include

Reduce human error by keeping digital records and submitting tax information digitally
Easily capture and digitise receipts using associated apps
Making important decisions faster with a real-time overview of your financial position and performance
Automate significant financial functions, like cashflow forecasting
Reduce your costs and saves you time by remaining connected to your business through secure, remote servers
Enjoy up-to-date software with all the latest functions and legislative compliance
Save your work automatically as you go. Saving you both time and money on backup procedures
Collaborate with your accountant anywhere in the world, at any time.

MTD-compliant cloud accounting software will generate the necessary summary updates to send to HMRC every quarter via your HMRC digital account under Making Tax Digital.

You can see how much tax you owe based on the information you have provided so you can be better prepared for future tax bills.

Preparing for MTD by having the correct software in place and ready to use will ensure a smooth transition to the new system, plus the benefits go far beyond compliance. Get in touch with our Head of Cloud Accounting for advice.

Category: Accountancy

With the end of the tax year fast approaching (5 April), you should assess your current tax situation and utilise the reliefs and allowances available.

Here are a few tax quick wins you can consider to help reduce your liabilities now and in the future:

Inheritance Tax (IHT)

Each tax year, individuals can give away up to £3,000 worth of assets or cash without adding it to the value of their estate, referred to as your ‘annual exemption’.

You can carry your unused annual exemption over to the next tax year.

Capital Gains Tax Allowances

Capital Gains Tax (CGT) is chargeable when you sell or dispose of an asset and make a profit. You pay tax on the amount you gain from the sale or disposal.

UK residents can make a certain amount of gains each tax year before being charged CGT, known as the Capital Gains Tax Exemption.

The 2022/23 amount is £12,300 but will fall to £6,000 for 2023/24 before being reduced to £3,000 for 2024/25.

You should ensure that you are using your CGT Exemption before the end of the tax year and plan disposals to take advantage of the current higher rate.

Personal Allowance

Each individual is entitled to their personal allowance (PA), set at £12,570 for 2022/23, which can get partly transferred between spouses and civil partners. The Marriage Allowance of £1,260 can get transferred but only where neither spouse/civil partner pays tax at the higher rate.

Annual Pension Allowance

Ensure you utilise your annual pension allowance (APA) as a vital way to save tax. The current APA allows most individuals to invest up to £40,000 a year before applying tax. The annual pension allowance can get carried across several years if it is unused.

Individual Savings Accounts (ISAs)

You pay no Income Tax on the interest or dividends you receive from an IS. Any profits from investments are free of Capital Gains Tax. You can pay your allowance of £20,000 (for 2022/23) into a Stocks and Shares ISA, a Cash ISA or any combination of these.

Taking advantage of these allowances will save you and your business money. It is good practice to repeat the process every tax year. However, as these are basic suggestions, we advise you to speak with a tax professional for further guidance. Our tax advisors are on hand to help you. You can arrange a free initial consultation here.

Category: Accountancy

With the Spring Budget looming in March, it is easily tempting to delay tax planning until afterwards in hopes of favourable tax cuts.

However, the Chancellor has made it clear that significant cuts to taxation are not likely to be in his speech. So businesses should prepare for the changes introduced in the months ahead.

Tax planning for businesses does not have to be complicated. Small business owners can take advantage of certain deductions, credits and other tax benefits to help reduce the amount of tax they owe.

Corporation tax is a significant tax for companies. Tax planning allows businesses to reduce liabilities by taking advantage of capital allowances, R&D tax relief or other initiatives that encourage investment by offsetting expenditure against profits.

Effective tax planning can enable you to bring forward expenses or defer income to delay tax payments into future years.

Your taxation planning should be part of a more comprehensive business plan helps you to:

Outline your business’s goals
Plan for investments and expenditure
Identify and be prepared for potential problems
Have the ability to measure your progress

A robust and well-prepared corporate tax plan can help you to make the most of the money and investments within your company. If you would like to speak with our tax team, drop us an email at info@wildercoe.co.uk to arrange a free consultation.

Category: Accountancy

In August 2013, Daniel Proctor interviewed for Wilder Coe’s audit trainee programme after being introduced through the HAT Group. Now, nearly a decade later, Daniel has returned to where it all began as our newest Audit Manager.

After graduating from the University of Surrey with a first-class degree in Economics, the appeal of accountancy and all the professional doors it could open led Daniel to where he is today.

Three years of audit training gave the exposure to working with various-sized groups and consolidating client group financial statements.

“I completed my three-year training contract and qualified after passing my exams the first time. Unfortunately, there was no permanent Audit Supervisor role for me to move into at the time, so I opted to move to a more conveniently located organisation in Kent. I found the three years of travelling in and out of London challenging and attracted to the opportunity to work closer to home.”

Daniel joined MHA Macintyre Hudson Folkestone as a qualified senior, predominantly working on audits and accounts. Working his way up their structure to supervisor and audit assistant manager, Daniel picked up several large group clients in the construction industry.

After a stint working as Financial Controller for the Diocese of Canterbury, which he thoroughly enjoyed, Daniel’s desire to run his own business became a reality in 2019, where, as a sole practitioner, he focused on building his reputation within the charity sector, concentrating on his favourite areas of accounts assurance, audit, and advisory services.

“Whilst I enjoyed working with my charity clients and had developed a passion for the sector, I found working as a sole practitioner quite isolating, so I opted to move away from this career option.”

In 2021, Daniel decided to return to practice and joined McCabe Ford Williams as an Audit/Accounts Manager. As well as managing his portfolio, Daniel pushed forward with innovating and improving the quality of audits delivered to his clients. Daniel provided a mixture of audit and assurance services to a not-for-profit portfolio of clients, with a particular focus on assisting and advising leisure trusts and academies in the 18 months at the organisation, applying all his knowledge and expertise in different circumstances with his clients. 

A pivotal moment came when Isabel Yau mentioned the possibility of re-joining Wilder Coe. 

“Initially, the thought of commuting to London was a roadblock. However, the pandemic shifted everyone to a more relaxed approach to hybrid working and the opportunity to work a couple of days at home had an enormous impact on my decision to return. 

Wherever I have worked, I have always referred to and spoken highly of the great-quality training I received at Wilder Coe. Lots of good practices still exist in the firm, and although the offices may have changed since I was last here, the quality assurance and teamwork remain.”

Daniel noticed that every firm he worked at took a different approach to audit. Many of the practices at Wilder Coe are not visible to clients and often do not exist at other organisations.

One of the unique aspects of Wilder Coe, each client, even a small client who might not need an audit but requires some accounts or tax, always has a second Partner reviewing the work. By building in these additional quality controls and emphasising the presentation, our clients can rest assured that management has verified the quality of the accounts. These controls are not always seen in other organisations, leaving company accounts open for mistakes and errors.

Another thing that Daniel has noticed is the lengths the Partners go to with their clients, getting to know each one in a way that differs from the client experiences at other firms. “We deliver a high-quality, customer-centric service that we do not always boast loudly enough. It is how Wilder Coe differentiates itself from the competition.” 

As Daniel settles into his role as Audit Manager, he will come together with Charlotte Willmore to develop and grow Wilder Coe’s charity specialism. 

If you would like to arrange a conversation with Daniel to find out how he can deliver an efficient audit for your organisation, email Daniel.proctor@wildercoe.co.uk   

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How The Autumn Budget Impacts You

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Tossed

Longspur Capital

Caddington & Slip End (CaSE) Community Trust

Ebbsfleet Development Corporation

Bevis Marks Synagogue Heritage Foundation

Renewables Asset Company

Fashion Fragrances & Cosmetics Ltd

ASUS UK

AQUA Carpatica UK Ltd

The MBS Group Ltd

Outfit7 Brit Ltd

Mueller Company International Holdings LLC

Bottled Science Ltd

Asustek (UK) Ltd

Xero sets the bar high according to Configure One

Flame Distribution Ltd

Optigreen Ltd

OBR Forecasts and the Public Finances

“Back to Work” Measures

Cost of Living, Childcare and Fuel Bills

Business Taxation

Pensions

Do any of these measures affect you or your business? Our tax and advisory teams are on hand to help. You can contact us here.

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Have a better handle on your finances.

We understand that each business has its accounting systems in place.

As an accredited Xero Gold Partner, we successfully use cloud technology and implement new processes for clients of all sizes.

Do you want to arrange for a review of your current back-office accounting systems? Faye Thompson can advise you to become a more efficient and profitable business. Arrange a chat today.

Planning Stages

Be clear on your reasons for redundancy and focus on roles.

Consider alternatives to redundancy.

Identify your selection pool and apply fair selection

Meetings

Include an appeal process.

Conclusion

Redundancy legislation changes

Are you currently making difficult decisions around redundancy?

We deliver practical HR support and guide you through the process, from creating a redundancy plan and timeline and assisting with the selection criteria to preparing the relevant paperwork and calculating redundancy payments.

If you need assistance with any of the points raised in this article, email Balbir.dhesi@wildercoe.co.uk or give us a call at 0207 724 6060.

More time

Interest charges

A forensic accountant is a valuable connection to have in your arsenal.

However, why is it essential for you to have access to forensic accounting?

How can Bee help your clients?

Why do I need a business plan?

What is your concept?

What is your business plan strategy?

Do you have a market analysis?

Don’t forget your competitor analysis.

Financials are a must!

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) comes into effect from April 2026 for businesses, self-employed individuals, and landlords with gross business or property income over £50,000.

Inheritance Tax (IHT)

Capital Gains Tax Allowances

Personal Allowance

Annual Pension Allowance

Individual Savings Accounts (ISAs)

In August 2013, Daniel Proctor interviewed for Wilder Coe’s audit trainee programme after being introduced through the HAT Group. Now, nearly a decade later, Daniel has returned to where it all began as our newest Audit Manager.

If you would like to arrange a conversation with Daniel to find out how he can deliver an efficient audit for your organisation, email Daniel.proctor@wildercoe.co.uk

CHECK OUT OUR
RESOURCE HUB

If you would like to arrange a conversation with Daniel to find out how he can deliver an efficient audit for your organisation, email Daniel.proctor@wildercoe.co.uk   