Category: Business Support Services

Egan Roberts joins national network of Handpicked Accountants

Posted on by Gabrielle

We are delighted to announce that we have been selected to join the UK’s most reputable firms on the Handpicked Accountants website.

As a leading accountancy firm in Ribchester, Lancashire, we have been recognised for our personalised customer service and specialist knowledge of the industry. Established in 1986, our team of chartered accountants and business advisors have developed our services over the years to embrace technology.

We specialise in delivering our services to start-ups, academies, medical professionals, manufacturing businesses and SMEs.

As a registered auditor, we also carry out audits for a number of businesses across the country.

Our services include bookkeeping, VAT returns, tax planning, tax returns, payroll and accounts management using cloud based software, Xero.

The team at Handpicked Accountants choose only the strongest performing accountancy firms to participate in their network. Handpicked Accountants features specialist firms which have been tested for reliability and knowledge, filtered down to location to make the online customer journey more efficient.

As a provider of Xero accounting software, we can ensure that you have 24/7 access to your accounts from any device. The shared dashboard will also mean that you will be able to view the same financial data as your accountant. Xero is compatible with Making Tax Digital so you are able to complete VAT returns and submit other financial documents directly to HMRC.

David Tattersall, Head of Client Relations at Handpicked Accountants, said: “After careful consideration, we are really excited to announce that Egan Roberts is now part of the Handpicked Accountants family. The team have years of experience dealing with small business owners, so you can be reassured that the Ribchester based business can be depended upon.
“We aim to simplify the process to source a local accountant which fits the bill in terms of trust, reliability and high service standards. The Handpicked Accountants website makes it easy to filter for accountants in your local vicinity, helping you take control of your financial affairs.”

Our profile can now be viewed on the Handpicked Accountants website.

If you would like more information about our services, an initial meeting and quotation free of charge with no obligation then call us on 01254 583515, email accounts@egan.co.uk or complete the form below.

Paying Employer National Insurance Contributions for Apprentices Under 25

Posted on by r3df3rn

Paying employer National Insurance contributions for apprentices under 25

From 6 April 2016, if you employ an apprentice you may not need to pay employer Class 1 NI contributions on their earnings below £827 a week (£43,000 a year).

They must be under 25 years old and following an approved UK government statutory apprenticeship framework (frameworks can differ depending on the UK country).

You can check that your apprentice is in a statutory apprenticeship using the following link https://www.gov.uk/government/publications/removal-of-apprenticeship-framew…

Evidence needed

If your apprentice meets the conditions above, you’ll need to have evidence to be able to apply the relief. This can be either:

  • written agreement between you, the apprentice and a training provider
  • in England and Wales, evidence that the apprenticeship receives government funding

Written agreement must show:

  • the government apprentice framework or standard
  • a start and (expected) end date for their apprenticeship scheme

If the training provider hasn’t signed the written agreement, they’ll need to give you a document that shows:

  • they’re an approved (recognised) training provider
  • the training your apprentice is undertaking, and any training already done

Alternatively, in England and Wales, you can provide evidence of government funding of the apprenticeship. This could be the declaration to receive apprenticeship incentive payments, or the employer payment schedule to the provider.

You could be the employer and a trainer if you’ve been approved by the Skills Funding Agency in England, or hold a contract for the delivery of Apprenticeships in Wales.

NICs category letters to use.

Category letter: Apprentice conditions =H

Apprentice standard rate contributions – if your apprentice is under 25 and in an approved apprenticeship framework G or If your apprentice is a foreign-going mariner and is under 25

If your employee is under 21 and meets the same conditions as an apprentice under 25, use the H or G categories.

When the statutory apprenticeship stops or your apprentice turns 25 you’ll need to use a new catergory letter.

The apprentice rate only applies to payments which are liable for Class 1 secondary NICs.

What you can tell your employees

Employees will continue to pay the standard rate of Class 1 NICs through their salary. They won’t see any reduction in their payments. It’s employers who’ll benefit from this change.

The employee’s entitlement to contributory social security benefits, including the State Pension won’t be affected and neither will their entitlement to statutory payments. Existing employees may notice a change to the National Insurance category letter on their payslip.

If you have any queries about the above please get in touch on 01254583515 and we will be happy to help or fill in my quick contact form below and we will get back to you within the day.

Medical Profession – Pension Tax Trap

Posted on by r3df3rn

It’s that time of year again when we come round to preparing tax returns. We understand how complicated they can get.

One of our specialisms here at Egan Roberts is acting for clients in the medical profession.

Tax returns can be complicated enough to put together with a combination of practice or NHS income and then private income and looking at ways to minimise your liability. One way to reduce your liability used to be pension contributions, but over the years with the introduction of the lifetime allowance and limits to annual contributions this has become less of a tax planning opportunity.

How does my pension affect my tax?

Indeed it is now quite likely that your pension may be the cause of additional tax liabilities. For older members of the medical profession with a long period of service, you need to carefully monitor the value of your pension in comparison with the lifetime allowance, which presently stands at £1,030,000, increasing to £1,055,000 for 2019/20.

Where the whole of a lifetime allowance has been used by crystallisation events, the lifetime allowance charge will be applied at the rate of 25% on income (the income itself then being also taxed at your marginal income tax rate). For excess amounts taken as lump sums, the marginal rate is 55%.

 

In addition to the above tax trap, you also need to watch that your deemed pension contributions don’t exceed the Standard Annual Allowance which is £40,000 per annum. It is important that you pass to your accountant your NHS Annual Allowance Pension Savings Statement which will tell you your pension input amount for the year.

However, you should be aware that if you do exceed the Standard Annual Allowance, you may be saved from additional tax by the use of Carry Forward, where excess contributions can be offset against unused allowance carried forward from the previous three years.

Liked this blog? Read another here.

You became a doctor to be a doctor, not to run a business.

For help getting started with your tax return checklist, click here.

If you would like any help or advice regarding your self assessment tax return, call us on 01254 583515 and we’ll get in touch.

Making Tax Digital for Vat

Posted on by r3df3rn

Making Tax Digital. You may have heard of this?

If you have not and you are a vat registered business then you need to find out about this as soon as possible. Contact us on andrew@egan.co.uk

 

As from April 2019 all vat registered businesses will need to be able to submit their vat returns direct to HMRC using an approved piece of software. You will no longer be able to submit your return via the HMRC online login as you may currently do.

We at Egan Roberts are speaking to all our clients at the moment to make them aware of the above and checking what plans they have in place to be able to comply with the new rules from next April. Those clients that have a PC based piece of software (sage accounts etc) will need to make sure that their software is up to date and will be compatible with submissions to HMRC from next April. We can do this check for you.

There are however many businesses that either keep their software on spreadsheets or still keep their records manually. These businesses need to act now to be ready for the change in April 2019.

What options are there?

There are several options:

  • Upgrade your current PC based software so that it is compatible with the new HMRC submission criteria
  • Obtain a piece of software that links your spreadsheet to the HMRC online portal
  • Move to a cloud computing piece of software (Xero, Quickbooks or Sage Business Cloud Accounting)
What we recommend

We are recommending that our clients move to the cloud, there are numerous advantages to this, not least being that we as your accountant can login to your live data anywhere and deal with any queries you have.

How easy is it to set up?

The set up of Xero as an example is very easy.

  • We can send you a trial invite which lasts for 30 days if you are happy with the software you can use the standard chart of accounts set up which can easily be amended to suit your business.
  • You enter your opening balances – preferably from your last year end accounts.
  • You can then set up bank feeds which allows your bank to send through the transactions direct into the software. This makes reconciling your bank very easy.
  • You can add your logo so that if you generate sales invoices your logo appears on them and these can easily be emailed to your customers.
  • You add your purchase invoices in to the system so that the payments can be matched against these.
    We can of course help with all of the above
How do I do my Vat Return

Once all the transactions have been entered for the quarter you can generate your vat return from within the software and check all the transactions to make sure it is correct. You can then publish the vat return and submit it from within the software using your HMRC login details. Again if you would like us to do this we are able to login to do this for you.

What do I do now?

Do something now do not delay any further!

Get in touch and we will give you the best options for your business and guide you so that you will be able to submit your vat returns correctly from April next year.

What Accounting Records Should I Keep?

Posted on by r3df3rn

As Chartered Accountants and Financial Advisors based in Lancashire, a question we often get asked here at Egan Roberts is what accounting records we need in order to complete your year end accounts and tax returns.

The most important thing is to be as organised as possible. Accounting software packages such as Xero make this much easier for you.

At Egan Roberts, we are all Xero Certified Advisors to help and support you through your Xero journey. Some may call us Xero Heroes.

Records must be kept for a minimum period of 6 years. Xero has the ability to digitally store images of your invoices and can feed directly through from your bank. This makes record keeping for such long periods of time much easier and will no longer clutter up your spare room!

If HMRC open a tax enquiry into your business within the last 6 years, Egan Roberts offer a fee protection scheme which acts as a type of insurance against any additional work we may need to undertake to assist with the enquiry. See our more detailed blog here for more information about this service.

If you would like to speak to us about any of the above, please call us on 01254 583515 or visit our website www.egan.co.uk

Download This Cutting Edge App to Help You Manage Your Finances and Income On the Go

Posted on by r3df3rn

 

Egan Roberts Accountants App

With this free cutting edge App you can now manage your finances and income on the go, all from the device you always carry with you and use every day – your mobile phone.

Click here to download : https://play.google.com/store/apps/details?id=uk.co.myfirmsapp.one.accountants and use access code ER2018

The App is packed with expertly designed features

Such as the ability to store virtual receipts and log your mileage in real-time, all whilst having access to quality approved information regarding rates, taxes and maximising profits.

The App is not here to replace your accountant, but this App gives you their financial management service in the palm of your hand, at any time, day or night.

Packed full of powerful features, ready to be used as soon as you download such as:

Income Manager – Log your income, ready to export and send directly to us

Receipt Manager – Take photos of your receipts on the go, quick and easy

Mileage / Logbook Tracker – Make sure your mileage claims are always accurate with background GPS tracking

Calculators – a suite of useful calculators to provide you financial and tax information in an instant

Tax & Finance – Get access to tax tables, important financial dates and business news, updated regularly

Say goodbye to paper receipts, our App allows you to photograph your originals, quickly categorise them and export them in a spreadsheet format, ready to send to your accountant whenever suits you. Never again will you have to worry about losing a receipt or taking up valuable office space with piles of paper.

No more lost income records!

You can now use the App to quickly and simply capture invoices and payments. With the click of a few buttons you can log, categorise, add notes, add an image and then save. Captured income can then be exported and emailed to your accountant ready to incorporate into your accounts.

Is capturing your business mileage a chore?

The App can take this pain away too. Mileage / Logbook Tracker will record your mileage at the press of a button. Simply ‘tap’ on the start button and the App starts tracking your journey, even when it is minimised. Once you have finished your journey hit stop, give it a name and you’re done. If you forget to track the journey at the time, don’t worry – you can manually add the journey later so all your journey details are in one place. You also have the ability to export mileage at any time with the click of a button. This will make capturing your business mileage a doddle.

We have also packed the App with super useful calculators to help you make informed decisions such as APR, loan payments, mortgage payments, savings and currency conversions.

We make sure that you also have access to essential tax and financial information. From key tax dates and tax tables to the latest financial news and budget information, you can access it all from within the App, with the reassurance that it is always up to date.

Whether you’re employed, self-employed or running a private company

This App will help you to manage your money effectively and save you time and administrative costs. Simply download to your mobile or tablet and take the first step to easier accounts.

Free HMRC App

Posted on by r3df3rn

HMRC launches an app to assist with personal taxation

The newly issued HMRC app enables individuals to find information about their tax, National Insurance, tax credits and benefits on the move. Suitable for both Apple and Android devices, users will need their Government Gateway credentials to access the information.

For accountants like us who act as tax agents for individuals and for whom we will never have full access to the client’s personal tax account this provides easy way to enable clients to show us, ‘on the move’, otherwise unavailable information without having to access it via a computer/internet.

Full details can be found at: https://www.gov.uk/government/publications/the-official-hmrc-app/the-free-hmrc-app

You can use the HMRC app to estimate your tax, manage your tax credits, access your Help to Save account, or work out your take-home pay.

Used by more than 550,000 people per month, the app puts you at the heart of your tax matters and financial life.

What the HMRC app enables you to do

You can use it to:

    • view your tax code and an estimate of the tax you need to pay
    • see your income and benefits
    • check your National Insurance number
    • view your tax credits payments schedule
  • renew your tax credits
  • access your Help to Save account
  • use our tax calculator to work out your take home pay after Income Tax and National Insurance deductions
  • track forms and letters you’ve sent to us
  • get 6-digit access codes to make your HMRC accounts more secure

 

Getting started

Download the free HMRC app now from:

 

How to sign in

The first time you sign in, you’ll need to enter your Government Gateway ID and password. If you haven’t got these, go to the Government Gateway website and register as an individual.

Whenever you use the app again, depending on what your handset supports, you can sign in using:

  • a 6-digit PIN
  • fingerprint authentication
  • facial recognition

 

Setting up a personal tax account

You can use the app to set up a personal tax account by giving us your name, National Insurance number and date of birth.

If we need to verify your identity, we’ll ask for details such as your passport number and information about your salary.

Sign in to your Help to Save account

The Help to Save service went into a trial phase known as ‘private beta’ in January 2018. It is being rolled out gradually so that it can be tested and developed.

If you’ve already opened a Help to Save account as part of the trial, you can use the app to:

  • check your Help to Save account balance and bonus
  • keep track of how much money you’ve paid in each month
  • see how much money you can still pay in before the end of each calendar month
  • set regular reminders to add to your savings
  • view all your payments and withdrawals

If you want to do other tasks, such as pay money in, it is easy to sign in to your Help to Save account using the app.

Safety and security

HMRC takes cyber security very seriously – see how we are keeping you safe online.

Help and support

If you have a problem with your account that you can’t solve using HMRC’s online resources, contact us for help.

Leases: Finance vs. Operating. What’s Changing 1st January 2019? IFRS 16

Posted on by r3df3rn

The current standard IAS 17 differentiates leases between finance and operating dependent on certain characteristics.

The new standard IFRS 16 will come into effect for periods commencing after  1st January 2019. Leases will no longer be distinguished between finance and operating. Read on to understand the changes, or fill out our quick contact form if you have questions about how this will affect you that you would rather chat about over the phone.

Finance Lease

A finance lease in substance means all of the risks and rewards of the assets have been transferred to the lessee.

Indicators of a finance lease are:

  • The lease transfers ownership to the lessee by the end of the lease term
  • The lessee has the option to purchase the asset at a price expected to be sufficiently lower than its fair value (i.e. market price)
  • The lease term is for the major part of the asset’s useful economic life
  • At inception, the present value of minimum lease payments is substantially all of the fair value of the asset
  • The asset is of a specialist nature such that only the lessee can use it without major modification

The non-current asset is then recognised at the lower of fair value and present value of minimum lease payments.

The asset is depreciated over the shorter of the lease term or its useful economic life.

Lastly, the liability is recognised at amortised cost.

Operating Lease

The definition of an operating lease is that it is not a finance lease i.e. the terms of the lease contain none of the indicators outlined above.

Lease payments are recognised in the profit and loss over a straight line basis and any incentives are spread over the life of the lease.

The only disclosure of operating leases is a note to the accounts showing the split of outstanding payments between less than 1 year, 2 to 5 years and more than 5 years.

Land and Building Leases

Land and building leases must be split into their separate component parts and treated accordingly.

Land is usually treated as an operating lease due to its indefinite useful economic life whereas the treatment of the building element is dependent on the lease terms.

IFRS 16. What’s changing?

The new standard IFRS 16 will come into effect for periods commencing after  1st January 2019. Leases will no longer be distinguished between finance and operating.

On commencement of the lease, the lessee recognises two things; a right of use asset and a lease liability.

The right of use asset is calculated as:

  • Initial liability
  • Plus payments made before commencement
  • Plus direct costs
  • Plus dismantling costs
  • Less incentives received

The lease liability is measured as an obligation, very similar to IAS 17. The initial measurement is the present value of future cash flows discounted at the rate implicit in the lease.

However, if the lease is for less than 12 months or if it is of low value, a company can choose to record payments on a straight line basis to the profit and loss over the lease term.

Egan Roberts Chartered Accountants and Financial Advisers Ribchester, Lancashire.

Call Us Today: 01254 583515

Every business owner needs a team of professionals in the background who provide continuous support and advice. That’s what we do at Egan Roberts.

Through years of commitment to our business clients we have developed a wide range of skills and services designed to improve business performance and profitability.

We are committed to providing a first class service tailored to the individual needs of each client.

We keep a close eye on all the essentials and offer proactive advice on how to improve personal, family, or business finances.

What do you know about the Making Tax Digital initiative that comes into force soon?

Posted on by r3df3rn

The British Chambers of Commerce have called for the Making Tax Digital (MTD) initiative to be delayed until the start of the 2020-21 financial year, after research revealed that 24% of firms have never heard of the initiative. But you should make sure you are covered now sooner, rather than later.

Research conducted by the BCC and Avalara gathered recently responses from over 1,100 UK businesses. In addition to the 24% who had never heard of Making Tax Digital (MTD), 66% knew the project only by name or by some details about it.

The BCC said that this demonstrated a

“widespread lack of awareness among business communities about the switch to a digitised tax system”.

Just one in ten firms knew “a lot of details” about the digital tax plans, but of those who were aware, 25% had made no preparations ahead of the implementation date of April 2019. The research also revealed that 6% of businesses who were aware have contacted HMRC for advice through online services, webinars or by telephone, compared to 51% who have spoken to an accountant.

If your business is not prepared, speak to us today, we can help.

Enquiry About My Tax

If you think there might be anything amiss with your Tax, or you’re setting up a new business and don’t want to get in any uncomfortable positions with HMRC, contact us for a free meeting to discuss your situation and how we may be able to help now and in the future.

Too many firms still aren’t clear on what Making Tax Digital is

Mike Spicer, director of economics and research at the BCC, has said: “We are concerned that far too many firms still aren’t clear on what Making Tax Digital is, or what it means for their operations. With just months to go before the deadline, these knowledge gaps could make the timeline for change unworkable for many firms.

“Ministers must face up to the reality of the pressures facing HMRC and delay the introduction of Making Tax Digital for all businesses for the next financial year. This would allow the Revenue to focus its immediate attention on supporting businesses through the Brexit process, which must be a key priority.

“When Making Tax Digital is implemented, the acid test will be whether it ultimately creates a simpler and more efficient tax system, or yet more onerous administrative burdens that stifle the growth of UK firms.”

Richard Asquith, VP of global indirect tax at Avalara, has said:

“Making Tax Digital will affect 2.6m businesses. It is the biggest overhaul in VAT obligations in decades. Approximately 25% of businesses are still using manual or spreadsheet record keeping, which falls foul of HRMC’s new requirements. It is still not clear how they can become compliant without more education plus investment in compliance accounting packages. To date, HMRC have remained confident that they can cope with MTD and Brexit; although 29 other efficiency projects have had to be cancelled or delayed in preparation of the UK leaving the EU in March 2019.”

A spokesperson from Sage said:

“The UK cannot sit back any longer; we absolutely need to be in the driving seat and stand-up as a leader in the digital arena. Just this week we welcomed the government’s £2m fund to help small businesses adopt technology to help boost their productivity. Making Tax Digital is one of the biggest opportunities the UK has to use technology to cut back on unnecessary business admin – further delays and ambiguity is not what our country’s businesses need.

What is required under Making Tax Digital?

Under the MTD for businesses initiative, from April 2019, businesses registered for VAT that have turnover above the VAT registrations threshold of £85,000 will be required to keep digital records for VAT purposes and submit VAT returns to HMRC through MTD compatible software.

Some useful links :

XERO – Making Tax Digital – Tax is changing for businesses, accountants and bookkeepers. Learn why digital finance management is becoming mandatory and make it work for you before the deadline.

GOV.UK – Making Tax Digital Policy Papers – There is widespread agreement that Making Tax Digital for Business is the right approach for the future. How HMRC is making it easier for individuals and businesses to get their tax right and keep on top of their tax affairs papers, links and further info.

If you are not keeping digital records or are unsure whether your accountant is, contact us and we can have a look at your business and advise accordingly. You can either fill out the contact form above, email andrew@egan.co.uk or call us on 01254 583515. We look forward to speaking to you.

You became a doctor to be a doctor, not to run a business.

Posted on by r3df3rn

Whether you’ve had your practice for some time or you are just starting out, helping patients and taking on all the admin that comes with running a business by yourself is a big task; it might even feel impossible at times!

 

One of our specialisms here at Egan Roberts is acting for businesses in the medical profession so you have more time to focus on what you wanted to do in the first place. However, we do need a little bit of help from you!

Separate your finances

It’s really important that you keep your practice and personal finances separate by having a business bank account.
With Making Tax Digital coming into force soon, you should also consider investing in compliant software now. Read more on those here. We are all Xero Certified Advisors at Egan Roberts but have experience in various different software.

Use your software

Don’t just input invoices and receipts blindly. Use the reports available to have a good idea of how your business is performing; ideally on a monthly basis. We can guide you on the best reports to use and what they mean. If you outsource your bookkeeping, you should still be aware of this.

Why do you need our help?
  1. We keep up to date with the ever-changing tax laws to ensure you pay the correct amount. You’ll no longer need to worry whether you’ve filled out your tax return correctly!
  2. We are able to look at the big picture of your business and advise you where you can improve or make savings.
  3. We can advise you on future plans – whether that be business growth or retirement strategies!

 

Want to know more about how we can help you and your business? Call us on 01254 583515 or email steven@egan.co.uk to arrange a free, no obligation meeting with us.

Contact Us

We are looking forward to your speaking with you and helping you with your accountancy and financial needs.