Latest News from HCA – April 16

Subcontractors – Have you paid too much tax in 15/16 via CIS deductions?

We are busy this time of year completing Self Assessment returns for our subcontracting clients who have paid too much tax in the previous tax year. We work closely with our clients to complete an accurate tax return including all their income, expenses and allowances, so that they can reclaim the overpaid cash back into their bank account asap.

With an accurate return and correct request submission, HMRC are committed to repaying any overpaid tax quickly. So;

  • Do you have your deductions at the higher rate of 30%?
  • Are your deductions at the standard rate, but you have a number of expenses or allowances that you could claim against your tax liability?
  • Have you considered applying for gross payment status?

If we could help with your tax return, then please do not hesitate to contact us for a no obligation quote.

Windows 10 – upgrade or not?

Have you received the email or pop up message from Microsoft offering you the upgrade to Windows 10?

Are you also nervous about upgrading due to past experiences with other upgrades or what you have heard from others?

Our IT-tech team, headed by Chris, are always happy to discuss such concerns and provide you with some guidance in relation to your personal circumstances.

Windows 10 starts up 28% more quickly than Windows 7, it resumes faster and comes with more security features than ever. Microsoft have also reinstated some of the features many people loved about older versions, such as the start button. It is also currently free to upgrade some older versions, but Microsoft say this won’t be forever.

Here are a few considerations before running this upgrade:

  • Back up your information, files, folders, favourites, settings, etc
  • Download all the drivers for your hardware before upgrading
  • Establish if the software you have installed be compatible with Windows 10? For example, it may change your clock settings and impact on software such as Sage Accounts
  • Does your PC, Tablet or notebook have sufficient space for the upgrade?
  • Do you have your genuine Windows Licence key code? It may be requested, especially if you are running a completely fresh install
  • Make a note of all the programs you use and check they were all retained during the upgrade
  • Will your antivirus block the Windows upgrade?
  • Give yourself time for the upgrade process. Choose a time when you don’t need the PC and the upgrade can run without any interruption.

Some Windows 10 upgrade problems are widespread. Others are actually due to users not understanding the Windows 10 upgrade process in the first place. If you are unsure, please seek guidance.

10 steps to creating an effective financial forecast for your business success

  1. Start with the expenses known to the business from experience, history or relevant market research
  2. Add seasonality, indexation, new costs, changes
  3. Include one off costs (eg start up costs, growth investment)
  4. Remember to include your own remuneration at the business owner (salary, dividends, both)
  5. Establish your level of revenue - number of customers x average revenue per customer x number of times they buy in the period
  6. Calculate your cost of sales - your direct costs related to the revenue such as materials, labour, marketing,
  7. Consider the 'what if's' with a sensitivity analysis and amend the forecast on consideration of the outcomes
  8. Run out the forecast for 2-3 years
  9. Reflect the impact of the forecast to your balance sheet and cashflow
  10. Review, monitor, adjust ensuring your forecast is a fluid working document

Employment Allowance

Last year employers could reduce their National Insurance Contributions bill by £2,000 by claiming the Employment Allowance. The good news is that for 2016/17 this is increasing to £3,000.

However, please note that it was further announced, that where a director is the sole employee in respect of whom Employer’s NIC is payable, the Employment Allowance will cease to be available from April 2016.

For more details, please click here

Budget 2016 update

Have you caught up with the news from the latest Budget last month and understand the factors that impact on you and your business?

To read the .gov.uk summary, please click here.

We are more than happy to discuss any questions you may have.

There were many changes for your consideration. In addition, to the Changes to the taxation of Dividends, that we covered in last month’s news, we especially draw your attention to the changes in Corporation Tax Rates over the next few years, the national living wage, the deferment of auto enrolment contribution increases, small business rates relief changes and income tax rates / allowances.

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