Archive for November, 2018

Keep private bank accounts private

Thursday, November 29th, 2018

Many small businesses, including landlords, use personal bank accounts to lodge business receipts and make business payments. If traders in this situation are subject to a HMRC enquiry into their business affairs, HMRC would be entitled to request sight of all bank accounts that record business transactions even if those accounts are essentially, personal bank accounts.

As many of the transactions in these accounts are personal, you may need to explain to HMRC where credits to the account came from and provide evidence that the credits are nothing to do with your business.

Without this confirmation or evidence, monies that have nothing to do with your business may be treated as if they are business receipts by HMRC.

Accordingly, if you have let property or a small business, open a separate business bank account and pass all your business transactions through this account. Keep personal bank accounts for personal transactions.

There is nothing worse than trying to remember what the £2,000 credit to your personal/business account was, two or three years after the event, and merely saying that it was a gift from Aunt Mary will not pass muster with the tax office. Inspectors will assume that this is undisclosed business takings or rents.

If you insist on using a personal account for business and personal purposes, then you will need to keep evidence of both personal and business transactions. In our example quoted above this would involve a signed letter from your Aunt confirming the amount and date of the gift made.

HMRC investigators do not have an automatic right to see your personal accounts. In the first instance they will likely be limited to access to business records. Of course, they would like access to your private accounts, as this will evidence more information about lifestyle spending. And so, mixing accounts for business and personal matters will possibly open up investigations unnecessarily.

Keep private accounts private…

Receiving your State Pension if you live abroad

Tuesday, November 27th, 2018

If you are about to move abroad and are already receiving a State Pension in the UK, you might like to read this article setting out some of the issues you will need to consider.

If you live part of the year abroad

You must choose which country you want your pension to be paid in. You cannot be paid in one country for part of the year and another for the rest of the year.

Bank accounts your pension can be paid into

Your State Pension can be paid into:

  • a bank in the country you’re living in
  • a bank or building society in the UK

You can use:

  • an account in your name
  • a joint account
  • someone else’s account – if you have their permission and keep to the terms and conditions of the account

You will need the international bank account number (IBAN) and bank identification code (BIC) numbers if you have an overseas account.

You will be paid in local currency – the amount you get may change due to exchange rates.

When you’ll get paid you can choose to be paid every 4 or 13 weeks and if your State Pension is under £5 per week, you’ll be paid once a year in December.

Delays to payments around US bank holidays

If you live abroad and your payment is due in the same week as a US bank holiday, it could arrive one day late. This is because a US company processes these payments.

Brexit, the outlook for business

Friday, November 23rd, 2018

The political upheavals of the last week have done little to resolve the Brexit issue, the underlying political manoeuvrings or settle a growing list of issues for small businesses across the UK.

Leaving aside the political considerations we now seem to be at a point where there will be a no-deal, a compromise deal (the so-called Chequers’ plan) or a no-Brexit outcome; all are possible.

Those of us working hard to build a business in the UK will be hard put to take much more of this indecisiveness.

There is, however, something we can all do while these political issues are being resolved. The main question we need to ask is:

What is the worst outcome for my business?

The consensus from most economic think-tanks and informed opinion is that a no-deal outcome would be the least helpful outcome. In which case, if you fit any of the criteria set out below, you may want to create a detailed impact assessment for your business: what are downside risks and how can they be countered.

  • Companies that export to the EU.
  • Companies that import goods from the EU, and
  • Companies that have key customers or suppliers that are dependent on trade with the EU.

With less than 120 days until the 29th March 2019 deadline, we need to consider our options. As we have said before on this blog, we need to get business fit for the Brexit race.

Apart from an impact assessment if you fit any of the above categories, all businesses need to be prepared for a possible downturn in economic activity, especially if no arrangements can be agreed with the EU before 29 March.

We need to take a hard look at our business assets and figure out how we can speed up the conversion of leads into cash in the bank. We need to work smarter.

There are no downsides to this suggested course of action. Even if Brexit produces an amicable outcome for all sides being business-fit will allow you to hit the ground running and outpace competitors who less able to respond.

We can help. Please call if you would like to discuss your options. In some respects, “the clock is ticking” is a worn out cliché, and yet so appropriate at this time.

Are you looking for export opportunities?

Thursday, November 22nd, 2018

In a recent press release, the Department for International Trade promoted its enhanced Export Opportunities service for UK companies.

In a nut-shell, this lists overseas governments and companies that are looking to buy UK goods and services.

On the face of it, if you are looking for a source of leads for your export marketing activities, it’s probably worth taking a look.

Extracts from the press release and the link to find out more are copied in below:

The UK is one of the first countries in the world provide this online service, following the launch of the Export Strategy and an ambitious drive to boost British exports.

Examples on the service include:

  • the Government of Ghana wants UK companies to help build infrastructure and supply vehicles
  • a Dutch education body that wants to buy touch-screen computers from the UK
  • a Hong Kong distributor who wants British cheeses for hotels, airlines and supermarkets
  • a Mumbai distributor who wants British chocolate to sell through its network of suppliers across India
  • a Costa Rican distributor wants to sell Scotch Whisky across the Caribbean
  • the pan-American games organisers in Lima want to buy sports equipment from the UK

 

Discover thousands of export opportunities online today.

 

The Export Strategy sets out how the government will support businesses of all sizes to make the most of the opportunities presented by markets around the world.

A government-led collaboration with business, developed after extensive engagement with a range of UK firms – the Strategy sets a new ambition from the government to increase exports as a proportion of UK GDP to 35%.

It presents a streamlined and targeted offer for businesses of all sizes, set to raise productivity, boost wages and protect employment across the UK.

Research shows that companies that export have increased growth potential, are more productive and have better paid jobs.

Tax Diary November/December 2018

Wednesday, November 14th, 2018

1 November 2018 – Due date for Corporation Tax due for the year ended 31 January 2018.

19 November 2018 – PAYE and NIC deductions due for month ended 5 November 2018. (If you pay your tax electronically the due date is 22 November 2018.)

19 November 2018 – Filing deadline for the CIS300 monthly return for the month ended 5 November 2018.

19 November 2018 – CIS tax deducted for the month ended 5 November 2018 is payable by today.

1 December 2018 – Due date for Corporation Tax due for the year ended 29 February 2018.

19 December 2018 – PAYE and NIC deductions due for month ended 5 December 2018. (If you pay your tax electronically the due date is 22 December 2018)

19 December 2018 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2018.

19 December 2018 – CIS tax deducted for the month ended 5 December 2018 is payable by today.

30 December 2018 – Deadline for filing 2017-18 self assessment tax returns online to include a claim for under payments to be collected via tax code in 2019-20.

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