Latest News from Davies Archytas Accountants Redditch

Stay up to date with accountancy news, events and key insights from within the financial & accounting industry from Davies Archytas, Redditch based Accountants.

Please check out our Facebook news feed below for all our latest accountancy news updates.

These steps can help you reduce your risk of using non-compliant umbrella companies:

🔹 Perform due diligence on your whole supply chain.

🔹 Find out what you need to do when you engage a worker.

🔹 Consider adding clauses in your contracts with umbrella companies.

🔹 Check payslips to make sure PAYE is being operated on the full amount received by the worker.

🔹Be extremely cautious about working with umbrella companies that are offshore or offer financial incentives.

🔹 Check the umbrella companies details and returns filed with Companies House to make sure details such as its financial position, location and trading history are consistent with what you have been told.

🔹 Educate your workers by sharing information with them about tax avoidance schemes.
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Timeline PhotosSome disguised remuneration schemes involve a worker becoming employed by a non-compliant umbrella company operating an avoidance scheme.

The umbrella company will operate Pay As You Earn (PAYE) on part of the amounts paid to the worker, while the remaining amounts paid are treated as non-taxable and so not subject to PAYE.

These untaxed payments may be referred to as:

🔹 loans
🔹 grants
🔹 salary advances
🔹 capital payments
🔹 credit facilities
🔹 annuities
🔹 profit shares
🔹 shares and bonuses
🔹amounts held in a fiduciary capacity

In all cases, these schemes involve untaxed payments being made to workers by a non-compliant umbrella company to increase their take-home pay.

If you engage with an umbrella company operating an avoidance scheme, you become part of the supply chain of the scheme.

Talk to us for advice on this.
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Some disguised remuneration schemes involve a worker becoming employed by a non-compliant umbrella company operating an avoidance scheme.

The umbrella company will operate Pay As You Earn (PAYE) on part of the amounts paid to the worker, while the remaining amounts paid are treated as non-taxable and so not subject to PAYE.

These untaxed payments may be referred to as:

🔹 loans
🔹 grants
🔹 salary advances
🔹 capital payments
🔹 credit facilities
🔹 annuities
🔹 profit shares
🔹 shares and bonuses
🔹amounts held in a fiduciary capacity

In all cases, these schemes involve untaxed payments being made to workers by a non-compliant umbrella company to increase their take-home pay.

If you engage with an umbrella company operating an avoidance scheme, you become part of the supply chain of the scheme.

Talk to us for advice on this.
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Millions of trustees need to register details of their trusts before next Autumn, following the launch of a new trust registration service.

The service was originally announced in draft form in 2017, at a time when it would only have applied to taxable-relevant trusts.

Since then it has been expanded to include all UK-resident express trusts, with a few exemptions for pension trusts and charity trusts.

As such, details of up to two million trusts must be registered with HMRC on or before 1 September 2022.

Trustees who fail to do this will run the risk of a fine, with the potential for large penalties if the tax authority deems the behaviour to be deliberate.

Speak to us about planning your estate.
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Timeline PhotosThe stamp duty land tax holiday in England and Northern Ireland has come to an end, more than 14 months after it first came into effect.

The tax break saw most buyers who purchased residential homes for £500,000 or less pay no stamp duty land tax until 30 June 2021, although landlords still had to pay the 3% surcharge.

HMRC collected £5.7 billion in stamp duty between April and July 2021, £2.2bn more than the same pandemic-affected period in 2020.
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The stamp duty land tax holiday in England and Northern Ireland has come to an end, more than 14 months after it first came into effect.

The tax break saw most buyers who purchased residential homes for £500,000 or less pay no stamp duty land tax until 30 June 2021, although landlords still had to pay the 3% surcharge.

HMRC collected £5.7 billion in stamp duty between April and July 2021, £2.2bn more than the same pandemic-affected period in 2020.
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There’s still time for you to share all of your records or spreadsheets with us to process and upload your 2020/21 tax return digitally – our preferred method – in plenty of time.

We are already running the rule over clients’ records, applying any reliefs and reclaiming any allowable expenses before we calculate their taxable profits to ensure they only pay what they need to.

With 'Making Tax Digital' #MTD for income tax self-assessment (ITSA) also on the horizon, we are also introducing HMRC-approved software to our clients and showing them how to use it within their business.

The sooner you embrace this, the easier this process will be when MTD for ITSA becomes mandatory.

We handle every aspect of self-assessment.
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Surprisingly, more than 400,000 startups were created in 2020/21 during the height of the pandemic. For these business owners, certain deadlines are fast approaching.

If you were one of these entrepreneurs, you should have already received two separate letters from HMRC: one containing your 10-digit unique taxpayer reference number; the other containing an activation code.

These are necessary to register for self-assessment by 5 October 2021, which will enable you to file a personal tax return on or before 31 January 2022.

If you’re reading this with a sense of panic, contact us for support.

[email protected]
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Some time has passed since the self-employed income support scheme (SEISS) was launched in May 2020, following the onset of the COVID-19 pandemic.

The first taxable grant, worth up to £7,500 in total, was paid out in August 2020. That was followed by a second grant of up to a total of £6,570 and a third grant, worth up to £7,500 in total.

Many self-employed individuals or business partners who met the SEISS’s eligibility criteria could have claimed up to £21,570 in total from these grants claimed during 2020/21.
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If you're a sports fan, then MTD may make you think of 'Match of the Day!'

However, letting agents and sole traders should recognise MTD as representing a huge change to the way they do their accounts called Making Tax Digital.

From April 2024, the Government will require all self-employed people with business or property income of more than £10,000 a year to pay tax digitally.

Not only that, they will be required to submit quarterly returns of their income and outgoings, as well as their annual tax return – all electronically.

If this sounds daunting to you, contact us we have a package that includes cloud-based software at a great price and all the support you need.

[email protected]
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Anyone who’s involved in operating a charity knows how it differs from running a business, both in terms of motives and objectives.

HMRC treats non-profit organisations and charities very differently to businesses, offering some unique tax breaks in the process. Read more here...

mailchi.mp/1ec39f00691e/davies-archytas-accountants-monthly-newsletter-sign-up
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We've had a new look in our offices in Redditch. Just to say 'thank you' to Stefan Volak at redditch.minutemanpress.co.uk for the glass branding. You always do such a professional job!

Minuteman Press Redditch
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For businesses in the hospitality and leisure sectors that use premises, the business rates holiday expires at the end of this month. From 1 July 2021 until 31 March 2022, business rates will be charged at a reduced 34%. You will be able to claim this as an allowable expense in 2021/22.

#hospitality #leisureindustry #accounts #business #businessrates #allowableexpenses #accounts #accountant
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If you feel like you're struggling to keep on top of your #accounts, we can help! Outsource to us & you can get back to doing what you enjoy.

#Accountants #Outsource
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Our team continues to grow! We'd like to welcome Marc to the Davies Archytas Team as our new Accounts Senior.

#accounts #accountant #accountssenior
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We'd love to know if you are a Sole Trader or #Landlord whether you are ready for the Making Tax Digital (MTD) requirements deadline in April 2023 yet? Please comment below with either A, B or C.

A. Don’t know what it is!
B. Know what it is, but not ready yet.
C. I have everything in place already.

#MakingTaxDigital #MTD #Tax #SoleTrader
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Are you a sole trader or Landlord?

Making Tax Digital for Income Tax (Sole Traders and Landlords) is coming into effect from 6th April 2023 - maybe it's time to look at your record keeping making sure that you're ready.

We are offering packages to make the transition easy, our aim is to help Sole Traders and Landlords sail through the set up and easily navigate through the ongoing requirements.

We will also show you the benefits to using software for your records keeping and have the ability to keep cost low due to high volume sign up.
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HMRC’s Making Tax Digital (MTD) plans involve getting small businesses and the self‑employed to complete digital tax records and returns, in other words you will need to keep a digital record of your accounts using accounting software. The eventual aim is that we will be going completely paperless.

The reasoning behind the change is to make it easier for people to manage their tax affairs. Now, it may seem daunting to start with on your own, which is why we have created packages to support you every step of the way.

Talk to us if you want some friendly advice that will guide you through what is required.

[email protected]

#MTD #MakingTaxDigital
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All VAT-registered businesses will need to comply with Making Tax Digital for #VAT from April 2022.

Talk to us if you want some friendly advice that will guide you through what is required.

[email protected]

#MTD #MakingTaxDigital #VATRegistered
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