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Tuesday, 13 December 2016 11:01

Making Tax Digital (Making Business Easier)

Making Tax Digital (Making Business Easier)

There are huge changes being planned to the tax system. I want to talk you through the major changes that are coming your way.

There’s even a discount offer (from me, not from the Government).

To begin with...

The Government is making tax digital 

By 2020 businesses and individual tax payers will be able to register, file, pay, and update information twenty four hours a day.

For the vast majority of us this will also mean the end of the annual tax return.

One of the biggest changes that will be coming is that businesses will not have to wait until the end of the tax year (or even longer) before knowing how much tax they will pay.

 Your personal digital account

Every small business owner and individual taxpayer now has access to a digital account that they can use to check their records and manage their details with HMRC.

Through your digital tax account you will be able to interact with HMRC directly.

As a business owner you will have a clearer picture of your liabilities, all in one place, and a much better understanding of your tax affairs.

This should prevent any tax due or repayments owed from building up. Plus you’ll no longer have to wait until the end of the tax year to know how much tax you have to pay.

If you’d like to find out more about this there is a helpful online guide that you can read here

Not only will this make managing your accounts easier, but there is also another step forward that you need to take advantage of…

 Cloud accounting for small businesses

To help make life even easier you can manage your bookkeeping and accounts using Cloud software, and stay on top of your week to week affairs.

One of the best ways to do that is to use software designed for small businesses and freelancers.

There are loads of plus points to switching to Cloud accounting software for your business.

  • You can access your information on the go - using your mobile or tablet
  • Your accounting data is safe – even if your laptop should crash
  • We can work together better – this software allows us to collaborate better
  • We’ll both be using the same software – and, importantly, the same version of it
  • We can access your data on the move – that will help to speed up response times

There’s an ideal software package for small businesses called FreeAgent. It’s so straightforward you can use it on your mobile. All you need is a Wi-Fi connection (it’s all web based, so there’s nothing to download, install, or update).

 If you’d like to take the easy step to using Cloud accounting software I can even off a 30% discount to my clients for FreeAgent.

To find out more about how changes to the tax system will affect you, and how cloud accounting software will make your business life easier, drop me an email at This email address is being protected from spambots. You need JavaScript enabled to view it. or call me on 07849 718662

Published in Our Blog
Wednesday, 31 August 2016 20:52

Back to school and Tax free childcare

Back to school (at last)!

 

Every parent knows that the summer holidays can be really taxing when it comes to childcare!

For most of us that means juggling work commitments, and relying on family and friends. 

It can also mean paying for private childcare.

Now that the summer holidays are coming to an end and it’s time to head back to school, there is some really good news for parents who do pay for private childcare.

Tax-free childcare is coming!                                        

Childcare will never be stress free, but from 2017 it will be tax-free.

There are some big changes being made to make childcare much more affordable for working families. 

Tax-free childcare will be available to around 2 million households.

How will it work?

Tax-free: when you pay in 80p, 20p gets added to the pot.

 

For every 80p you pay in, the Government will pay in 20p (up to £2000 per year, per child).

 

That means that 20% of childcare costs will be covered by the Government topping up the amount you pay in (it gets the name “Tax-free” because the 20% is the equivalent of the tax amount most people pay).

The scheme is available for children up to the age of 12 (or 17 in the case of disabled children).

 

Tax-free childcare: who qualifies and what you need to do

To qualify parents will have to be in work, and each earning around £115 a week, and not more than £100,000 each per year.

  • You can apply for this directly and set up an online account which you can pay into to cover the cost of childcare with a registered provider.

  • Your online account will be set up through the Government website GOV.UK

  • Not only can parents pay into this scheme, but other family members can too.
  • You don’t have to do this through an employer.

  • You can do this if you are self-employed.

There is a really helpful summary about Tax-Fre childcare on the government website.

For more detailed information take a look at Tax-free childcare 10 things parents should know

As always, I am here to help you navigate through tax issues. If you need any advice on this, or on other matters, then please drop me a line.

 

 

Exclusive offer

 

I did say that it’s almost time for school to start again. If you haven’t yet bought school bags or lunch boxes I have an exclusive offer for you.

Readers of my blog can also take advantage of a 10% discount code on children’s backpacks and lunch boxes at Bag Boutique. Please email me at This email address is being protected from spambots. You need JavaScript enabled to view it. for details.

 

Published in Our Blog

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Ivy Wood Bookkeeping & Accountancy
Dean Street,
Newport,
NP19 7FD

07849 718662
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