Accounting & Compliance

Yesterday, Chancellor Jeremy Hunt presented his second Autumn Statement, but with a very different tone to the gloomy announcements made this time last year. The Chancellor announced initiatives with a massive focus on pushing growth in the economy. The main question you’ll all no doubt have is… “how does it affect me?”, let’s take a look…

Trusts are often overlooked by many as being too complicated or something only for the rich, whilst the former may be partially true the latter definitely is not. With proper professional advice the benefits of trusts can be demystified, and both the tax and practical benefits realised.

With demand for rental property being at an all time high we explore considerations if you are thinking of getting into property investment and how to ensure you are compliant from the offset of your journey as a property investor.

In this blog, we cover the different tax aspects of purchasing a company vehicle and the potential implications if you get it wrong!

With constant scaremongering in the mainstream media about a recession coming we have been talking to our clients and assessing the market so we can be prepared to help our clients however hard times get. In this blog Andrew Grant gives his views and shares his findings.

Service charge accounting can be a particularly specialist area with transparent management key to harmonious living for residents. We explore the role of block management accounting in this capacity.

Updates for September 2023 including: Tax Free childcare, the effect of high earnings on child benefit entitlement, Merger of R&D Tax schemes, Income tax on Inherited Pension Funds, HMRC requiring more information from tax payers and advisory fuel rates for company cars from 1st September 2023.

Next in the series of less common company purchases we look at the implications of purchasing artwork through your company and what tax relief or tax charges this brings.

Supporting National Payroll Week 2023: Keeping the UK Paid. We look at the importance of strong payroll function and what this does for your business.

VAT can often be a pitfall for start ups or small businesses. We identify the top 5 most common mistakes when it comes to VAT and what you can to do avoid them.

Surely the tax man wouldn’t let me buy a pool table? Think again! Break out spaces for employees not only bring with them the benefits of increased staff morale, collaboration and productivity, but also some unexpected tax benefits.

Updates for August 2023 including, Additional information required for R&D, making the most of tax free childcare over the summer, Staff events including BBQ's, Abolishment of inheritance tax rumours and the effects of the base rate on HMRC interest rates.

What's the difference between a hybrid car and a tax efficient hybrid car? Turns out much more than you think! We explore identifying the most tax efficient hybrid cars for your next company car.

We take a look at the ins and outs of VAT in the property & construction world with examples and tips to help you maximise your reclaims, steer clear or unexpected bills and make your property ventures a breeze.

How late is too late when it comes to starting a business? Many people believe age is a limiting factor when it comes to entrepreneurship, we examine how it can be used as an asset and identify some real life success stories.

Protection insurance is key to protecting your future. Are you aware of the options available to you and are you certain there are no loopholes of gaps in your cover? We explore the differences between Life Cover, Critical illness cover and income protection and the benefits of seeking guidance from an independent financial advisor can help you to ensure you have sufficient cover.

Our June 2023 Newsletter with tax updates including Employment Related Securities, HMRC Interest rate rising and company car fuel rates.

If your business falls within the realm of property consultancy, property/land sourcing, property finding, estate agency, or similar activities, registration for Anti-money laundering supervision will be necessary, we explore the responsibilities and consequences for non compliance.

Many businesses are keen to find efficiencies, streamline processes and drive profit and productivity, is the answer in your accounting software?

Registering for VAT isn’t always a black & white option, here we go through scenarios where VAT registration may or may not be beneficial to your business.

We look at the tax updates for May 2023 including HMRC phasing out paper submissions for P11D's and for the 23/24 tax year. Pension updates including the lifetime allowance and the importance of estate planning, Could there also be a reform of the Construction Industry Scheme?

Property investors are often keen to understand the options for structuring their portfolio. Is a limited company the best option? We look at some of the advantages of using a limited company or a special purpose vehicle for your investment portfolio.

HMRC are introducing a huge change to the way that they apply interest and penalties to late payments & VAT returns ongoing. In this article we breakdown those changes.

Sometimes the rules regarding VAT are not quite what you expect! Here we go into detail on 5 VAT rules that you may not have known existed.

With a range of changes in the world of tax coming into effect from April 2023, discover two simple ways to reduce your corporation tax burden and save your company money!

Keep reading to find out what Chancellor Jeremy Hunt’s “Back to Work” Budget means for you. Is 2023 a year of opportunity?

Frustrated with your business growth? Knowing what needs to be done and getting it done are two very different things. If you are an ambitious business owner striving for success find out how we can help you to build your business.

Our March Newsletter looks at tax updates including hopes for the spring budget, HMRC letters about R&D Claims and penalties for deliberate errors!

Ever wondered if you are declaring the correct amount of VAT on your sales invoices? Or that what you are reclaiming on your purchases is the most that you can? We take a look at why a VAT health check could be a good thing for your business.

Selling, renting or leasing a commercial property or land can be a tricky subject when it comes to VAT. We take a look at what you can do when it comes to land and property and how the option to tax can affect this.

Making tax digital was scheduled to start in April 2024 for businesses, self-employed individuals and landlords with income over £10,000. That has now been delayed and the income threshold raised.

We look at how effective invoicing and how automated systems can help you to get paid faster by your customers.

Brexit has caused a lot of confusion over the correct treatment of sale of goods to EU member states and can leave people with an unexpected tax bill and some unhappy customers! We take a look at the different types of sale that can be made and what you should be doing to comply with EU & UK regulations.

Property investors often fail to realise that they have a duty to register under CIS if they carry out certain activities. Failure to register could be costly as it is likely to result in significant penalties being levied for non-compliance.

What do you do if your subcontractor or professional disagrees with your treatment of their income under CIS? You have basically three actions you can take.

If you carry out any sort of building works on a property and engage labour you have to be wary of the rules under the construction industry scheme where tax has to be potentially stopped on the labour element of the service provided. Professionals are often consider exempt from CIS- but is this right? The answer unsurprisingly is not always!

There are hundreds of software packages on the market. Our team at Friend and Grant have tried quite a few and based on our findings we have taken the decision to encourage our clients to use Xero, although we also support QuickBooks and SageOne.

From 6 April 2024 millions of self-employed businesses and landlords will need to adhere to HMRC’s new MTD for Income Tax rules. So, the question is, how can you best prepare for the changes?

On Friday we were presented with a ‘Mini-Budget’ – in light of the new parliamentary changes. PM Truss’ campaign came with promise of bold plans to cut taxes and stimulate growth in the economy, and although a ‘mini’ budget by name, it was not ‘mini’ by nature in respect of the changes ahead.

With the war in Ukraine continuing and huge increases in energy costs inflation is expected to increase substantially over the coming year. The financial pressure is huge with households facing the largest ever recorded cost-of-living squeeze and businesses suffering substantial planned tax rises as well as pressure on wages and fuel costs. Chancellor Rishi Sunak delivered the government’s Spring Statement last Wednesday but it was clearly aimed at households. For businesses there was very little content.

Every year we sit with baited breath waiting to see what is in store for businesses and individuals from a tax perspective. Were we in for some surprises? Was there going to be a radical overhaul of the tax system particularly in respect of capital gains tax and inheritance tax?

It is often the case that those who have creative flair possess no interest in more mundane things like figures. Unfortunately for those people, especially if and when they become successful, they need to pay tax on their profits and so they either require some understanding of accounting and tax matters or be prepared to pay someone else to deal with it for them.

Year by year the net has been closing in on individuals who fail to declare their incomes. The latest attack focuses on digital platforms such as Airbnb and similar online accommodation sites, tax and private hire services, food delivery services, freelance work, shopping platforms for resellers etc….

Having been in business myself now for almost 30 years I have seen the common traits of those business people who are successful and those who aren’t. It isn’t about having an extraordinary new idea which no one has thought about or tapping into new markets, although this is great if you can. It is more about doing the right things and doing them well.

This is a really good question, and the simple answer is that it depends, but in many cases it is not nearly enough!!!! In general it depends on what the business owner wants and how big and complex the business is.

In the Chancellor’s second real Budget on 3 March 2021 he announced that he had to level with people about the state of the UK economy. Unsurprisingly given the amount of support necessary for businesses and to keep unemployment levels down the UK finances are in a mess! The national debt is expected to hit £2.5 trillion by the end of 2021!

The long delayed VAT Domestic Reverse Charge for the Construction Industry was finally introduced on 1st March 2021.

If you opted to defer your vat payment between 20 March and 30 June 2020 and still have payments to make, you can now defer your payments for a period of up to 11 months, making payments in equal instalments, interest free!

In today’s fast pace business world the need for growth is essential. However doing it on your own is incredibly difficult. Having a strong team around you is key but this can only be created and sustained through strong leadership.

As expected at the 11th hour a trade deal was struck! The transition period for the UK leaving the EU has now ended. The trade deal has been ratified by the UK Parliament so from 1 January we are trading with the EU quota and tariff “free”.

Postponed VAT accounting starts on 1 January 2021, but what does it mean and what effect does it have to businesses?

The UK will leave the EU on 31 December 2020, with or without a trade deal, what action should you be taking now to prepare your business?

If you have deferred your VAT liability due to Coronavirus, make sure you know your options for payment!

Will we or won’t we get a free trade agreement with the EU? Whatever the outcome our Brexit 20 point checklist will help you to prepare for the changes on 1st January 2021.

The flat rate scheme was first introduced in the 2002 budget and is a simple way for small businesses to account for VAT on their supplies.

If building a business was so simple then why do almost half of businesses which set up fail within the first 5 years? Construction is even worse with 2 out of every 3 startups failing in the first 5 years! It isn’t the lack of cash but this is often the nail in the coffin. It all started on day 1 with the failure of the business owner to understand what is really involved in becoming a successful business owner.

There are important changes being introduced in April 2021 to combat companies employing individuals through their own personal services companies. In our blog we highlight the dangers to business owners and how over the years the rules have changed and the net tightened leading to the new off payroll rules which come in to play on 6th April 2021.

The application process for the Kickstart Scheme is now live, but do you know what’s involved?

Automation can prove beneficial for businesses, but what’s involved and where do you start?

Looking to give shares away in your company to secure an investor, business partner or lock in an employee? Beware the pitfalls. In this blog we look at why company owners are prepared to sell or giveaway shares in their companies. We look at the problems, the tax issues, some of the solutions and recommendations we would make to ensure that if you do sale or give away part of your company that you secure your financial position.

Forecasting and scenario planning can help ensure you are better equipped to deal with different situations as they arise, but what is scenario planning?

With the government building a plan for jobs, there are not only changes to apprenticeships but also a new Kickstarter job scheme.

Businesses in the hospitality and tourism sector can now reduce their rate of VAT, but only on certain goods and services!

The government has updated their Making Tax Digital project and this is likely to affect all businesses in some way!

Need finance to cope with your business growth? Have you considered factoring? If not then please read our article which looks at what is factoring and 8 key points to consider when choosing a factor.

The construction industry scheme is designed to stop tax on invoices raised by the self employed or limited companies (called subcontractors) who provide labour within the construction industry to businesses which are also within the construction industry (called contractors).

Cash is king! In bad times there isn’t the luxury of being slack with extending credit to customers. For many businesses poor cash collection is the difference between life and death. Here are 15 easy steps to building a better credit control system and improving cashflow management.

Business startups and small businesses often do not need to register for VAT. However by registering for VAT the VAT incurred on expenditure can be recovered potentially increasing profitability. The article explores the circumstances when voluntary registration makes sense and when it doesn’t.

On 29 May 2020, the Chancellor announced some changes to the Coronavirus Job Retention Scheme that will likely impact a lot of businesses - the "Flexible Furlough Scheme"

Everything has changed. For many businesses the coming months will be a real challenge. With the removal of lockdown and a deep recession many businesses will not survive. If you have been adversely impacted by Covid 19 here is our 10 point plan to not only survive but more importantly thrive.

We understand that the majority of businesses are operating differently. Our virtual approach to providing you with support and training on cloud accounting solutions means that your finance function does not have to stop.

The Government has announced a new scheme to issue convertible loans to innovative companies which are facing financing difficulties due to the Coronavirus outbreak.

There are a few technicalities that businesses should be aware of when they are taking advantage of any Coronavirus Business Support.

The Government has announced an improvement to the grants that are currently available for small businesses.

The current crisis has highlighted to many business owners how precarious business really is. Many businesses have suffered. Now is the time to start rebuilding and one of the first things to do is determine your break even point.

Increased pressure from businesses unable to access the Coronavirus Business Interruption Loan (CBILS) funding has led to the government announcing a new loan scheme for those in need of smaller loans.

It’s fair to say that business relationships usually begin with enthusiasm and passion, grow through balance and communication and endure the highs and lows of life. Sometimes, however, businesses don’t weather the storm and things come to an end. Do you have a plan?

Working in the property industry can be a minefield with all the various accounting regulations that need to be followed. This can be made easier with a good record keeping system that works for your business and keeps you compliant!

Cash flow is king in any business. Yet cash flow is one of the areas that many businesses struggle to manage. We explain ways in which you can use systems to help chase your debts more efficiently.

Charities across the UK will receive a £750 million package of support to ensure they can continue their vital work during the coronavirus outbreak, tens of thousands of charities will benefit from direct cash grants to ensure they can meet increased demand as a result of the virus as well as continuing their day-to-day activities supporting those in need.

We look at what action business owners can take to ensure their staff stay motivated, productive and mentally healthy during an extended period of working from home.

We examine the circumstances in which a company director can furlough themselves and take advantage of the government's Coronavirus Job Retention Scheme.

The Chancellor announced the Coronavirus Business Interruption Loan Scheme (CBILS) in his latest Budget. This scheme opens for applications from 23 March 2020 and can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cash flow.

The Chancellor has set out a package of temporary, timely and targeted measures to support businesses through this period of disruption. Regrettably for most of the self-employed there is little help.

The Chancellor outlined a package of measures that have never been seen before in order to protect million’s of jobs and incomes in response to the coronavirus crisis. A new Coronavirus Job Retention Scheme will be set up to help pay people’s wages.

There is no doubt we are living in unprecedented times. The coronavirus has increased uncertainty to levels that we in the UK have not seen for decades. The first thing to say however is that life goes on and to a large extent we can only deal with what is immediately in front of us....

If you have received a letter from the ICO about Data Protection fees, then the chances are this applies to your business.

With effect from 6 April 2020, a new tax payment regime will be introduced for the disposal of residential property in the UK by individuals. Here’s what you need to know.

Poor book-keeping alone doesn’t usually bring a business down. Usually the accountant will step in to clean the books up and calculate the company’s tax liabilities with time to spare. But it’s different for construction, primarily due to CIS.

The off-payroll working rules, known as IR35, were introduced in 2000 to ensure that individuals who work like an employee, but through an intermediary such as a company, pays similar taxes to other employees. Important changes are being introduced in April 2020. There has been a lot of press recently (and most of it negative) stating how many businesses are going to be badly impacted by the changes.

The delay in the domestic reverse charge VAT for construction services was welcomed by many in the Construction industry as it has given affected businesses another year to prepare for the changes. The changes have been detailed by us in a previous blog and will have a major impact on the construction industry. Here’s our plan to ensure a smooth implementation of the changes.

In a recent Tax Tribunal case the judge agreed with HMRC that a detailed breakdown of director loan account transactions is required, including dates. The significance is that where the loan account is overdrawn (debit balance) there may be a possible P11D benefit on the director and also a tax charge on the company.

Nobody likes to receive post from the tax man, especially when HM Revenue & Customs have chosen your Tax Return for enquiry. It’s easy to panic and you’ll have lots of questions rattling around your head. Here are our top tips for handling a HMRC Revenue enquiry.

Thinking about getting an electric or hybrid car for your company? The government has announced that there will be a zero P11D benefit for the drivers of electric cars from 2020/21. This is instead of the 2% scale charge that was originally included in Finance Act 2017 to apply for 2020/21.

Will your business be prepared if we leave the EU on 31 October without a deal?

All businesses within the EU, from sole traders upwards, need an EORI number when importing or exporting any commercial cargo from or to the rest of the world (i.e. outside of the EU).

You meet with your accountant and they tell you you've made a profit of £150,000. You look confused and think "I don't understand this. How am I doing so well yet there is no money in the bank account? Where has my cash gone?"

Everyone needs a holiday to recharge their internal battery and to strengthen those vital family bonds. However getting away from the business is a problem in itself. Here’s some ideas!

As a parent one big headache could be what to do with the kids this summer. If the kids are under 11 the government can help. If they are over 13 how about getting them to come to work for you?

Friend & Grant have experience tackling the taxation challenges of a variety of foreign savings, investment, & retirement products, such as offshore funds; we can help advise you on what income needs to be reported, the available allowances, and can help formulate a tax-efficient repatriation plan.

In the Government’s ongoing campaign to eliminate the effects of fraud, HMRC are bringing in new legislation from 1 October 2019 that will significantly affect the construction industry. This new legislation is the “Construction Reverse Charge”. The changes are major and if you provide labour in the construction industry then you will be impacted!

Good corporate governance is as crucial for SME’s as it is for large listed companies. Corporate governance refers to a set of internal policies, rules, and procedures that a company follows on a regular basis to make sure it operates in a fair, equitable, and appropriate manner.

Businesses are missing out on a huge tax windfall if they conduct Research & Development and don’t claim the additional tax relief – over 250,000 successful claims have been made to HMRC

We waste so much time writing & reading long expansive sentences when a bullet point would be just as effective! Here is Winston Churchill’s memo to the War Cabinet about brevity.

For all startups knowing when to register for VAT is fundamental. Get it right and you could save £’000s in tax, get it wrong and there could be penalties and additional costs. The rules are fairly straightforward but unfortunately many businesses still fail to register on time.

As a company director are you looking to build a strong working relationship with a trusted advisor who will help you save tax and grow your business. If you are then why not speak to us about 5 easy tax wins which we can implement with you.

In a little under two months, the majority of VAT registered businesses with turnover exceeding the £85,000 threshold will be required to file VAT returns digitally.

Friend & Grant are delighted to achieve Gold Champion Partner status with Xero, the global leader in cloud accounting software. With intuitive real-time, integrated software, more and more of the firm’s clients have been taking advantage of the flexibility and benefits that cloud accounting has to offer.

From April this year, for the 2.55 million VAT registered businesses with a turnover exceeding the £85,000 VAT threshold, it will be mandatory to file VAT returns through Making Tax Digital compliant software and not via the current HMRC portal.

Your balance sheet is important and shouldn’t be ignored. It’s visible to everyone if you’re a company so people can assess whether to do business with you or for a potential buyer to value the business.

Most business failures could be avoided with a little care and attention. No one has the right to credit so don’t give it away unless clients have earned it. Read our tips and make sure your cash flow and your business doesn’t suffer.

This is our special budget report following the Chancellor’s Autumn Budget announcements. As previously announced, these were the main themes of the Chancellor Phillip Hammond’s third budget but what we were waiting to hear was where the extra money was going to come from? Had he found a “Magic Money Tree”, or would tax and...

Subsistence is a big problem area in tax. Many clients incorrectly assume that if you are working and buy a lunch or grab a snack when re-fuelling the car or van that this is fine to claim against your tax bill.

Entertaining clients is a legitimate business expense and can be paid out of the business account. But, you will not be able to claim tax relief for the amounts spent nor can you claim back any VAT paid. But, if there is a sponsorship element to the expenditure then the position may be more favourable.

Will your next company car be a classic? How would you like to drive a fun Fiat 500 from the sixties or a cool Lancia Fulvia from the seventies? This is a serious question for car enthusiasts and one several of our clients have said a big YES to! Surprisingly, classic cars can be quite...

This question is asked a lot and it is usually along the lines of…. “I would like to learn about X and there is a great course. Could I put it through my business?” Most business owners think that training costs aimed at improving skills or business profits automatically qualify for tax relief, but that’s not...

Tax Free Trivial Benefits – Make Sure You Make the Most of This Opportunity First announced in the spring 2015 budget, new legislation clarifying the tax treatment of trivial benefits came into force from 6th April 2016. But is this an easy opportunity to extract benefits tax free from your company? The simple answer is yes!...

Despite there being no public news announcements from HMRC, like the TV advert about Auto-Enrolment with the 10ft furry monster, Making Tax Digital (MTD) for VAT is still going ahead from 1 April 2019. MTD for VAT will affect almost all VAT registered businesses in some way, meaning there could be more work to do...