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Archive for the ‘Finance In The News’ Category

xero certified advisor

Transform Accounting  – the accountants for small business, are now offering the option of cloud based on line accounting systems to our existing and future clients.

Transform Accounting have a wide variety of clients who require different things from their accountants;
– A sole trader or an individual with rental properties may require once a year assistance with tax planning, tax return preparation and HMRC filing.
– A contractor or consultant with a vat registered limited company in addition to the requirements of a sole trader will also usually require book keeping, payroll, quarterly vat returns, statutory accounts filing and advice regarding dividend payments and keeping tax bills to a minimum.
– Other clients require Transform Accounting to take over their back office functions entirely to provide services including invoicing, credit control, accounts payable and cashbook management in addition to those services provided for contractor/consultant limited companies.
– Small business owners of all types will often also require regular management accounts, tax position updates and profitability analyses.

In order to satisfy these clients, Transform Accounting have assessed the various cloud based accounting systems available in the UK and after a successful pilot have chosen Xero accounting as their preferred cloud accounting partner.

Transform Accounting will now be offering the option of cloud based on line accounting systems to our existing and future clients.Both partners of Transform Accounting have recently earned Certified Advisor status from Xero accounting.

We will publish more details in later posts, but if the idea of being able to share access to your company accounts by either a web browser, ipad, iphone or android phone app appeals then this could be ideal for you.

Other great benefits can include ;

– using your phone or tablet to take a photograph of invoices/receipts and have it immediately sent to your accountant for processing
– raising expense claims on your phone or tablet,
– raising invoices on your phone or tablet
– having access to your most up to date accounts allowing you to immediately see how your business is performing.

As a measure of confidence in Xero, Transform Accounting Ltd have already moved their own company accounts to this platform and have started to migrate existing customers and new clients alike and all have been delighted with the results.

If you would like to know any more about how cloud based accounting could help your business, or if your old accountant does not offer this option, please get in touch with Transform Accounting.

Transform Accounting are Chartered Management Accountants and Tax Technicians able to assist with personal tax returns, sole traders and company payroll whilst specialising in limited companies, consultants, contractors and business start-ups. Fixed fee packages are available as are free initial consultations. Customer references are available on request.

See www.transformaccounting.co.uk or contact by telephone on 01277 365447 or by e mail at info@transformaccounting.co.uk

Epping Accountant – Transform Accounting – Essex Accountant

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Did you know that 30th May is also known as “Tax Freedom Day” for UK residents?

According to the Adam Smith Inistitute, it has been calculated that for the average UK taxpayer, the 30th May is the first day when your 2013 earnings go into your own pocket.
Up until this date, all your earnings have effectively gone to the government in the form of various taxes.

This year, tax freedom day is a day later than last year, a sign that the tax burden for UK citizens continues to increase.

This date is calculated by measuring taxes and national insurance contributions as a proportion of the UK’s national income. This results in a figure of 41.5 percent, which in turn gives 150 days as a share of the year.

Tax freedom day varies depending on where you live. In Australia and the US it comes much earlier in mid April, but for citizens of France it isnt until July.

Transform Accounting are Chartered Management Accountants and Tax Technicians able to assist with personal tax returns, sole traders and company payroll whilst specialising in limited companies, consultants, contractors and business start-ups.
We can also help with interim financial controllers for small and medium sized businesses.
Fixed fee packages are available as are free initial consultations. Customer references are available on request.

See www.transformaccounting.co.uk or telephone on 01277 365447

Accountant BrentwoodTransform AccountingEssex Accountants

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tax briefcase

When a UK business makes sales to overseas customers, it can be a little confusing at first when deciding how to treat VAT.  Here are a few tips for preparing invoices for export sales of goods from a UK supplier’s perspective. Be sure to check out our other guide for how to invoice for services which are slightly different.

The following applies to a UK trader who is VAT registered.

  • If a customer is a business based in a country within the EU, and is also VAT registered, then the invoice should not contain UK VAT as the sale is considered to be Zero rated.Note: to qualify for zero rate, the customers VAT number must be quoted on the sales invoice in addition to the suppliers VAT number which should be quoted on all sales invoices.
  • If the customer is a small business in an EU country, and is not VAT registered, or alternatively is an end consumer, then UK VAT must be charged as normal on the invoice.
  • If the customer is outside of the EU, then no VAT should be charged. The customers VAT number is not required.

There are a few other items which are also important when preparing documentation for exports.

  • Proof of export must be obtained within three months of the sale and must be retained for potential inspection.
  • Zero rated VAT is later dealt with on the UK suppliers VAT return using the reverse charge mechanism.
  • All of the above applies only to UK companies who are VAT registered.
  • Sole Traders who are not VAT registered must not charge VAT under any circumstances.

Transform Accounting are Chartered Management Accountants and Tax Technicians able to assist with personal tax returns, sole traders and company payroll whilst specialising in limited companies, consultants, contractors and business start-ups. Fixed fee packages are available as are free initial consultations. Customer references are available on request.

See www.transformaccounting.co.uk or contact Jacinta Smith on 01277 365447

Accountant BrentwoodTransform AccountingEssex Accountants

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tax briefcase

When a UK business makes sales to overseas customers, it can be a little confusing at first when deciding how to treat VAT.  Here are a few tips for preparing invoices for export sales of services from a UK supplier’s perspective. Be sure to check out our other guide for how to invoice for goods which are slightly different.

The following applies to a UK trader who is VAT registered.

  • If the customer is in a country within the European Union, then the invoice should not contain VAT as the sale is considered to be zero rated. Note: Unlike the supply of goods, for the supply of services to be zero rated, the customer must merely be a business and does not have to be a VAT registered business.
  • If the customer is in the European Union and is not a business ( ie – is a consumer), then the sales invoice should be prepared including VAT
  • If the customer is outside the European Union, the invoice should be treated as zero rated regardless of whether the customer is either a business or a consumer. The customers VAT number is not required.

There are a few other items which are also important when preparing documentation for exports;

  • The basic rule for establishing where a services transaction is deemed to have taken place is usually the location of the customer.
  • Zero rated VAT is later dealt with on the UK suppliers VAT return using the reverse charge mechanism.
  • All of the above applies only to UK companies who are VAT registered.
  • Sole Traders who are not VAT registered must not charge VAT under any circumstances.

Transform Accounting are Chartered Management Accountants and Tax Technicians able to assist with personal tax returns, sole traders and company payroll whilst specialising in limited companies, consultants, contractors and business start-ups. Fixed fee packages are available as are free initial consultations. Customer references are available on request.

See www.transformaccounting.co.uk or contact Jacinta Smith on 01277 365447

Writtle AccountantTransform AccountingEssex Accountants

 

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tax briefcase

The normal rules for sales to consumers in the UK from a supplier outside the European Union (eg – Jersey or the USA) are that the UK VAT must be paid by the consumer when the goods are collected.

For example, an item with a value of £100 imported from the USA would incur a £20 VAT charge when collected by the end consumer.

However, there is an exception to this rule

An item with a value up to £18 has historically been allowed to be imported into the UK VAT free. This arrangement was historically put in place to allow perishable foodstuffs through with no delay, but in more recent times this has been used by importers of CD’s and DVD’s (often based in Jersey) to give a competitive edge over UK retailers who have to charge 20% more in the form of VAT.

From the 1st Nov 2011, the UK government reduced this amount to £15 and is continuing to review this situation so watch out for further changes.

Transform Accounting are Chartered Management Accountants and Tax Technicians able to assist with personal tax returns, sole traders and company payroll whilst specialising in limited companies, consultants, contractors and business start-ups. Fixed fee packages are available as are free initial consultations. Customer references are available on request.

See www.transformaccounting.co.uk or contact Jacinta Smith on 01277 365447

Accountant RomfordTransform AccountingEssex Accountants

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question mark

Starting a new business can often be both and exciting and daunting experience. Whatever your business is going to be, one thing that must be dealt with as soon as possible are the administration and accounting.

Regardless of whether this is your first experience of being self-employed, or another new venture, it is essential to select the right accounting partner to help develop your successful business.

Transform Accounting specialise in helping new start-up businesses. We offer a series of packages with low cost monthly payment terms that enable accounting charges to be spread out evenly during the year. These packages mean that we are able to deliver start up services such as new limited company creation, companies house registration and appropriate tax registrations. We can also give advice regarding appropriate company structures (sole trader or limited company) and also help and guidance on record keeping, invoicing and the filing of tax and VAT returns.

Transform Accounting pride themselves on being approachable, low cost and supportive of new business owners, whatever their level of financial experience.

How to Choose An Accountant For Your New Business?

At Transform Accounting, we often meet clients who have been dissatisfied with their previous accountant, but are often surprised at just how long it can take before the client looks for a replacement.

The most common complaints we hear are;

–          Calls not returned

–          Length of time taken to respond to a question

–          Excessive or unexpected charges

–          Missed Filing Deadlines incurring penalties

–          Accountant not very approachable or friendly when advice is wanted

In addition to these, we also see many clients who were unsure as to whether their accounts and tax returns had been properly reviewed by a suitably qualified accountant to ensure tax payments were kept as low as possible.

Many clients we meet also stick with their existing accountant for fear that a change would be too much hassle. In reality, this change should not cause the client too much hassle and most good accountants will help to handle this switchover on your behalf.

So, what should you look for in a good accountant?

Firstly, a good accountant will be able to give you good advice to ensure that you do not pay too much tax. In many cases, the fees of the accountants are actually offset by paying a lower amount of tax. Be sure to choose an accountant who has up to date tax knowledge and qualifications, and one who will be able to give appropriate advice rather than just making a basic filing.

Secondly, a good accountant should prevent any last minute panics by making sure that you have timely reminders about when your tax and VAT returns are due, and should work with you to make sure that everything is filed in plenty of time. Remember, there are no downsides to making a return promptly and no advantages to filing at the last minute. Some accountants will even offer discounts to their fees for making a filing in the middle of the tax year rather than their busy period at the end of the year.

Thirdly – find an accountant who you are comfortable with. Some web based services can appear to offer the cheapest fees, but they will usually offer virtually no advice, certainly no face to face contact and you may find your return is handled by an unqualified office junior.  It is common practice for the cheapest web based services to e mail you a series of spread sheets for the client to complete, and then these are just processed and electronic tax filings are made.

Some clients may prefer a local, one or two man (or woman) qualified accountant who can provide a more personal service such as Transform Accounting, whilst others may prefer to visit a high street practice with multiple accountants and a wider range of services, but possibly higher fees due to higher overheads.

Whichever you decide is best for you, it is essential to find an accountant that you feel comfortable with and who can provide you with the appropriate financial and tax advice for your situation or business.

Finally, ask to be put in touch with other clients who are able to provide references  regarding the service they receive from their accountants.

Transform Accounting are Chartered Management Accountants and Tax Technicians able to assist with personal tax returns, sole traders and company payroll whilst specialising in limited companies, consultants, contractors and business start-ups. Fixed fee packages are available as are free initial consultations. Customer references are available on request.

See www.transformaccounting.co.uk or contact Jacinta Smith on 01277 365447

Accountant Ongar Transform AccountingEssex Accountants

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pound sign

If you are lucky enough to have friends or family or friends who live outside of the UK who send you gifts for Christmas or Birthdays, then it is quite possible that you may have experienced a delay in receiving your gift, or even have had to pay a VAT charge before they are released by customs.

The reason for this is that there is a threshold as to the maximum value for such a gift before UK VAT is charged.

Every year on the 1st January, the UK reviews the level where this threshold is set.

For 2013, the UK limit has been revised to £36.

This means that any gift with a declared value of £36 or less will incur no UK VAT charge and should be delivered smoothly whilst gifts with a declared value greater than £36 may require UK VAT to be paid and the delivery may be held up until this payment is made.

For those lucky enough to have friends or family living in European Union countries such as Spain or Ireland, there is no such restriction so encourage these generous folks to send you expensive presents !

Transform Accounting are Chartered Management Accountants and Tax Technicians able to assist with personal tax returns, sole traders and company payroll whilst specialising in limited companies, consultants, contractors and business start-ups. Fixed fee packages are available as are free initial consultations. Customer references are available on request.

See www.transformaccounting.co.uk or contact Jacinta Smith on 01277 365447

Accountant BrentwoodTransform AccountingEssex Accountants

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