Accountancy Blog

Best Advanced Taxation exam mark in the world

We are delighted to announce that one of our up and coming accountants James Cox has achieved the best ACCA exam mark in the world, yes that’s right worldwide.

With a mark of 93 in his September 2017 Advanced Taxation exam he continues his progress with outstanding success.

As your accountants we are constantly working to give you the best advice we can and James is certainly an asset to your team here at Wormald and Partners.

We will update further when James receives his award.

I hope you will join us in saying “well done James an exceptional achievement”

Pensions – Managing automatic re-enrolment

Once you’ve been running auto-enrolment for three years you’ll need to re-enrol workers.

Over the last five years there has been a seismic shift in attitudes towards retirement saving.

Auto-enrolment means workplace pensions are now regarded by many employees as a normal part of working life.

Although detractors argue that minimum contributions lull people into thinking they are saving enough for a dream retirement, auto-enrolment has got considerably more people saving something, however small, for their retirement.

As an employer you have probably been through the process of starting auto-enrolment and should be managing your ongoing responsibilities.

These include making contributions, deducting employee contributions through payroll and making sure you’re paying at least the minimum contributions.

But auto-enrolment doesn’t stop with the routine tasks.

Every three years employers have to re-enrol eligible workers who are not part of a scheme. These are usually workers who opted out when you first began auto-enrolment.

Although this may sound like another administrative burden to get your head around, this process is very similar to getting started with auto-enrolment.

And, like beginning starting auto-enrolment, it pays to plan ahead. More…

VAT and three-party transactions – the minefield explained

A guide to the VAT implications of having three entities involved in a transaction.

VAT can get very complicated when there are three parties involved in a transaction.

This may happen in an agency situation where one party is arranging for the supply of goods or services in return for a commission, but it can also occur in other circumstances which are not so easy to recognise.

The key to the correct VAT treatment is to understand which role each party plays: principal, agent or customer.

If the roles of the parties are confused, the wrong person may reclaim the VAT or the VAT liability may be missed by all parties.

This may result in potential penalties and interest on the late paid VAT when the error is discovered. More…

Finance Bill 2017-19 round up – what you need to know

The government has published Finance Bill 2017-19, containing a number of changes that will affect both savers and investors.

Many of the measures in the Bill were expected in April 2017 but were withdrawn due to the snap general election, which took place on 8 June 2017.

Most of them have now been reinstated with immediate effect, such as:

  • the reduction of the money purchase annual allowance from £10,000 to £4,000
  • abolishing permanent non-dom status so those living in the UK for years pay tax on the same basis as UK residents.

Mel Stride, financial secretary to the Treasury, said:

“These motions now pick up where we left off and legislate for the provisions that were introduced and withdrawn due to time constraints [caused by the decision to call a snap general election].”

Further measures

There were other measures confirmed in the Bill, such as the annual dividend allowance being reduced from £5,000 to £2,000 from April 2018.

The pensions advice allowance will enable savers to access £500 from their pension savings tax-free for regulated financial advice. This can be done up to three times before the age of 55.

In relation to Making Tax Digital, businesses with turnover below the VAT registration threshold no longer have to keep digital records until at least April 2020.

Regulations on digital record keeping for VAT purposes will not take effect before 1 April 2019.

Contact us to discuss these measures in detail.

 

 

 

 

Sole traders and cash issues

Nearly half (41%) of self-employed people struggle to save any money each month, leaving them exposed to financial problems.

Insurer LV= surveyed 9,495 self-employed workers and found one in three could not survive for more than three months if they lost their income.

Nearly two thirds (62%) of respondents said monthly bills eat up the majority of their wages.

Furthermore, sole traders are more likely to be hit by unexpected costs (33%), such as home maintenance and repairs, compared to the national average of 28%. More…

Buy-to-let tax regulations and rent increases

Landlords are increasing rent prices due to the recent introduction of buy-to-let tax regulations, according to a study.

Estate agent Your Move analysed rental prices on around 20,000 properties and found the average rent in England and Wales rose by 3.1% in the past year to £874.

The rise in rental prices can be attributed to the recent tax changes affecting landlords, such as the mortgage interest relief and 3% stamp duty land tax surcharge.

Tax changes have also restricted the supply of new properties on the market, with a fall in housing stock levels pushing up rent prices.

Every region apart from the South West saw rental prices increase in the year to July 2017, with rents in the South West down 2.2% to an average of £667 per month. More…

Paper tax return deadline 31st October

The deadline to submit your self-assessment paper tax return for the 2016/17 tax year is 31 October 2017.

All income received during the tax year running from 6 April to 5 April must be accounted for in your tax return.

To report your income, claim tax reliefs or any outstanding repayments, you need to complete the SA100 form.

You might need to fill in more sections, known as ‘supplementary pages’, if you’re reporting other types of income. More…