August Newsletter

Aug 2, 2023 | Newsletters | 0 comments

PLANNING A STAFF SUMMER PARTY?

Employers may host social events for staff this summer without creating tax on the amount spent. The exemption applies to what HMRC refer to as an ‘annual party or similar function’.

One set of criteria for this is that the cost per head must not exceed £150, including VAT. If you have held another party, for example a Christmas event, the combined cost per head must not be more than £150 in any tax year.

However, it is possible to make the most out of the exemption. If the cost per head of the Christmas party was £100, and the summer event was £70, the employer can nominate the Christmas party to be covered by the exemption, but the entire summer event would be taxable.

Rather than the employee being taxed on the £70, the employer can deal with the tax and National Insurance on the employees’ behalf through a PAYE settlement agreement.

If this is something that you plan on doing, speak to us about arranging a PAYE settlement agreement, so you can enjoy your summer party without worrying about the taxman.

HOW TO KEEP UP WITH THE CONSTANT CHANGING OF RATES

With increased food prices and energy bills primarily to blame for the increased rates of inflation, the consequences of the increased expenditure your business has may impact your business revenue directly.

To minimise the impact of the changing rates, the following steps could be taken:

Monitor and project

By tracking relevant economic changes through the updates provided online by GOV.UK, the Bank of England and HMRC, the best chance is provided to businesses through the updates that provide information on any upcoming changes. All three of these websites allow businesses to sign up for email updates to make staying informed even easier.

Change your prices

As expenditures increase, this might have to be reflected onto the pricing of products. If costs such as materials and staff continue to rise, prices should inevitably reflect this change too.

Check over your suppliers

If the same suppliers have been used for several years, the increase of prices may have occurred in this time. Looking into other comparable businesses and their prices helps evaluate if the correct services/ products for the prices paid is provided.

Plan your finances

Budgeting is crucial in times of inflation. Businesses that regularly review their financial position will notice their areas of improvement. By reassessing costs through cash flows, areas of strengths and weaknesses will be highlighted. As a result, plans can be made by businesses to ensure they are keeping up with the rate changes.

If you need any help with budgets and forecasts get in touch to see if we can help.

VAT FLAT RATE SCHEME

The amount of VAT a business pays or claims back from HM Revenue and Customs (HMRC) is typically the difference between the VAT charged by the business to customers and the VAT the business pays on its purchases.

With the Flat Rate scheme, the amount of VAT paid to HMRC is fixed, and you keep the difference between what you charge and pay to HMRC.

To join the scheme, your VAT turnover must be £150,000 or less and you must apply through HMRC.

However, with this scheme, you cannot reclaim the VAT on your purchases, except on a single purchase of capital expenditure goods where the amount of the purchase of over £2,000, including its VAT.

If you’re considering this scheme for your business, get in contact with us today.

NON-BARCODED STAMPS ARE NO LONGER IN USE

These stamps ran out on 31 July. If you now send mail with these stamps, you may be given a surcharge of £1.10 and your post shall not be delivered until this is paid.

If you have old stamps, you can exchange these with the Swap Out Scheme form, available at your local Post Office.

The envelope for this form should be addressed to: Freepost SWAP OUT.

A REMINDER THAT OUR OFFICE ADDRESS FROM THE END OF SEPTEMBER WILL BE:

Riverside Farm, Hollow Road

Ramsey Forty Foot

Huntingdon

Cambridgeshire

PE26 2YB

All email and telephone numbers will remain the same.

If you have any questions regarding this change, do not hesitate to get in contact.

IMPORTANT DATES FOR AUGUST

19/08PAYE & NIC deductions, and CIS return and tax, for month to 05/08/23 (due 22/08/23 if you pay electronically)
01/09Corporation tax payment for year to 30/11/22 (unless quarterly instalments apply)
19/09PAYE & NIC deductions, and CIS return and tax, for month to 05/09/23 (due 22/09 if you pay electronically)

BNI MEMBER SPOTLIGHT 

Fletcher Thompson are members of BNI Trinity, a networking group which meets every Thursday at 10am in Cambridge. We have featured another one of our fellow BNI members this month, Nik Percival from Utility Warehouse:

SAVE WITH NIK PERCIVAL

Switching your home services to UW saves you time and money on your bills. The more services you switch, the more you save.

Save with the UK’s cheapest energy.

UW offers the cheapest variable energy tariff available today – always cheaper than the government’s Energy Price Guarantee, plus the opportunity of the UK’s cheapest fixed rate which has just gone live in July.

It’s simple to save a bundle on your household bills – just speak to me.

I can help you get the UK’s cheapest energy and a Bill Busting Boost of up to £150 when you bundle your energy, broadband, mobile and insurance into one great value bill with UW. That’s because the more services you take with UW, the more you save.

In 2013, I made the good decision to join UW.

I was a full-time Police Inspector and was looking to retire early. The world of policing was no longer the career I joined. A growing family and elderly parents meant I wanted to be present in everyone’s lives. In mid 2022, I was fortunate enough to be able to retire five years early because of UW.

UW gives me massive satisfaction to be able to help others and make a difference in their lives.

I provide a high level of service that I would expect for myself and my family.

In tough times, giving people the opportunity to save money motivates me, as well as supporting a growing team, giving them the opportunity to earn money around their day job.

Feel free to get in touch with Nik through his home page:

https://uw.partners/nik.percival