Happy Birthday ISA!

The tax-saving ISA accounts turn 20 years old this year. The “Individual Savings Account” allows you to hold cash, shares, and unit trusts free of tax on dividends, interest, and capital gains.

Having replaced the Tax-Exempt Special Savings Accounts (TESSAs) and Personal Equity Plans (PEPs), the ISA accounts come in seven varieties:

• – Basic ISA. This is the most popular type of ISA and is used to shelter cash savings, as well as stock-market investments from both income and capital gains tax.
• – Junior ISA
• – Inheritance ISA
• – Help To Buy ISA
• – Flexible ISA
• – Innovative Finance ISA
• – Lifetime ISA

To celebrate 20 years since the first ISA was introduced, here are seven top tips about the unique savings account:

1.     Use it or Lose it

Each adult can save up £20,000 in an ISA each tax year. But – make sure you use your allowance. If you miss one year, or don’t invest the full £20,000, you can’t save your remaining allowance during a following year. Your allowance is refreshed to a maximum of £20,000 at the start of each tax year, (6 April). (When the ISA was introduced in 1999, the maximum savings limit was £7,000.)

2.     Spreading Your Cash

You can invest in one of each type of ISA during a tax year. For example – you can invest in a Cash ISA and also a Stocks & Shares ISA within the same year, as long as the total you invest doesn’t exceed £20,000. It isn’t possible to invest in more than one Cash ISA during the same year, unless you are transferring funds from an existing ISA.

3.     Here to Stay

Some people query the need for saving in ISAs following the introduction of the Personal Savings Allowance (a threshold amount beneath which interest earned on savings is tax-free). “The need for ISA savings largely depends upon the amount you are saving and/or investing during the tax year,” says Suzanne Spicer, Chartered Accountant at Spicer & Co. “It’s also important to bear in mind that the PSA level is likely to change over time, whereas ISAs are almost certainly going to continue to offer a tax-free wrapper.”

4.     It’s All About The “I”

You can’t have a joint ISA. The ‘I’ in ISA stands for ‘Individual’.

5.     Fickle Savers are Winners

Many ISA providers accept transfers from existing ISA accounts with other banks. This means that you can keep an eye on interest rates and performance, switching to an ISA with better returns. Always check that there are no penalties involved and that you able to transfer existing ISAs into the account you want to open.

6.     Go For It!

According to a survey by Beagle Street, planning for their financial future is the thing most Brits delay (followed closely by exercising, chores and dieting). Common distractions include television, social media and going to make a cup of tea!

7.     Leave or Remain?

You are able to withdraw money from an ISA account, (please check the terms of your specific account as penalties may be payable). However – once the funds have been taken out of the ISA wrapper, they cannot be re-invested within an ISA unless the money forms part of your annual investment allowance.

“An ISA account is usually a good investment for most people,” says Suzanne. “It’s important to keep an eye on interest rates, transferring ISA funds as needed and looking for the best home for your annual allowance.”

Have a chat with the friendly team at Spicer & Co Chartered Accountants. Working across Dunstable, Luton, Leighton Buzzard, Houghton Regis and beyond, we love to maximise your potential and minimise your tax. Let’s talk.

From April 2019… next month… VAT is going digital!

The new rules require every business with a turnover greater than the VAT threshold (currently £85,000 pa) to keep VAT records digitally. Plus, their VAT returns will have to be filed using software or spreadsheets that comply with Making Tax Digital (MTD) requirements. (At Spicer & Co, we recommend using Xero accounting software.)

VAT is the first tax to adopt this new approach to filing returns and keeping records. All other taxes – such as income tax and corporation tax – will eventually be included for businesses and individuals with an annual turnover of at least £10,000.

Businesses with voluntary VAT registration (turnover less than £85,000 pa) may choose whether to continue with HMRC’s current online ‘Gateway’ system or join Making Tax Digital. (Please read our earlier article for full details about Making Tax Digital.)

Are you affected by Making Tax Digital?

If so, you need to use online accountancy software. If you are not already doing this, start investigating the options… now!

“Online accountancy offers great opportunities for businesses, independent of the Making Tax Digital requirement,” explains Suzanne Spicer, Chartered Accountant. “It also gives business owners the advantage of understanding the current business finances, rather than looking at retrospective figures. It saves a huge amount of time too!”

Would you like to know more?

Spicer & Co Chartered Accountants work with clients across Luton, Dunstable, Houghton Regis, Leighton Buzzard and beyond. As the number one firm of accountants in Luton and Dunstable using Xero, we are perfectly placed to help you with online accounting as well as Making Tax Digital.

As well as being online accountancy and tax experts, we also appreciate great coffee. If you have any queries about making Tax Digital and how it may affect you, let’s talk. We’ll put the kettle on! No obligation, no jargon, just friendly advice.

Spicer and Co are delighted to be talking about Making Tax Digital at a free networking event hosted by Metro Bank’s Luton branch on Tuesday 19 February, 6pm – 8pm.

The accountancy practice in Dunstable helps clients in Luton, Houghton Regis, Leighton Buzzard as well as Dunstable, where the team is based. Their proactive, forward-thinking nature is a natural fit with Metro Bank which takes pride in its personal approach to business banking.

“Making Tax Digital begins in April for many businesses. Some owners are not fully aware of the which businesses are affected in April and the opportunities that the change offers,” says Suzanne Spicer, Chartered Accountant, who will be presenting at the event. (Take a look at our Making Tax Digital blog for an overview.)

An important requirement of Making Tax Digital is the submission of figures using online accountancy software.  Spicer & Co is proud to be the number one firm of accountants in Luton and Dunstable using Xero, an online accountancy software system.

“We’ve been using Xero for years, so we appreciate how online accounting helps your business’ accounts to become simpler, faster and more efficient,” says Suzanne. “We are big fans of networking too, so we’re looking forward to the Luton event at Metro Bank.”

As well as hearing about Making Tax Digital, the evening is the perfect opportunity to meet other local businesses plus the management team of Luton’s Metro Bank.

Would you like to come along?

Date: Tuesday 19 February

Time: 6pm – 8pm

Venue: Metro Bank, 10 – 20 Castle Street, Luton, LU1 3AJ

The networking event in Luton is free, however booking is essential.  Please book your place via Eventbrite.

See you there!

Many of us struggle in January – getting back to ‘normality’ after the festive break, commuting in the dark… the imminent tax return deadline!

31st January is the date that self assessment tax returns must be submitted. The period covered is the year ending 5th April of the previous year. It’s always the same deadline, yet it seems to approach many of our clients faster each year!

Does this feel familiar? Don’t worry – help is at hand!

Good news! If you haven’t already submitted your paperwork to the friendly tax experts at Spicer & Co, you still have a little time… but be quick! “We appreciate that everyone has busy lives,” says Suzanne Spicer. “Ideally, we would like to receive clients’ paperwork during December, however we can accept information up to the second week in January.

“Even better, if we receive information more regularly, we can help with practical tax planning advice before the end of the tax year. Plus, we can chat with you about your business performance and plans, offering proactive advice along the way.”

Submitting Self Assessment Details

At Spicer & Co, we aim to make life as easy as possible for our clients. We provide easy-to-use ways of capturing the details needed for your return. Plus, we suggest ways of keeping your records up-to-date along the way avoiding the last minute rush. Examples include:

• Use of apps to capture receipts digitally
• Cloud bookkeeping software
• Simply dropping in your receipts to us more than once a year and having a catch up and a cup of coffee

“We can help by suggesting efficient ways of collecting the information needed,” explains Suzanne. “However receipts in shoe boxes or even washing powder tubs are common! Once we have the details needed, we minimise your tax liability and ensure that your return is submitted on time.” Phew!

Excuses for Late Tax Return Submission

HMRC will charge you a penalty if your tax return is submitted after 31st January. With each case assessed individually, there are however, some excuses that may be deemed ‘reasonable’ by HMRC. These include:

• The recent death of a partner
• An unexpected stay in hospital
• Computer failures
• Service issues with the tax authority’s online services
• A fire which prevented the completion of a tax return or postal delays

Making Self Assessment Straightforward

At Spicer & Co, we aim to lighten the load – by minimising your tax bill and simplifying how you collate the details needed during the year. Even with our careful planning and regular communication, sticky situations sometimes happen… such as when a client lost all their receipts when their van was valeted – and the receipts thrown away!

To find out about our tax services, contact the friendly team at Spicer & Co. Based in Dunstable, we help people and business to minimise their tax across Dunstable, Houghton Regis, Leighton Buzzard and Luton as well as further afield. Find out more over a coffee and without obligation. Let’s have a chat.

If you need to complete accounts and/or submit tax returns to HMRC, you need to know about Making Tax Digital, which starts next year. It’s the biggest change to tax since the introduction of self assessment in 1996.

What is Making Tax Digital?

This initiative will require businesses and landlords to use commercial software to maintain their business records and update HMRC quarterly.

What’s involved?

The team at Spicer & Co Chartered Accountants in Dunstable have summarised the key points of Making Tax Digital:

·       Your tax affairs are updated every three months, so no cramming it all in at the end of the year

·       Cloud software records all money in and out of your business bank account

·       You have an idea of your tax bill every quarter

·       Tax planning is easier

·       Compulsory use of technology

·       More reporting deadlines

“Making Tax Digital is good news for businesses overall,” explains Suzanne Spicer of the Chartered Accountancy practice. “It’s a huge change and many people will need to change their systems to meet the reporting requirements. However online accounting systems such as Xero offer big benefits to businesses and the self-employed. As well as easier record keeping and financial planning, digital accounting saves precious time on a day-to-day basis.”

When Will It Start?

Making Tax Digital is just a few months away! 

A phased introduction will start in April 2019. This first phase will involve businesses registered for VAT with a taxable turnover above the VAT registration threshold of £85,000. These businesses will need to keep VAT records digitally and file their VAT returns using compatible software, (this includes Xero and others).

From April 2020 (at the earliest), all other taxes – such as income tax and corporation tax – will be included. This will affect businesses and individuals with an annual turnover of more than £10,000.

How Will Making Tax Digital Work?

Firstly, businesses will be issued with a digital tax account.

Some information will automatically flow into the digital tax account (such as bank interest). Data will need to be checked and then any gaps in income and expenses completed before filing with HMRC.

What Happens Now?

Spicer & Co Chartered Accountants recommend three steps to prepare for Making Tax Digital:

1.     Check when you must start filing quarterly returns (April 2019 or April 2020)

2.     Investigate online accounting software options (if you don’t already use one)

3.     Keep up-to-date by signing up to our newsletter and keeping an eye on our blog. We will guide you through the changes with regular updates, including jargon-free explanations of the details issued by HMRC. Plus – you are welcome to contact us if you have any queries.

“The transition to the Making Tax Digital requirements will be much easier if your records are on a cloud platform accessible to both yourself and your accountant,” explains Suzanne. “Now is the time to make the changes – especially if you are VAT-registered and have a turnover of more than £85,000.”

She adds: “Above all, remember that we’re here to help with understanding how Making Tax Digital will affect your business and answer any queries about cloud-based accounting.”

Would you like to know more about how Making Tax Digital affects you?

Contact the friendly team at Spicer & Co. Our tax experts are always happy to have a chat and a coffee without obligation. Let’s talk.

Most people have a dislike in common: completing their tax return! Whether you pay corporation tax, income tax or maybe both, you’ll need to complete a tax return. Despite generous timescales, it’s something that most people leave until the last minute.

“As accountants, it’s our job to gather the necessary details from our clients – businesses and individuals – to ensure that tax returns are completed and submitted in good time,” says Suzanne Spicer of Spicer & Co Chartered Accountants based in Dunstable.

“Our role is to minimise the amount of tax that becomes due and take away the headache of completing your tax return,” she adds. “Yes, we can complete tax returns just before the deadlines – late January is always very busy! But – receiving details in good time gives us greater opportunities to plan and track down all the information needed. In fact, the earlier we receive your details, the better!”

6 Reasons to Complete Your Tax Return Early
1. You know what you owe. Filing your tax return early gives you longer to budget and ensures that you know the exact amount of tax due.

2. Get your refund! You may be entitled to a repayment – it’s better in your account than HMRC’s!

3. Avoid panic and penalties. If you are employed, your P60 is available now. If you have benefits, you should receive your P11D by 6 July. Somehow, information is always easier to find when time is on your side! Avoid frantic searches for key details in December, or even worse – penalties for late tax return submission as you simply can’t find the information needed.

4. Tax planning for future years is more effective when some time can be dedicated to it. At Spicer & Co, we make a point of understanding your goals for your business and/or your personal finances. Earlier conversations give us a better opportunity for tax planning to meet your aims.

5. Avoid the unknown! Whether it’s extreme weather, illness or your hungry hound… unexpected events can result in late submissions and a financial penalty. The amount involved is a minimum of £100.

6. Tick that task! It’s often a relief to finish uninviting jobs. Crossing off your tax return from your ‘to do’ list allows you to concentrate on what you enjoy – from running your business to a well-earned holiday!

To find out about our tax services, contact the friendly team at Spicer & Co. Why not pop in for a coffee, without obligation? Let’s have a chat.

As soon as your business employs somebody, you need to meet your obligations as an employer. Payroll Services will be one of the aspects to consider. This affects anyone who employs at least one person – including individual directors who pay themselves via their limited company.

Payroll isn’t confined to limited companies. Services are needed when sole traders and partnerships employ someone too.

Good news! Payroll can be much easier than you think!

Our friendly experts are helping businesses throughout Dunstable, Leighton Buzzard, Houghton Regis, Luton and beyond. We hope that the payroll information below will help you too.

Payroll is More Than a Payslip!

Of course, paying employees is the main goal of payroll services. But – it’s paying everyone the right amount that counts. There are several aspects to take care of:

1. Deductions
There are laws and legislation which dictate how much Income Tax and National Insurance should be deducted from each person’s salary and paid to HMRC.

2. Pension Contributions
The new auto-enrolment Pension Scheme is impacting on businesses. Minimum contributions are being introduced gradually over time. You will usually pay pension scheme contributions either as a fixed amount or based on a percentage of earnings. These percentages are set to increase over time. Currently a minimum of 1% for employees and 1% for employers are paid into the chosen pension scheme. Further information about auto-enrolment is available at the Pension Regulator’s website.

3. Employee Changes
From new joiners to leavers and employees on sick/maternity/paternity leave… staff changes can affect the payroll system operating within the business. You need to be aware of the current requirements and levels at all times.

Payroll can be run weekly/fortnightly/monthly depending on the needs of your business. Linked to payroll services, we can offer advice for directors of companies about taking tax efficient wages alongside dividends.

Payroll and Beyond…

Many businesses especially value the services beyond the number crunching. Our clients enjoy peace of mind due to the extra support that’s available from our Payroll Services team, such as:

1. Pension Schemes
We can provide full support and help to set up your pension scheme, including:
– providing letters and information to your staff about your auto-enrolment
– enrolling employees in the chosen pension scheme and completing your compliance
declaration – which is a legal requirement
– updates on changes with the workplace pensions

2. PAYE Updates and HMRC Advice
You’ll receive monthly information regarding PAYE and National Insurance amounts due. Plus we offer support and advice about how to make payments to HMRC in the correct time frame to avoid penalties. Plus, we’ll provide P45’s and P60’s when required.

3. Employment Allowance Claim – up to a maximum of £3,000
Employers are entitled to claim £3,000 allowance each tax year. This allowance helps towards your contributions reducing payments throughout the year. Are you claiming yours?

4. HMRC Liaison
Do you need to raise a query with HMRC? Maybe ask questions about reclaiming statutory payments such as Statutory Maternity Pay? Or have queries regarding PAYE payments and account details? Help is at hand! We will call HMRC on your behalf with any queries regarding your payroll scheme.

5. Real Time Information Reporting (RTI)
RTI was introduced in April 2013 – the largest change to PAYE since it was first introduced in 1944. We track and send submissions to HMRC ensuring they are sent on time in line with RTI requirements. This is a legal requirement of employers and if PAYE information is not reported on time it is subject to penalties.

6. Legislation Updates
Notification of changes in the law like the change in minimum wage rates and ensure that as an employer you are in line with the law. The National Minimum Wage is set to increase again in April 2019:
– 25yrs+ over will increase from £7.83 to £8.21 an hour.
– 21-24yrs will increase from £7.38 to £7.70 an hour.
– 18-20yrs will increase from £5.90 to £6.15 an hour.
– Under 18yrs will increase from £4.20 to £4.35 an hour.
– Apprentice will increase from £3.70 to £3.90 an hour.

Why Outsource Payroll?

To save money and time! These are the key reasons that clients ask us to look after their payroll. Involving our expert support also offers you tremendous peace of mind. Outsourcing ensures that your business:
– complies with current legislation
– avoids late filing penalties
– operates a Payroll system that is accurate and correct
– receive full support with payroll – from wage slips to leavers and starters as well as pensions
and payments to HMRC

At Spicer & Co, we believe that every business is unique. Talk to us about our Payroll Services, without obligation. We’ll offer a flexible and tailored payroll package that allows peace of mind with friendly experts on hand for any questions or queries.

If you’re based in the Dunstable, Leighton Buzzard, Houghton Regis or Luton areas, call in and find out more. We’re always happy to put the kettle on!

HMRC sets a national minimum wage to ensure that everyone is paid and treated fairly in the workplace.

Employers who pay workers less than the minimum wage not only have to pay back arrears of wages to the worker at current minimum wage rates but also face financial penalties of up to 200% of arrears, capped at £20,000 per worker.

As well as facing financial penalties, those who don’t pay their employees correctly and have payroll arrears of more than £100 are ‘named and shamed’ in a public government list. The list is available online and draws the attention of the national press. The most recent list included nearly 240 employers. £1.44m in back pay was identified for 22,400 workers, with the employers fined additional £1.97m.

The list was topped by Sportswift Limited, trading as Card Factory (failed to pay £430,097.87 to 10,256 workers) and T.J. Morris Limited, trading as Home Bargains, (failed to pay £272,228.44 to 6,743 workers).

Be aware that it isn’t just large companies and big numbers that are named publically. The list includes sports clubs, car washes, care services, newsagents and restaurants – a convenience store was listed as owing £102.19 to one worker.

Low Paying Sectors

HMRC regularly targets sectors for investigation:

– Hospitality: 43 employers named for underpaying 5,726 workers a total of £460,459
– Hairdressing: 19 employers named for underpaying 152 workers a total of £43,938
– Retail: 18 employers named for underpaying 85 workers a total of £27,332

Another group in the spotlight is the equestrian sector. Some riders have been fined more than £30,000 for failing to pay their staff the National Minimum Wage (NMW). Lucy Katan, executive director of the British Grooms Association (BGA) and Equestrian Employers Association (EEA) told Horse & Hound magazine: “Non-compliant employers need to watch out, HMRC is coming to get them and they are putting their businesses at risk. The equestrian industry is not immune and as more and more people become aware [that employers must pay the NMW], more people will go to HMRC and they will investigate.”

What is the Current National Minimum Wage?

Age

– 25 years and over – £7.83

– 21 to 24 years – £7.38

– 18 to 20 years – £5.90

– Under 18 years – £4.20

Plus

– Apprentice – £3.70

(Please note that these rates are correct as of April 2018 and will change in April 2019.)

Are You Paying Your Employees Correctly?

Talk to the friendly team at Spicer & Co. We are proactive payroll experts and cut through the jargon of legislation to explain exactly what’s involved with paying your team the right amount at the right time. Contact us for an initial chat without obligation. We’re here to help.

Spicer & Co Chartered Accountants is pleased to announce that its accountancy firm is now part of Handpicked Accountants. This is an online portal which connects company directors and small business owners with qualified, reputable and trustworthy accountants in their local areas.

“Handpicked Accountants is more than simply an online directory of accountants,” says Suzanne Spicer, Chartered Accountant and founder of Spicer & Co.

To help you make an informed choice, Handpicked Accountants has identified around 1,000 of the most reliable, reputable and experienced accountants across the UK; enabling you to search on a local level for the accountancy services you require.

“We work across the Dunstable, Luton, Leighton Buzzard and Houghton Regis areas,” explains Suzanne. “For example, if you’re looking for accountant near Leighton Buzzard to help you or your business, it’s much safer to talk to someone who has been recommended – that’s where Handpicked Accountants can help.”

Handpicked Accountants has carefully chosen a network of recommended, experienced professionals who can be trusted to do a good job, stating: “We believe that choosing an accountant is one of the key business decisions you will make. It is imperative that you can talk freely on a professional and, also, social level. Good open communication is important because you need to be able to pick up the phone and have a chat about how your business is going to grow over the medium to long term.”

You can read Spicer & Co’s profile on Handpicked Accountants here.

Last Thursday was a special evening full of glamour, excitement and anticipation –  it was the awards ceremony for this year’s SME Bedfordshire Business Awards.

Dunstable’s Spicer & Co team was involved with three categories. The chartered accountancy practice was competing for two awards and its networking group, Pride of Dunstable, for another accolade. (Read more about our three nominations.)

Well… we did it!

Spicer & Co won the Dunstable Business of Year Award PLUS Pride of Dunstable was named as “Networking Group of the Year”. Wow!

The judges commented that Spicer & Co is an “impressive Dunstable business – customer focussed and highly involved in local community.” Pride of Dunstable was described as “an enjoyable, fun looking supper club, proud of their town.” What amazing feedback!

Suzanne and Steve Spicer of Spicer & Co were at the ceremony to collect the awards. “We had a fabulous evening, made perfect by being announced as winners! We would like to congratulate all the winners and above all, we would like to thank our team for their hard work and our clients for their support.  This really is an incredible result – we are so proud!”

To discuss any accountancy needs and discover why Spicer & Co Chartered Accountants is Dunstable’s best business, call in for a no-obligation chat. We finished the bubbly, however we promise to put the kettle on!