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Director's loans

If you owe your company money, your personal and company tax responsibilities depend on how the loan is repaid. Option 1 - you repay the loan with 9 months of year-endPay your company interest at the HMRC official rate - currently 2% Option 2 - you do not repay the loan within 9 monthsIn addition to the interest at the HMRC official rate, use form CT600A to show the loan amount owed at the end of the accounting period.  Pay 32.5% corporation tax on the amount outstanding.  You can recl...

MTD - Making Tax Digital

Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.MTD VATVAT-registered businesses with a taxable turnover over £85,000 are already following MTD rules.VAT-registered businesses with a taxable turnover below £85,000 will be required to follow MTD rules for their first return starting on or after April 2022.Making Tax Digital for Income Tax Self-employed businesses and landlo...

Xero bank rec update

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Xero bank feeds

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VAT deferred

If you deferred VAT payments due from last March 2020 to June 2020 and still have payments to make, you can:pay the deferred VAT in full before 31 March 2021join the VAT deferral new payment scheme https://www.gov.uk/guidance/de...contact HMRC by telephone 0800 024 1222 if you need extra help to payYou may be charged interest or a penalty if you do not:pay the deferred VAT in full by 31 March 2021opt into the new payment scheme by 21 June 2021agree extra help to pay with HMRC by 30 June 202...

Company vans and fuel

You do not have to report or pay anything to HMRC if your van is only used for business journeys or as a pool van.  A van solely used for work purposes, includes "insignificant private use" such as a detour to the shops for a coffee on your way to work, or a visit to the dentist during business hours. ...

Tax relief on charity donations

Gift AidDonating through Gift Aid means charities can claim an extra 25p for every £1 you give. It will not cost you any extra.  You need to make a Gift Aid declaration for the charity to claim. Paying enough tax to qualify for Gift AidYour donations will qualify as long as they’re not more than 4 times what you have paid in tax in that tax year (6 April to 5 April).  You must tell the charities you support if you stop paying enough tax.Higher rate taxpayersIf you are a higher ...

paying HMRC self-assessment

The simplest way to pay self-assessment tax is by bank transfer.HMRC Bank details:HMRC CumbernauldS/C 08 32 10A/C 12001020Payment reference should by your UTR number followed by the letter 'K'https://www.gov.uk/pay-self-assessment-tax-bill...

Question

What is a mistake you seem to repeat each year?What can you do to prevent it this time?...

Atomic Habits

"Improvements are only temporary until they become part of who you are. -The goal is not to read a book, the goal is to become a reader. -The goal is not to run a marathon, the goal is to become a runner. -The goal is not to learn an instrument, the goal is to become a musician. This year, focus on the identity you want to build."...

paying Corporation Tax to HMRC

Corporation tax is paid to HMRC by bank transfer, 9 months after the accounting year-end date.HMRC bank details:Account name HMRC CumbernauldSort code 083210Account number 12001039 Reference numberUse your 17-character Corporation Tax payslip reference for the accounting period you’re paying.You’ll find the payslip reference:on any payslip that HMRC sent you or through your company’s HMRC online account - choose ‘View account’ then ‘Accoun...

Cycle to work

We are cycling loving accountants, so we encourage all to take advantage of the tax exemption for bicycles on the Cycle to work scheme....

paying your VAT bill when your direct debit has been cancelled

If you have cancelled your VAT direct debit, it's very important to pay your VAT bill on time by bank transfer.  If you pay by direct debit, HMRC collect the VAT due on the 10th of the month following the VAT period end.  If you pay by bank transfer you have until the 7th.HMRC bank detailsHMRC VATsort code 08 32 00account number 11963155reference 9-digit VAT registration number ...

National Insurance thresholds

National Insurance thresholds for the 2020-21 tax yearLower Earnings Limit (LEL) = £6,240 paEmployees do not pay National Insurance but get the benefits of payingPrimary Threshold (PT) = £9,516 paEmployees start paying National Insurance at 12%Secondary Threshold (ST) = £8,788 paEmployers start paying National Insurance at 13.8%Class 2 National Insurance for self-employed = £3.05/week - £158.60 paClass 4 National Insurance for self-employed = 9% above £9,500 profits and 2% above £50,...

Self-assessment Payments on account

‘Payments on account’ are advance payments towards your tax billYou have to make 2 payments on account every year unless your tax bill is under £1,000 or you have 80% of your tax collected through PAYE.Each payment is 50% of your previous year’s tax bill. Payments are usually due by 31 January and 31 July.ExampleYou are entering the payments on account system for the first time.Your tax bill for the 2019-20 tax year is £4,000.  You would need to pay £4,000 by 31 January 2021 and th...

Better Business

Better Data + Better Analysis + Better Decisions = Better Results & Better Business ...

Value

"Value is not a number, it's a feeling" Ron Baker...

SYSTEM

Remember that a SYSTEM Saves You Significant Time, Effort and Money. What a great acronym!...

Business quotes we love 2

“What gets measured gets managed.” Peter Drucker...

GDPR

GDPR Explained - All you need to know in 5 minutes [FUN] https://youtu.be/tBEMNcMihl4  via @YouTube...

Xero roadshow

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Business quotes

“If you can’t read the scoreboard you don’t know the score, and if you don’t know the score you can’t tell the (business) winners from the losers” – Warren Buffett...