Archive for April, 2013

Managing Your Business Accounts

Wednesday, April 24th, 2013
Tracey Jones Chartered Accountant

Bookkeeping & Management Services

As accountants in Swansea we recognise the importance of working closely with local business owners in the Swansea and South Wales area to help them achieve their financial goals.

For any business to succeed they need to have in place an efficient and reliable business accounting system.

Our team at Fergusons offer a variety of bookkeeping and management accounting services, ranging from regular reviews of your bookkeeping up to full bookkeeping systems.

With so many different accountancy services on offer we are able to put together the perfect tailor-made package for your business.

Our approach to your bookkeeping and management accounts is to make sure the process brings you maximum benefit.

We make sure we know exactly what you need from your accounts so that we can help your business at the same time as meeting your statutory requirements.

Whether we provide a weekly bookkeeping service, to keep track of money coming into or out of your business, or preparing your monthly or quarterly management accounts we are always looking for ways to improve your internal systems, assessing strengths that could boost your profitability and identifying weaknesses to be dealt with.

This ensures we can deliver the key information you need for decision-making to help build your business whilst allowing you to free up in-house resources or your own time for other activities.

Business Start Ups in Wales – Starting Up Your New Business

Wednesday, April 24th, 2013
Tracey Jones Chartered Accountant

Helping Business Start Ups

As accountants in Swansea our team is experienced in helping business start ups achieve their goals.

As an entrepreneur, launching your new business is driven by your enthusiasm and excitement, but if you are to achieve your ambition of running a successful business you need a strong financial foundation which is where we can help.

When you are starting out it is essential you have a realistic business plan that foresees the different pitfalls that can trip up any new business such as:

  • Poor or inadequate market research
  • Weak financial planning
  • Setting your sights too high
  • Taking your eye off the competition
  • Poor supplier and customers controls
  • Poor stock and asset management
  • Hiring the wrong people

Now this list hasn’t been produced to frighten anyone contemplating a new business, it merely points out some of the common reasons why people fail so if you ensure that you aware of these pitfalls you can ensure they don’t happen to your new business and you can grow successfully.

How Accountants Help New Business Start Ups

As you can see from the list above some of the common reasons new business start ups struggle is due to:

  • Weak financial planning
  • Poor supplier and customer controls
  • Poor stock and asset management

It is in these areas that we can help you achieve your business goals.

Cash flow is the lifeblood of any business but it is even more important when you are in the start up phase. Starting your business with poor financial controls immediately puts it under strain and you need to put good financial controls in from day one.

By taking the time to talk to your accountant before you set up in business he or she can ensure you are aware of the different financial controls you need to put into place for good stock control and effective cash flow monitoring ensuring you are paid on time from your customers enabling you to meet your financial responsibilities.

Business Start Up Resources

If you are considering starting up a new business in Swansea or South Wales we would welcome your call on Swansea 01792 894375

You can also get further help and information from the Welsh Government in this free online guide.



Auditing Your Business

Wednesday, April 24th, 2013


Tracey Jones Chartered Accountant

Benefits of Auditing

Auditing your business doesn’t have to be a chore and as an accountancy firm in Swansea we are ideally based to work with any business in Swansea or South Wales.

Whilst auditing your business may be a legal requirement and often seen by business owners or management teams as an inconvenience they are also an opportunity to improve your business and have a positive impact on the bottom line.

Benefits of an Audit

Some important benefits you can gain with your audit

  • An opportunity to review your financial and management systems
  • A well produced report enhances your business image externally
  • Positive impact on money sources such as investors and banks
  • Your own staff respond to a well written audit report

Positive Impact of Business Audits

In simple terms a well conducted and produced report has a positive impact on all of the people that are involved with your business, from staff to customers and your professional connections.

Done correctly, an audit can produce a return on investment as it identifies the ‘holes in your bucket’, the areas where your business is losing money daily through inefficiencies or poor systems.

Whilst business owners are required to produce audits due to legal requirements they are also an excellent tool to identify opportunities within your business to increase your bottom line.

Audit Accounting and Reporting

If you want to know more about the statutory requirements of audit accounting and reporting for UK companies you can visit the government website here.

Important Tax Dates April/May 2013

Monday, April 8th, 2013

Tracey Jones Chartered AccountantApril and May have plenty of key tax dates that impact on Swansea businesses so make sure you are aware of the tax dates that effect you and your business.

These are the key actions that need to be tackled over the next 2 months if you don’t want to incur any penalties.

  • 1 April 2013 – Due date for Corporation Tax due for the year ended 30 June 2012.
  • 19 April 2013 – PAYE and NIC deductions due for month ended 5 April 2013. (If you pay your tax electronically the due date is 22 April 2013.)
  • 19 April 2013 – Filing deadline for the CIS300 monthly return for the month ended 5 April 2013.
  • 19 April 2013 – CIS tax deducted for the month ended 5 April 2013 is payable by today.
  • 1 May 2013 – Due date for Corporation Tax due for the year ended 31 July 2012.
  • 19 May 2013 – PAYE and NIC deductions due for month ended 5 May 2013. (If you pay your tax electronically the due date is 22 May 2013.)
  • 19 May 2013 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2013.
  • 19 May 2013 – CIS tax deducted for the month ended 5 May 2013 is payable by today.
  • 19 May 2013 – The payroll forms P35 and P14s must be filed by this date – employers late in filing these forms may receive a penalty.
  • 31 May 2013 – Ensure all employees have been given their P60s for the 2012-13 tax year.


Real Time Information (RTI) slow down

Monday, April 8th, 2013

The following quote is from information recently published to HMRC’s website:

 ‘HM Revenue & Customs (HMRC) recognise that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed a relaxation of reporting arrangements for small businesses.

Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

 This is a temporary relaxation to give some extra time to small businesses that pay weekly (or more frequently) but who only run their payroll (or use an agent to run their payroll) at the end of the month. This extra time will enable these businesses to adapt their processes or change their arrangements with their payroll service supplier so that they can comply with the new legislation.

 From April 2013, employers who choose to take advantage of this relaxation will still need to report their PAYE in real time by the last payday in the month or the end of the tax month (5th) at the latest.

 This is not a withdrawal of the requirement to report PAYE in real time. All employers are still required to operate PAYE in real time and we expect most employers to be reporting PAYE in real time from their first payday on or after 6th April.

 From 6th October all employers will be required to report PAYE in real time each time they pay their employees. However HMRC will continue to work with employer representatives during the summer to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work & Pension's Universal Credit.

 HMRC recommends that employers and agents move to real time reporting as soon as possible in order to give them time to refine business processes before automated penalties are implemented.

Employers using commercial payroll software will find that their payroll software is designed to submit their PAYE information as part of their integrated payroll processes. So these employers should continue to or start to report “on or before” each payment is made to employees as this will be the easiest and quickest way of operating their payroll.

 Software developers have been informed that they do not need to change their products to accommodate this relaxation.’

 Therefore, this should be considered a temporary relaxation of the obligations imposed on employers by the switch to RTI reporting. Readers who are still unsure how these changes affect their business should contact us immediately.

Mortgage support – Help to buy

Monday, April 8th, 2013

In the distant past Government supported home buying by offering tax incentives. It has been some years now since UK taxpayers could obtain tax relief for mortgage interest payments. The MIRAS arrangement, where tax relief at the basic rate was deducted from mortgage interest payments by the lender, was the last and fading effort at stimulating home buying in this way.

 Instead George Osborne and his team have elected to try out two alternative systems: an equity loan scheme and a mortgage guarantee.

 Help to buy: equity loan

 This scheme will run for three years from 1 April 2013 and is proposed to provide £3.5bn of additional investment.

  • The scheme will apply to new builds only
  • All home buyers can apply – this scheme is not restricted to first-time buyers.
  • Buyers will need a minimum deposit of 5%
  • Government will lend up to 20% of the value of the property as an equity loan – this can be repaid at any time or when the property is sold. The loan is interest free for the first five years. In year six borrowers will have to pay a 1.75% annual fee which will increase annually by 1% of the annual amount above inflation.
  • The equity loan arrangement will only apply to home purchases of £600,000 or less.

 Lenders using this scheme will share ownership of their property with Government, if the value of your property increases so will the equity loan.

 Help to buy: mortgage guarantee

 This scheme will run for three years from 1 January 2014. Buyers will need to secure a mortgage from a lender who should be encouraged to offer better access to low deposit mortgages by the Government guarantee.

  • Guarantee will apply to new builds and existing homes
  • A minimum 5% deposit will apply
  • Available to existing homeowners and first-time buyers
  • A maximum home purchase of £600,000 applies

 Both schemes are intended to stimulate the housing market and in particular new building.

New Childcare Scheme from autumn 2015

Monday, April 8th, 2013

A new Childcare Scheme will be introduced to support working families with their childcare costs and will replace the current salary sacrifice scheme. Unlike its predecessor, the new scheme will be available to the self-employed and those on a minimum wage. Also parents will be able to choose their own voucher provider, as the new system will not be administered by employers.

Claimants will fund 80% of their childcare costs up to £6,000 per child. The remaining 20% (up to £1,200) will be subsidised by Government. From the first year of operation all children under 5 will be eligible and the scheme will build over time to include children under 12.

The scheme will provide support for families where:

  • both parents are in work and not receiving support through the Childcare Element of Working Tax Credits/Universal Credit, and
  • where neither parent has an income over £150,000.

The scheme has been widely criticised in the press as it seems to discriminate against parents who elect to stay at home to take care of their children.

Support will be provided through a childcare account redeemable at any registered childcare provider. The new scheme will be phased in from autumn 2015 as the current system of Employer Supported Childcare is phased out. The Government will shortly consult on the detail of delivery.

National Insurance �2,000 employment allowance

Monday, April 8th, 2013

The Government is to introduce an allowance of £2,000 per year for all businesses and charities to be offset against their employer Class 1 secondary NICs’ bill from April 2014. The allowance will be claimed as part of the normal payroll process. The Government will engage with stakeholders on the implementation of the measure after Budget 2013 and is seeking to introduce legislation later in the year.

 Although this change is a year from now, the allowance should be factored into your payroll budgeting for next year. It is likely that payroll software will be updated to allow for the £2,000 reduction in employers’ Class 1 secondary NICs. For smaller businesses contemplating their first or further appointments into the employment arena this will be a welcome support.

 Employers’ Class 1 secondary contributions are 13.8% of any wage or salary that exceeds the secondary threshold, currently £148 per week (£641 a month, £7,696 per annum). New employers could pay a salary or wage of up to £22,189 per annum to one employee and be liable for no employer’s National Insurance – ordinarily, employer’s NIC on this level of salary would amount to £2,000.

 This scheme is not intended to replace salary sacrifice arrangements that will continue to offer employees and employers NIC savings. Whether it will help to stimulate new job creation or reduce unemployment is an open question.