Welcome to our 2017 Autumn Update

In our Autumn Update 2017, we look at some of the key changes to tax legislation in anticipation of the next budget. These are all relevant to small business, and some will be relevant to you, and the operation of your business. We also include some useful information about some of the suppliers which we work with.

Remember we don’t charge by the hour so you can call your local accountant anytime. We focus on the numbers so you can focus on what is it important to you – running your business.

National Living Wage and National Minimum Wage

If you are waiting for the changes in the National Minimum Wage from October you can relax! From April this year the change date was moved to 1 April. The current rates which are in place to 31 March 2018 are:

25 and over£7.50
21 to 24 £7.05
18 to 20£5.60
16 to 17£4.05

The Apprentice rate applies to apprentices aged under 19 or in their first year of apprenticeship, regardless of age.

Are you really exempt from pensions auto enrolment?

If you operate through a limited company and have previously claimed exemption from pensions auto enrolment on the grounds that the only employees were directors are you sure that your company is still exempt? If you have taken on staff in addition to the directors, depending on the ages and pay levels of the staff your company may now be liable to set up a workplace pension scheme.

Off-payroll work in the public sector

IR35 rules are not operating as the government intended. Many public sector organisations apply IR35 to all contracts instead of judging each contract on an individual basis. Unfortunately for the workers concerned there is still no right to appeal. At the moment, the only outlet for an appeal is the public-sector organisation that determined that they fell within IR35 in the first place!

Operating the VAT Flat Rate scheme and spending less than £1000 on Goods?

If you are operating the VAT Flat Rate Scheme and spending less than 2% of your VAT inclusive sales or, if lower, £1,000 a year, on goods you are almost certainly a “Limited Cost Trader” and should (from 1 April, this year) apply a flat rate of 16.5%. As a flat rate of 16.5% applied to gross sales is equivalent to an effective VAT rate of 19.76% without the right to reclaim any input tax you will probably be better off leaving the Flat Rate Scheme and accounting for VAT in the normal way.

AIMS’ Business Partners

It is important to us that we work with business partners who share our aspirations to offer benefits to our clients – the closer we work with our business partners the better we are equipped to provide optimum service to our clients. Here are some messages from a few:

Better business banking
You didn't start your business to worry about banking, but Tide did, and that's why we have partnered with them. Tide enables you to setup your business current account in 5 minutes - no paperwork, no appointments, no monthly fees. And it's packed with tools that give business owners back their time. You can find out more here.

The secret to successful business selling is…. Price Ensuring your business valuation is realistic is a critical part of selling it. If the asking price is too high then the result will be no interest and no buyers which in turn leads to frustration for the seller. However, if you set the asking price too low you will not be realising the full potential out of selling your business - extremely disappointing for the business seller, particularly if it is a sale for retirement. We are fully aware that ‘Price drives demand’ which is why our experienced valuers ensure that our Business Valuations are an accurate and realistic reflection of the businesses. Let Everett Masson & Furby drive your dream to reality – www.emfgroup.com

Easy payment, every time Get paid on time, every time with GoCardless - the simple way to automate your payment collection via Direct Debit. Integrated into all the major accounting software platforms, including Sage and Xero and an AIMs recommended payment partner, it takes minutes to set up and add your customers. Sign up now and join over 30,000 companies already using GoCardless to improve cash flow and reduce admin.

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