Changes to Insolvency Rules to Help Companies Trade – Coronavirus

Changes to Insolvency Rules to Help Companies Trade – Coronavirus

28 Mar 2020: Business Secretary, Alok Sharma MP, announces changes to the insolvency rules in response to the coronavirus outbreak.

The Business Secretary, Alok Sharma MP, has announced he will make changes to enable UK companies undergoing a rescue or restructure to continue trading, helping them avoid insolvency.

This will include enabling them to buy supplies while attempting a rescue, and temporarily suspending wrongful trading provisions retrospectively from 1 March 2020 for three months for company directors so they can keep their businesses going without the threat of personal liability.

Alok Sharma MP said: “Today’s measures will also reduce the burden on business, giving bosses much-needed breathing space to keep their workers employed and their companies going.”

An ICAEW spokesperson said: “This is a pragmatic move and a useful addition to the Government’s strategy to protect employment and prosperity. The proposed moratorium will definitely help some businesses survive, but we would encourage any directors with concerns about their company to seek professional advice at the earliest opportunity.”

Source: https://www.icaew.com/insights/coronavirus/uk-practical-business-advice-covid-19/changes-to-insolvency-rules-to-help-companies-trade

Covid -19; Extended Support by UK Government

Covid -19; Extended Support by UK Government

Considering the unprecedented worldwide epidemic, UK government promised wide variety of benefits for their citizens and Businesses. We at Affinity Associates, are committed to serve our clients within this struggled time. Considering that we have done research at our end to provide you the maximum information that is available to claim benefits.

A package of measures were announced and taken to support businesses, below are some;

  • Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. These are described as ‘furloughed workers’. The scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary.

  • Deferring VAT and Income Tax payments

For VAT, payments are deferred for the next 3 months (from 20 March 2020 until 30 June 2020) and Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. However, VAT returns are required to be submitted on time through MTD. Thus, taxpayers with Direct Debit Setup are advised to instruct their banks to cancel it if struggling to make payments.

For Income Tax Self-Assessment, payments due on the 31 July 2020 may be deferred until 31 January 2021.

  • The Coronavirus Business Interruption Loan Scheme

Under this scheme, small and medium sized businesses will have access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years. Further, Government will pay the interest for first 12 months and any other fees levied by lender at initial stage. To be eligible for the scheme, your business turnover should be below £45 million and your business meets the other British Business Bank eligibility criteria

  • Time to pay

If you are self employed or in Business and facing financial distress with outstanding tax liabilities, then HMRC may arrange a payment plan to support you in these times. The arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. You need to contact HMRC helpline for advice on 0800 0159 559

  • 3-month extension period to file accounts at Companies House

Businesses will be given an additional 3 months to file accounts with Companies House to help companies avoid penalties as they deal with the impact of COVID-19.

  • Self-employment Income Support Scheme

If you are self-employed or a member of LLP, and suffered due to loss of trade you will be able to get benefit from this scheme. An application cannot be made for the scheme as HMRC will contact you if you are eligible for the scheme and invite you to apply online. The Amount of grant will be calculated based on an average total trading profits of last three years (2018/19, 2017/18 and 2016/17) declared as per your Self Assessment Tax returns. However, the maximum grant available is £2,500 per month for three months. Basic criteria to qualify is that you should have traded in last year, should be trading in current year and should verify your intent to trade in forthcoming year. Further this grant is restricted to a person having total trading income less than £50,000 per year.

At Affinity Associates, we have a team of certified and experienced tax accountants in London, who are hardworking and well-versed with the tax compliances in the UK and are happy to support you in these difficult times. For further information on any matters about benefits, please contact us at info@affinityassociates.com

About Covid -19; Extended Support by UK GovernmentClick Here

COVID 19 – How HMRC is Supporting Businesses?

COVID 19 – How HMRC is Supporting Businesses?

In the Budget (11 March 2020) the Chancellor announced a package of measures to provide support for public services, individuals and businesses to ensure the impact of COVID-19 is minimised. These measures will really help small Business and Individuals working for them to survive through tough times. Below are some highlights of benefits that small businesses can claim –

  • 6 months interest free loan to cover up to 80% of losses from British Business Bank under Coronavirus Business Interruption Loan Scheme
  • 14 days (starting from 1st day off work) Statutory Sick Pay for all employees
  • Pay arrangement programme with dedicated support line (0800 0159 559) to help financially distressed tax payers (Business and Self-employed)
  • £10,000 cash grant for small business that are eligible for small business rate relief / Rural rate relief
  • Business rate holiday for retail, hospitality and leisure businesses for tax year 2020-21
  • Additionally, £25,000 grant for retail, hospitality and leisure businesses operating from smaller premises

Further the UK government has decided to delay rollout of IR35 tax reforms until 06 April 2021.

About Covid -19; Extended Support by UK GovernmentClick Here

Tips to Find the Right Small Business Tax Accountants in London

Tips to Find the Right Small Business Tax Accountants in London

Being a small business owner in London, it becomes inevitable for you to wear a lot of different hats and play different roles within your business. There are plenty of entrepreneurs and businesses across the United Kingdom that are operating on a limited budget; thus, it is understandable that many of them have to manage their accounts by themselves. However, this is because most of them are not aware of just how much of a difference in hiring an accountant can make to their business.

If you are a small business owner who wants to make sure of the continual success of his/her business, then finding and hiring a small business tax accountant is extremely important. Here are some pro tips by Affinity Associates to help you find the right small business tax accountant in London.

Tips to Find the Right Small Business Tax Accountants in London

  1. Offers Practical Tax advice: Every business or individual earning over the suggest VAT threshold has to pay taxes; hence, tax is an inevitable outgoing. But, there are plenty of ways that you can save your money on your tax bill – and that too legally. Find a small business tax accountant in London, who is well-versed with all the tax laws and legislations, so that he/she can help you plan effectively to reduce your overall tax burden, while still ensuring you are in line with all tax laws.
  2. Offers All the Fundamental Accounting Services: A tax accountant or an accountancy firm that you hire to manage your business accounts should be able to provide a variety of services to you and your business such as accounting, bookkeeping, tax returns, record keeping, and payroll. By hiring an accountant who can offer you all these fundamental services, you can closely observe all your financial transactions and make sure you are obeying all HMRC tax compliance and where you are financially standing at the end of every month. A small business tax accountant in London can set up accounting software and bookkeeping systems, saving you time, money and hassle when it comes to preparing financial statements and annual tax returns.
  3. Offers Business Advisory: An experienced tax accountant can give you some really useful advice over your financial situation and business environment. Based on his/her perspective, an accountant can provide a high level of insight across the board – everything from business and marketing plans to retirement planning. Thus, find a tax accountant or an accountancy firm in London, who is experienced enough to offer you productive business advisory.
  4. Find One Who Fits Your Business: Make sure that the tax accountant or the accountancy firm you hire in London for your business has experience in the sector and size of business that you are operating. For instance, if you are an IT agency in the UK, then don’t choose an accountant whose speciality is automobiles. Similarly, do not hire an accountant who specialises in large businesses, if your business is small because the needs will be very different.

Hire Tax Accountant in London

Many people depend on your business for income, guidance, products, services, and more. One bad year of tax planning can put all of your hard work down. Therefore, you need to find a tax accountant who is experienced and ready to take on challenges whenever required.

At Affinity Associates, we have a team of certified and experienced tax accountants in London, who are hardworking and well-versed with the tax compliances in the UK. If you are looking for a small business tax accountant in London, then contact Affinity Associates for a free consultation and trial. To schedule a free consultation, please call us at https://affinityoutsourcing.net or give us a call at 0203-848-4450.

Small Business Bookkeeping Services in London, Harrow, and Wembley

Small Business Bookkeeping Services in London, Harrow, and Wembley

Flawless bookkeeping is extremely important for the smooth functioning of your business. Spotting, evaluating and recording your financial transactions in a clear and organized manner should always be your priority. However, maintaining your books in an organized manner is a time-consuming process, and it demands a lot of patience. For many small business owners in London, it feels like a never-ending task that takes time away from your real passions and goals.

At Affinity Associates, we have a team of certified, skilled, and experienced bookkeepers to help small businesses in London to organize and manage their books in the most efficient method. Our small business bookkeeping services in London are committed to supporting you with all your bookkeeping needs so that you can focus on running and managing your business.

Importance of Professional Bookkeeping Services for a Small Business in London

For any business, either small or large, bookkeeping is undeniably essential to a successful operation. Well-maintained and organized books can offer you with a clear and precise financial scenario of your business. Here are the practical advantages of professional bookkeeping services for a small business in London, and they are:

  1. Help you make business decisions based on your current financial situation
  2. Help you create and amend budgets accordingly
  3. Help you formulate reports and profit projections
  4. Provide HMRC with transparent information
  5. File your tax returns properly and ensure maximum savings.

If you are not having professional bookkeeping services in place for your business, then you won’t be having access to those in-depth financial data of your business when you need them the most to take some vital business decisions. Overall, your business’s performance will suffer.

Who Needs Small Business Bookkeeping Services?

Professional bookkeeping services in London have nothing to do with the size of business. If you are a business making financial transactions, then you will need an experienced bookkeeper to manage your books efficiently and accurately. Small business bookkeeping services in London by accountancy firms like Affinity Associates keep accurate records of your business’s financial history. Our bookkeeping services for small businesses across the United Kingdom (UK) offer you a strong and stable financial foundation on which you can secure your company’s future.

At Affinity Associates, we highly recommend our small business bookkeeping services to anyone who:

  1. Is worried about maintaining accurate records
  2. Is too busy to spare time to keep their bookkeeping systems regularly updated
  3. Forgets to manage their books
  4. Do not have prior experience in managing books accurately
  5. Has made bookkeeping errors or mistakes in the past
  6. Wants the true peace of mind that comes from having their books managed by experts.

Complete Small Business Bookkeeping Services in London

At Affinity Associates, we firmly believe in keeping things simple and effective. The key to effective bookkeeping is maintaining a clear and systematic process. If you cannot manage your business’s financial transactions efficiently, then allow us to take the strain out of your financial management.

We are a complete accountancy firm in London offering a wide variety of accounting and bookkeeping services to small businesses in London and across the UK. Here is everything we’ll do for you and your small business:

  1. Establish Your Books
  2. Manage Your Invoices
  3. Monitor Payment and Receipts
  4. Conduct Bank Reconciliation
  5. Review Your List of Customers and Suppliers
  6. Review Your Entire Accountancy System
  7. Manage Your VAT

About Affinity Associates

Affinity Associates is a London-based accountancy firm that is known for offering highly accurate and affordable small business bookkeeping services. We can support your business through both our bespoke financial services and growth optimisation consultancy. Don’t let bookkeeping get in the way of you achieving your true business potential. Is it time to contact Affinity Associates to help you manage your small business bookkeeping.

Get more information on our bookkeeping services by contacting the Affinity Associates team today at https://www.affinityassociates.com. Book a no-obligation business consultation to discuss your needs.