Bookkeeping Services for Small Business – When Should You Consider Hiring Bookkeeping Services?

Bookkeeping Services for Small Business – When Should You Consider Hiring Bookkeeping Services?

Bookkeeping services for small business work as a vital external help to businesses across the UK. It is perfect for small and medium-sized businesses that stay occupied in one or the other business activities and have no time to manage their books and accounts periodically.

Whether you are a small business owner or own a large company, taking care of your business tasks and getting involved will always make you feel proud. Participating in business activities will keep you aware of what’s going on within the organization but also helps you make crucial business decisions whenever required. But just imagine, you are so occupied with business tasks that you are unable to focus on other activities that can lead to business growth. Yes, we are talking about some business activities like Bookkeeping and Accounting that can consume a lot of time.

Unless you are a professional bookkeeper or an accountant, these tasks will keep you engaged and won’t let you focus on core business activities. Here are some of the most common scenarios that indicate that your small and medium-sized business needs online bookkeeping services for small businesses in the UK.

Why Do Small Businesses Need Online Bookkeeping Services?

  1. You Don’t Have Time for Other Activities: This is one of the most common scenarios that force UK small businesses to consider outsourced bookkeeping services. As the business grows, the word load increases and increases the financial transactions. In such a case, business owners find it hard to switch between multiple tasks within the organization.

 

If the same is the case with your small business, then get in touch with a company that offers bookkeeping services for small businesses so that you can reprioritize and focus on what’s more important in your business. Online bookkeeping services for small businesses help you focus on the activities that can lead to exponential business growth.

 

  1. You Are Not Regular: As you are not a pro at bookkeeping and accounting, you keep them avoiding them, and wait for the tax season. One more reason why you keep avoiding bookkeeping and accounting is that you don’t have enough time to manage high-billing volumes and back-office paperwork daily. This pile of work creates problems at the time of tax season when you have to collect all the financial information, prepare a report, and submit it to the respective tax department. In case, you fail to do so, you will be eligible for penalties by the tax department.

 

  1. You are not a pro at Bookkeeping: Being an entrepreneur, you are good at doing business in your respective industry, but it is not mandatory that you should be a pro at maintaining your books just an experienced bookkeeper. Moreover, bookkeeping and accounting are tasks that demand 100% accuracy and perfection, or else you may have to feel the heat from the tax department.

 

  1. Unaware of tax rules and compliance: Tax rules keep on changing every year, and it becomes hard for a typical business owner like you and me to stay updated with all the changing norms and compliances. And might cost a penalty for our business at the time to tax filing. Thus, if it is tough for you to stay updated with tax compliance, then it’s better to engage with Bookkeeping and Accounting Services for Small businesses.

What is the cost of online bookkeeping services for small businesses?

Due to immense competition in the outsourcing industry, online bookkeeping and accounting services for small business has become an inexpensive deal. You can easily find an affordable bookkeeping services provider near you. Or you can also ask different companies to provide you with a friendly quote and the types of services they offer under the hood of online bookkeeping services. Just to understand how much Bookkeeping Services for Small Business can cost you, please refer to the Affinity Associates pricing page.

Online bookkeeping services are more cost-effective and reliable than in-person accounting services. This is because they minimize the risk of human error and fraud that can often occur with paper recordkeeping. For a free quote or to know how online bookkeeping and accounting services work, please click here.

 

What are the benefits of online bookkeeping services for my business?

Finding the right bookkeeping services can be a daunting task. You want to find someone who is experienced, reliable, and affordable. You need to find someone you trust, who is comfortable with the intricacies of your business and has the resources to handle all your needs. When looking for a professional bookkeeping service, it’s important to ask questions about experience, cost, and the process for handling transactions.

There are many benefits of utilizing online bookkeeping services for businesses such as they can help you save time and money by streamlining your monthly financials, eliminating duplicate data entry, providing valuable insights into your company’s spending habits, forecasting future cash flows, and more.

Moreover, Bookkeeping Services for Small Businesses offers a big reach if your business/services are not confined to specific regions or states. An online bookkeeper from a top-rated outsourced bookkeeping services provider can help you manage your finances from anywhere. You won’t have to worry about traveling for meetings and appointments, as your team will be able to collaborate from the comfort of their home or office.

Online Bookkeeping Services for small businesses offer a flexible team Structure. Most online bookkeepers provide a variety of services, so your team can decide on which ones they need rather than having to ask each supplier for what they’ll offer you. In addition, it allows teams to work remotely and collaborate easily in real-time with their colleagues.

 

Do We Offer Free Consultation on Bookkeeping Services for Small Businesses?

We are Affinity Associates, and we are one of the best online bookkeeping services providers in the UK. And we do offer 100% free consultation to small businesses that have questions, doubts, or insecurities related to outsourced bookkeeping services. To schedule a free consultation to learn more about the online bookkeeping services, how it works, and what is the cost of outsourced bookkeeping services, please call us at +44 20 8903 2077 or visit our website at https://www.affinityassociates.com.

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Try the Best Accounting Services in the UK

Try the Best Accounting Services in the UK

Best accounting services in the UK are a must for any small business owner not only in the UK but also across the globe. It is one of the most important things for a small business needs to succeed; thus, it is essential to find the best accounting services nearby for your small business. Whether you operate as a sole proprietor or have employees, there’s never been a better time to get professional accounting services for your business.

Good accounting service for small businesses in the UK can help you with many things, such as helping your company with their taxes, creating a financial plan, and managing your cash flow. Accounting services are also very helpful for businesses that need to get loans or investors because they will be able to show them their financials to get what they need. There are many reasons why small businesses need professional accounting services, including:

  • The complexity of the tax code and federal regulations that govern small businesses.
  • The need for cash flow forecasting and budgeting to sustain the business.
  • The need for accurate reporting to lenders, investors, and other stakeholders.
  • The need for tax planning and compliance in order to minimize taxes owed and maximize deductions.
  • The need to ensure that bookkeeping is done on time so that reports are generated on time with accuracy and detail.

Who Offers the Best Accounting Services for Small Businesses?

There are plenty of accounting services providers in the UK, and everyone claims to be the best but very few offer the best accounting services for small businesses. When you hire an accounting firm to take care of your company’s accounts and other financial transactions, please make sure that the company has enough knowledge and expertise in work. Also, ensure that the outsourcing accounting firm you are about to hire has a team of certified accountants and has prior experience working with domain/industry/business like yours.

However, if you don’t want to do so much hard work, then Affinity Associates offer the best accounting services for small business in the UK. They have years of experience, a team of certified professionals, and all the latest software to stand up to your expectations.

Professional Online Small Business Accounting Services

Outsourced accounting services are a flourishing industry. It has become the norm for small businesses to outsource their accounting and bookkeeping services to reduce their costs and improve efficiency.

There are many benefits of outsourcing your accounting tasks. First, it will save you time as you’ll be able to focus on your core competencies and other business operations. Second, it will help you manage cash flow more effectively by eliminating the need for certain capital expenditures.
Third, it will allow you to have access to more sophisticated tools like cloud-based software for monitoring financial performance and controlling spending.

Finally, it will allow you to take advantage of the expert knowledge that comes with an outsourced team who can provide guidance on how best to run your business to maximize profits and minimize taxes.

How Much Should A Small Business Pay For Accounting?

Accounting services are a crucial part of running a business. It is important to have accurate records of all transactions and to ensure that taxes are paid on time. There are many different types of accounting services, including audit, tax preparation, payroll, and bookkeeping. A small business may need some or all of these services to keep its financial records in order.

The cost of the service will depend on the type of service being provided, the size and complexity of the company’s finances, and the number of hours required for the job. Some companies offer a flat rate for certain tasks like bookkeeping while others charge by the hour for more complicated work like an audit or tax preparation.

  • Small business accounting services
  • Accounting services for small business
  • Online small business accounting services

If you want to learn more about Affinity Associates, how it can help, what are the charges of accounting services, and what other services are offered by Affinity Associates, please check out our official website.

For daily updates, you can also like us on Facebook and follow us on Twitter.

Small Business Accountants in London, UK – Find and Hire Them Instantly Today

Small Business Accountants in London, UK – Find and Hire Them Instantly Today

Professional accountants are one of the most important things you need when running a small business. Unfortunately, they’re usually in high demand and hard to find. There are even websites out there that will connect you with local small business accountants in London who meet your requirements, but what happens when you’re not quite sure what those requirements are? If you find yourself in this position, here’s how to find and hire small business accountants in London instantly – just follow these steps!

What Do You Want to Accomplish?

If you want to start a small business, there are many steps involved. The first is getting your books up to speed. While you may think that hiring an accountant right away would be ideal, there’s no need to rush into it just yet. There are a few things you can do yourself before bringing on a professional: set up your records; use accounting software like FreshBooks or Xero, and track expenses as you go along. If you are not familiar with that accounting software, then you can consult an accountant for help/advice.

Set your budget

You need to find that meet your specific needs. To make it easier on yourself, set a budget before beginning your search. Be realistic with your budget so you don’t waste time seeking out accountants that won’t fit within your spending range. Depending on how big or small your business is, expect to spend anywhere from $50 to $1000+ per month for professional services. There are some affordable options worth checking out at the accounting outsourcing company like Affinity Associates.

Look at The Hiring Process

If you’re looking to hire a new accountant for your small business, it can be time-consuming trying to find one. For starters, you may have to research their credentials before approaching them – but if you’re hiring remotely or don’t have any experience with accountants in your area, then how do you go about finding a reputable firm? A simple Google search will give you lists of companies that match your requirements, but what about reviews?

Decide on an Outsourcing Model

There are several models for outsourcing accounting work to an accountant, including a per-hour model, fixed-fee model, or equity stake. Decide which one is best for your situation, then narrow down your list of accountants to those who fit your preferences. For example, if you choose a per-hour model, you’ll need to find an accountant that charges between $100-$250/hr.

Get Free Help

Search online for small business accountants (or similar phrases), and you’ll discover many services are available to help small businesses with their accounting needs. Some of these service providers offer free consultations, so don’t be afraid to get in touch with a few that interest you.

Finalize & Enforce Standards

Establishing accounting standards for your small business is an important step for you to take. Failing to have proper accounting procedures could lead to a host of problems down the road. Avoid these potential pitfalls by getting professional accountants involved early on. By making sure that you meet their standards, they’ll be able to properly prepare your financial statements throughout each year. And when tax time rolls around, you’ll have all your records organized and ready for review.

Evaluate Their Performance

Instead of hiring one accountant for everything, look for accountants who specialize in different parts of your business. If you have a construction company, for example, you may want to find a CPA to handle your financials, a bookkeeper to manage your receipts and invoices on a day-to-day basis, and an attorney who can help with real estate transactions.

 

Small Business Accountants in London – Free Consultation Available

Well, if you are wondering how small business accountants in London can help you grow your business online, then it’s time to go for a free consultation call with an experienced professional at Affinity Associates.

Affinity Associates is a top-rated outsourced accounting company in London from where you can hire the best accountants and bookkeepers to manage your company’s finances. Whether you are a start-up, a small business, or an established organization in the UK, Affinity Associates can comfortably accommodate your business’s accounting and bookkeeping needs while staying affordable. Please review their pricing packages for your business here. Or call experts at +44-20-8903-2077. Let’s get connected over social networks – like us on LinkedIn and Facebook for daily updates.

Accountants for Small Business London – Hire Certified and Experienced at Unbelievable Rates

Accountants for Small Business London – Hire Certified and Experienced at Unbelievable Rates

Are you a small business owner or an entrepreneur with a start-up business in London? If so, then you might be aware that how important it is to find experienced accountants for your small business. Whether you have been in the business for 5 months or 15 months, managing your company’s accounts and other financial transactions with the help of accountants for small businesses in London is vital for the success of your business.

A small business accountant from a reputable firm like Affinity Associates can help you with a lot of things – from managing your accounts to tax preparation and VAT filing. He/she can also serve as a trusted advisor, offering professional assistance to help you manage your cash flow, assess risk, plan for growth and more. Affinity Associates has a team of certified and experienced tax accountants to offer highly accurate and professional accounting services to prevent any major financial blunders. Here’s the list of services you can expect from a small business accountant in London:

  • Bookkeeping
  • Tax accounting
  • VAT preparing and filing
  • Payroll
  • Strategic business planning
  • Succession planning
  • Incorporation Services
  • More

Hire Accountants for Small Business in London

Affinity Associates is known for offering highly professional accounting services in the UK to the small businesses of Staines, Leatherhead, Weybridge, Chertsey, Caterham, Dartford, Uxbridge, Harrow, Watford, Enfield, Loughton, Brentwood, and Romford. It’s been more than four decades since Affinity has been helping businesses grow considerably. If you are looking to hire a tax accountant for your business in London, then you can trust Affinity for your business. If you want to learn more about the pricing, hiring models and anything else, then feel free to contact Affinity at +44 20 8903 2077. Or fill out our contact form to schedule a free consultation.

Have Questions Before Hiring an Accountant? Ask Us.

Accounting is one of the most important aspects of business; hence, it is important that you pay equal focus on it as well. However, if you are occupied and not sure about how to manage your accounts, they hire small business tax accountants to take care of your company’s finances. The accountant you hire can help you with activities such as tracking all the expenses, developing a bookkeeping system, investigating import tax, setting up a payroll system, determining tax obligations and many more.

If you are in search of accountants for small business in London that can help you in the most efficient way possible by meeting all your queries, your search ends here at Affinity Associates. The latter offers the best small business accounting services in the UK at the most competitive prices. The first step to hassle-free business accounting starts by reaching out to one of our executives.

For a free quote, consultation, or advice, please contact us at +44-20-8903-2077 or visit https://www.affinityassociates.com. Let’s get connected over social networks – like us on LinkedIn and Facebook for daily updates.

Recent Tax Changes and Things to Be Aware of In the Future

Recent Tax Changes and Things to Be Aware of In the Future

Tax e-News

Welcome to our monthly newswire. In this issue we cover a number of recent tax changes and things to be aware of in the future. As usual contact us if you wish to discuss any matters further.

NEW PERSONAL SERVICE COMPANY RULES START THIS MONTH

The “off-payroll” working rules that apply to certain workers supplying their services to clients via their own personal service companies start from 6 April 2021.

Under this new regime end user businesses will be required to determine whether that individual would have been treated as an employee or not if directly engaged. This will be a significant additional administrative burden on the large and medium-sized businesses to whom the new rules apply. This is a complex area based on different decisions by the courts and HMRC suggest that end user organisations use the CEST (Check Employment Status for Tax) online tool on their website to help with the determination. The end user business is then required to issue the worker with a Status Determination Statement setting out the reasoning for their decision, a copy of which is also given to any agency supplying the worker if relevant.

The determination notifies the agency that PAYE and NIC should be deducted from payments to the worker’s personal service company. That information should be passed down the labour supply chain if other entities are involved, and the ultimate fee payer is liable for making the tax and NIC deductions. If HMRC are unable to collect the tax from the fee payer, the liability will pass up the labour supply chain thus encouraging the end user organisation to carry out due diligence to limit their exposure.

The 130% rate does not apply to equipment such as air conditioning and central heating that normally qualify for a 6% writing down allowance. Such “integral features” qualify for a special 50% first year allowance for the same two-year period.

Please contact us to discuss the tax implications of major capital expenditure decisions.

NEW ENHANCED LOSS RELIEF RULES MAY RESULT IN EXTRA TAX REFUNDS

Accounting and Bookkeeping Services UK - Affinity Associates

In the March Budget it was announced that the normal one year carry back for trading losses would be extended to three years. This means that many businesses that have made losses during the COVID-19 pandemic may be able to obtain a repayment of tax paid in that three-year period. This enhanced carry back applies to unincorporated businesses as well as limited companies and the details are set out in the latest Finance Bill.

For corporation tax purposes the loss-making accounting period must end between 1 April 2020 and 31 March 2022 to qualify for the three year carry back. For unincorporated businesses, the trading loss must be incurred in 2020/21 or 2021/22.

Please contact us if you need assistance in complying with the new rules.

NO CHANGE FOR “SMALL” EMPLOYERS

“Small” businesses will be outside of the new obligations and services supplied to such organisations will continue to be dealt with under the current IR35 rules with the worker and his or her personal service company effectively self-assessing whether the rules apply to that particular engagement.

The definition of “small” is based on the existing Companies Act 2006 definition. That is where the business satisfies 2 or more of the following features:

  • Annual turnover of £10.2million or less
  • Balance Sheet total of £5.1 million or less
  • 50 employees or less

UBER DRIVERS ARE WORKERS NOT SELF EMPLOYED

The Supreme Court has ruled that drivers for the ride hailing App Uber are workers not self-employed individuals and hence are entitled to holiday pay, pension rights and the right to be paid the national minimum wage. This case will have implications for other workers in the “gig” economy and may also have a bearing on the tax status of such workers. HMRC will certainly be taking an interest in the Supreme Court ruling. Note that tax law doesn’t necessarily follow employment law, but the boundaries are becoming increasingly blurred making it difficult to determine an individual’s employment status with absolute certainty.

For example, if Albion Ltd incurred trading losses of £200,000 in year ended 31 December 2020 having made profits of £50,000 in year ended 31 December 2019 it would normally only be possible to relieve £50,000 of the losses.

The new temporary carry back rules would permit losses to be set against trading profits made in the years ended 31 December 2018 and then 31 December 2017 as well. If profits in those years were £150,000 or more then the company would be entitled to a £38,000 corporation tax refund (19% of £200,000).

CONSULTATIONS ISSUED ON “TAX DAY” BY TREASURY

The Treasury normally issue a bundle of tax consultation documents on Budget Day. This year however they chose to delay the publication until 3 weeks after the Budget. We were expecting the consultation documents to include major changes to CGT and IHT, but it would appear that these have yet again been delayed. The Treasury have accepted a number of recommendations by the Office of Tax Simplification (OTS) on simplifying IHT reporting. From 1 January 2022 over 90 per cent of non-taxpaying estates each year will no longer have to complete IHT forms for deaths when probate is required. The government will also consider introducing a new digital system for IHT and probate reporting.

Another consultation is seeking views on modernising the tax administration system including changes to the payment dates for those outside PAYE. It would appear that HMRC are reconsidering a possible Pay as You Go system for the selfemployed that was originally consulted on in 2016.

The court determined that the drivers were in a position of subordination to Uber. The only way the worker could increase their earnings would be to work longer hours as Uber set the fare charged to the customer. This indicates that the driver is under the control of Uber, a key factor in determining employment status. However, it could be argued that there is limited Mutuality of Obligation as the drivers are able to refuse certain rides, although that may result in sanctions by Uber.

MORE DETAILS ON THE NEW SUPERDEDUCTION FOR EQUIPMENT

In the Budget on 3rd March the Chancellor announced a new 130% tax relief for expenditure on new plant and machinery incurred between 1 April 2021 and 31 March 2023. It turns out that this new tax relief is only available to limited companies and the latest Finance Bill reveals a nasty sting in the tail when the equipment is sold, as the clawback on disposal is potentially at the same 130% rate. So, if a new item of plant cost £100,000 the company would be able to deduct £130,000 in arriving at taxable profits thus saving £24,700 in corporation tax at 19%. However, if the plant was sold for £80,000 on 1 April 2023 130% of the proceeds would be clawed back and £104,000 added to taxable profit which could result in up to £26,000 corporation tax payable at the new 25% rate. The claw-back rate reduces on a time basis from 1 April 2023 onwards so it would be advisable to retain the asset long term.

REVIEW OF BUSINESS RATES

Among the documents published was an interim report on the government’s Fundamental Review of Business Rates, which sets out a summary of responses to last year’s call for evidence. The final report will be published in the Autumn. The government will also legislate to tighten tax rules for second homeowners meaning they can only register for business rates (and business rates relief) if their properties are genuine holiday lets. This will close a loophole that allowed some second homeowners to avoid paying council tax on that property, and some were even claiming coronavirus support grants for their “business”.

DIARY OF MAIN TAX EVENTS

APRIL/MAY 2021

Date What’s Due
1/04 Corporation tax payment for year to 30/6/20 (unless quarterly instalments apply)
6/04 2020/21 tax year ended on 5th. 2021/22 tax year begins.
New “off-payroll” working rules start.
19/04 PAYE & NIC deductions, and CIS return and tax, for month to 5/04/21 (due 22/04 if you pay electronically)
1/05 Corporation tax payment for year to 31/7/20 (unless quarterly instalments apply)
19/05 PAYE & NIC deductions, and CIS return and tax, for month to 5/05/21 (due 22/05 if you pay electronically)

For Tax Accounting Services in the UK, Contact Affinity Associates at +44-20-8903-2077

For Tax Accounting Services in the UK, Contact Affinity Associates at +44-20-8903-2077

At Affinity Associates, we specialize in offering highly personalized tax accounting services in London, Harrow, Wembley, and also across the United Kingdom to local individuals, start-ups, and small businesses. If you are a local business in the UK finding it hard to complete your annual tax returns due to your hectic business schedules or you want your business accounts to be examined and handled by the team of experienced tax accountants in the UK, then our tax accounting services are designed to help you save both – time and money.

While it is normal and possible for local businesses in the United Kingdom to complete and file their tax returns, but there are many start-ups and businesses that find it complicated and time-consuming. Especially when you are a start-up, tedious tasks are an unwelcome burden, and as they are not familiar with the UK tax laws and accounting procedures, they often end up paying more tax than is strictly required. Being a business owner in the UK, if you want to make sure that you are paying your fair share and no more, you can contact Affinity Associates for Small Business Tax Accounting Services in the UK. We have affordable tax accounting services packages for local individuals and businesses in the UK.

Tax Accountants for Individuals in the UK

  • Get your Personal Tax Returns done on time and without any hassle.
  • We offer competitive pricing and an efficient process to minimise paperwork and maximise your tax return.
  • We will work with you to simplify your accounting and tax effectively grows your family wealth.

Tax Accountants for Small and Medium Enterprise in the UK

  • We offer packages of fixed fee services, tailored to fit your business and lifestyle.
  • Rid yourself of the burden of Accounting and Bookkeeping and take control of your business.
  • Engage with your local Bookkeeper and Accounting professional to help drive your business.

Tax Accounting Services in the UK

With more than 30+ years of experience, Affinity Associates is one of the leading small business accounting and bookkeeping firms in the UK. For years, we have been helping young entrepreneurs, start-ups, and small businesses in London and across the UK in keeping their accounts in order and to complete their company tax returns before deadlines. Our tax accounting team in London is comprised of highly experienced professionals who are committed to providing our clients with the best accounting and bookkeeping service possible. Our range of packages for tax accounting and bookkeeping services in the UK can be tailored to meet your specific needs and because we are a privately-owned accounting firm in London.

To find out more about our small business tax accounting services in the UK, please complete and submit our contact form at https://www.affinityassociates.com. We will get back to you with all the necessary information you need related to tax accounting services in the UK.

Covid – 19 BOUNCE BACK LOAN SCHEME (BBLS)

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On 4 May 2020, Chancellor Rishi Sunak launched yet again another scheme to support the small businesses during these catastrophic times. Under these schemes, Government will provide 100% guarantee to lenders, thus will ensure least paperwork to be provided to lenders. Lenders will provide loans up to 25% (between £2,000 and £50,000) of business turnover at an interest rate of 2.5%. However, this interest and any associated fees will be paid by the government for the first 12 months. To provide even further help, the Government has decided that there will be no repayments for the first 12 months. These loans will be made for a fixed term of 6 years.

How to Apply

Small business owners including self-employed can apply online to accredited lenders (List of accredited lenders) by filling out a simple online form, with only seven questions. All eligible companies will be subject to standard customer fraud, anti-money laundering (AML) and Know Your Customer (KYC) checks prior to any loan being made.

Who is Eligible

Your business must be able to selfdeclare to the lender that it:

  • has been impacted by the coronavirus (COVID-19) pandemic
  • was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
  • is engaged in trading or commercial activity in the UK and was established by 1 March 2020
  • is not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility
  • is not in bankruptcy or liquidation or undergoing debt restructuring at the time it submits its application for finance
  • derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)

What Affinity Associates says

Being an experienced and well-established practice of Chartered Accountants in London for many years, we provide robust advice to our clients as and when requested. BBLS will mostly support all high street business to obtain much needed cash injection during and after the pandemic has made its way out. Many small businesses and Self-employed have already taken benefits from Covid-19 Job Retention Scheme to support their employees, however, they are not able to do much for their own survival. Affinity Associates are committed to assist you in evaluating your needs and apply for maximum possible government support. Call now for consultation on 02089032077 or submit your request in contact us.

Covid – 19 BOUNCE BACK LOAN SCHEME (BBLS)Contact us

Covid- 19 updates

Covid- 19 updates

With CJRS and CBILS in full flow, most of the businesses have now availed benefits provided under these schemes. Most of the employers have now claimed their wages paid to furloughed employee up to 30 April 2020, while small and medium business have geared up and applied for business interruption loans.

Coronavirus Bounce Back Loan

The Bounce Back Loan scheme is intended to help small and medium-sized businesses to borrow between £2,000 and £50,000. However, the scheme is not available for those who have already claimed grant Coronavirus Business Interruption Loan Scheme. The scheme is supposed to launch on 04 May 2020 where the UK Government guarantees 100% loan with no fees and interest payable for first 12 months. Although the full scheme is not yet declared, government has confirmed the loan term to be 6 years with no repayment to be made within first 12 months.

We at Affinity Associates believe that this scheme will support even the smallest business that are not able to claim benefits under other schemes due to weak financials. In particular, Sole traders and Partnerships with turnover below VAT threshold might be benefited with this scheme. Although HMRC has not confirmed anything, but Government guarantee suggests benefit to reach many small businesses with weak financials.

Financial support

Considering various schemes, it become difficult for business or individual to find out support that they can get from Government. We at Affinity Associates have visualized the sectors that will be worst affected by this pandemic and have already published blogs that can help making all possible claims for Grants and loans. If you are Self-employed, please  visit https://www.affinityassociates.com/covid-19-possible-action-self-employed-can-take-subsist/ . IF you are into Restaurants/Pubs/Clubs Business, which is one of the worst hit area within economy. Please visit https://www.affinityassociates.com/covid-19-sustainability-measures-restaurants-pubs-clubs/ to see how you can make best out of benefits and grants from government.

You may also use a support finder developed by HMRC. Just follow the link https://www.gov.uk/business-coronavirus-support-finder

Affinity Associates have an experienced team of Chartered Certified Accountants that can assist you in further understanding claim processes. You can also contact us to learn more about how those relief packages can be used to benefit your business amid the COVID19 pandemic. To schedule a free consultation, you can call us at +44 20 8903 2077 or email us your queries at info@affinityassociates.com. We will be more than happy to help you in this tough time.

Coronavirus Bounce Back Loan and Financial supportContact us

Covid – 19, Possible action that a Self-employed can take to subsist

Covid – 19, Possible action that a Self-employed can take to subsist

Current pandemic has forced the entire country to stand still. Along with registered businesses, Sole traders and partnerships have suffered an equal hardship to generate revenues to survive. The UK Government has established a way to support self-employed individuals and is in the process of designing an application method.

The scheme will allow individuals to claim a taxable grant worth 80% of the trading profits for the period of three months till June 2020. However, the claim amount is restricted to £2,500 a month. HMRC has set the process in a way that they will contact individuals by mid-May 2020 if they are eligible for the scheme and will invite them to apply online. Once your application is successful, HMRC will evaluate the eligible amount and confirm that with you.

Considering the above, it will be really a tough time for the Self-employed, and survival will become a major issue. We at Affinity Associates has worked out possible steps an individual should take in order to overcome this.

Firstly, a claim for Universal Credit can be made while you wait for the grant, but any grant received will be treated as part of your self-employment income and may affect the amount of Universal Credit you get.

Secondly, we can follow three step process as below:

Below 3 step process will help in taking the right decision –

  1. Evaluating the loss of turnover during and after the closed down period. This can be achieved by estimating the loss in turnover per day (otherwise earned) by comparing it to historical data. A forecast need to be prepared keeping in mind that future revenues, once the lockdown is over, will also be minimal.
  2. Identification to be made between fixed costs and variable costs that can be avoided or curtailed. This step will help you to calculate the liquidity required for the business to survive. i.e. you will know your breakeven point.
  3. Once both above ‘projections and liquidity requirement are calculated, next step will be taking advantage of government funding and support. There are various schemes and grants offered by the UK Government which are as below –

Coronavirus Job Retention Scheme – This scheme will help you to cover major fixed cost (Salaries) that any business will have. If your business is registered for PAYE scheme, then you will be eligible to claim this benefit.  80% of the wages (up to £2,500) along with 80% of Employer’s NI and pension costs will be reimbursed by HMRC for March, April and May 2020. Employers will need to pay salaries for all three months and then by end of April 2020 HMRC will update on the process to obtain this relief.

VAT payments (if registered) due between April 2020 and June 2020 are now deferred until March 2021. Thus, liability can be settled anytime up to the end of March 2021 and there will be no interest payable on due amounts.

Interim payment for tax year 05/04/2021 can differ. Further, if there are any liabilities pending to pay, we can request HMRC to defer those payments too.

Business rates relief – Your local council will forgo the rates for financial year 20/21. No application to be made.

an application can be made for Coronavirus Business Interruption Loan Scheme. This scheme helps small and medium-sized businesses affected by a coronavirus (COVID-19) to access finance of up to £5 millionThe government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This means smaller businesses will benefit from no upfront costs and lower initial repayments. To check your eligibility and apply for a loan please click here

Small Business Grants Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF) – The government has further announced that Local authorities will provide grants to businesses based on their rateable value. Under the Small Business Grant Fund (SBGF) all eligible businesses in England in receipt of either Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) in the business rates system will be eligible for a payment of £10,000. Further details can be found here.

Affinity Associates Limited is committed to providing advice and support that is required in sustaining your business. We provide impeccable service in evaluating businesses and also preparation of management information (including projections). Call now for a consultation on 02089032077 or submit your request to contact us.

Covid – 19, Possible action that a Self-employed can take to subsist intact. us

Covid – 19 Sustainability measures for Restaurants, Pubs and Clubs

Covid – 19 Sustainability measures for Restaurants, Pubs and Clubs

The Foreign Secretary Dominic Raab on Monday, 13 April quoted that “the UK has not yet reached the peak of the virus”. He further indicated that countrywide lockdown may be extended by 3 weeks more for which decision will be taken by end of this week. Further lockdown will question the survival of businesses within leisure industry. It has become imperative for owners and managers of these businesses to evaluate the sustainability. We at Affinity Associates have prepared a small list of measures that can be followed to survive during this pandemic.

Below 3 step process will help in taking right decision –

  1. Evaluating the loss of turnover during and after close down period. This can be achieved by estimating the loss in turnover per day (otherwise earned) by comparing it to historical data. A forecast need to be prepared keeping in mind that future revenues once the lockdown is over will also be minimal.
  2. Identification to be made between fixed costs and variable costs that can be avoided or curtailed. This step will help you to calculate the liquidity required for the business to survive. i.e. you will know your breakeven point.
  3. Once both above ‘projections and liquidity requirement is calculated, next step will be take advantage of government funding and support. There are various schemes and grants offered by the UK Government which are as below –

Coronavirus Job Retention Scheme – This scheme will help you to cover major fixed cost that any business will have. 80% of the wages (up to £2,500) along with 80% of Employer’s NI  and pension costs will be reimbursed by  HMRC for March, April and May 2020. Employers will need to pay salaries for all three months and then by end of April 2020 HMRC will update on process to obtain this relief.

Business rates relief – Your local council will forgo the rates for financial year 20/21. No application to be made.

VAT payments due between April 2020 and June 2020 are now deferred until March 2021. Thus liability can be settled anytime up to end of  March 2021 and there will be no interest payable on due amounts.

Small Business Grants Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF) – Government has further announced that Local authorities will provide grants to business based on their rateable value.  Eligible businesses with a property that has a rateable value of up to and including £15,000 will receive a grant of £10,000 and with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000.

Further details can be found  here.

Further an application can be made for Coronavirus Business Interruption Loan Scheme. This scheme helps small and medium-sized businesses affected by coronavirus (COVID-19) to access finance of up to £5 millionThe government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This means smaller businesses will benefit from no upfront costs and lower initial repayments. To check your eligibility and apply for loan please click here

Affinity Associates Limited is committed to provide advice and support that is required in sustaining your business. We provide impeccable service in evaluating business and preparing management information (including projections). Call now for consultation on 02089032077 or submit your request in contact us.

Covid – 19 Sustainability measures for Restaurants, Pubs and ClubsContact us