Experienced Accountants for Small Businesses in UK

Tips to Help You Find the Best Accounting Outsourcing Company

Whether you are a start-up, a small business, or an established brand, every one of us will need the help of experienced accountants to ensure our company’s finances are accurate. Moreover, detailed financial reports will also help us make informed business decisions whenever required. Therefore, it is necessary that you hire an in-house accountant or contact an accounting outsourcing company (if you are looking for better services at low prices).

There are many benefits of outsourced accounting services – cost-effective, reliable, professional, constant support, and other rewards. But always find an accounting outsourcing company with a reputation for impeccable accuracy, scalability, and consistent results. And, if you don’t know how to find the best outsourced accounting services near you, then follow these tips by experts at Affinity Associates.

The tips mentioned below are by experts with the intention to make your search for the best outsourcing accounting firm easy and smooth.

Proper Understanding of Tax Rules and Compliance: This is the first tip that you need to remember. The accounting outsourcing company that you are planning to partner with must be well-versed in all the major to minor tax rules and compliances. Whether it is accounting, bookkeeping, payroll, or VAT preparation, they must have a thorough understanding of the regulations and compliance by the respective government. Also, ensure the team working on your task specializes in tax laws. This will ensure ace services and a seamless experience.
Industry Experience: Industry experience is the second most important point to consider when you are hiring an accounting outsourcing company. This is because the industry experience of the company is directly proportional to the quality of services offered by the company to its clients. An experienced outsourced accountancy company can handle the accounting functions of businesses effortlessly. You can trust them for services such as maintaining financial records, personal tax returns, corporation tax, audit support services, management accounting, and more.
Flexibility: The third point to remember while hiring an accounting outsourcing company is the flexibility of the company. This is because, as your company grows and requirements increases, your accounting partner must be able to scale up its services to meet your accounting needs. Therefore, choosing an outsourced accounting company that can recognize the changing business demands and personalizes its services accordingly is of utmost importance.
Technological Expertise: Every industry is currently experiencing a massive technical shift, and accounting is not left untouched. Technology has become an integral part of accounting, bookkeeping, and other financial operations within the organization. More advanced software and tools are used today to manage accounts books and other financial data. Therefore, before hiring an accounting outsourcing company, estimate their technology expertise.
Data Security: The accounts and books of your company contain valuable and confidential financial data; thus, make sure the company you partner with has a data breach policy on the desk. Safety and security of crucial financial data will ensure peace of mind that your confidential data is secured and in safe hands.

To Sum Up:

Especially small businesses and start-ups; managing accounting and bookkeeping tasks is stressful and time-taking. So, if you want to make it smooth, convenient, and cost-effective, then hire an accounting outsourcing company today. Affinity Associates is the trusted name for bookkeeping, payroll management, VAT preparations, financial reports, taxation, management accounts, and more seamlessly.

Our flexible, affordable, and professional services will enhance your bottom line and give you sufficient time to concentrate on your core business competencies. Contact us today to learn more about how our team of experienced, dedicated, and reliable finance experts can help you scale your business and offer delightful experiences to your clients. Call us at +44 20 8903 2077 .

Skills Required in an Accounting Firm to Thrive after the Pandemic

Post-pandemic, as UK accounting firms are getting ready to meet the demands of their clients, these finance professionals should rethink upgrading their accounting skills and how they can provide value-added services to their clients. The fact is, after the pandemic, the way businesses are operated has changed a lot and many accountants and bookkeepers across the UK are in search of opportunities for professional development that move them away from being just number crunchers.

Whether you are an individual accountant or an accountancy firm in the UK, if you want to thrive, then you have to adopt these skills. Keep reading for post-pandemic accounting skills to boost your business’s bottom line and client satisfaction.

Adaptability: The secret ingredient of every successful accounting company in the UK is that their team is willing to pivot. Throughout the pandemic and even after the pandemic, accounting practices are quickly molding themselves as per the new working models and instantly adopting the new technologies to offer better services. Thus, adaptability is the first skill that you and your team of accountants should have to keep your clients happy and coming back for more.
Digital Proficiency: During the pandemic, when almost all businesses and organizations were forced to adopt Work from Home or a hybrid working model, there raised a sudden need for digital adoption. The dependence on new technologies has increased in order to offer UpToDate and on-time services to cope with the evolving climate. Thus, the ability to cope with new technologies and how to use them for customer satisfaction is the second skill required to ensure your business is thriving.
Flawless Communication: Communication is the key, as it ensures the flawless exchange of feedback, ideas, and requirements. Moreover, proper communication adds value to the project or the work. Thus, businesses are looking for accounting firms in the UK that can ensure impeccable communication so that they can talk to someone in a time of urgency. Accounting firms must be able to cultivate the ability to translate that information to clients and key stakeholders. Thus, if you want your accounting practice to thrive post-pandemic, then set up a system for flawless communication and develop the skills as per it.
Business Acumen: Having business knowledge and expertise in one thing and implementing it in your work is the second thing. Thus, you should be able to showcase your expertise to your clients. Post covid19 pandemic, accounting firms are going beyond the traditional methods to offer guidance to their clients to help them overcome their pain points. Thus, you need to develop the skill that if you are having domain expertise, then do not hesitate to help your clients by any means.
Customer-Centric: Always stay in touch with your clients. Most of the time, it has been observed that accounting firms get busy showcasing their services and ignore the real problems faced by the clients. Before the pandemic, businesses expected accounting firms to offer them transactional services – services like accounting, bookkeeping, tax planning, auditing, etc. But now, after the pandemic, clients are expecting sometime more something extra. They are looking for accounting companies that can offer them a multitude of services and play the role of a partner that can help them around the clock.

Tips to Keep with These Skills – Outsourced Accounting Services

The covid19 pandemic raised the need for new skills to survive the shifting economy. And as we continue to reconstruct the public accounting industry, it’s important for firms to re-evaluate their post-pandemic accounting skills.

If you are a UK accounting firm looking to grow your practice in a world powered by uncertainty, then you’re not alone. Here at Affinity Associates, we love to help small businesses and accountancy firms pass through this new post-pandemic environment. With the help of our outsourced accounting services, we help them find the top talents that fit the bill and requirements, and we can help you too. Get in touch with one of our accounting experts in London and learn how accounting outsourcing services can help you add these much-needed skills to your team.

We offer a wide range of services, and if you want to learn more about those services, please click here https://www.affinityassociates.com/accountancy-services-uk. You can also like our Facebook page and follow us on Twitter to get useful accounting, tax, and bookkeeping related-updates on your timeline.

A blog you will like: Why Outsourced Accounting Services are More Reliable for Small Business

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?

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.

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.

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.

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

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.

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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.

Top Accounting Firms in London – Reasons Why Affinity is the Leader

When you are finding the best accounting firm in London using Google, you will be offered approximately 99,300,000 results in just 0.68 seconds. But how will you conclude which accounting firms in just right for you, your business, and your budget? What should be your filtration criteria and what points should you consider before hiring small business accounting firms in London? Well, then you should refer to this blog that has tips on finding the best accounting firm in London.

How to find the best accounting firm?

There are rules/tips you need to follow before you engage an accounting firm in London, and they are

Fees: Always consider before hiring a company
Experience: What is the experience of the resources that you are about to hire
Certification: Are the accountants certified or not?
Availability: Are the resources available to finish your task within the given time frame
Communication: What are the modes of communication available
Goal: Are you meeting your end goals after hiring the top accounting firms in London.

If you keep these points in mind while hiring small business accounting firms in London, then probably you won’t regret your decision at any point in time.

What are the pricing packages of top accounting firms in London?

Pricing packages and fees of small business accounting firms in London vary from company to company and the services they offer to their clients. However, the average cost of hiring an accountant may vary from 10 GBP to 100 GBP. However, there are some top accounting firms in London like Affinity Associates that is offering the best small business accounting services in London at unbelievable prices. You can review their pricing packages.

Why Affinity Associates is among the top accounting firms in London?

Affinity Associates is among the top-rated small business accounting firms in London with more than 40+ years of industry experience. Below are the few reasons why Affinity Associates is the top accounting firm in London, and they are:

Best Accountants: Affinity Associates has the team of the most talented accountants in London to offer the most UpToDate small business accounting services in London, UK.
Industry Presence: With more than 40+ years of industry presence, Affinity is among the top players in the field of small business bookkeeping and accounting in the UK.
Affordability: At Affinity, affordability doesn’t mean compromising the quality of work. You get the best services at unbelievable prices.
Updated Infrastructure: Affinity Associates loves to stay updated with the trends. From working stations to office infrastructure, Affinity adopts and implements the best and newest in the market available.

Affinity Associates is among the best small business accounting firms in London that offer all the services you need to ensure the smooth functioning of your business. To learn more about the list of services offered by Affinity Associates, please click here.

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.

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Affinity Associates offers the Best Bookkeeping Services to Small Businesses in London, Wembley, and Harrow

Professional accounting and bookkeeping in small businesses allow business owners to record, evaluate and interpret the required financial information to make an informed business decision. And these are the reasons, why accounting records have to be clear and accurate so that a business can keep track of its operations. Moreover, it gives a snapshot of the sales and expenses of a business for a given period.

If you are a small business in London, Harrow or Wembley, and are in search of highly professional bookkeeping services, then Affinity Associates is worth considering. With more than 30 years of industry experience, Affinity is esteemed for offering fast, accurate, and affordable bookkeeping services to small and medium-sized businesses in London and other nearby areas.

Why Affinity Associates for Small Business Bookkeeping?

At Affinity Associates, we have a team of qualified and experienced accountants that are experts in small business accounting such as accounts payables, accounts receivables, bank reconciliations, payroll processing, and more. Our certified practicing accountants and experienced tax experts in London understand what it takes to stay competitive and profitable in the stance of a highly fierce business environment of today. You can count on our team of accountants as your principal accounting provider.

Our team of small business accountants and bookkeepers in London possesses an intense dedication to impeccable customer service. We hold high customer satisfaction and retention rate than any other accounting service provider in London and nearby areas.

At Affinity Associates, we always strive to offer the best possible accounting and bookkeeping services to small business owners. We not only assist our clients with the annual tax returns, but we also help them throughout the year with professional accounting services that let them focus on their core business activities.

Hire Experienced Bookkeepers

The bookkeeper whom you hire will have unmatched ability and experience to manage your books effectively. Along with their experience and ability to manage your books professionally, they also have an immense understanding of the changing rules and trends in the industry to help you stay ahead of others.

Our Bookkeeping Services for Small Business

Here at Affinity Associates, we offer bookkeeping services in London specifically tailored to meet the needs of small business owners. We value our clients and treat them much more than just a customer.

If you are a small business owner and need a bookkeeper or an accountant in London or any nearby area to file your tax returns or any other finance-related services, you can count on our 30 years of industry experience. We will be more than happy to help you with our bookkeeping and accounting services. For a free consultation, please call us on +44-020-8903-2077 or schedule an appointment online.

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

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)

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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

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Tax Accountants for Small and Medium Enterprise in the UK

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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.

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