Hello, business owners! Let’s talk about what the UK Autumn Statement means for you in plain English, with all the important bits you need to know:
Our director Paul breaks down the Autumn budget with a quick synopsis
Cash Cushion for Growth
The government has a safety net of funds aimed at supporting businesses making sure they can grow. They’ve introduced 110 measures to help businesses with things like productivity and taxes. This is collated in a 120 document you can click here to read.
Drinks on Hold
If you’re in the business of selling drinks, there’s good news – no tax hike on alcohol until August 2024. Cigarette sellers, however, will see a 10% tax increase on hand-rolling tobacco.
Friendly Rates for Small Businesses
If your business is on the smaller side, you’ll be glad to hear that your business rates won’t go up this year. And if you’re in retail, hospitality, or leisure, you’ll continue to enjoy a significant reduction in business rates.
Full Speed on Spending
When you buy equipment for your business, you can now get a tax break for the full price from now on. This should make investing in your business a bit more attractive.
Simpler Tax Breaks for Innovation
If your business invests in research and development, things are getting simpler. The government is merging two tax relief schemes into one, making it easier to understand and claim your benefits.
Cheer for Creative Types
For the creatives making films, TV shows, or games, there’s a new tax credit system starting in 2024 that may put some extra cashback in your pocket. We are awaiting the details on this one!
National Insurance Cuts
Big news for both employees and the self-employed: National Insurance is getting cheaper. Employees will see a 2% cut from their National Insurance rates, and for the self-employed, Class 4 NI goes down by 1% to 8%. Plus, a certain type of National Insurance payment, known as Class 2, will be abolished, making tax a bit simpler for the self-employed.
More Money in Your Pocket
With all these changes, if you’re earning an average salary, your taxes will be lower in the UK than in many other major economies. This means more take-home pay for millions of workers.
Minimum Wage Jump
Last but certainly not least, if you’re paying your staff minimum wage, note that it’s going up to £11.44 from April 2024. This is a significant raise, which means those earning the minimum will take home more money but it also could be a huge change for your business. Making it more important than ever to plan!
Listen to Paul talking about the impact on small businesses by watching this video.
Remember, all these changes are about making sure that work pays off more and that your business can thrive. It’s always a good idea to chat with an accountant to see exactly how these changes affect your specific business. Stay informed and keep growing!
Please check out our social media for more videos breaking down the budget!
As we stand on the brink of a significant milestone, it’s time to turn the pages back to where it all began—a journey from a modest room in our house to a prominent office in Haverhill. Ten years ago, Paul and Jenni Donno set out with a vision to bring cloud accounting to the forefront of the business world. With a handful of clients and a passion for change, 1 Accounts was born.
Early Recognition and the Pursuit of Innovation (2013-2015)
Our inaugural years set the tone for what was to become a saga of relentless pursuit of service excellence. Early accolades at the British Accountancy Awards and being named Sage’s Online Provider of the Year were not just trophies on our shelves—they were the fuel that propelled us forward.
Building Our Culture and Community (2016-2019)
As our team expanded, so did our need for space, leading us to our high-street office. We weren’t just recognised for our professional expertise—we also embedded fun into our culture with initiatives like Sausage Roll Fridays and Dress Down Fridays. Our team-building events, including a memorable day at Wild Tracks and a triumphant outing at Top Golf, reinforced the bond that is the backbone of our firm. Our team grew with the addition of cherished members like Adrian, Kerry and James, whose growth from apprentice to a fully qualified accountant mirrored our own evolution.
Adapting to Change, Supporting Through Challenges (2020-2021)
The unforeseen pandemic tested the mettle of businesses everywhere. At 1 Accounts, we transitioned to remote work seamlessly, thanks to our cloud-based systems. Our team worked tirelessly to navigate new schemes, offering additional support to our clients when they needed it most. The introduction of office dogs Honey and Jango, and the shift to a hybrid work model, were testaments to our adaptability and focus on well-being.
A New Chapter of Leadership and Legacy (2022-2023)
These past two years have been about leadership and legacy. We’ve been recognised once more for our dedication to the industry, with Paul winning Business Leader of the Year and Katie being shortlisted for Employee of the Year. The addition of Josh to the family business, the integration of new services, and our engaging networking events are the highlights that showcase our commitment to growth and community.
Our Gratitude and Vision for the Future
As we celebrate this 10-year anniversary, we are filled with gratitude for the trust and support of our clients and the dedication of our team. Our story is not just about the numbers; it’s about the people, the relationships, and the shared successes. We are proud of our past and excited for the future.
Here’s to the next decade of innovation, service, and community at 1 Accounts. Thank you for being a pivotal part of our journey.
The Autumn Statement is more than just a financial forecast; it’s a roadmap that can influence your business decisions for the upcoming year. At 1 Accounts Online Ltd, we understand its significance and are here to simplify what it means for you.
What is the Autumn Statement?
This annual announcement by the Chancellor of the Exchequer outlines the government’s economic plans and budget priorities, giving us insight into the fiscal direction of the country.
The Importance of Staying Informed:
Business Forecasting: Economic indicators from the Statement guide us in helping you plan your next business move.
Policy Updates: It’s essential to know about changes in taxation or spending that may affect your business’s bottom line.
Strategic Advantage: With our expert analysis, you can turn the information from the Statement into a competitive edge.
Impact on Your Business:
Corporate Tax Rates: Any changes here could be critical to your financial strategy, and we’re on hand to navigate through them.
Regulatory Adjustments: We’ll decode complex legislative updates, such as IR35 changes, so you can focus on running your business.
Fiscal Signals: Tax cuts or adjustments in government spending signal economic trends that could impact your growth plans.
The Autumn Statement is a vital indicator for strategic business planning, and we at 1 Accounts Online Ltd are dedicated to providing you with clear, actionable advice. As we approach the release of this year’s Statement, let’s work together to align your business with the upcoming economic landscape.
What Is A Payment On Account? Understanding the UK Tax System
A common source of confusion in the world of taxes, especially for those new to self-employment in the UK, is the ‘Payment on Account‘ system. With this post, we aim to demystify this concept for you in simple and easy-to-understand terms.
What Is A Payment On Account?
A ‘Payment on Account‘ is a tax payment made twice a year by self-employed people in the UK to spread the cost of the year’s tax. It’s a method used by HM Revenue and Customs (HMRC) to collect Income Tax and Class 4 National Insurance Contributions if you’re self-employed.
Why Do We Have Payments On Account?
These payments are essentially a way for the tax system to keep up with our fast-paced, modern world. Instead of waiting for the end of the tax year to pay all your tax in one go, Payments on Account split the bill into two smaller, more manageable amounts. This system helps prevent taxpayers from falling into significant tax debt.
When Are Payments On Account Made?
Payments on Account are made twice a year – on 31st January and 31st July. The first payment includes any unpaid tax from the previous tax year. The second payment acts as a ‘payment on account’ towards your next tax bill.
How Are Payments On Account Calculated?
Each Payment on Account is calculated as 50% of your previous tax year’s Income Tax and Class 4 National Insurance bill. These payments include a projection of your next year’s earnings, so they assume that you will earn a similar amount to what you did in the previous year. If your income significantly changes from one year to another, you can request to reduce your Payments on Account.
What About The July 31st Payment On Account?
The second Payment on Account, due by 31st July, is exactly the same as the first one paid in January. The total of your two Payments on Account is then deducted from your final tax bill for the next tax year. If your Payments on Account total more than your final tax bill, HMRC will repay the difference.
A Real-World Example of Payment on Account
Let’s say you’re a self-employed graphic designer, and your tax bill for the 2022/23 tax year came to £10,000. This would be due on 31st January 2024. However, in addition to this, you would also have to make your first Payment on Account towards the 2023/24 tax year. This would be 50% of your last tax bill, so £5,000.
Therefore, on 31st January 2024, you would actually pay £15,000 in total (£10,000 for tax year 2022/23 and £5,000 as your first Payment on Account for tax year 2023/24).
The second Payment on Account for the 2023/24 tax year (another £5,000) would then be due by 31st July 2024.
When you complete your 2023/24 tax return, if you find out that your actual bill for that year is £11,000, you’ve already paid £10,000 through your Payments on Account. This means you only need to pay the additional £1,000 by 31st January 2025. But remember, on this same date, you’ll also need to make your first Payment on Account for the 2024/25 tax year, which would be £5,500 (50% of the £11,000 bill for the 2023/24 tax year).
This example demonstrates how the Payment on Account system works in a realistic scenario. It ensures that your tax payments are spread throughout the year, making it easier to manage your cash flow as a self-employed individual.
Navigating the UK tax system can be challenging, but understanding the Payment on Account system can make your tax life easier. Remember these key points:
Payments on Account spread the cost of the year’s tax into two payments.
Payments are due on 31st January and 31st July.
Each payment is calculated as 50% of your previous year’s tax bill.
If your income fluctuates significantly, you can request to adjust your Payments on Account.
In conclusion, a Payment on Account is a proactive method implemented by the UK tax system to ensure that self-employed individuals can manage their tax bills more effectively.
As always, if you’re uncertain about any aspect of your tax situation, it is highly advisable to consult with a tax professional. Happy tax planning!
If you’re a business owner or a self-employed individual, one question that may often cross your mind is, “how do I stay compliant with HMRC?” As one of the leading accountancy practices in the UK, 1 Accounts Online Ltd is here to guide you through the essentials of HMRC compliance.
Understanding HMRC Compliance
Staying compliant with HMRC involves meeting the tax obligations as per UK laws. This includes accurate reporting of your income and expenses, prompt tax payments, and maintaining detailed records. Below, we outline some key steps to ensure you meet these requirements and stay on the right side of HMRC.
1. Accurate Record Keeping
Keeping clear and accurate records of all your financial transactions is the first step towards HMRC compliance. This includes details of sales and income, business expenses, VAT records, PAYE records if you have employees, and records of your personal income. HMRC can ask to see your records up to six years back, so it’s crucial to maintain these records over time.
2. Timely Tax Returns and Payments
All businesses need to file their tax returns annually with HMRC. The key is to file these returns accurately and on time, usually by 31st January following the end of the tax year. The same applies to your tax payments – paying your tax bill late can lead to penalties.
3. VAT Compliance
If your business’ VAT taxable turnover is more than £85,000, you must register for VAT. Once registered, you’ll need to charge the correct amount of VAT, pay any VAT due to HMRC, submit VAT Returns, and keep VAT records and a VAT account.
4. Understand the Employment Laws
If you employ people, you must operate PAYE as part of your payroll. This involves deducting income tax and National Insurance contributions from your employees’ salaries and paying these to HMRC.
5. Seek Professional Advice
Tax laws can be complex and often change. Getting professional advice can be invaluable. An accountant can help you understand your tax obligations, plan for your tax bill, and ensure you’re claiming all the tax reliefs available to you.
Why Choose 1 Accounts Online Ltd?
At 1 Accounts Online Ltd, we specialise in helping businesses of all sizes navigate the complexities of HMRC compliance. Our experienced team stays up-to-date with the latest tax laws and regulations, ensuring that your business remains compliant and avoids costly penalties.
So, if you’re wondering, “how do I stay compliant with HMRC?”, remember that compliance is all about accurate record-keeping, timely tax returns and payments, understanding VAT and employment laws, and seeking professional advice. And we at 1 Accounts Online Ltd are always here to help you along the way.
If you’re a small business owner asking, “how do I manage the finances for my small business?”, you’ve landed in the right place. 1 Accounts Online Ltd, a leading UK-based accountancy practice, provides practical advice to guide you through the maze of small business financial management.
How Do I Manage the Finances for My Small Business?
Effective financial management is the lifeblood of any successful business. Here are some key steps to consider for managing your small business finances.
1. Maintain Accurate Bookkeeping
Bookkeeping involves recording all your business transactions, including income and expenses. Regular and accurate bookkeeping is vital as it provides a clear picture of your financial health, helps in making informed decisions, and is crucial for tax purposes.
2. Set a Budget
A budget is an estimate of your income and expenses over a period. It helps control overspending, plan for the future, and ensures you have sufficient funds to cover your expenses. Regularly compare your actual spending against your budget and adjust as necessary.
3. Keep Personal and Business Finances Separate
Mixing personal and business finances can lead to confusion and legal issues. To avoid this, open separate bank accounts and get a business credit card. This will also simplify bookkeeping and tax filings.
4. Stay on Top of Invoicing
Invoice promptly and follow up on late payments. Cash flow is vital for small businesses, and managing receivables effectively is crucial to maintaining a healthy cash flow.
5. Plan for Taxes
Set aside a portion of your earnings for taxes to avoid a last-minute scramble. Consider engaging an accountant to understand your tax obligations better and take advantage of any possible deductions.
6. Regular Financial Review
Regular financial reviews allow you to spot trends, both positive and negative, and adjust your strategy accordingly. Monitor key financial statements, such as the balance sheet, income statement, and cash flow statement.
7. Consult a Professional
Managing finances can be complex and time-consuming. An accountant can help manage your finances, ensuring accuracy and compliance with legal requirements, leaving you free to focus on other aspects of your business.
Why Choose 1 Accounts Online Ltd?
At 1 Accounts Online Ltd, we understand the intricacies of small business financial management. Our experienced accountants offer a range of services, including bookkeeping, tax planning, and strategic financial advice, tailored to your specific needs.
In conclusion, if you’re still wondering, “how do I manage the finances for my small business?”, start by following the steps outlined above. However, engaging a professional accountant can simplify the process and offer valuable insights, ultimately contributing to your business’s financial success.
Do I Need an Accountant? Unravelling the Importance of Accounting for Your Business
The question “Do I need an accountant?” is a common one among business owners, especially for start-ups and small businesses. As a leading UK-based accountancy practice, 1 Accounts Online Ltd aims to answer this question and elucidate why an accountant is crucial for your business success.
Do I Need an Accountant?
While many may think that an accountant’s role is solely to file taxes and maintain financial records, they do much more than that. They can be your trusted advisor, assisting in vital business decisions, financial planning, and helping ensure your business remains compliant with regulatory standards.
Navigating Through Complex Tax Matters
One of the main reasons businesses require an accountant is for handling complex tax matters. UK tax law can be intricate and continually evolving, and having an accountant ensures you are not missing out on any tax benefits or unintentionally violating any rules, saving you from costly penalties.
Financial Planning and Management
Accountants play a significant role in financial planning and management. They help in budgeting, forecasting revenue and expenses, and managing cash flow, enabling businesses to make sound financial decisions. If you’re wondering, “Do I need an accountant?”, consider the benefits of having a professional analyse your financial data and provide actionable insights.
Running a business involves numerous tasks, and managing finances can be time-consuming. An accountant takes over the financial aspect of your business, from bookkeeping to payroll, allowing you to focus more on business growth.
Guidance during Business Growth and Change
As your business grows or undergoes changes, an accountant can provide valuable guidance. Whether you plan to expand, take on more employees, or change your business structure, your accountant can help you understand the financial implications and ensure a smooth transition.
Accountants stay up-to-date with the latest accounting standards and regulations, ensuring your business remains compliant. They can assist in preparing and submitting necessary documents to regulatory bodies, including Companies House and HM Revenue & Customs (HMRC).
Why Choose 1 Accounts Online Ltd?
At 1 Accounts Online Ltd, our team of professional accountants offers an array of services tailored to meet your business needs. Our services extend beyond just maintaining your financial records. We provide strategic financial advice, help manage your taxes, ensure regulatory compliance, and support your business as it grows.
In conclusion, if you find yourself asking, “Do I need an accountant?” the answer is yes. An accountant is a valuable asset for businesses of all sizes. They not only ensure accurate financial management and regulatory compliance but also serve as strategic advisors for business growth.
What is an Accountant? Unveiling the Essential Role in Your Business
If you’ve ever wondered, “what is an accountant?” then you’re in the right place. As a premier UK-based accountancy practice, 1 Accounts Online Ltd is here to demystify the role of an accountant and explain why they are indispensable for your business.
What is an Accountant?
At the most basic level, an accountant is a trained professional who maintains and audits business accounts. But, in reality, the role encompasses much more than that. They provide a vast array of financial services, ranging from record keeping and financial forecasting to strategic planning, compliance, and consulting on all financial aspects of a business.
The Versatility of an Accountant
Accountants wear many hats, and their roles often extend beyond just number-crunching. They are financial advisors, tax experts, and strategic consultants. They can work within a business, for an accountancy firm like 1 Accounts Online Ltd, or independently.
Financial Management & Reporting
An accountant takes charge of managing a company’s financial data. They ensure that financial records are accurate and that taxes are paid properly and on time. Accountants perform audits and prepare financial reporting records, such as balance sheets, income statements, and tax returns. These records provide a clear financial image of the business, guiding strategic decisions.
Regulatory Compliance & Tax Expertise
One crucial role an accountant plays is ensuring businesses comply with the latest laws and regulations. In the UK, this includes abiding by the Companies Act and adhering to HM Revenue & Customs (HMRC) requirements. With their tax expertise, accountants save businesses from potential penalties and help them take advantage of relevant tax deductions and credits.
Business Strategy & Consultation
Beyond compliance and day-to-day management, accountants play a vital role in shaping the strategic direction of a business. Through financial analysis and forecasting, they help identify growth opportunities and areas for improvement.
Accountants and Small Businesses
Many small business owners may wonder if they need an accountant. The answer is a resounding yes. Accountants offer invaluable expertise that can help a small business thrive. They can guide you through the complexities of tax regulations, provide advice on financial management, and offer insights to help your business grow.
Why Choose 1 Accounts Online Ltd?
As a UK-based accountancy practice, 1 Accounts Online Ltd offers a comprehensive range of accounting services. Our team of qualified accountants are committed to helping your business succeed. We navigate the complexities of accounting so you can focus on what you do best – running your business.
In conclusion, an accountant is more than just a numbers guru; they are an essential partner in your business. They not only help you meet regulatory requirements but also play a critical role in your business’s strategic direction. If you’ve been asking, “what is an accountant?” now you know. And if you need a dedicated, professional accountant, consider 1 Accounts Online Ltd. We’re here to help your business thrive.
Unraveling the Complexity: UK Business Compliance in Accountancy
In today’s swiftly shifting regulatory environment, understanding UK business compliance in the realm of accountancy has never been more vital. With businesses continually subject to various rules and regulations, understanding compliance is key to maintaining a healthy, thriving, and legally compliant business. Let’s take a deeper look at what this entails and why it is so important.
What is Business Compliance?
In the simplest terms, it refers to the process of ensuring a business adheres to all the necessary laws, regulations, and standards relevant to its operations. This extends across multiple levels – from local to national, and sometimes even international.
In the world of accountancy, compliance includes adhering to the various reporting and accounting standards set forth by the relevant governing bodies, tax obligations, auditing procedures, and financial management. This process is mandatory and neglecting it can lead to significant consequences, including hefty fines and penalties, damage to the business’s reputation, or in severe cases, even closure of the business.
Key Areas in Accountancy
Tax Compliance: This is one of the most critical aspects of. It involves understanding and adhering to the tax laws as prescribed by HM Revenue and Customs (HMRC). This includes paying corporation tax, VAT, PAYE, and national insurance contributions, as well as proper reporting and record-keeping.
Financial Reporting: Businesses are required to adhere to the Financial Reporting Standards (FRS) in the UK. These standards outline how businesses should prepare and present their financial statements, ensuring transparency and uniformity. Small and micro businesses may adhere to FRS 105, while medium and large companies will typically follow FRS 102.
Audit: Depending on the size and structure of the business, it may be legally required to have an annual audit conducted by a registered auditor. This ensures the business’s financial statements are accurate, providing reassurance to shareholders, investors, and other stakeholders.
Companies House Reporting: UK businesses are required to file certain documents with Companies House, including annual financial statements and confirmation statements, which provide updated information about the company’s directors, shareholders, and registered office.
Data Protection: Though not strictly accounting, the General Data Protection Regulation (GDPR) has important implications for the way businesses manage and protect their financial data.
Why is Compliance Essential?
Maintaining compliance is fundamental to the successful operation of any business. It protects the business from legal and financial penalties, supports operational efficiency, and upholds the reputation of the business. Additionally, it can build trust with stakeholders, including investors, customers, and employees, which is crucial for the long-term sustainability of a business.
Compliance in the Digital Age
In today’s digital age, many businesses are adopting accounting software solutions to assist in maintaining compliance. These tools can streamline processes, enhance accuracy, and provide alerts for upcoming compliance deadlines, significantly reducing the risk of non-compliance.
Understanding UK business compliance in accountancy is an ongoing task due to evolving regulations and standards. It is crucial for business owners to stay updated and ensure they meet all compliance requirements to avoid penalties, protect their reputation, and foster trust among stakeholders. Consider seeking professional advice from accountants or solicitors, who can help navigate the complexities of business compliance and ensure your business remains on the right side of the law.
At 1 Accounts Online, we pride ourselves on our diverse clientele, each bringing a wealth of unique knowledge to our accounting practice. Last month, we were privileged to host one of our esteemed clients, The Audiology Expert, for an insightful talk at our networking event. This event became a platform for us to witness first-hand the impressive expertise and passion of our clients, showing us the importance of audiology in our daily lives. We were proud to be the audiology experts accountants!
An Ear for Knowledge: An Audiology Presentation
The event was truly a masterclass in audiology. We were provided with an in-depth understanding of this fascinating field, bringing to light how this science intersects with various aspects of our lives. For the uninitiated, audiology is the branch of science that studies hearing, balance, and related disorders. Our client offered us a unique perspective into the intricate workings of the ear and how audiology can contribute to overall health and wellness.
From discussing the latest advancements in hearing aids to sharing riveting case studies, our client’s presentation was a revelation. The talk was not only educational but also engrossing, offering our team a chance to explore the world of audiology beyond the balance sheets and profit & loss accounts.
Bringing Businesses Together: Networking and Learning
As accountants, we believe in constant learning and growing, understanding the businesses of our clients, and sharing knowledge across various fields. This event was a brilliant example of that belief in action. By having clients like our audiology expert share their knowledge and experience, we foster a more interconnected, educated community.
This event showcased our dedication to our clients and our commitment to understanding their businesses. As digital accountants, we go beyond the traditional realm of number crunching. We value the relationships we build with our clients, ensuring we understand their business and their industry to provide the most effective and tailored financial advice.
1 Accounts Online: Your Accountant of Choice
Our client’s talk emphasised the critical importance of effective, specialised financial management for businesses, including audiology practices. At 1 Accounts Online, we understand that each business is unique, requiring tailored, industry-specific accounting solutions.
For audiology practices, we recognise the need for adept management of medical equipment costs, patient billing complexities, insurance claims, and the financial aspects of running a modern clinic. We are equipped to assist with all these needs, providing comprehensive financial guidance and digital solutions that streamline your accounting processes.
For businesses searching for reliable and tailored accounting services, 1 Accounts Online is your go-to partner. If you’re an audiologist looking for accounting services, or any business in need of expert financial advice, we are eager to learn about your industry, your specific business needs, and how we can help you to navigate your financial landscape.
Share Your Expertise
In closing, we would like to extend an invitation to any of our clients or fellow businesses who would be interested in sharing their expertise at our future networking events. We believe that learning never stops, and we welcome the opportunity to gain insights from various industries.
Should you be interested in doing a talk for us, please get in touch with Jade at email@example.com. We eagerly look forward to our continued journey of learning, growing, and serving you better.
Thank you again to our wonderful audiology expert, whose enlightening talk added to our shared wealth of knowledge and brought our community closer together.
Book a Call Today!
If you’d like to learn more about how we can help your business, please get in touch today to arrange a meeting.