Jade Donno, Author at 1Accounts

Jeremy Hunt makes changes

Posted on October 19, 2022 | by Jade Donno | Leave a Comment

Here is another blog with yet more changes and reversals to the Kwarteng mini-budget that wasn’t a budget.

In short, most of what he announced has been ditched by the new chancellor Jeremy Hunt.

I am hesitant to say that these new announcements are ones that are going to remain. After all, we are living in “interesting times”. Things could change still further by the time we get to the 31st of October when the chancellor will reveal the full financial statement.

What we know now:

The basic rate of income tax remains at 20% and likely to stay there for the foreseeable future.
The 45% higher tax rate is here to stay.
The planned reversal in the increase to Dividend Tax which took place in April has been cancelled.
The repeal of the 2017 and 2021 changes to off-payroll rules, AKA IR35, is now cancelled. This means the burden of proving that a contractor is not a disguised employee now rests again with the employer.
The help with energy costs is still going ahead but only until April. From April there is likely to be a different and more targeted regime to help with energy costs.
The planned increases in the duty rates for beer, cider, wine and spirits will now go ahead.
VAT free shopping for non-UK visitors scrapped.

You may be pleased to know that the cuts to stamp duty and National Insurance remain in place. These are very small crumbs of comfort.

The likelihood is that there will be more announcements on the 31st October.

We will, of course, then, give you a full rundown of any changes which will impact you or your business.

Our thoughts:

It’s aint over until the fat lady sings. At the moment we seem to have no idea whether the lady in question is clearing her throat or even thinking about going to perform.

What is clear that the Conservative government is in turmoil right now. The politic gossip columns are humming with different leadership scenarios. None of which seem to involve Liz Truss in them…

Initial reactions from the markets seem to be positive about Jeremy Hunt’s new plans for GB PLC. At time of writing the pound was making tiny gains against the dollar. But still a long way off the dizzy exchange rate heights in August of US $1.20 dollar to the pound. Bear in mind that at this point last year £1 would buy you US $1.37.

As a fellow business owner, my hope is for some stability and certainty in the months ahead. After all, that is what we all need to be able to plan and take decisions for the future. However, my sense is don’t assume that we are now entering into stable waters.

This is what I still think we can rely on going forward:

The cost of living crisis is going to bite hard over the winter
It is important to keep an eye on your business’s cash going forward
It will be harder to get access to finance
The turmoil will bring opportunities for business owners who are managing their finances carefully and prepared to be bold and take good decisions.

If you are uncertain about what the future holds or how to cope with the headwinds coming your way, then get in touch. We are here to help.

Government makes a U-turn

Posted on October 16, 2022 | by Jade Donno | Leave a Comment

On Friday afternoon the UK Prime Minister, Liz Truss held a press conference. Ahead of this press conference, it was announced that the Chancellor had resigned/been sacked (depending on whose version of the truth you are listening to).

In this press conference, the September tax cuts as promised in the mini-budget have been watered down even further.

What we know so far…

The Corporation Tax will rise from 19% to 25% in April 2023. It is unclear whether or not that includes the previous 19% tax rate for profits under £50k, with a tapering of tax rates up to £250k profit.

As already announced the removal of the 45% top rate for high earners has been scrapped.

What is still, apparently, going ahead from the mini-budget is:

The income tax basic rate cut by 1p to 19p in April 2023
The scrapping of the 1.25% rise in National Insurance is from November 2022 is still going ahead.

Our thoughts:

Hang onto your hats for a while longer. It is clear that the Conservative government is in turmoil right now. Read any of the online news sites and you will see speculation about whether Liz Truss can keep her job as Prime Minister. Or whether the new chancellor, Jeremy Hunt, will become a caretaker leader.

This is what I think we can rely on going forward:

The cost of living crisis is going to bite hard over the winter
It is important to keep an eye on your business’s cash going forward
The cost of borrowing is going to increase as interest rates increase
It will be harder to get access to finance
The turmoil will bring opportunities for business owners who are managing their finances carefully and prepared to be bold and take good decisions.

If you are uncertain about what the future holds or how to cope with the headwinds coming your way, then get in touch. We are here to help.

How to recover from career burnout

Posted on September 27, 2022 | by Jade Donno | Leave a Comment

Career burnout is pretty self-explanatory. It’s when we burn ourselves out to the point where we have lost the love for our work, it all seems a bit pointless, and we don’t have the energy to even flick on the switch of the kettle, never mind ploughing through a full day of work.

What are the symptoms?

Common symptoms of burnout include:

Feeling constantly tired and drained.
A lack of enthusiasm and motivation for anything.
Anxiety and worrying about everything.
Insomnia, loss of appetite, and depression
A loss of confidence in yourself.
Getting sick more often and for longer.

Why does it happen?

Career burnout can happen for several reasons, and it’s usually due to a couple of reasons rather than a single cause. Here are a few reasons why you may be suffering from burnout:

You’re not doing something you really love
You’ve lost sense of your purpose and your ‘why’
Your life priorities have changed
Your surroundings have changed
You’ve changed – but your role hasn’t
You don’t fit in your company culture
You don’t get on with colleagues
You’re being held back or your own beliefs are holding you back.

For many, the pandemic made people realise that they weren’t doing what they love or what they were doing just didn’t fit with reality anymore. This can lead to a lack of motivation and drive, and in extreme cases, anxiety and depression.

How to recover from burnout

If you’re suffering from career burnout, use this opportunity to really understand the cause and make impactful changes. Here are a few steps you should start with:

Identify the cause of your burnout – is it you, your job, your company or your lifestyle? For example, are your personal needs being met with your work? Is your current role fulfilling enough? Do you fit the company culture and get on with colleagues? Does your current job fit with your lifestyle and priorities?
Start making changes – work out what you would rather do instead (either by making your own lists or using online tools). Consider changing careers or approaching your manager to make some role changes. If your lifestyle has changed (e.g. if you’ve recently had a baby), find ways to adapt your role, to work more flexibly, and balance your priorities.
Always prioritise your self-care – you should be doing this consistently anyway, but especially if you’re suffering from burnout. Make sure to take a break (and actually switch off). Try to have at least a week where you sleep for 7-8 hours a night, you exercise for 30 minutes a day, and you eat and drink healthier things that give you the energy you need. When you’ve done this, try to make this your normal routine.

3 magic steps

That really is it. Don’t suffer from burnout any longer; waiting will only make you ill.

To recover from burnout, identify what is causing it, don’t be afraid to make the necessary changes, and always look after yourself. Change is scary but in this case, it is good; it will ensure your happiness in what you do on a daily basis and for a very long time to come.

Mini Budget 2022

Posted on September 27, 2022 | by Jade Donno | Leave a Comment

Last week, as part of the mini-budget, the government began announcing help for small businesses. This blog gives you the details of what matters and how this could impact your business.

At a top level, the mini-budget, the government’s Growth Plan and announcements on energy caps are very good news for small businesses. Excuse the pun, but in many ways, the government has put its hand into its pocket to keep the lights on for small businesses this winter. It’s also changed decades of fiscal discipline and if you believe the media and political pundits it is a very risky move. After all, the government still needs to pay back what it borrowed to support individuals and businesses during the worst of Covid-19.

At a glance, these are the changes that impact you and your small business:

Income tax: Not including Scotland

The basic rate has been cut by 1p to 19p from April 2023.
From April 2023, the higher rate of Income Tax, 45%, has been scrapped.

Corporation tax:

The planned increase in corporation tax from 19% to 25% has been scrapped.
This means that from April 2023, the rate will remain at 19% for all firms.

National Insurance:

The 1.25% increase in National Insurance introduced in April 2022 has now been scrapped. I.e. from November 6th 2022.
The Health and Social Care Levy due to be introduced in April 2023 has been scrapped.
No change to the threshold that individuals pay National Insurance, i.e. £12,570
Eligible businesses still get up to £5000 in employment allowance to reduce their annual National Insurance Liability.

Dividend tax: The 1.25% increase to rates introduced in April 2022 has been reversed from April 2023

Annual investment allowance: The temporary increase from £200k to £1m has been made a permanent increase. This gives 100% tax relief to businesses on their plant and machinery investments up to £1m.

IR35 rules changed: The 2017 and 2021 changes to off-payroll working are to be repealed from April 2023. This means workers providing their services via an intermediary will once again be responsible for determining their employment status and paying the appropriate amount of tax and National Insurance contributions.

Company Share Option Plan: From April 2023 companies can now grant up to £60k (up from £30k) of share options to each eligible employee.

Seed enterprise investment scheme (SEIS):

The amount a company can raise under SEIS has been raised from £150k to £250k
The amount an individual can invest in SEIS shares has been doubled from £100k to £200k
The scheme has been extended to companies with gross assets under £350k

Energy price guarantee and Energy Bill Relief Scheme:

Businesses will pay no more than £211 per megawatt hour for electricity and £75 per megawatt hour for gas. This applies to all energy supply contracts entered into after 1st April. The energy companies will apply the discount. The energy bill relief scheme will operate until March 31st 2023 and potentially be extended after this date for businesses in certain sectors.

Under the energy price guarantee, the highest amount domestic households will have to pay is 34p per kWh of electricity and 10.3p per kWh of gas. The standing charge – the fee customers pay for being connected to the energy grid – will be 46p per day for electricity and 28p per day for gas. This energy price guarantee will last 2 years. A typical household can expect to pay about £2500 a year for their energy.

Investment zones: These new investment zones will benefit from tax incentives, planning liberalisation and wider support for the local economy.

VAT-free digital shopping scheme for visitors to the UK: Visitors to the UK will be able to claim back VAT on goods bought in the high street, airports and other departure points and exported from the UK in their personal baggage. The date for this scheme to go live is currently unknown.

What you need to do now?

Payroll

If you run your own payroll, then you will need to check that your payroll software provider will be implementing the changes to National Insurance in time for November. If we run your payroll, we will ensure that the changes happen seamlessly.

Personal tax return

The changes to income tax rates and national insurance take effect for the 2022/2023 tax year. They will not impact your personal tax bill for the 2021/2022 tax year. With 2 rates of National Insurance, this will make your 2022/2023 personal tax return more complicated than normal. Please contact us if you would like us to do your personal tax return for the 2022/2023 tax year.

Do a new budget and reforecast your cashflow

The energy price guarantee and changes to employers’ national insurance rates mean that your business’s costs have materially changed for the year. Please contact us if you want help to see how this changes your business’s cost structure going forward.

Revisit your personal and business tax planning strategy

This was anything but a mini-budget. It is a massive change in fiscal policy and direction. This means you may need to rethink your personal and business tax planning strategy going forward. Changes, in particular to the SEIS scheme, may mean there are more tax planning options now open to you and your business. Once again get in touch with us if you have any questions or need help.

Why we ask for your ID

Posted on August 31, 2022 | by Jade Donno

As part of our onboarding process we ask all of our clients for two pieces of ID. You might be wondering why we need this and what we do with it afterwards? We explain it all here.

Why we need your ID

As we are a regulated accountant, we are required by our regulatory body (AAT) to hold two pieces of identification for all clients for whom we act. This is so that we can complete anti money laundering checks on all of our clients and ensure that all of our clients are who they say they are.

What ID do we need

We need two pieces of ID from you:

Photo ID – such as driving licence or passport
Proof of Address – Such as bank statements, credit card bills, council tax bills, utility bills or driving licence.

All ID must be in date and display your current name.

Note – you can use your driving licence for either piece of ID, but not both. If you are giving us your driving licence please also submit an additional piece of ID so that we can still have two pieces of ID for you.

How do we use your ID

We request your ID using our Karbon client portal. This is the most secure way of getting your ID to us and is preferred to email which is not as safe.

Once in our possession, we upload it to our secure cloud storage system, Sharepoint. It is never saved onto individual computers.

We will use your ID to confirm your identity during our anti-money laundering checks. If we have not met you face to face we may arrange a zoom call with you to make sure you are the same person as in your ID.

All of our systems are GDPR compliant.

When we’ll need you to update your ID

If you have changed your name for any reason, we will need an updated copy of your photo ID and proof of address with your new name. If you haven’t arranged for updated ID yet we can accept your marriage certificate or deadpoll document until you can obtain your updated ID.

If you move address, we will need updated Proof of Address ID. We understand that these can take a while to come through but if you can get them to us as soon as you have something, in these cases often bills are the first thing to come through, then we can get started on updating our systems.

We will check your ID once a year when we update your anti-money laundering check. If we find your ID to be out of date we will simply request that you send us an updated copy as soon as possible.

Customer Research: The Key to Keeping Up With Your Clients’ Needs

Posted on August 31, 2022 | by Jade Donno

As our businesses grow and evolve, so do the needs of our clients. It is important that our customers always remain at the centre of our companies, otherwise our efforts will be in vain.

A great way of ensuring that your business is always meeting your client’s needs is by constantly updating your customer information!

Throughout this blog, we will discuss it all – from the importance of client information to different research methods and data storage.

Why is gathering customer information so important?

Customer information is important for a myriad of reasons. It helps us understand our client’s needs, which products or services generate the most income and, most importantly, how to improve our customer experience.

By leveraging this information we can refine our marketing strategies, keep up with our competitors, offer personalised services and improve customer loyalty by a staggering 64%!

Do consumers actually care about the customer experience?

Believe it or not, 80% of consumers claim that the customer experience is ‘just as important’ as the quality of products and services you provide. Overlooking customer research simply isn’t an option! After all, who’s more qualified to teach you how to deliver the best customer service than your clientele?

What client information should you collect?

More is more in this instance. So instead of spending hours specifying all the information you need, we’re going to outline the four types of data you should collect to gain a detailed understanding of your audience:

Identity Data

Identity Data is used to identify specific clients and customers. Some of the information you would need to collect would include:

Names
Physical addresses
Email addresses
Mobile numbers

This information will allow you to contact customers, ask for their insight and send them marketing materials – with their consent.

Descriptive Data

Descriptive data asks for more personal information about your clients so you can gain a greater insight into your audience and the demographics you’re reaching. For example, you may ask about their:

Age
Gender
Career or education
Marital or familial status

Qualitative Data

Now, this is where we get into the really good stuff. Qualitative data teaches you all about your customer’s beliefs, behaviours and motivations in relation to their consumer habits. This is your opportunity to ask specific questions like:

What do you enjoy about our product/services?
How could we improve our customer service?
Why did you choose our company over our competitors?
Would you recommend us to a friend or family member?
How can we bring you additional value?

Quantitative Data

Collecting quantitative data is a great way to understand how your customers interact with your business. Its primary function is to track marketing trends and consumer patterns. For example, some of the analytics you could track include:

How often customers visit your website
The value of each transaction
How often they engage with your social media

How should you collect and store your client information?

There are several ways you can go about collecting customer information. Our top recommendations include:

Feedback surveys
Interacting on social media
Website tracking
Subscription services

We also strongly suggest investing in a CRM system. Some CRM systems focus solely on storing your client information, whilst others also offer sales and marketing automation to help put your research into practice. Whether you opt for the former or the latter, an effective CRM system can help you:

Streamline your communications
Optimise your marketing strategies
Improve customer retention
Increase profits

Keep up with your customers’ needs!

If you want to optimise your services, keep up with competitors and continue fulfilling your clients’ needs, you must invest your time and resources into your customer research.

Loyal clients are the basis of every successful business, so don’t underestimate the importance of understanding your audience! Instead start valuing their insight as much as you value their business.

13 Ways an Accountant Can Help a Small Business Owner

Posted on August 24, 2022 | by Jade Donno

There are two huge mistakes that many start-ups or small business owners make. The first one is trying to manage their own accounting system. This is often done incorrectly which can hurt the business in the long-term. The second mistake is assuming that an accountant is only good for managing accounts and filing Tax or VAT returns.
An accountant is a financial guru and an all-around business advisor all in one. Accountants are an incredibly valuable member of any small business team as they can offer a lot more than just accounting to small business owners. Here are 13 ways accountants can help:

1) They can help you go from business idea to start up

They will give you advice on what you need to create the foundation for a successful business e.g. determining the best business structure, creating your business plan, opening a business bank account etc.

2) They can assist with the financial analysis in your business plan

They can also help with loan applications and forecasting.

3) They analyse your finances to determine where your business’ money is going

They can then advise you on where to make improvements in your processes and cash flow so your business can scale and grow.

4) They will explain your financial data so you can make financial decisions with confidence

A good accountant will break it down so you understand the ins and outs of your business at all times.

5) They close out your books and create end-of-year financial reports

With your reports, an accountant will recommend changes to budgets or forecasts.

6) They compile and submit your taxes and financial reports to HMRC and Companies House

As well as submitting, they can also calculate VAT, provide advice on estimated tax payments, and provide guidance.

7) They make sure that your accounting procedures comply with government regulations.

Legislation changes all the time. An accountant keeps up to date with these so they can check your company’s tax position and keep you compliant.

8) They oversee your company payroll and payment process

They can help you streamline your business processes to work smarter, not harder.

9) They can help you streamline your business processes to work smarter, not harder

They can provide advice on the type of accounting software that’s suitable for your business, how to track your expenses, and also invoicing and payroll. More time means more earning potential!

10) They can identify risks in financial transactions to prevent fraud

Many business owners want to identify investment opportunities too. An accountant can provide advice on this and check whether an investment is solid.

11) They can help you identify areas for growth in your business as well as ways to save money

By looking at cash flow patterns, inventory management, your pricing, business financing.

12) They will work with you to create a business budget and stay on track

Every business owner needs a budget to support their business goals. An accountant can actively help with this.

13) They can advise you on all the big things

Reports, taxes, audits, business strategy, you name it and they can probably help you with it. Need advice on property or equipment leasing and purchase? Need guidance or resources to assist with scaling the business? Guess who can help – Accountants!

Accountants are key to business success, wherever you are on your business journey

These are just some of the ways that accountants can work with you to support your business. Whether you’re launching a start-up, you’re a small business owner who needs help with running the business day-to-day or you’re wanting to really scale your business, an accountant can provide essential advice and guidance, every step of the way.

Why we love Xero!

Posted on August 19, 2022 | by Jade Donno

It’s no secret that we love Xero! It is the accounting software that we recommend to absolutely all of our clients. This is because we truly believe that it offers better features and useability than its competitors. Here are just some of the reasons why we love Xero!

1) Easy to use

Xero has made its interface very user-friendly and we find it easy to use on our end as well. This also makes it easy for us to teach you how to use it, to make sure that you get the best out of it and make sure your data is always accurate and up to date! We offer Xero training sessions to all of our clients at the onboarding stage so we can make sure you start off with it well, especially if you have never used it before. Multiple users can be added who can all access the software at the same time. You can also have different access levels for different team members so individuals can access or be restricted from certain parts of the software as appropriate.

2) Up to date reports

Using Xero means you will be able to access up-to-date reports that make it easy to understand how your business is doing. These are also able to be tailored to your specific needs for your company.

3) Cloud accounting

As with the majority of the other products that we love, Xero is cloud based! This means there is no need to save your documents to your PC and your data is backed up automatically and securely so you will never lose it. This also means that it can be accessed anywhere at any time, either via the web browser or the app.

4) Automatically brings in bank feeds

Xero can be set up so that it automatically brings in bank feeds from your business bank accounts and credit cards so your transactions are automatically bought into the software daily. This limits the need for manual entries and means your figures are up to date in real time. This makes it easy for our bookkeepers as well as we won’t have to ask you for statements!

For a list of available bank feeds please see here.

We can help you set up your bank feed if you need, please just get in touch.

5) Integrations with other software

Xero also has over 1000 different apps, add-ons and integrations with software such as Dext, GoCardless, Stripe, Vend, Square, PayPal and more. Many of these apps can be set up to automate time-consuming tasks to make your admin easier!

If you need any help with setting up apps and integrations with Xero please get in touch.

6) Ahead of the crowd

Xero is typically always one step ahead of its closest competitors. This can be in terms of reporting or keeping up with change in statutory requirements and legislation such as Making Tax Digital, Domestic Reverse Charge and even the Covid Furlough Scheme. It is constantly evolving and adding new features, particularly based on customer feedback on what features users would like to see implemented or ways existing features can be improved.

If you would like to find out more about Xero, transfer over from your existing software or try a free trial or demo please contact us so we can discuss!

7 ways to have the right mindset for growth during a recession

Posted on August 17, 2022 | by Jade Donno

A fixed mindset is thinking that the recession means business stops and clients don’t want to spend money.
A growth mindset is using this recession as an opportunity to adapt and do things differently.
You bees the second mindset if you want to grow your firm doing the recession.
The only thing holding you and your firm back from growing right now is you. To help you move your practice forward, both now during the pandemic and during any future recessions, here are 7 mindset shifts you need to make.

1) Make peace with your reality

Suffering is what happens when you resist what is already happening. The sooner you confront the current reality and accept it, the quicker you can move past it.

2) Hold yourself accountable

If you want to grow, you need to think of the acronym R.O.A.D. You need to take Responsibility for the choices you’ve made, you need to take Ownership of where you want to go, you need to start taking Action, and you need to be Decisive. When making your strategy plan, be 100% accountable for putting it into action.

3) Don’t compare yourself to others

Some businesses are struggling, others are thriving. Don’t compare yourself to either. Every business owner, firm, and situation is different, so don’t disrupt your focus with doubt.

4) Prioritise delivering value

Concentrate on delivering exceptional service to your current clients. How can you offer extra value during this time? This will make you invaluable and it will ensure that you stand out from your competitors.

5) Focus on your strengths, not your ‘failures’

What work are you good at? What do you love to do the most? Which clients are your favourites to work with? Being positive during this time is essential, so focus on what you love and reflect on your principles and values. Rediscovering why you do what you do is very powerful when it comes to self-motivation and drive.

6) Fail fast and achieve quickly

Inaction is the worst thing you can do, not trying something and failing. During a time of such change, don’t procrastinate and don’t be a perfectionist. Take action, fail fast, learn from your mistakes, and concentrate on getting there first (not doing it perfectly and getting there last).

7) Be grateful and become self-aware

Practice gratitude every day by thinking about what you are grateful for both now and in your future. Also, take time to reflect and to rediscover your purpose. If you’re confident and happy, you will attract similar clients.

Adapt AND adopt

We have all had to adapt to some degree during the pandemic, for example, being forced to adapt to working from home. Changes such as these are necessary to our ‘survival’ during this time.
With that being said, however, it is the accountants who have both adapted and adopted changes of their own, who have thrived. These are the individuals who make quick and effective decisions, who take responsibility for changing their situation, and who take action.
Anyone can grow their firm during a recession, they just have to have the right mindset.

How to use Karbon’s Client Portal

Posted on August 4, 2022 | by Jade Donno

Welcome to the 1 Accounts client portal! This portal is an online management system that allows you to easily and safely send, receive and store all of your accounting and tax information online.

What does this mean for you?

The client portal allows you to review and approve your accounting and tax information with the click of a button. It also allows you to view open and closed requests and any current requests we’ve sent to you.

Why are we doing this?

It’s a safer and more efficient way to handle your accounting and tax. It simplifies the process for you and allows us to serve your individual needs better. It also provides you with more flexibility, you can comment and ask questions directly in the portal. Your accountant is immediately notified and can take action. This eliminates the need for email and keeps it all together in one place, so you can review it at any time.

Review Tasks

You will receive an email with your tasks. Click on ‘manage checklist’ to access the tasks you need to complete.

You will automatically see all the tasks assigned to you for completion.

Please note: if you open this link on one device, and you’d like to access it on a different device, click the link again and it will ask you to “Send Access Link”. This will send another link to the originally sent email that will allow you to access it from the computer.

Comment, ask questions and upload files

You’ll be able to comment, ask questions and upload files on each of the tasks, which your accountant is immediately notified of and can take action.

Click Comment to comment or ask questions on a task or click upload files to attach files to a task. To add files to a comment click on the paperclip icon on a comment while composing.

Log in

By logging in, you’ll have access to all your open and closed requests, including current client requests that haven’t been completed. You’ll also have copies of documents you have uploaded, so you can keep track and easily find what’s been sent.

If you have a login, follow the instructions and log in (example A)
If you don’t have a login click the ‘create account’ button and it will ask you to create an account (example B).
If you forgot your password, click the forgot password link and follow the instructions (example C)

Once you have created an account, you can access the client portal at any time. Once you are signed in, you will be taken directly to the client portal which looks like this.

Magic Link

The main way you will access the client portal

Spend money to make money

While you can save a couple of hundred pounds doing your own books, you won’t save as much with an accountant and you could actually end up losing a lot more. With an accountant on your team, you can save both time and money while having the reassurance and peace of mind that you’re making sound business decisions for your future.

If you would like to learn more click here to get in touch.

Or feel free to use our chat box —>