Category: 1 Accounts

tax advisor josh and director jade

Welcoming Our New Tax Advisor: Meet Josh!

Posted on | by Jade Donno | Leave a Comment on Welcoming Our New Tax Advisor: Meet Josh!

At 1 Accounts Online Ltd, we pride ourselves on being a family business that delivers first-rate financial services. Today, we’re thrilled to announce the addition of a new family member to our team. Meet Josh, our new Tax Advisor in Haverhill!

A Dynamic Professional and R&D Tax Credits Expert

Josh brings a fresh energy to our operations and carries a wealth of experience. Particularly in the niche area of Research and Development (R&D) tax credits. With a proven track record in R&D tax credits in Haverhill and beyond, Josh’s expertise will provide immense value to our clients. He is poised to help our clients navigate these complex incentives and save on their tax liabilities.

More Than Just a Tax Advisor

In addition to offering expert tax advice, Josh will also play a crucial role in helping with our bookkeeping service and business reviews. His comprehensive understanding of business growth strategies and taxation will enable him to identify and implement the best practices for our clients.

Josh’s strong analytical skills, coupled with his strategic mindset, make him an invaluable asset for any business looking to grow and save on taxes.

A Warm Addition to the Family Business

Picture of the Donno family and tax advisor josh

On a more personal note, we’re particularly excited about Josh joining our family business as he is Jade’s fiancé. Their combined passion and dedication to providing top-tier financial services will undoubtedly strengthen our offerings to our clients.

Meet Josh: Cricket Fan, World Traveler, and Dog Dad

Away from the tax world, Josh enjoys staying active by playing cricket. He also loves to travel and explore new places, capturing beautiful moments through his lens. His sense of adventure is not just limited to exploring the globe; he enjoys a lively adventure with his dog, Jango, who is a beloved part of the family.

tax advisor Josh playing cricket

Ready to Welcome Josh?

As we warmly welcome Josh to the 1 Accounts Online family, we’re confident that his skills and expertise as a Tax Advisor in Haverhill will significantly benefit our clients. We look forward to the new perspectives and insights Josh will bring to our team, enhancing the services we offer and contributing to the growth and success of your business.

For any queries related to R&D tax credits in Haverhill. Or to find out how we can support your business growth, feel free to reach out to us. Remember, at 1 Accounts Online, your business is our family. Here’s to new beginnings and many successes ahead!

Our Journey to Becoming Xero Platinum Partners

Posted on | by Jade Donno

Celebrating Our Journey to Becoming Xero Platinum Partners: How Your Trusted Business Advisors & Accountants in Haverhill Made it to the Top

We’re incredibly excited to announce a milestone moment for our team here at 1 Accounts Online. After years of hard work, dedication, and a commitment to excellence, we have officially become Xero Platinum Partners. This achievement places us among an elite group of UK accountants recognised for their expertise and service quality.

This journey began with a vision to be more than just accountants in Haverhill. We wanted to become trusted business advisors and coaches, helping businesses transform their financial management and achieve their objectives. Xero, with its innovative approach to online accounting, aligned perfectly with this vision, and we embraced its platform to provide a seamless, intuitive accounting experience to our clients.

Becoming a Xero Platinum Partner represents a commitment to efficiency, modernity, and exceptional client service. As UK accountants, we’re proud to be part of an community of accountants that Xero recognises for their dedication to clients.

At 1 Accounts Online, we’re not just accountants in Haverhill; we’re also renowned business advisors and coaches. We understand the challenges of running a business. That’s why our role as business coaches in Haverhill extends beyond numbers. We strive to provide strategies that help businesses thrive, with an emphasis on financial health, growth and sustainability.

This new status as a Xero Platinum Partner confirms our ability to provide superior service to businesses in Haverhill and beyond. It’s a validation of our skills and a testament to the relationships we’ve built with our clients, who trust us to guide their financial journey.

However, this achievement isn’t just about us; it’s about you – our clients. Your faith and trust in our services as your preferred UK accountants and business advisors have made this journey possible. We thank you for your unwavering support and promise to continue delivering excellence, innovation, and professional guidance.

So, whether you need expert accountants in Haverhill or dedicated business coaches in Haverhill, remember that at 1 Accounts Online, we’re committed to helping you build your dreams. This journey from zero to Xero Platinum Partner has been an exciting one. We look forward to continuing to strive for excellence together.

Thank you for being a part of our journey. Stay tuned for more exciting updates and insights from your trusted business advisors at 1 Accounts Online.

march budget update

The March 2023 Budget Explained

Posted on | by Jade Donno | Leave a Comment on The March 2023 Budget Explained

The Chancellor announced his March budget today.

 

Similar to the budgets, autumn statements and ‘non-budget’ statements of the last few years we knew most of the details in advance. What we did find out yesterday is that UK PLC is in a better position than feared. It is believed that inflation will fall to 2.9% by the end of 2023. 

 

However, finding staff is a problem faced by most small businesses. This budget was the Chancellor’s way of helping alleviate this shortage. He has done this by:

  • Providing more funded childcare. 30 hours a week of free childcare is being extended to working parents of 1 and 2-year-olds. 
  • Increasing the pensions lifetime allowance from £1.07m to £2m
  • Increasing the amount people can pay into a pension tax free, i.e. from £40k per year to £60k per year.
  • Providing more money to schools to help with wrap-around care

 

Whilst these will help, the question is whether they are going to provide the much-needed increase in people going back to work? 

What was hoped was that the chancellor was going to stop the planned corporation tax rise from 19% to 25% for businesses earning between £50k and £250k in profits. Sadly, this tax rise and all its complications still take effect. These will prove very punitive if you run multiple businesses. 

 

What there was in the budget were the following announcements which will help businesses:

  • The 5p reduction in fuel duty is being extended for another year.
  • The energy price cap freeze at £2500 for consumers will be extended for another 3 months. I.e. until the end of June 2023
  • The Energy Bills Discount Scheme is being maintained until 31st March 2024 for all eligible businesses.
  • The 130% super deduction tax for investments in plant and machinery which stopped at the end of march is being retained but at the 100% level but with full expensing. 
  • 12 investment zones which will attract tax reliefs and grant funding
  • Small companies who spend over 40% of their costs on R&D will receive £27 from HMRC for every £100 of R&D investment.

 

What is full expensing?

In 2021, the government introduced the super-deduction to go further to encourage companies to invest. This was due to end on 31 March 2023. The government is now introducing full expensing, a 100% First Year Allowance, from 1 April 2023 until 31 March 2026. 

For investments in qualifying plant and machinery such as IT equipment the cost of these are normally taken over a period of years. I.e. If a laptop cost £1000 and was seen to last 10 years, its cost would be taken over a 10 year period. I.e. £100 per year. Whereas with full expensing, the £1000 cost can be taken in the year it was incurred. 

 

What do you need to do now?

Given the extra costs the government has now imposed on your small business AND the rising cost of energy bills AND the minimum wage increases AND the 10% inflation rate across 2023, you have work to do. Namely:

 

  1. If you haven’t already put together your business plan for 2023 and model the impact of rising costs. Do you need to:
    1. Increase your prices?
    2. Reduce your overheads?
    3. Increase your wages?
  2. Carefully look at your personal and business tax situation. For example:
    1. Would you be personally better off if you paid yourself more via PAYE or made more pension contributions? (particularly now you can add £60k into your pension pot each year tax free)
    2. Would closing your limited company and trading as a sole trader now make more sense?
  3. Who in your staff needs a pay rise to avoid falling foul of the rise in the National Minimum Wage?

 

Of course, give us a call if you need help with any of these next steps. We are here to help.

Answering Your Top 10 Accountancy Questions

Posted on | by Jade Donno | Leave a Comment on Answering Your Top 10 Accountancy Questions

As accountants, a lot of our time is spent answering your queries and questions to help ensure you make the best financial decisions for your business. 

However, (after a while), the same questions inevitably start to crop up. 

So, in the hope that we can help out (and save you some time), we’ve answered your most frequently asked questions! 

Here’s all you need to know, from tax and VAT to transport and wages:

1. Should I register myself as a limited company or a sole trader?

Before you can decide whether to register as a limited company or a sole trader, you need to understand the difference between the two. 

As a sole trader, you (the business owner) and the business are seen as one legal entity. Whereas, with a limited company, the business is an entirely separate entity. 

So which is better?

Well, both models have their benefits.

Being a sole trader allows you to have complete control over your business and retain all of your profits after tax. They’re also relatively easy to set up and require very little paperwork. 

However, registering as a limited company allows you to be more tax-efficient (19% corporation tax), relinquish any personal liability and gain greater credibility and funding. 

Ultimately, the decision is yours. However, we strongly recommend speaking to your accountant, as they will make suggestions based on your personal circumstances. 

Take a look at this blog for more information – https://www.1accountsonline.co.uk/2022/05/17/sole-trader-vs-limited-company-which-is-better-for-you/

2. What exactly can I claim for? 

We get this question a lot! So we wanted to shine some light on the subject.

If you are self-employed, you can claim allowable expenses for:

  • Travel costs
  • Training costs
  • Advertising costs 
  • Financial costs
  • Office costs 
  • Staff costs
  • Clothing costs
  • The cost of your business premises
  • The cost of items you buy and sell on 

You can explore each category in greater detail on the government website, but if you’re ever unsure, always ask your accountant. 

The main thing to remember is that you can only claim expenses for business costs. So to give some specific examples, you can claim for your MBA, but you can’t claim for unreasonable expenses like extravagant meals or unnecessary trips. 

3. Can I charge my company rent for using my house?

This depends on whether you’re self-employed or you have a limited company. 

You can’t charge your company rent if you’re self-employed because you are the business. With that said, if you rent a property, you can claim a portion of your rent back through expenses. 

However, if you’re the director of a limited company, you can create a formal rental agreement between you and your business. But remember, the rent you charge should match the amount you pay. Otherwise, you’ll pay tax for turning a profit. 

income and wagees

4. How much should I pay myself?

Whilst we can’t offer you a definitive number, we can suggest 3 different ways to approach paying yourself. You can either:

  1. Pay yourself enough to cover your personal costs 
  2. Pay yourself a fair market salary 

Or

  1. Pay yourself a combination of salary and dividends

The third option is the most tax-efficient as you can keep yourself on the lower end of (or even below) the NI and income tax brackets. However, the best option is the one that works for you and your business.

5. What is the best way to fund my pension?

First, let’s discuss the logistics. If you have a personal pension, you have the flexibility to pay into your pension monthly or invest lump sums whenever you can afford it. Your only limitation is the £40,000 annual allowance. Beyond that, you won’t gain any tax relief for your savings.  

Now, in terms of funding your pension, that’s entirely down to personal preference. For example, you could increase your pension contributions instead of your salary. Or, you could defer your pension (it will increase by 1% every nine weeks you defer). 

So speak to your accountant and see what they believe the best option is for you!

6. Should I pay my family members a salary?

Firstly, as with any employee, you should only pay a family member if they are genuinely contributing to your business. Secondly, if you do employ a family member, their salary should accurately reflect the work they’ve done. 

As long as you can fulfil both of these requirements (and pay the national minimum wage), there are several benefits you can receive by hiring a family member. For example, you can deduct their wage from your business to keep profits low or even receive Employee Allowance. 

Alternatively, if you don’t want to hire a family member, you can always make them a shareholder. That way, they can receive dividends. Although you won’t receive an employee allowance, you will pay significantly less tax on dividends. 

Transport

7. Should I buy my next car through my company?

Although it sounds like an easy way to save on tax, the truth is, buying a car through your business might not be as beneficial as you first thought.

You see, if you buy a company car, you can only use it for company purposes. Otherwise, you have to pay tax on private use. Now you can calculate the ‘benefit in kind’ tax on the government website, but usually, the most tax-efficient solution is to buy or lease the car privately and simply claim back any mileage. 

8. What is more beneficial an EV or a hybrid car?

From a tax perspective, an EV is objectively more beneficial than a hybrid. Simply because you don’t have to pay any road tax on zero-emission vehicles! 

With that said, hybrid vehicles are still more tax-efficient than standard petrol and diesel vehicles. So both are great options!

9. Should I take advantage of the Cycle2Work scheme?

If you already cycle to work, then you should absolutely take advantage of the Cycle2Work scheme! 

You can save between 33.25% and 43.25% on your new bike and accessories by applying to the scheme. Why? Because you don’t have to pay any tax or NI. Plus, the cost is spread over 12 – 18 months and is immediately deducted from your pay slip via salary sacrifice. 

So, as long as you can commit to cycling to work 50% of the time, there’s no reason why you shouldn’t apply to the scheme. 

10. Why does my accountant always say ‘it depends’ when I ask one of these questions? 

Because it’s true!

All of these questions depend upon your unique personal circumstances – from your business model and lifestyle to your financial situation. So always ask your accountant for their professional opinion! They can offer you the most appropriate advice based on your books. 

1 Accounts shortlisted for prestigious national award

Posted on | by Jade Donno

A commitment to supporting businesses through the pandemic has seen 1 Accounts shortlisted for a top national award.
We have been named in the top five of the prestigious Accounting Excellence awards in the Medium Firm of the Year category.


While acknowledging the growth of the company, the shortlisting is also testimony to the bespoke service provided by 1 Accounts over the last two and a half years.
Paul Donno, director of our family-run business, said: “Our team worked above and beyond during the pandemic – at a time when we were all trying to keep our loved ones safe.
“Because we are an online business, our staff were still able to provide the same high-quality service to our clients. But we wanted to do more than that so we supported their loan and furlough applications free of charge.

“It was something we felt we could do at a time when our clients needed all the help they could get just to stay afloat.
“We also held webinars for both clients and non-clients to support other local businesses. On the back of that, we have received a lot of client referrals and our business has grown by over 60% in the last two years.”

1 Accounts was named best new practice at the British Accountancy Awards in 2016 and Paul is hoping for similar success this time around.
“I am incredibly proud of their hard work and honoured, as a company, to be nominated for this award,” Paul said.
“To be shortlisted in the medium size category is testimony to how much we have grown in a short space of time.
“In 2016, we only had three members of staff, including me and my wife Jenni, and around 40 to 50 clients. Since then, we have grown to in excess of 300 clients and we are just about to employ two more people, taking us to 15 members of staff.”
The Accounting Excellence awards will be held on Thursday 8th September at a ceremony in London.

Press release & photo by Dave Gooderham at Gooderham PR.

1 Accounts Team Building Day March 2022

Posted on | by Jade Donno

Last week we closed the office for the whole day so that our team could enjoy our first Team Building day since the pandemic started!

We have added several new team members since our last team building day in 2019 including Fran, Katy, Che, Charlie and Harry! This is a huge growth for any firm but especially for one that puts family values at the forefront. This day was incredibly important for us to all bond as a team now that we are back in the office with all our new team members. It was also nice to be able to socialise outside of the office!

Axe throwing with Wild Blades!

Katie organised a wonderful day for us all. We visited Wild Blades, another local Haverhill business, for a day of axe throwing and team building challenges!

Despite the warnings of snow, the weather started out sunny but cold. Handy as the entire day was outdoors. Dan and Toby from Wild Blades gave us a safety breifing (axes are dangerous!) and then taught us the standard one-handed throw.

After a bit of practice, most of the team got this, some even hitting bullseyes early on! Jenni M. had an advantage as she had done it before, and it should be no surprise to anyone that Paul, James, Adrian and Charlie picked it up quickly.

Unfortunately, there were a couple of us who didn’t manage to master the one-handed throw. No matter how hard she tried, Fran couldn’t manage to hit the target with the right end of the axe using this method. Luckily, during a tea break, she practiced with Toby and tried a two-handed throw, and finally managed to hit the bullseye! Seeing this, Jenni D. also decided to try this method and also found it much easier.

Playing Games

Once we could all actually hit the target with the axe, we started playing games! First, we did a couple of quick rounds to see who could score the most. The first round was won by Paul (no surprise there) and the second round was won by Che! Charlie and James maintained a consistent second and third place. There were many other games including naughts and crosses, hit the card, and thump the stump.



Team Building Challenges

After a lovely lunch, we then began the team building activities. We had to work together to complete a series of 9 tasks in order to complete the Viking ship and sail to victory. It came down to the wire, but with us all working together and putting our strongest team members forward towards the end, we managed to complete all the tasks with 19 seconds to spare!

Overall we had a lovely day and feel like a much stronger team because of it, both in team spirit and arm strength! Dan and Toby from Wild Blades planned a fantastic series of events and were wonderful hosts and teachers who joined in with our banter perfectly. We highly recommend them.

A big thanks to Katie for organising the day for us, we can’t wait until the next one!

1 Accounts Team at Team Building Day - Wild Blades Axe Throwing

Our Covid-19 Policy for returning to the office

Posted on | by Jade Donno

Even though there are no longer any legal covid-19 restrictions in England, here at 1 Accounts we will be keeping some measures to ensure the safety of our clients and staff.

This is especially important to us as not all of our team members have been double vaccinated yet so we want to make sure they remain as safe as possible as we return to the office!

What we’re doing to stay safe

We are planning a staggered return to the office, with most staff members moving to a hybrid work week which will include some days in the office and some days working from home. We will be making sure we are all testing ourselves weekly with lateral flow tests and will not come to the office if we receive a positive result. As we have managed for over a year with the majority of our team working from home we believe that our service will remain the same and we will be able to continue with the same level of service you expect from us.

We are keeping many Covid restrictions inside the office as well. We are maintaining social distancing and have had a 1-way system in place in the office to avoid people having to be in close proximity when passing each other.

For visitors to the office

For visiting clients we have hand sanitiser available and we are asking you to please wear a mask while inside our main office. If you have scheduled a meeting with us, you will be able to take your mask off once we are sat in the meeting room if you are comfortable doing so.

With Covid-19 cases still rising, we are being cautious about our response and will be monitoring the government and medical advice. If our response changes in any way we will be sure to let our clients know. We ask our clients to please be understanding and adhere to these requests as safety of our team and clients is our biggest priority.

money bags

Anti-money laundering and our clients

Posted on | by Jade Donno

Anti-money Laundering – sounds scary, doesn’t it?

Our governing body (AAT) requires us to follow strict guidelines to help us spot signs of money laundering. Although we trust our clients, we must follow all of the steps to comply with the regulations.

What is anti-money laundering?

Our team are all trained to spot the signs of money laundering. Each client will have an identification check and risk assessment completed at the point of onboarding and then every year thereafter. We have to be sure each client is correctly identified and that their income hasn’t changed dramatically without justification.

As we have to complete the reports each year we will require:

  • Up to date data on each client
  • Valid identification from each client

Due to the nature of accountancy, the police rely on us to report any suspicious activity. The rules are becoming much more strict and so as a regulated firm, we have to comply with the rules.

What do our clients need to do?

For our clients, all we need to know is that your data on our systems is correct and up to date. Therefore each year, every individual client will receive an auto email on the 6th of April. This will request the following:

  • Confirmation of your email address
  • Details of any name changes in the past year
  • Details of any changes in marital status
  • Details of any children born in the past year
  • Confirmation of your mobile number
  • Details of any address changes in the past year
  • Details of any plans to move home in the next year
  • Details of if of any changes to bank details
  • Details of any changes to personal circumstances

We will also request new copies of your ID if they are out of date, but these will only be requested if the ID we currently hold is no longer valid.

How we work 

At 1 Accounts we use a system called Karbon to request information we require from clients. At the end of the tax year on the 6th of April, we send out an automatic email requesting all the information we require to stay compliment with our anti-money laundering regulations. We then send an automatic reminder email once a month for five months to those who haven’t uploaded the information. If you still haven’t sent information after this, you will get chase emails from one of the team.

If you haven’t used our Karbon system before, it is nice and straight forward. All you have to do is click ‘manage checklist’ on the email.

Karbon checklist

This will then direct you to create a pin number (make sure it is memorable). If you forget your pin, just click on the ‘Forgotten your PIN?” hyperlink and follow the steps.

Pin number

Once you are in, you will be able to see a checklist where you can comment and upload the information we have requested, or ask any questions. These comments come through to the team like an email.

online checklist

Once you have completed a task we ask you to tick it off. The open tasks are what triggers the automatic reminders and so ticking them off will stop them.

If none of the information requests apply to you, we still need to write N/A in the comments so we know it doesn’t apply.

How to write N/A

Once you have completed your checklist and ticked off the tasks, please just log out or close the window. Your progress will be saved and we will be notified.

If you ever need any help completing these tasks, please email jade@1accounts.co.uk

How has Paul kept positive during lockdown?

Posted on | by Jade Donno | Leave a Comment on How has Paul kept positive during lockdown?

1 Accounts is a family run business with the Donno family all depending on the businesses survival. When lockdown was announced, Paul could have panicked – but he didn’t he stayed calm, collected his thoughts and worked out how to overcome the biggest crisis businesses have faced since the war.

So what has Paul done to stay positive?

In early March, when the virus was just being mentioned just in passing, Paul brought hand sanitiser and additional hand wash for the office. He also increased the frequency of cleaning to the office and communal areas. We also started to change all our meetings to ‘Zoom’ meetings. This was still early days and the team thought Paul was mad but as usual humoured him.

Two weeks later we were all working from home. 

Panic mode

With the help of Platform 365 and Convergence communications, the 1 Accounts team adjusted quickly to working from home. With a morning and afternoon team zoom call to keep in touch. However, for our clients, this wasn’t always possible causing anxiety for Paul and the team. After all if our clients were to ‘go under’ we would go with them.

As a businesses owner, you can often feel alone, with the weight of the world on your shoulders. However this situation has proven to Paul, that this could not be further from the truth.

Our team have really adapted and supported our clients and helped take pressure away from Paul. We are so grateful for our amazing team and are thankful they have all stayed safe and well. Testimonials and feedback from clients has helped to keep all our spirits up, they have been wonderful and uplifting. Keep them coming.

Our clients, some who are under immense pressure have also realised that we are under pressure too, and many have been very considerate and supportive.

A pain point for Paul was the banks struggling to get money out to clients. This has now been rectified with the ‘bounce back loan’ but it caused a lot of anxiety for many of our clients and us.

Great minds think alike

One of the biggest helps to Paul has been being a member of the Accountants Millionaires Club (something to aspire to!). His business coach Heather Townsend (founder of the club) and her team have supported Paul and other accountants through this situation.

Every morning Paul meets with other like-minded accountants and they share the previous days experiences from furloughing, bank loans, software issues, growing veg, guide dog support and general day to day things. The group has some real characters and has without a doubt kept Paul positive.

Paul recommends that even if you are talking ‘with the enemy’ try and support each other. Talking to other businesses, like yours, may give you ideas and help you realise you are not alone! We are all in this together and it is nice to talk with other businesses to get a real sense of community.

Sharing your thoughts with like minded people really does work and saves on the wine stocks too!

skull - To charge or not to charge blog

To charge or not to charge? That is the question.

Posted on | by Jade Donno | Leave a Comment on To charge or not to charge? That is the question.

To charge or not to charge? That is the question.

Right now many business owners are in desperate need of support to help them get through the current crisis. These are unprecedented times and the question keeps popping up “should accountants charge for the additional help to their clients?”

As a family run business, with strong family values at our core – we say NO.

We have approached this current crisis head on and have offered our clients help and support as an extension to their current service. We are extremely proud of the 1 Accounts team for delivering extra services such as processing furlough claims, applying for grants for our retailers and small business rate relief clients and preparing forecasts to help get essential funding from the banks. Not to mention giving advice to all our clients on how to get through this crisis. This approach has not been adopted by all accountancy firms, and has even been scrutinised.

We have looked at why we are able to adapt and support our clients so quickly and this is what we have done to secure our business and help others in their time of need:

  • 100% digital. Meaning the team can work from home easily.
  • We don’t have time sheets and are happy to give extra support and not charge for every 6 minutes.
  • We operate on fixed monthly fees that are easy to understand – https://www.1accountsonline.co.uk/
  • We furloughed three of the team, two admin and one Director
  • We received SBRR grant of £10k. This enabled us to keep paying our landlord and office services.
  • We applied for a loan from our bank under CBILS.
  • We deferred our VAT payment although we expect to pay this very soon.
  • We reviewed our expenses and reduced some of our spending.
  • We paid for Zoom to enable us to service our clients easier
  • We have appointed a marketing company to adjust our website
  • We have been sending our regular updates to all clients
  • We have become a shoulder to cry on and a much needed sounding board.

Many traditional accountants will be struggling with this current crisis. We sympathise with them as they are business owners too. However COVID-19 has highlighted even more that online accounting is the way forward. It is time to embrace technology not to hide in the shadows. Due to the way our business is set up, we have not had to furlough our whole team nor ask anyone to take a pay cut. We will also not be sending out a bill in the post for every 6 minutes of advice we have given. We genuinely want to help our clients – after all we are all in this together.

If you need some extra help and support, and would like to hear more about our services, please email jade@1accounts.co.uk to arrange a zoom call.

#weareinthistogether