Archives for Tax benefits

London taxation

Making Tax Digital – Major Changes

There have been major changes to ‘Making Tax Digital’ that were announced by HMRC on 13th July 2017. The scheme was due to go live from April next year however, this has been put back because of feedback that HMRC received. The accounting profession, Parliamentary bodies, businesses and several accounting software providers felt that there was not enough time to get ready.

The new deadlines are as follows: –

  • Businesses above the VAT threshold will have to keep digital records for VAT only from April 2019
  • HMRC will now not need to receive quarterly tax information until at least 2020
  • Small businesses can volunteer to provide details of their other taxes to HMRC

It is important that businesses still get prepared for ‘Making Tax Digital’ during the next year or so to ensure they are ready. Using online software is a key change that all businesses no matter how big or small will have to embrace.

 

If you need further advice about MTD or help in choosing the right software for your business please get in touch by calling 020 3633 1340, emailing us at  or by completing the contact box on our website www.cainandbeer.com.

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Working From Home Tax Benefits

If you have an office in your home you could be missing out on tax savings and reducing the amount you actually pay to HMRC.

Generally speaking if you work from home in a dedicated office then you can offset a proportion of your household bills against your tax bill. This applies whether you are a sole-trader, part of a partnership or a Limited company and the bookkeeping for these costs is relatively simple.

Typically you can claim a percentage of your heating bills, landline, broadband, mortgage interest, rent, council tax and water rates. The amount you can claim depends on the number of rooms you have in your home excluding your kitchen, bathroom and toilet.

Let’s say you have 2 bedrooms and 2 reception rooms and you use one of these as an office; you can offset 25% of your household bills mentioned above. If you pay £1000.00 a month on these bills, that’s £250.00 that you can offset against your tax bill and a massive £3000.00 a year. If you use a bookkeeper they should not only be aware of this but they should be keeping records for you.

If you work from home and would like further details please download our FREE factsheet on our website by clicking here.

To find out more about our bookkeeping services, workshops and training, please call Cain & Beer on , or email us at

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Enjoy The Great British Summer – On Your Bike!!

We all know that Holland is the main player when it comes to cycling but now is the time to clean up your old bike and get cycling to and from work.

If you’re an employer though, there’s a tax benefit to supply bikes to your employees as long as they mainly use it for work related travel. The ‘Cycle to Work’ scheme means employers can offer their staff and Directors a bike and protective headgear and gloves (that they own or rent) to use and there are potentially no PAYE or NIC implications.

Employees are not required to keep detailed records of their travel as far as HMRC are concerned as they would be if claiming mileage. What’s more, after a year or so the employer can give the bike to the employee however, this would be classed as a ‘Benefit in Kind’ and would be liable for tax. If the cost of the bike was originally £499 (including VAT) or less then after a year the ‘Benefit in Kind’ would be around £90 which would mean a 20% tax payer would have to pay around £18 and the employer would have to pay £12 class 1A NI. If the bike is sold to the employee for at least £90 then there would be no ‘Benefit in Kind’ implications.

So get on your bike and not only keep fit it’s potentially a tax free benefit.

To find out more about our bookkeeping services, workshops and training, please call Cain & Beer on , or email us at

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