April 2020

Five Things To Plan And Do Now

Posted on April 21, 2020 by Rana Zubair

Here is a list of five things that you. As a business owner, need to be aware of and plan right now!

Control over cash flow / Arrangements with a lender
Be sure that you look after your cash flow and if you anticipate problems. Arrange with lenders that would be able to help you with financing.
Supply chain availability
Due to COVID 19 supply chains across the world are disturbed for most of the products and services. Make sure you are aware of any impact on your business and can put alternative supply chains in place if needed.
Health & safety
You need to ensure that your business has new health & safety policies and procedures in place. Also, be mindful that this could be at an additional cost that you have not included in your budget.
Working from home
Since most of the staff would be working from home for the foreseeable future; the businesses should ensure they have good & reliable systems is in place to make this happen. Working from home for a more extended period ultimately means that the staff should receive training and support to work independently. Ensuring they have the software and equipment they need might also influence your budget.
Tax and Business Cost efficiency:
As we are expecting to a severe downturn in the economy; it is crucial for the success of a business that they have achieved tax and cost efficiency to gain maximum profits.

These are Five things Need

To help businesses, we are providing a service to review if they are an optimum level of cost and tax level.

If you have any questions; feel free to contact us or Telephone: 020 3883 4777

Bad Debt Relief For VAT Filers

Posted on April 14, 2020 by Rana Zubair

Bad Debt Relief For VAT Filers

While we are under a severe economic condition and there is a risk that some businesses might not pay their suppliers.

There are rules available where a business can claim relief where a customer does not pay.

Background:

The bad debt relief rules are intended to ensure that VAT is not a cost to a business that suffers a bad debt following non-payment by customers.

Those businesses which are under the Cash Accounting Scheme, they avail bad debt relief automatically.

At the same time, such businesses have a disadvantage that they can’t claim input on purchase invoices until they have paid to suppliers.

How it works:

A business can claim bad debt relief on a VAT return (positive entry in Box 4) when ALL the following conditions are met:

The sales invoice in question is more than six months overdue for payment;
The invoice has been written off in the business’s accounting records;
Output tax must have been paid to HMRC on a past VAT return;
The debt must not have been sold, factored or paid under a valid legal assignment.

The latest time a claim can be made in four years and six months after the later of:

The time of supply (usually the invoice date); or
The due date for payment.

If an invoice is written off and bad debt relief has been claimed, then output tax must be declared on any payment subsequently received from the customer (HMRC notice 700/18 para 2.2).

If you have any question on the VAT issues; feel free to contact us

Financial Assistance By Local Council – Grants

Posted on April 3, 2020 by Rana Zubair

e Financial Assistance By Local Council – Grants

The government has announced two major incentives for local businesses affected by the coronavirus: a business rates holiday for the year 2020-21 and cash grants for small businesses. Local Councils or Authorities will deliver the grants to eligible businesses within their boroughs.

There are two types of grants funding schemes:

• the Small Business Grant Fund (SBGF)
• the Retail, Hospitality and Leisure Grant Fund (RHLG).

Summary of available Grants:

Scheme	Small Business Grant Fund (SBGF)	Retail, Hospitality and Leisure Grant Fund (RHLG)
Available to:
	All businesses in England in receipt of Small Business Rates Relief (SBRR) and Rural Rates Relief (RRR) in the business rates system	Businesses in England in receipt of the Expanded Retail Discount (which covers retail, hospitality and leisure) with a rateable value of less than £51,000
How much
	£10,000	£10,000 for premises with a rateable value of up to £15,000
		£25,000 for premises with a rateable value of over £15,000 and less than £51,000
Eligibility criteria
	Premises which on the 11 March 2020 were eligible for relief under the business rate Small Business Rate Relief Scheme (including those with a Rateable Value between £12,000 and £15,000 which receive tapered relief)	Premises which on the 11 March 2020 had a rateable value of less than £51,000 and would have been eligible for a discount under the business rates Expanded Retail Discount Scheme
	Premises which on 11 March 2020 were eligible for relief under the rural rate relief scheme
Exclusions
	Premises that were not eligible for percentage SBRR relief (including those eligible for the Small Business Rate Multiplier)	Premises with a rateable value of over £51,000
	Premises occupied for personal uses, e.g. private stables and loose boxes, beach huts and moorings	These aroccupied for personal uses, e.g. private stables and loose boxes, beach huts and moorings
	Car parks and parking spaces	Car parks and parking spaces
	Businesses which as of the 11 March were in liquation or were dissolved	Businesses which as of the 11 March were in liquation or were dissolved

This post contains information published by the ACCA and the UK Government.