Category: Resources

We are Chartered Certified Accountants based in Gants Hill Ilford. And are committed to helping small businesses achieve growth. And keep on top of their finances and compliance. We work with small businesses across a wide range of sectors in London and the surrounding areas.

Also manage the entire financial system including HMRC compliance. For small business accounting services across a wide range of industries.

We can adapt to the needs of our clients and offer personalised tax advice. There is a misconception that switching accountants can be a headache. We can ensure that we have processes in place. That make this transition seamless without any loss of accounting data.

Speak to us today to find out more!

 

Challenges of small businesses:

• When it comes to running a business finance, it can take up a lot of time, which is where small business accounting can help.
• Our services for small businesses can handle everything from bookkeeping to the creation and analysis of valuable financial reports, as well as tax advisory & tax compliance.
• We advise small business on how they could automate their business processes so that their costs could be reduced, and efficiency and profits could be increased.

 

Where small businesses need help:

You clearly desire precise accounting that matches your needs. You may. But, expect a lot more from us. We’re here to assist you and your company in growing and becoming more lucrative.

Whether you’re a new setup looking for help with your bookkeeping. Or an established company requiring support with your annual accounts. These tasks are the beginning for us. We work hard to comprehend your business and establish a close working relationship. In which we can provide long-term value for your business.

We do not provide one size fits all services. All the advice we give you tailored to your individual objectives, and we’re quick to discover. Other areas of expertise, such as Corporation Tax planning, where you can benefit.

We’re in business to be the best at what we do, like you. You must bookkeeping, VAT help, and payroll services from a motivated team. Unlike traditional accountants, we pride ourselves on being unique, dynamic, and trustworthy. With one eye on the latest developments in our profession and, more, yours. We are small business accountants with extensive experience.

From data entry to a completely outsourced finance service, small business owners. Have the option of cherry-picking the services they need.

 

Apex Accountants:

Allow Apex Accountants to manage your accounting if you’re like many business owners. Who don’t have the time or knowledge to do it yourself. Our all-in-one small business accounting services designed to make the process easier. For you and provide you with the tools. And information you need to make informed financial decisions.

The time you’ll save by hiring an accountant is priceless. And you’ll enjoy the peace of mind that comes with their expertise. Trust our experts to handle all elements of finance. And accounting, ensuring that everything done on time and accurately.

We provide cloud based bookkeeping service where you could access your financial records and information 24/7 from anywhere in the world. We are helping small businesses for a long time now.

Also provide advice on how to grow sales and your business for small businesses.

As small business accountants in Ilford, we are committed to ensuring that our customers have access to latest technology that will enable them to compete on a national level and make informed decisions. This is due to our opinion that cloud accounting may help you run your business more efficiently and profitably, as well as external pressure from the government’s Making Tax Digital (MTD) programme.

 

If you need to understand more about our services, feel free to contact us!

The tax benefits of electric vehicles:

The government is willing to promote the use of electric cars to help environment.

The tax regime for cars is designed to encourage the use of low emission vehicles.

What are the tax benefits and is now the time to consider the move to zero or low-emission vehicles?

What are the different types of taxes and relief involved?

 

Government grants(electric vehicles):

Government grants(electric vehicles)

For cars, the grant covers 35% of the buy price (including VAT and delivery fees), up to a most of £2,500 provided the vehicles:

• Cost less than £35,000;
• Have CO2 emissions of less than 50g/km and be able to travel at least 112km (70 miles) without any emissions at all.

Under the scheme, consumers pay the discounted price. And do not have to go through a separate application process. Only dealers and manufacturers need to access. The portal to apply for the grants available.

The government’s plug-in car grant designed to promote the uptake of electric vehicles in the UK.

Grant for Small vans is £3,000 (less than 2,500 kg gross vehicle weight). And for large vans £6,000 (between 2,500 kg and 3,500 kg gross vehicle weight).

 

P11D/Class 1A National Insurance:

Class 1A National Insurance levied. Where an employee uses the electric car owned by the limited company.

The percentage of the price of a company car. Which taxed as a benefit for employee determined by the CO2 emissions of the vehicle.

For the last year, low emission cars (up to 50g/km) were taxed at 16% of the price, or 20% for diesels.

There have been significant reductions in this charge from April 2020. With cars falling to 0% in 2020-21 as well as reductions for electric hybrids depending on their range.

 

Salary sacrifice:

What is Salary Sacrifice

A salary sacrifice arrangement is an agreement to reduce an employee’s entitlement. To cash pay, usually in return for a non-cash benefit (for example Pension contribution). As an employer, you can set up a salary sacrifice arrangement. By changing the terms of your employee’s employment contract.

Where an employee has a car provided under salary sacrifice. The benefit valued as the higher of the amount of salary given up or the taxable benefit.

Yet, the optional payment rules do not apply if the company car has CO2 emissions of less than 75g/km.

 

Electric vans:

The taxable benefit for having the private use of a zero-emission van reduces from April 2021 to nil.

Please note that for non-electric vans there is no taxable benefit at all. If the van is only used for business journeys. And ordinary commuting, irrespective of fuel type.

 

Electric Bikes:

We have to distinguish here what is a “bicycle”and what is an “Electric Motor and a Motorbike”.

There are different rules for both.

Electric Bicycle cannot have a motor-powered top speed excess of 15.5 mph. And the electric motor must be less than 250 watts in power.

Anything above these criteria would be classed as a motorbike.

 

Why is this important?

An electric bicycle will still qualify for the Cycle to Work Scheme. So can provided without a P11D benefit in kind arising for an employee.

There are no specific tax advantages for an electric motorcycle, and these taxed. Under general use of asset rules in the same way as their petrol-powered equivalents.

 

Vehicle Excise Duty:

The road tax, or Vehicle Excise Duty (VED). Rates for all pure-electric vehicles have reduced to £0 until at least 2025.

There are reduced Vehicle Excise Duty (VED ) rates for plug-in hybrid electric vehicles (PHEVs).

 

Capital allowances:

From 6 April 2020, businesses can claim 100% of the cost of an electric vehicle. Against the profits of the year of buy and there are no restrictions on the value of the vehicle.

Capital allowances

Electric cars qualify for the new super-deduction, which offers 130% first-year allowance. On qualifying electric charging points for cars and vans.

To qualify for the relief the company must use the charging point within their own business. This relief will last until 31 March 2023.

 

From 1 April 2021, pure zero emission car can qualify for a 100% first year allowance (FYA) for the new cars only.

A similar 100% FYA applies for zero emission vans. Where the vehicle is purchased new before 1 April 2021.

Commercial vehicles already qualified for 100% relief under the Annual Investment Allowance.

Cars with CO2 emissions not exceeding 50g/km will be part of the main pool. For capital allowance purposes, so attracting a writing down allowance (WDA) of 18%. Cars with CO2  emissions exceeding 50g/km must allocated to the special rate pool, where the WDA is 6%.

 

Electric bikes will also qualify for the Annual Investment Allowance.

 

Electric charge points and charging costs:

Where the business installs charging points for electric vehicles. Up to 31 March 2023, it can claim a 100% FYA for those costs.

 

Employee charging their electric vehicle:

From 6 April 2018, where the company allows employees to charge. Their own electric vehicles at the workplace. There is no taxable benefit for the provision of that free electricity for the employee.

For this tax exemption to apply, the charging facilities must be provided at or near the workplace.

This tax exemption does not apply if the employer reimburses the costs of charging. The employee’s own vehicle away from the workplace.

 

Employer paying cost of charging for the company owned car:

Where the employer pays for the cost of charging the company-provided electric vehicle there is no taxable fuel benefit for the driver, as electricity is not classified as a fuel for the car or van benefit regulations.

 

VAT:

An electric vehicle will still be viewed as a car for VAT purposes. Therefore, VAT is not recoverable on purchase, unless it can be demonstrated that the car is only available and used solely for business purposes. In practice this is very difficult to achieve in most of the cases.

The same VAT recovery rules also apply for leasing purposes with 50% VAT recovery on the leasing charge available.

 

Privately owned electric cars:

Where the employee uses his / her own electric car for business journeys, the company can pay the normal tax-free mileage allowance to the individual of 45p per mile for the first 10,000 miles driven in the year, with additional business miles reimbursed at 25p per mile.

Where the employee owns or leases the electric car, they will be entitled to a grant under the Electric Vehicle Homecharge Scheme. This grant covers a 75% contribution towards the cost of one charge point and its installation, up to a maximum of £350 (including VAT) per household.

 

What is VAT:

VAT is acronym for Value Added Tax applied on purchase rate of taxable supplies and services.

Value added tax (VAT) is a type of indirect tax levied on goods and services for value added at every point of production or distribution cycle, starting from raw materials, and going all the way to the final retail purchase.

 

Why we pay VAT:

The main aim behind the introduction of VAT was to eliminate the presence of double taxation and the cascading effect from the then existing sales tax structure.

 

Why Knowing about VAT is important?

We have only covered a brief overview of VAT basic rules. You might need an expert who can provide you VAT Advice Services, VAT tax returns, payments, and penalties.

The rules for VAT are extremely complex and a business should establish the clauses applicable to them, this is to ensure they pay the correct VAT. This would also result in ensuring that businesses claim all the relevant reliefs available. This is worth mentioning that there are higher penalties for not complying to Value Added Tax Act 1994.

 

 

What are the current Rates of VAT:

There are 3 different rates for VAT depending upon the nature of goods and services:

• Standard rate: 20% applies to most goods and services
• Reduced rate: 5% applies to good and services like home energy, domestic fuel, children’s car seats, residential property conversions, mobility aids for older people
• Zero rate: The goods and services under zero rate pay no VAT but are still under VAT regulation. Most foods, books and newspapers, children’s clothing, export from Northern Ireland to outside the EU and the UK get a 0% charge.

Exemptions:

Some goods and services are exempt from VAT which means one does not need to pay VAT on these.

The following are some of the items falling in the exemption list:

• Insurance, finance, and credit
• education and training services
• fundraising events by charities
• subscriptions to membership organizations

 

 

Partly exempt business:

There is another category which partially exempts businesses from VAT.

A business is partly exempt if they incur VAT on purchases that relate to exempt supplies.

We offer accounting services to small businesses in Ilford.

 

Current threshold to register for VAT:

If your taxable goods or services’ turnover exceed from £85,000 then you must register for VAT. The taxable turnover is the turnover generated from sales that are not exempt from VAT, even the goods or services with zero VAT rate is also considered in taxable turnover.

 

Registered late by	Penalty
not more than 9 months late	5%
more than 9 months but not more than 18 months late	10%
more than 18 months late.	15%

There is a minimum penalty of £50.

 

Filing VAT return and paying:

Normally you must file your Vat return and pay your VAT at the end of each quarter, however HMRC may ask to file VAT return and pay for each month.

There is a penalty regime for late filing and payment of VAT.

We are tax accountants in East London that provides professional advice for tax filing.

 

Place of supply for services:

It is extremely important to consider about the place of supply because VAT is charged from the place of the supply.

 

VAT after Brexit:

The situation of VAT treatment has changed after Brexit and this has become more complex issue now.

 

VAT on good to/ from Northern Ireland:

There are sperate set of rules for good supplied from Northern Ireland and vice Vera after Brexit.

 

VAT Advice:

We provide VAT advice services as part of our Tax Planning service to various types of businesses for example, online trader, Consultants, retailers, manufacturing businesses. Our regular support ensures businesses don’t fall into HMRC investigation.

However, if your business is under HMRC investigation, we could help to reduce your stress.

 

We are here to help!

Please feel free to contact us for a no obligation consultation.

 

Keeping Adequate Accounting Records  is really important and a legal requirement for businesses to keep their records for a period of 6 years from the end of the last company financial year they relate to.

HMRC suggests that companies should keep records of all money received and spent, including grants and payments from coronavirus support schemes.

https://www.gov.uk/running-a-limited-company/company-and-accounting-records#:~:text=You%20must%20keep%20records%20for,years%2C%20like%20equipment%20or%20machinery

The Insolvency Service recently conducted an investigation, leading to the imprisonment of the sole director of a Leicester clothing manufacturer for six months. This occurred due to their failure to provide adequate company accounting records.

https://www.gov.uk/government/news/clothing-boss-jailed-for-failing-to-keep-adequate-accounts

 

In addition, the company failed to pay tax liabilities of more than £300,000. The director was found to be taking contributions from employees without passing on National Insurance and PAYE payments, which partly explains the situation.

In addition to the prison sentence, the court has banned the defendant from acting as a company director for five years. This disqualification prohibits the director from participating, directly or indirectly, in the formation, promotion, or management of a company without court permission for the specified period.

This case serves as an important reminder that a company director must ensure that they meet their responsibilities. Directors are duty-bound to keep adequate records to demonstrate their company’s financial position and to prepare accounts.

 

If you are looking to know more and see how we could help, feel free to book a free consultation with us.

.Greening Of Scotch Whisky

Needless to say, the greening does not refer to the colour of whisky.

The Green agenda has received endorsement from Scotland’s world famous distilleries who are aiming to cut their emissions by almost half a million tons of CO2 every year.

The new Green Distilling Fund, announced in the March 2020 budget, facilitated the achievement.

Greening distillery operations in Scotland and across the rest of the UK will help contribute towards its legally-binding target of reaching net-zero emissions by 2050. The funding comes as the UK government continues to ramp up its green economic recovery from Coronavirus ahead of hosting the UN Climate Change talks (COP26) in November next year.

For example, from September, a New Green Homes Grant will provide vouchers worth up to £5,000 towards. The cost of energy efficient is used for  improvements for homeowners in England.

If you’re a homeowner or residential landlord you can use a Green Homes Grant voucher. It will be towards the cost of installing energy efficient improvements to your home.