Have your say direct to the Bank of England

As you may or may not know, one of the partners at Omni Chartered Accountants sits on the Bank of England review panel.

Topics that are of specific interest to the monetary policy committee at present and that are for inclusion in the next meeting are:

Key issues for next Bank of England meeting:

1. International issues

Have there been any effects from the increase in sterling since May on export prospects?

Has there been any noticeable change in impact as a result of the appreciation against the euro since May?

More generally, is there any sign of fallout from uncertainty about Grexit, directly or indirectly, relevant to financial stability or to the central macroeconomic outlook?

What impact is the rise in sterling having on the price of imports?

Are there different stories for different types of imports? And what is the speed of pass through to consumer price inflation?

2. Activity

What are the prospects for the housing market and housebuilding, given the recent pickup in new buyer enquiries and mortgage approvals?

What explains the recent pickup in housing market activity?

What are the implications for house prices?

How is buy-to-let activity evolving?

3. Employment and wage inflation

Are there any signs of changes (or expectations of changes) in trends in the composition of employment that might affect growth in average weekly earnings (or total paybill per head)?

4. Demand for credit

How are the proceeds from corporate borrowing currently being used?

Are firms refinancing existing debt whilst rates are low, building cash reserves for future acquisitions or borrowing to invest in capital?

Have your say – this is your chance to get your voice heard! Contact us on Twitter@OmnitasTax, or Facebook!

Tax changes for April 2015 report in brief

At Omni Chartered Accountants, we believe in keeping things simple. 

So, with this in mind, here is our guide to the recent tax changes that came into effect on Wednesday 1 April 2015.

• The Corporation Tax rate was reduced to 20%
• The new Diverted Profits Tax was introduced
• The bank levy was increased from 0.156% to 0.21%
• Air Passenger Duty was restructured - abolishing bands C and D
• Hospice charities, blood bikes, search and rescue, and air ambulance charities are now eligible for VAT refunds
• Business rates changes (England only):
• The business rates multiplier has increased from 48.2p to 49.3p (47.1p to 48.0p for small business multiplier). This includes the 2% inflation cap
• The Small Business Rate Relief scheme has doubled for a further year - providing 100% relief for businesses with a single property with a rateable value of less than £6,000, and tapered relief with a rateable value of £6,000 - £12,000
• The business rates discount for shops, pubs, cafes and restaurants with a rateable value of £50k or below has increased from £1,000 to £1,500
• The cultural test for high-end TV tax relief has been modernised and the minimum UK expenditure requirement for all TV tax reliefs has reduced from 25% to 10%
• A new tax relief on the production of children’s television has been introduced
• The amount of banks’ annual profit that can be offset by carried forward losses has been restricted to 50%
• Two new bands for the Annual Tax on Enveloped Dwellings (ATED) have been introduced
• Capital Gains Tax exemption for wasting assets will only apply if the corporate selling the asset has used it in their own business
• An investment allowance for North Sea oil and gas, replacing the existing offshore field allowances and simplifying the existing regime, has been introduced
• A reduced rate of fuel duty to methanol will apply - the rate is 9.32 pence per litre
• Fuels used to generate good quality electricity by CHP (combined heat and power) plants for onsite purposes are exempt from the Carbon Price Floor
• Climate Change Levy main rates have increased in line with RPI
• The VAT registration threshold has increased from £81,000 to £82,000 and the deregistration threshold from £79,000 to £80,000
• Scottish government’s Land and Buildings Transactions Tax (LBTT) will replace Stamp Duty Land Tax in Scotland
• The associated companies rules have been replaced with simpler rules based on 51% group membership
• The standard and lower rates of landfill tax have been increased in line with RPI

We would love to hear from you if your business has been affected by any of the changes – in either a positive or negative way. Please join in the conversation on our Facebook page, or Tweet us @OmnitasTax!

If you would like no-nonsense, general tax advice then we are also here to help; you can request a free of charge call back from our website or click here to contact us via our website contact form and we will get back to you promptly for an initial chat.

Are you addicted to the busy drug?

It appears all of us at times become addicted to the drug 'being busy.' But let's be really clear.

Being busy doesn't necessarily mean...
1. You're being effective.
2. You're clearly a success.
3. You're incredibly important.

However, it could mean:
1. You've poor organisational skills and fail to delegate.
2. You're a people pleaser who cannot say no.
3. You're suffering from fuzzy focus and lack clarity regarding your purpose.

Are you addicted to the busy drug?

So please never ever confuse being busy with being effective. Instead, spend a little more time trying to Stop and Understand what you're aiming to achieve before you Move On to take action.

Do you know anyone who needs help with this addiction? Perhaps forwarding this message would be a start. Unless of course they're too busy to read it...

Omni Chartered Accountants - for sensible and advice when you need it most...
http://www.taxandaccountancysolutions.co.uk/

*courtesy of http://www.thesumoguy.com/

EU accounting directive could be threat to UK economy

A radical new accounting regime set to shake-up the UK's small business reporting landscape could pose a risk to the British economy as an unplanned by-product of an attempt to slash red tape.

That's the stark warning from Nigel Sleigh-Johnson, the ICAEW's Financial Reporting Faculty head, as the government publishes its final recommendations on how the new EU Accounting Directive will be implemented in the UK.

Sleigh-Johnson said;

"Only time will tell whether the reduction in the information required in small company accounts is a sensible reduction in red tape or a source of risk to the UK economy.

“ICAEW for one has persistently warned against the potential risk that over-simplifying reporting requirements can have on the ability of small companies to secure credit."

What are EU Accounting Directive recommendations?

Under the BIS proposals, set to be enshrined in company law by July 2015 and become effective for financial years beginning on or after 1 January 2016, the most profound changes relate to small businesses.

A legal restriction will be placed on the amount of information required in small company accounts, while small businesses will be denied the option to file so-called abbreviated accounts at Companies House. But they may be allowed to both prepare and file a new simplified form of ‘abridged' 

accounts.

Accounting thresholds for SMEs due to rise

Accounting thresholds for small companies are also due to rise, meaning more businesses will have access to the simplified reporting regime.

Sleigh Johnson said he was encouraged that BIS had listened to some of its key concerns, especially that access to the proposed abridged accounts regime for small companies will be restricted to companies that have secured shareholder buy-in first.

But he expressed disappointment that the introduction of the new accounting regime for small companies, especially at an EU level "has overall been an exercise in damage limitation rather than one of well-considered, proportionate simplification, and that subsequently the time available for debate about UK implementation has been so restricted".

Small businesses, their advisers and lenders would be well advised to prepare for implementation of the new accounting regime, irrespective of the outcome, he added.

The Financial Reporting Council is expected to consult shortly on detailed proposals for revised accounting standards for small and micro companies, also due to come into force on 1 January 2016.

Have your say about the EU Accounting Directive proposals on Twitter @OmnitasTax or Facebook. Omni Chartered Accountants are here to help guide you and provide affordable accounting solutions for your company – contact us now or of course, you can request a free of charge call back.

10 ways to get the best value from your accountant

An accountant can sort out your tax return or your annual accounts and provide advice on a range of issues, but how do you get the best return on the fees you pay to an accountant? 

1.   Choose carefully

Look for accountants with experience of your type of business. Anyone can set up as 'an accountant', so look for chartered or certified accountants, whose qualified status is backed by membership of professional bodies. A large firm suggests reliability, but a smaller one may respond better to your needs. Ask prospective accountants how they can help your business.

2.   Explain your expectations

Your accountant will summarise terms and conditions in a letter of engagement. Put your expectations in writing, too. Describe the level of service you require, for example, how quickly you need queries to be answered. Ask to deal with a specific contact, to help build a close professional relationship.

3.   Ask questions

Check what other services your accountant can offer. These could include guidance on setting up your business, preparation of financial forecasts, help with loan applications, audits, investment advice and other suggestions for minimising your tax liability.

4.   Use your accountants’ contacts

Accountants specialising in your type of business can often suggest good trade contacts. Perhaps your accountant knows a supplier who can offer you a great deal or maybe they know of a potential investor.

5.   Keep talking

Communicate regularly with your accountant to get the best possible value from the relationship. Schedule quarterly meetings to review your firm’s performance; this will help you plan better for the future. Be sure to meet before producing your end-of-year accounts or tax return.

6.   Keep user-friendly records

If necessary, ask your accountant for advice about how best to maintain your financial records. If your books are easier to read, you will save them time, which should mean a lower bill. 

7.   Do the easy jobs yourself

To reduce your outgoings, take care of simple bookkeeping tasks yourself, possibly by using accounting software. You could then better focus your accountants’ efforts where they best serve your business.

8.   Delegate

If your time would be better spent concentrating on sales or product development, you could ask an accountant to take greater responsibility for your bookkeeping and payroll. This would free you up to make more profitable use of your time.

9.   Shop around

Armed with recommendations of good accountants, get a full breakdown of an accountant's charges and services. Work out which one offers you best value for money (and that's not necessarily the cheapest, of course). And, at least once a year, review the value for money you receive. If you believe you can get better advice and value elsewhere, go elsewhere.

10.   Seek advice

An experienced accountant can offer sound advice in a number of areas. For example, they could help with your business plan, help you estimate the cost of new projects or advise on the levels of investment needed to achieve your business development goals.

We understand that all clients are individual and as such have different needs – our cost effective but personal approach gets results and ensures that customers always get the best out of their accountant if they choose Omni.

For more information, call 01902 837 408 today, request a call-back or contact us.

Can KPMG really disrupt SME market and take on Google?

Well, you decide.

Recently, Big Four firm KPMG has declared its objective to dominate the SME market by putting the message out to small businesses that they can pay them the same as their current accountant but they will “give them more”.

KPMG want to take on high-street and mid-tier accountancy firms that focus on the UK SME market – but can they really?

KPMG's UK head of regions, Iain Moffatt, said;

"This is the biggest investment KPMG has made in the SME market in the past 30 years.

The small business accounting platform allows us to enter a market that we haven't previously had access to.

"It's a transformational change in our business. For the first time, a Big Four firm can offer services to start‐ups and small businesses for a similar price as high-street accountants."

Moffatt did continue to state that their involvement with larger organisations would continue – their investment of the “lower end” of the SME market was a decision to expand their ambitions with a new arm for their company.

He denied that the "Big Four are more interested in the HSBCs and BPs of this world", stating that;

"We operate in that space already and we do it well. Our upper middle market share is around 25%; our lower middle market share is around 10-15%. We want to push that latter figure up to 25%.

"We'll do that by saying to small businesses: ‘You can pay us the same as your current accountant but we'll give you more'. We want to work with companies all the way through their lifecycle. We're building a fully integrated business proposition."

Moffatt also imagines that within the next five years, Google or Amazon will be their biggest threat, rather than other big accountancy firms.

Could one of the “Big Four” represent your SME?

At Omni Chartered Accountants, we offer a personal yet convenient service. Our clients receive one-to-one consultation and advice that is tailored to suit their circumstances.

In addition to this, our prices are low – we would actually throw down a gauntlet to KPMG and ask if they could really offer the same level of service at the prices we currently offer.

Why not telephone us for an initial chat on 01902 837408? We are always on hand to offer advice on whatever accounting query you may have and will be happy to work out the perfect package for your accounting needs.