• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
enquiries@advaloremgroup.uk
01908 219100
CLIENT LOGIN
Ad Valorem

Ad Valorem

Treating your business like ours

  • About
    • About Ad Valorem
    • Meet the team
    • Work for us
    • Testimonials
    • Specialisms
    • Taylor Roberts
  • Services
    • Audit
    • Cloud Accountancy
      • Cloud accounting packages
      • Book-keeping Packages
      • Getting the best from your cloud
    • Tax Services
      • Self Assessment
      • Corporation Tax
      • Share Schemes
      • Patent Box
      • HMRC enquiries and settlements
      • Capital Allowances
    • R&D Tax Credits
      • R&D Tax Credits for Business
      • R&D Tax Credits for Accountants
    • Finance & Banking
    • Wealth Management
  • News & Insights
  • Contact Us

Blog

May 3, 2022 by Megan Joyce Leave a Comment

What are Employment Related Securities and when should they be reported?

If your company provides or transfers shares to employees or directors, it is likely that you will need to submit information about these on an Employee Related Shares (ERS) return to HMRC. On the return, you will need to tell HMRC about any new ERS schemes acquired by employees, and any schemes that have finished.

ERS schemes are a method for transferring shares to employees of the company, including directors. ERS schemes can either be tax-advantaged or non-tax advantaged. ERS applies to all types of share award such as growth shares, restricted shares, changes to share rights, share buy backs and options such as EMI, CSOP and unapproved options. 

All new ERS schemes need to be registered with HMRC because there may be income tax liabilities for the employees taking part in them, even if it is a one-off gift of shares.

Every year you will need to file an ERS tax return whilst the ERS scheme is active. The deadline to submit returns is by 6 July following the end of the tax year. Even if you aren’t actively transferring shares that year, but you have live ERS schemes, you’ll still need to submit a return – or a nil return each year in the following circumstances: 

  • there have been no reportable events
  • there have been no transactions
  • you have appealed a late filing penalty
  • the scheme has been registered in error or there’s a duplicate scheme
  • you did not get a reminder from HMRC.

There are however circumstances where an ERS returns may not be required – for instance, a share transfer in the normal course of domestic, family, or spouses does not need a return. You also do not need to file an ERS return if the share transfer is to shareholders who are not employees or directors, or if the transfer of shares takes place before the company starts trading.

Failure to report on time will result in automatic penalties and loss of tax advantages for certain share awards.

The penalties range from £100 for missing the submission deadline, increasing to a £300 penalty if 3 months late, an additional £300 at 6 months late and from 9 months over the missed deadline, you will be charged £10 per day.  

If you are in any doubt about your obligation to file an ERS return or need further advice on how to complete and submit the form correctly, you can contact our tax team.

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

Filed Under: Blog, News & Insights, R&D, Staff - Payroll, Tax Tagged With: payroll, Tax

April 22, 2022 by Megan Joyce Leave a Comment

Payroll key updates for 2022

Tax codes

The personal allowance for 2022/23 remains at £12,570 with a tax code of 1257L. The onus is on the employee to ensure the tax code applied is correct – if an employee is not sure, they should contact HMRC on 0300 200 3300.

New employees

HMRC require either form P45 or Starter Checklist when processing a new employee as this determines the correct tax code to operate. Therefore, to process any new employee, we will also need these forms. The new starter checklist should be completed via the SAGE portal.

Right to work check

The notes below are for your information and the link will advise you accordingly. https://www.gov.uk/legal-right-work-uk


As an employer, it is your responsibility to ensure your employees have the legal right to work in the UK.  An employer who employs an illegal worker and has not undertaken a prescribed right to work check, will be liable for a civil penalty of up to £20,000 per illegal worker.  It is also a criminal offence to knowingly employ an illegal worker, or to employ a worker despite having reasonable cause to believe they may be illegal.   This offence could lead to a custodial sentence and an unlimited fine.

Student loan thresholds

Plan Type 1 – £20,195 (9% over threshold)
Plan Type 2 – £27,295 (9% over threshold)
Plan Type 4 – £25,375 (9% over threshold)
Postgraduate – £21,000 (6% over threshold)

Statutory maternity pay (SMP) – 39 paid weeks

Statutory paternity pay (SPP) – 2 consecutive paid weeks

This will increase from £151.97 to £156.66 subject to qualifying earnings.
Eligible smaller companies will still be entitled to claw back 100% plus 3% compensation against their monthly PAYE/NI liabilities. Larger companies remain at 92%.

Statutory sick pay (SSP)

This will increase from £96.35 to £99.35 subject to eligibility.

Directors’ national insurance threshold had increased

This has increased from £737 to £758 per month, giving an annual total of £9,096.

National insurance uplift

There are significant changes in relation to the National Insurance threshold for the tax year 2022/23. More information can be viewed here – What will the new Health & Social Care Levy mean for you? 
 
HMRC have instructed all employers to have the following message on payslips
“1.25% uplift in NICs funds NHS, health & social care.”  This will be applied from April 2022.
 
See below link for further information:
https://www.gov.uk/national-insurance/how-much-you-pay

Employment allowance

The employment allowance has been increased to £5,000 per year for eligible employers.
 
The following link provides further information relating to the employment allowance and eligibility: https://www.gov.uk/claim-employment-allowance

National minimim wage

The hourly rates from 1 April 2022 have increased as follows:

23 and above£9.50
21-22 inclusive£9.18
18-20 inclusive£6.83
Under 18£4.81
Apprentice under 19£4.81
Apprentices aged 19 and over, but in
the first year of their apprenticeship
£4.81

 
The apprenticeship rate only applies to apprentices aged: The apprenticeship rate only applies to apprentices aged:

  • Under 19
  • 19 or over who are in the first year of their apprenticeship.

Apprentices aged 19 or over in their second year of apprenticeship must receive the national minimum wage or national living wage rate their age entitles them to.

Auto enrolment

There is no change to the auto enrolment pension contribution thresholds.
  

Date effectiveEmployer minimum
contribution 
Staff
contribution
Total minimum
contribution 
6 April 20223%5%8%
6 April 20213%5%8%

If you have any questions regarding the information above please do not hesitate to contact your payroll manager. 

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

Filed Under: Blog, News & Insights, R&D, Staff - Payroll, Tax Tagged With: payroll, Tax

April 14, 2022 by Megan Joyce Leave a Comment

Tax Facts & Rates 2022-2023

We’ve put together a couple of booklets to provide information about tax rates and facts for the 2022-2023 period. 
 
Please note that these documents are for guidance only, and we recommend you contact us for advice before acting on any information within the booklets.  
Tax Rates 2022-23 – Ad ValoremDownload
Tax Facts 2022-23 – Ad ValoremDownload

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

Filed Under: Blog, News & Insights, R&D, Tax Tagged With: cloud accounting

April 7, 2022 by Megan Joyce Leave a Comment

How to – A beginner’s guide to Xero 

Xero is an efficient and popular accounting software that makes running your business simple. Xero is used by millions worldwide and can be easily accessed anywhere via the cloud. We are proud to be a Xero Platinum Partner and have implemented their software internally. If you’re new to Xero, or just need a little refresher; we’ve put together a beginner’s guide to help you access the full potential of Xero. 

We hope this guide will give you a greater understanding of your Xero file and how to use the different functions in Xero so you can run your business finances in the most efficient way. Making your book-keeping processes as efficient as possible will allow you more time doing what you love! 

In this guide we will discuss how to:

  • Connect your back account to Xero
  • Send invoices
  • Add or update your business details 
  • Navigate Xero
  • Look for help

How to connect your bank feed

Connect your bank with your Xero organisation to automatically import transactions. You’ll need to be registered for online banking to make the connection between your bank and Xero. Once you’ve connected your bank to Xero, your transactions will automatically import into Xero each business day. You don’t need to manually refresh the bank feed for your transactions to import. You can choose to share up to 12 months’ worth of historical transactions initially.

Check out our easy step by step infographic on how to connect your bank feed with Xero.

How-to-connect-your-bank-feed-with-Xero-MobilexDesktop-1Download

How to send invoices   

To send an invoice you must first open an invoice template, date it, and add an invoice number, the details on this invoice should be as followed:

  • you and your customer
  • the goods and services sold
  • the costs (including any taxes you’re expected to charge)

Finish with clear instructions on when and how to pay. Xero have made an easy step guide on how to make an invoice, click the link to learn more: how to make an invoice. Regarding your invoices, Xero can store customers details securely and efficiently, you can also set different inventory items for your products and service descriptions. 

How to add or update your business details

Sometimes details of your business may change, and when they do it’s good to know how to change them on your accounting software. Xero have made it simple to change or update your business and personal details with just a few clicks. When changing your:

  • Your business name(s)
  • Business address
  • Contact numbers
  • VAT number (if applicable)

You must first visit the organisational settings in Xero. To find these settings, click your business name in the top left corner; then click settings, there you will find a button named Organisation details. In Organisation details you will be able to change all that you wish by filling in the boxes.

How to navigate transactions

Finding transactions in Xero needn’t be a struggle. There are lots of ways you can learn to understand your accounting software; and Xero have made it easy for you to do so. To find a transaction simply click the magnifying glass icon in the top right corner, there you will be able to type in the name of your supplier/customer and be taken to the transaction.

*Don’t worry if you can’t see the magnifying glass, simply click the dashboard at the top of your screen and it will appear in there.  

How to look for help

If you are struggling to find something on Xero, or just need a little extra help, Xero Central Help is always on hand to resolve your issues. You can access Xero Central Help Centre by clicking the ‘?’ symbol in the top right-hand corner; There you will be taken to a list of popular questions asked and their answers below. If the question you want to ask isn’t there, you can tailor what questions appear by adding in the buzz words relevant to your question. 

If the suggested articles don’t answer your question, click Contact Xero Support. There you will be able to ask your specific question, make sure you add as much detail a possible and a member of Xero’s specialist support team will help the best they can with your query. You can view cases you’ve raised in ‘My cases’.

At Ad Valorem we have highly experienced Xero certified team members who are always on hand to help you if you experience any issues. By using an accountancy firm experienced in the software you can get quick reliable responses without hassle.  

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

Filed Under: Blog, News & Insights, R&D, Tax Tagged With: cloud accounting

March 31, 2022 by Megan Joyce Leave a Comment

 

We are delighted to announce the introduction of local firm ECL Howard Watson Smith into the Ad Valorem Group, providing further strength to our Milton Keynes presence.

Commenting on the completion, joint Ad Valorem Group CEO, Nikki Adams said…

“This is a super addition which further underpins our already strong Milton Keynes presence. We welcome Darren, Martin, and Malcolm, along with their fantastic team and clients into the Ad Valorem family and look forward to their valuable input as we push forward in our goal of becoming the leading digital accountancy practice to the micro and SME sector.” 

We have been working with Darren, Martin, and Malcolm, along with getting to know their fantastic team over the past 6 months and it became clear very early on that our two practices share the same values and business ethos. 

ECL Howard Watson Smith partner Darren Kerins added…

“We are very pleased to join forces with Ad Valorem which will enable our clients and staff to benefit from their additional resources, expertise and digital platforms. I believe that our shared aims of providing a professional, cost-effective and forward-looking service will see the practice go from strength to strength.”

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

Filed Under: Blog, News & Insights, R&D, Tax Tagged With: R&D

March 24, 2022 by Megan Joyce Leave a Comment

Spring Statement 2022

Yesterday, Chancellor Rishi Sunak announced the 2022 Spring Statement, setting out the Government’s tax and spending plans. 

Please see below a few key points taken from yesterdays statement.

Key Announcements

  • Increasing the National Insurance Primary Threshold for Class 1 NICs and bringing this in line with the income tax personal allowance of £12,570 per annum, from 6 July 2022.
  • Increasing the Lower Profits Limit for Class 4 NICs from 6 July 2022 and bringing this in line with the income tax personal allowance of £12,570 per annum.
  • Self-Employed individuals with profits between the Small Profits Threshold (SMT) and the Lower Profit Limit will not pay Class 2 NICs from April 2022, while allowing individuals to be able to continue to build National Insurance credits. 
  • Employment Allowance increase by £1000 to £5000 from 6 April 2022.
  • 50% Business Rate discount for eligible businesses in the retail, hospitality and leisure sectors, from April 2022.
To read the our full Spring Statement Summary please click the link below. 

Spring Statement 2022 – Ad Valorem Summary 

If you have any questions regarding what was outlined in yesterdays announcement, please do not hesitate to contact us:

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

Filed Under: Blog, News & Insights, R&D, Tax Tagged With: R&D

  • Go to page 1
  • Go to page 2
  • Go to page 3
  • Interim pages omitted …
  • Go to page 12
  • Go to Next Page »

Primary Sidebar

Recent Posts

  • What are Employment Related Securities and when should they be reported?
  • Payroll key updates for 2022
  • Tax Facts & Rates 2022-2023
  • How to – A beginner’s guide to Xero
  • Ad Valorem strengthen Milton Keynes presence with ECL Howard Watson Smith 

Recent Comments

    Archives

    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • November 2021
    • October 2021
    • August 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • March 2020
    • October 2019
    • June 2019
    • April 2019
    • November 2018
    • October 2018
    • September 2018

    Categories

    • banking
    • Blog
    • BREXIT
    • Cloud Accounting
    • Covid-19 Updates
    • Innovation
    • My Mate Says
    • News & Insights
    • R&D
    • SME Business
    • Staff – Payroll
    • Staff – Tax Team
    • Tax
    • Uncategorized
    • Xero

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Design

    With an emphasis on typography, white space, and mobile-optimized design, your website will look absolutely breathtaking.

    Learn more about design.

    Design

    With an emphasis on typography, white space, and mobile-optimized design, your website will look absolutely breathtaking.

    Learn more about design.

    Design

    With an emphasis on typography, white space, and mobile-optimized design, your website will look absolutely breathtaking.

    Learn more about design.

    hello@advaloremgroup.co.uk | 01908 219100

    Strategy

    We help creative entrepreneurs build their digital business by focusing on three key elements of a successful online platform.

    Learn more about strategy.

    Footer

    2 Manor Farm Court, Old Wolverton Road,
    Wolverton, Milton Keynes MK12 5NN
    01908 219100
    enquiries@advaloremgroup.uk
    • About
      • About Ad Valorem
      • Meet the team
      • Work for us
      • Testimonials
      • Specialisms
      • Taylor Roberts
    • Services
      • Cloud Accountancy
      • Tax Services
      • R&D Tax Credits
      • Finance & Banking
      • Wealth Management
    • News & Insights
      • News & Insights
      • Contact Us
      • Sitemap

    Ad Valorem Group © 2022

    • Privacy & Cookies Policy
    This website uses cookies to improve your experience. Cookie settingsACCEPT
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT