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The scheme was announced to help both small and medium sized business recover from the negative financia

There is no doubt that 2020 is proving to be massively different to any of the predictions given by tax advisers at the start of the year. After three years of wall to wall Brexit coverage, a worldwide pandemic has changed the business landscape beyond recognition and there is the inevitable speculation amongst business leaders that there will need to be an increase in taxes… but what will this look like? 

In July, Chancellor Rishi Sunak commissioned the independent Office of Tax Simplification to review how Capital Gains is paid by individuals and smaller businesses. This has naturally led to a nervousness around whether this will lead to a Capital Gains Tax increase. Of course, this is purely speculation and every year around the presentation of the annual tax budget, rumours of tax changes are rife, many of which never materialise.

Other areas which might see changes are the various reliefs available for selling our main residences, our businesses and certain other assets, such as vintage cars, which at the moment are exempt.

We should not forget that there have already been some changes in April 2020 to Capital Gains Tax on residential properties, with the key change being that tax is now due to be reported and paid within 30 days of the completion date. In the grip of the pandemic, the Government did announce a relaxation to this rule with penalties only being charged for completions after 31st July 2020.

What should the public do to prepare?  

Firstly, there is no doubt that the Government will be watching the economy very carefully before making changes to taxes. It is important not to take action based on speculation or rush into a decision without all of the facts. 

Our advice is that people should take the opportunity to review their affairs and seek professional help if needed. 

How can we help?

We have dedicated Personal & Corporate Tax departments, who offer a free no obligation meeting.  In our initial meeting we learn about your plans for the future and identify areas in which we can help you to meet your short and long-term financial goals.  

If you would like to arrange a meeting, please contact us on our details below. 

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

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What is the Kickstart Grant Scheme?

The scheme was announced to help both small and medium sized business recover from the negative financial impact of COVID-19. This can be achieved through the purchase of professional services, purchasing minor equipment or to adopt new technology to prepare and diversify in response to the pandemic. SEMLEP’s Growth Hub is responsible for allocating the grants in the SEMLEP area of Bedfordshire, Northamptonshire and Milton Keynes. 

Grants of up to £5,000 will be available, with most grants predicted to be in the region of £1,000 – £3,000. One aspect of the grant is specifically aimed at tourism and hospitality-related business’, which you will need to specify during the application process to determine which funding allocation your grant will come from. Whether your business is or is not related to the hospitality sector you will still complete the same application form.

How do I receive the grant?

If you are successful in being awarded a grant you will receive a grant offer. This then allows you to purchase the items or services approved in your grant application. Once you have purchased your intended product you can claim the amount for the grant payment to be issued to you.

Is my business eligible to receive the grant?

First and foremost, you must be based in the SEMLEP area and you must be able to implement the changes listed on your application proposal as soon as your grant has been approved, with all required permission in place (such as planning permission or dependent licences). 

You must also employ less than 250 people and have a turnover of less than £45m.

Click here to view the Growth Hubs most frequently asked questions:

How do I apply for a grant? 

On Monday 14th September at 9am the South East Midlands Kickstart Grant Scheme will be live and available for you to begin your application. To prepare and increase your chances of being successful for your application, please see below some example questions that may appear during the application process.

Link: https://www.semlepgrowthhub.com/wp-content/uploads/2020/09/South-East-Midlands-Kickstart-Grant-Scheme-webform_03.09_web-version.pdf

With Milton Keynes and surrounding regions being a comparable business hub to the capital, it is expected that there will be a high number of applications. With an estimated only 200 grants available in the SEMLEP region it is vital to be prepared.

Dates to remember

Monday 14th September (9am): Applications open

Monday 28th September: Successful applicants will be notified and grant offer letters will be issued

For any further questions or to confirm your eligibility, please do not hesitate to contact us:

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

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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. During lockdown alone we have helped over 130 clients to convert to using Xero, with the ‘cloud’ aspect being highly beneficial during the period of reduced functionality. There are many reasons to love Xero, but we’ve highlighted our favourite benefits below. 

Time Saving Capabilities

Modern day bookkeeping and accountancy should be fast and efficient just like the modern-day business owner. Xero gives you the opportunity to take control of your business finances anywhere in the world via a mobile app. With automation and high-performance accuracy, Xero helps to create endless efficiencies by reducing the amount of time you spend manually inputting your business finances.

You are able to view your real time financial details including information such as: outstanding invoices and bills you are still required to pay.

Anytime, Anywhere

Xero has now made it easier than ever to go mobile by giving business owners access to their business finances anytime, anywhere. Using the Cloud, Xero can be accessed on any devise using a 2-step authentication for extra security. All information on Xero is encrypted so only you can see your finances. By downloading the Xero app on your smart phone it allows you to track your finances on the go. With Xero you’re in control. 

Efficiency

Another benefit of keeping your accounts on Xero is the efficiencies it creates. Having your real time financial figures at your finger tips, available anywhere in the world helps to create educated decisions. Through the use of the Xero app you are able to raise invoices and upload and expense receipts as soon as required with the simple push of a button helping you save time.

Instant Financial Reporting

With Xero you are guaranteed fast and updated results upon log-in. Every transaction made, every profit and loss and other information is instantly updated onto your private account. As a business owner you need to be confident the numbers you are seeing are up to date. With Xero, you can have accurate results and information at your fingertips. 

Always Improving

Xero is always testing new ways to improve itself, such as giving regular free software updates to all its users. Xero releases monthly product updates to keep track of any changes, one recent example of this is Xero’s making tax digital connection. With Cloud software there is no need to install or update, all data is backed up automatically. Cloud-based software can be used from any devise with internet connection, keeping small business owners connected with their accountants and data. The software can also integrate with third- party business apps which is not only easy and simple to use but cost effective. Flexibility with remote working is also something that Xero are working on closely, making data fluid and accessible. 

Navigation Made Easy 

Navigating your way through Xero couldn’t be simpler; be it on the app or web. Xero have designed easy click steps to make your experience quick and accessible. All the information you will need about your business finances can be found in the new organisation menu. The menu is clearly displayed and gives you access to files, organisation details, invoices and bank accounts. Xero has also designed a dashboard to show all financial aspects with the help of illustrated and up to date graphs and charts. 

For any further questions or to request a demo of Xero please do not hesitate to contact us.

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

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Am I eligible for the Childs Trust Fund?

If you were born between 1st September 2002 and 29th January 2011 you may be entitled to receive some money from HMRC! 

Who are the HMRC?

HMRC stands for Her Majesty’s Revenue and Customs and they are essentially a team within the Government that is responsible for collecting peoples taxes and make sure everyone is paying the correct amount of tax and simply collection of all the money that pays for the UK’s public services. These public services include paying police officers, firemen and nurses and doctors working for the NHS.

What is a Childs Trust Fund?

A Childs Trust Fund is a pot of money that the HMRC created for babies born between 1st September 2002 and 29th January 2011 in order to help make sure they have some form of savings for when they reached the age of 18 and became an adult.

This week marks the first day, 18 years later, from when the first Childs Trust Fund was made available, and therefore those turning 18 will be able to claim their money saved in their ‘pot’.

Do I have a ‘pot’ waiting for me?

If you were born between the above dates then there will be a savings pot saved for you! If you ask your parents or guardian they may have the details but do not worry, if they weren’t aware of the scheme you may still be able to receive a sum of money to receive on your 18th birthday! HMRC automatically enrolled eligible babies to the scheme and puta minimum of  £250 into the account.

How to I make the most out of the Childs Trust Fund?

If you are not 18 yet, it is still possible to save more money in to the account.

With the trust fund the more you put in creates potential for the money you will get out. Some people might choose to invest their pocket money or ‘spend half and save half’ of their Birthday or Christmas gift money. The fund is an investment, meaning it may grow in value over time and the amount you put in may or may not have increased by the time you come to cash it in.

I want to have more control of my Trust Fund

If you are 16 you are able to take over control of the Child Trust Fund account and whilst you cannot withdraw any money until you are 18, you will be able to meaning you would be responsible for putting money into the account instead of your parent or guardian. You would also be responsible for contact your Child Trust Fund provider should you ever have any questions.

I am about to turn 18, what happens next?

On your 18th Birthday you will be allowed to take out the money from the account. It is then your choice what you do with the money! You may choose to spend it on supplies for uni or you may choose to reinvest it into an adult savings account.

For more information click here.

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

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Today marks the first day individuals born on September 1st are able to  access the money that was set aside for them  by the  Government’s child trust fund incentive. If you have a child born between September 2002 and January 2011 they should be entitled to receive money from the government on their 18th Birthday (subject to certain criteria).

What is a Child Trust Fund?

A Child Trust Fund is a children’s savings account made available to children born between 1 September 2002 and 2 January 2011. They have since been replaced by Junior ISAs, but those with existing Child Trust Fund accounts or vouchers could keep their accounts and  continue to pay in. 

Child Trust Funds are a long-term investment fund that allow for tax-free investments originally set up by the Government. They were introduced with the idea to help children enter into adulthood with some form of savings to be invested in expenses such as buying a car or house. The main benefit of the trust fund was that all money earned on it is completely tax-free, including capital gains and interest payments.

The first of the Child Trust Funds will mature today (1st September 2020) 18 years since the first ones opened (the last will mature in 2029). On maturity, Child Trust Funds can either be cashed out if needed, or may be reinvested into an adult ISA.

Don’t remember setting up a Child Trust Fund?

If you don’t remember physically setting up the trust fund for your child then don’t worry, they haven’t entirely missed out and your child may still be entitled to some money on their 18th Birthday. 

At the time, HMRC sent the parents of qualifying children a voucher of £250 (or £500 if you were on a low income) to set up a Child Trust Fund account in the child’s name. However, if the parents didn’t do this, HMRC would have automatically set one up.

HMRC have set up an online tool to help young people find  out whether they have an account and  where their accounts is held.   To find a ‘lost’ CTF click here.

Types of Child Trust Fund

  1. Cash Child Trust Fund – you are able to make deposits just as you would for a bank account, which is able to earn tax-free interest.
  1. Stakeholder Child Trust Fund – the savings into the account are put into a wide mix of stock market investments, each outlining their own set of rules to reduce financial risk (including how the money would gradually be moved to lower-risk investments when the child reaches 13 with a cap on the annual charge). Stakeholder Child Trust Funds are charged based on the value of the fund and capped at a maximum charge of 1.5% a year.
  1. Shares-based Child Trust Fund – where most or all the money is invested in shares, but without the protections of a stakeholder account. The savings in the account could be put onto the stock market via an investment fund of your choice or into your own investments.

How much money am I able to invest?

If your child meets the above criteria of being born between 1st September 2002 and 2nd January 2011 and they are not at the age of being able to cash in their CTF yet, you still have time to help them to utilise its benefits.

Annually you can put up to £9,000 into the account, however if you have not used that limit previously you are not able to carry that unused amount moving forward. 

In order to pay money into the account you can do so by cheque, standing order or direct debit. Additionally, payments made by the government do not count towards the £9,000.

For more information click here.

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

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Eat Out to Help Out Discount Scheme

This incentive is aimed at aiding and re-boosting the hospitality sector by encouraging people to return to dining out. 

The Government’s new Eat Out to Help Out discount scheme will provide a 50% reduction (up to a maximum of £10 per head) for sit-down, eat-in meals in the UK throughout August 2020. This offer is only available to participating restaurants from Monday to Wednesday and does not include discount on alcoholic drinks.

Participating establishments may include:

  • restaurants, cafés, bars or pubs
  • work and school canteens
  • food halls

Participating establishments will apply the discount to their diners’ bill and the business will be fully reimbursed for the 50% discount. 

For further details on the “Eat Out to Help Out” including how to register, click here: https://www.gov.uk/guidance/register-your-establishment-for-the-eat-out-to-help-out-scheme

Take a look here to find out which restaurants in your local area are taking part!

VAT reduction tourism and hospitality

On 8th July the Government made an announcement allowing VAT registered businesses to apply a tempororary 5% reduced rate if VAT to certain supplies relating to:

  • hospitality 
  • hotel and holiday accommodation 
  • admission to certain attractions

the temporary rate will apply to supplies that are made between 15th July 2020 to 12th January 2021.

A reduced (5%) rate of VAT will apply to: 

  • Food and non-alcoholic drinks, for consumption on your premises
  • Hot takeaway food and hot takeaway non-alcoholic drinks 
  • supply sleeping accommodation in a hotel or similar establishment
  • make certain supplies of holiday accommodation
  • charge fees for caravan pitches and associated facilities
  • charge fees for tent pitches or camping facilities

For further information and a full list of affected supply, please read the government guidance here – https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions

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