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A week ago, the new chancellor Jeremy Hunt delivered the news that the IR35 repeal has now been scrapped. Alongside this, the chancellor is reversing almost all tax measures from the Mini-Budget in September that have not started parliamentary legislation. Roughly £45bn of unfunded tax cuts has in just 3 weeks and 3 days seen a £32bn reversal. What stays? Cuts to stamp duty The cuts to National Insurance What goes? Dividend tax cut – No longer proceeding with the cuts to dividend tax rates. Dividend tax rates will remain with the 1.25% increase applied (8.75%, 33.75%, 39.35%) IR35 rule changes – No longer reversing off-payroll working reforms No longer proceeding with the new VAT-free shopping scheme for non-UK visitors No longer freezing alcohol duty rates Planned 1p cut in Basic rate of income tax. This will remain at 20p indefinitely. The chancellor said it was not right to borrow to fund this tax cut and will remain at 20p to the pound (not 19p as previously announced), until economic circumstances allow it to be cut Energy price guarantee will no longer last 2 years – A Treasury-led review will take place to look at how households and businesses are helped with energy bills from April new year. Support being provided from now until then will not change, but beyond that date there will be changes. This is to design a new approach to save taxpayers money while targeting support to those most in need. Business support will go to those most affected and will incentivise energy efficiency. Corporation tax will increase to 25% as originally planned How the market has responded to the Hunt statement In short, positively. After the new chancellor’s statement, the pound rose and government borrowing costs fell as investors welcomed the news that almost all tax measures set out in the mini-budget were to be reversed. Sterling extended early morning gains against the dollar – that is now trading at around $1.13. The news has also seen the interest rate (or yield) on UK government bonds fall. The yield on bonds, which is due to be repaid in 30 years, dropped when markets opened this morning, then fell further after Jeremy Hunt’s statement to 4.35%. The yield on bonds due to be repaid 5 years’ time, which underpins the cost of new five-year fixed rate mortgages has fallen to 3.86%. The drops suggest the financial market is welcoming the changes. IR35 – What this means for contractors and businesses IR35 rules will remain as they currently are, with no changes from 2023. In positive news, this means that contractors will be able to continue working as they have done since April 2021, with the duty to determine IR35 status remaining with the corporate end user. The reforms were introduced in 2021 to the private sector, with the responsibility for assessing whether a contractor is self-employed or employed now being with the end client rather than the contractor themselves. The liability was transferred to the party paying the wages. The changes were unpopular and confusing for many. The controversy surrounding the changes prompted Sajid Javid to pledge a review of IR35. This was part of the Conservative party’s manifesto in the lead up to the general election. From there, the former chancellor (as of last week) Kwasi Kwarteng pledged to repeal the reforms. However, they will not remain as there were. Those who are genuinely self-employed and operate outside IR35 have nothing to worry about and continue to work as they are used to now. Why did we get a new chancellor? On Friday, Jeremy Hunt was confirmed as the new chancellor of the exchequer. This was after Kwasi Kwarteng was sacked on the same day, after 38 days in the job. The Prime Minister, Liz Truss, replaces him after weeks of financial market turmoil in reaction to the “Mini-Budget”, which was announced in September. Within the mini-budget, £43bn in unfunded tax cuts were announced and the markets quickly reacted, with the sell off of bonds causing a sharp rise in gilt yields. This caused havoc for mortgage holders and lenders, and the pound dropped to historic lows, before the IMF warned the UK to scrap tax cuts. What next? For now, we have the clarity needed on what the landscape looks like until the next Budget, but we will be keeping a close eye on any further changes that clients of Gorilla will need to be aware of and that will affect them.

For a lot of small business owners, bookkeeping is one of those boring chores you’ll do anything to put off until tomorrow. Of course, tomorrow never comes and the task becomes even more unappealing as the days go by. With the introduction of Making Tax Digital (the government’s scheme to move tax filing online, starting with VAT reporting), now is the perfect time to consider other ways technology and modern accounting and bookkeeping software can help improve the management of your business finances. If you’re still on the fence, let’s take a look at some of the ways complete accounting software or simple bookkeeping software can make your life easier. How does bookkeeping differ from accounting? Bookkeeping is the vital first step to ensuring your business meets its accounting and statutory filing responsibilities. This means recording the money coming into and out of your business, including your sales or invoices, and your expenses. Once you have this information, you organise it to help you make decisions about your business to help it grow or become more efficient. This part is called accounting. Accounting is also about ensuring you meet your responsibilities to report your financial performance to shareholders, Companies House (if you run a limited company) and HMRC as required by law. We may not be able to make bookkeeping fun, but we can definitely make it easier. At Account-Ease, we have a range of solutions to help you whatever stage you’re at with your business. Clarity and ease The greatest advantage when it comes to online bookkeeping or accountancy software is how easy it is to enter and access information about how your business is performing. Of course, your software won’t be able to do it all by itself – you’ll need to keep things up to date, and you may need the help of an accountant to make sense of the data, make well-informed financial decisions and keep on top of your financial reporting and statutory filing obligations. Thankfully, this usually only requires small, regular input from you. As with anything, you’ll get out what you put in – for those dedicated to keeping everything updated, you’ll be rewarded with simple, clear and accurate information about your business finances and tax obligations. Bookkeeping software is designed to make the process simpler, after all. Our free bookkeeping software lets you easily send invoices and record all your expenses to see how your business is performing. When you need more information, or if you need to start preparing statutory accounts and reports for your business, it’s really easy to upgrade to one of our complete accountancy packages for limited companies or sole traders. Helping you with VAT records and filing Speaking of which, bookkeeping software can help you better understand when you need to start thinking about registering for VAT – and help you decide what VAT scheme is best for your business. Legally, you must register for VAT when your business’s VAT-taxable turnover exceeds the current threshold of £85,000 over a 12-month rolling period. Similarly, if you expect the threshold to be exceeded in the next 30 days, you need to register. Without a reliable way of tracking your turnover, you might end up on the wrong side of HMRC – and you definitely don’t want to end up there! If you’re registered for VAT, you need to make sure that your accounting software is compatible with the requirements of the government’s Making Tax Digital regime. This means that your VAT records are stored digitally and are sent to HMRC automatically each quarter. A clear understanding of your tax liabilities With your business information stored neatly and accurately online, you’ll be able to quickly work out exactly what your tax liabilities are and how much you need to set aside to pay HMRC. This is an invaluable asset for a lot of small business owners who operate a limited company – with a clear idea of how much you’ll be expected to pay in Corporation Tax and VAT for your business, you’ll be able to budget with absolute confidence. It’ll also make things a lot easier when the time comes to get the information you need about the salary and dividends your company paid you in the tax year to include in your annual Self Assessment. Our unique services also enable sole traders to prepare their annual Self Assessment tax return with real-time information about their income from self-employment. Know what dividends you can take from your limited company Of course, the other great part of knowing how much you need to pay in company taxes is knowing how much you can put in your pocket. We use bookkeeping software’s which will let you see your income and expenditure, but you’ll need the complete online accountancy software that comes with limited company packages to give you a clear idea of your company profits, what tax you need to pay, and the amount of dividends you can take from your company. It’s worth remembering that it’s illegal to pay a dividend if your company doesn’t have sufficient profit after tax to cover the dividend amount. Accountancy software helps eliminate that risk, so there’ll be no difficult conversations with the taxman. Easy bank reconciliation Bank reconciliation is an important part of life as a small business owner. It’s a small, simple job that can have a big impact on your records and tax liabilities. To reconcile your bank statements, you need to get all your bank transactions and match them against your recorded expenses and sales invoices. This can be frustrating work, especially since even a single missing penny can cause disarray. With online bookkeeping software, the job becomes far, far simpler. At Account-Ease, we have secure links with a number of banks, so you can have all your business banking transaction data imported straight to your accountancy software, which then intuitively suggests a match in the expenses you’ve recorded or highlights any discrepancies. There’s no need to pore over paper records and drawers of receipts – you can just rattle through your bank reconciliation in a few mouse clicks, safe in the knowledge that

Jeremy Hunt announced his first Autumn Statement as Chancellor of the Exchequer to Parliament on 17th November, in a bid to bring economic stability to households, businesses and the financial markets. The Chancellor has pledged to meet the economic challenges facing the country, confirming several changes to fill a £55 billion gap in the UK’s public finances. In our summary, we highlight the key points from the Autumn Statement relevant to you and your business. Business Taxation  Business rates (England only)  From 1st April 2023, business rate bills in England will be updated to reflect changes in property values since the last revaluation in 2017. The business rates multipliers will be frozen in 2023-24 and support will be available, worth £13.6 billion over the next five years, as businesses transition to new bills following the revaluation. The relief for retail, hospitality and leisure sectors will be extended and increased, and there will be additional support provided for small businesses. Local Authorities in England will be compensated for the loss of income as a result of these business rates measures and will receive funding for administration and IT costs. Changes to Research & Development rates  Research and Development (R&D) reliefs support companies that work on innovative projects in science and technology. Previously, the rules allowed small and medium companies to: deduct an extra 130% of their qualifying costs from their yearly profit, as well as the normal 100% deduction, to make a total 230% deduction claim a tax credit if the company is loss making, worth up to 14.5% of the surrenderable loss For expenditure after 1st April 2023 the extra deduction will be reduced from 130% to 86% making a total deduction of 186% and the tax credit rate for loss making SMEs will reduce from 14.5% to 10%. For large companies, the research and development credit (RDEC) rate will be increased from 13% to 20%. This also applies to small and medium companies subcontracting to large companies. These changes are to come into effect from 1st April 2023. The Government plans to consult on the design of a single simplified scheme. However, these changes already put both systems on a par with one another where companies are profitable and tax is paid at 19% as the effective rate of relief is a little over 16% in each case.  R&D relief will continue to provide additional free funding and support. National Living Wage increase   The Government will increase the National Living Wage from a current hourly rate of £9.50 to £10.42 for those aged 23 and over from 1st April 2023. The minimum rate for 21 to 22 year olds will increase from £9.18 to £10.18, for 18 to 20 years olds from £6.83 to £7.49 and for apprentices and under 18’s from £4.81 to £5.28. While this is good news for an anticipated two million low paid earners, the impact to small business will be felt in increasing wage bills. VAT thresholds – frozen  The VAT registration and deregistration thresholds will also be frozen at £85,000 and £83,000 respectively for a further period of two years from 1st April 2024. Vehicle excise duty (VED) for electric cars  The Chancellor announced a significant change to the way electrical car taxation works and from April 2025, electric cars, vans and motorcycles will start to pay VED in the same way as petrol and diesel vehicles. Company car tax rates  To give longer term certainty for taxpayers and businesses, the Government is setting rates for Company Car Tax until April 2028. The rates will continue to promote the use of electric vehicles. Percentages for electric and ultra-low emission cars emitting less than 75g of CO2/km will increase by 1% in 2025-26; a further 1% in 2026-27 and a further 1% in 2027-28 up to a maximum appropriate percentage of 5% for electric cars and 21% for ultra-low emission cars. Rates for all other vehicles bands will be increased by 1% for 2025-26 up to a maximum of 37% and will then be fixed in 2026-27 and 2027-28. To continue to promote business investment in charging infrastructure, the First Year Allowance (FYA) for electric charge points will be extended until 31st March 2025 for companies and 5th April for non-corporate businesses. Personal Taxation  Tax rates and allowances frozen until April 2028  Rather than opting to increase the headline rates of tax, the Chancellor decided to extend the freeze on a broad number of tax thresholds, and this will cause an effective increase in taxes as inflation pushes more individuals into higher rate bands. The below tax thresholds had already been fixed at their current levels until April 2026, and will now be frozen for a further two years until April 2028: Income tax personal allowance – £12,570 Income tax higher rate threshold – £50,270 The personal allowance and the higher rate income tax threshold for dividend and savings income, applies across the UK. The higher rate income tax threshold for non-savings and non-dividend income (for employment and sole-trader income) will only apply to taxpayers in England, Wales, and Northern Ireland. The Scottish Government is expected to announce tax and spending plans on 15th December. National Insurance rates frozen until April 2028  In July 2022, the NIC primary threshold for employees and the Class 2 Lower Profits Threshold for the self-employed were reduced. They will both now be frozen until April 2028. Employers generally start to pay Class 1 Secondary NICs on their employees’ wages at £9,100. This threshold will also be frozen until April 2028. Where eligible, some companies can claim the Employment Allowance to reduce their employers annual National Insurance liability by up to £5,000. The Government advise that this allowance means 40% of businesses do not pay NICs and will be unaffected by this change. It is expected that the largest employers will contribute the most. The National Insurance thresholds apply across the UK. Dividend allowance reduction  The Government will reduce the dividend allowance from £2,000 to £1,000 from April 2023, and to £500 from April 2024. Individuals have a dividend allowance each year which means they only pay tax on any

If you are already self-employed, you will be aware of self-assessments and your self-assessment tax bill. Many find it a stressful part of being self-employed, having to keep on top of incomings and outgoings throughout the year to ensure you submit an accurate assessment. What makes this even more difficult is if you are used to storing this information manually. As the tax return deadline approaches for the 2021 to 2022 tax year on 31st October 2022 for those completed on paper forms, and 31 January 2023 for online returns, HMRC is encouraging customers to plan ahead to give themselves the best chance to complete their Self-Assessment on time. Completing a self-assessment Self-Assessment is the process in which you tell HM Revenue & Customs of your income, gains and relevant expenses for the tax year. You do this by completing a tax return, sending it to HMRC and calculating your tax liability. If you do this online, it will calculate your tax liability automatically. You must send a tax return if, in the last tax year (6 April to 5 April), you were: self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on) a partner in a business partnership You will not usually need to send a return if your only income is from your wages or pension. However, you will need to if you also have untaxed income from: a COVID-19 grant or support payments money from renting out a property tips and commission income from savings, investments and dividends foreign income Making Tax Digital The government’s intention is to update the method of reporting taxable income by April 2024. This will be replaced by a predominantly digital system, known as Making Tax Digital. Making Tax Digital was first announced in the Spring Budget back in 2015 and is designed to transform the UK tax system for individual contractors and self-employed businesses. Its aim is to make the tax system more efficient, effective and easier by introducing digital record-keeping. MTD is to help HMRC to become one of the world’s most digitally advanced tax administrations. From April 2019, most businesses were also required to file their VAT returns on a quarterly basis. With some already doing this every 3 months, it wasn’t a big change, however these now need to be recorded digitally on MTD-compliant tools. From April 2022, all VAT returns now must be stored and submitted digitally no matter your turnover. By Making Tax Digital, HMRC intends to collect £4.8 billion by 2023. An estimated £9.4 billion in tax revenue goes missing due to errors or incorrect submissions, which the government aims to reduce. Thousands of contractors, freelancers and SME owners have kept paper-based records or used Excel spreadsheets in the past to keep track of their expenses or invoices. This can cause mistakes and documents can be lost. Now that we’re at a stage where VAT submissions must be MTD-compliant, Account-Ease can help. What exactly needs to be recorded digitally? Keeping certain information as MTD compliant digital records is now a requirement from HMRC, and they need to be as current as possible by storing and recording each transaction. You will also need to keep the following information as digital records: Business name Place of business VAT registration number Rate of VAT charged Supplies you made and received Their time and value All your records must be stored digitally for six years. The accounting software you use must also be capable of displaying the audit trail between records and VAT returns. What happens if you are non-compliant with MTD? Businesses must comply with MTD or they will face a penalty system. This would be applied to the first VAT return you file, and has been in place since 1st April 2021. This is a default surcharge that lasts for 12 months, another surcharge if you fail to comply again (applied to the VAT due on your latest return). A points-based system if you continue to fail in your compliance. The surcharge is calculated as a percentage of the VAT that’s unpaid by the due date. The percentage for the first late payment is 2% of the outstanding VAT, then will increase to 5%, 10% and 15% for further payments. You can also be fined if your VAT return has errors in it, so it is so important to make sure everything is correct. How can you avoid any errors? At Account-Ease, all of our clients get fully inclusive use of FreeAgent included in their monthly fee. FreeAgent is an award-winning bookkeeping software that is MTD compliant, which is cloud-based meaning you can access it anywhere, any time. Handling financial data, especially online, is something a lot of people worry about. However FreeAgent is completely secure, with all the financial data safely transferring to their backup servers several times an hour. Whether you’re a locum, contractor, sole trader or small business owner, you can submit your digital VAT returns through FreeAgent. Thousands trust FreeAgent daily to track expenses and income easily and quickly. 7 benefits of using FreeAgent & Account-Ease 1)     It’s cloud-based You can access your account any time on any device as long as you have an internet connection. It is comprehensive, meaning you can keep on top of it from your shop, on a site, in the office or at home. 2)     Use it out and about Because of the cloud-based basis of FreeAgent, you can upload receipts and manage your expenses straight away when you’re on the move. 3)     It saves time Many tasks are laborious or repetitive, but with FreeAgent you can automate it using clever inbuilt features, meaning you can focus on the day-to-day tasks of running your business without as many admin distractions. 4)     It’s more efficient for billing Billing and invoicing can be automated and you can track unpaid invoices in real-time, meaning you never miss any payments. You can also set up payment reminders against due dates or expected payments and

An accountant is a key member of any small business team. They are indispensable for keeping up-to-date financial records and providing valuable financial advice and planning at every business stage. Account-Ease is a leading provider of online accounting services for small businesses. We know that every business is unique and we are dedicated to providing personalized, scalable accounting services that help your company grow. Through our customized services and experienced accountants, we seek to help you make profitable decisions. Set achievable business goals and prepare your business for future financial success when you work with Account-Ease. Small Business Cloud Accounting  Get unprecedented flexibility in the ability to successfully manage your business’ finances with small business cloud accounting. Cloud accounting for SME and small business means you can easily access your financial statements, expense reports, and budget analyses online any time that suits you. View your current financial position so you can make timely decisions on behalf of your business and take advantage of opportunities as they arise. Data about your sales, income, and expenses can be live synced directly from your bank and credit union. No need to manually input data into a program on a daily basis. The cloud software allows for multi-user access so you can easily collaborate with managers, employees, and your financial advisors. The fully customizable dashboards and automated reports provide clear and easily digestible snapshots of your cash flow and finances. Lastly, with cloud-based small business accounting programs, security and consistency are paramount. Updates are automatic, there is no program to install on your hardware. Your data is fully backed up and secured at all times. Benefits of Online Accounting for Small Business Accounting for small business is all about helping you stay organized and giving advice so you can make informed business decisions and find innovative ways to grow your company. Our team of experienced ACCAs (Association of Chartered Certified Accountants) work virtually and seamlessly as a member of your team throughout the year. Not just at year-end, to help you retain control of your bottom line. Keep up to date records and financial statements Revenue, business costs, and payroll are just some of the expenses that must be tracked regularly to maintain organization. A dedicated small business accountant can organize all relevant documents regularly, freeing up your valuable time. Manage your cash flow Be prepared for large expenditures, whether it be a business expansion or payroll for a new hire. With the regular record-keeping of an accountant, you can more easily manage your cash flow and not get caught off guard by unexpected expenses. State-of-the-art accounting software A stress-free year-end Year-end can be chaotic when a business has not maintained organized accounting. A small business accountant manages your finances year-round and handles all relevant tax filing and documents, completely taking the stress out of your hands and making your year-end simple. Keep an eye on unnecessary costs It can be hard to discover unnecessary costs and sunken capital without regular SME accounting. An accountant is able to find expenses that could be shrunk and make a big difference to your regular cash flow and investments. Stay on top of accounts payable and accounts receivable Small business is all about relationships. Stay on top of your bills and invoices to never miss a payment and ensure good vendor and client relationships, even at your busiest time. Mitigate risk Missing a single document or deadline when it comes to taxes or accounts receivable can have disastrous consequences. Have peace of mind knowing your small business accountant is keeping your company on track. Make informed business decisions backed by financial data and analysis Know the financial benefits and risks of any new business venture, whether it be moving offices, merging, hiring new staff, or purchasing new equipment. We are trusted by CEOs and managers across United Kingdom. Our Certified Public Accountants have the experience to go beyond basic daily accounting and provide you with personalized solutions. Dedicate your time to what you love – running your business. Let us manage your accounting. What is the Cost of an Accountant for Small Business? The average rates of an accountant for small business varies from company to company, within industries, and depends on the scale of service required. Many small businesses require some level of accounting services but may not have the budget or resources to hire an internal accountant. Businesses with an in-house accountant may see their financial needs grow beyond a single person, but lack the resources to build an accounting department. Virtual accountants for small business are a comprehensive solution. Whether you are a start up with few accounting needs, or an established small business looking for robust advising and accounting services. You can have all your needs met by an experienced team. The fully customizable and scalable online accounting for small business at Account-Ease can save you thousands of dollars per year while giving you access to a full team, comprehensive services, and the ability to grow. Scalable Accounting Packages for Small Business Proper accounting plans allow for a company to increase revenue, manage expenses, exercise sound financial planning, and make informed business decisions. Without well-organized books, a business is at a disadvantage when it comes to all types of financial planning. However, small business owners rarely have the time and resources to dedicate to handling the accounting themselves. May not have the capital or a need to hire a full-time internal accountant. At Account-Ease, we are dedicated to providing clients across United Kingdom with the best customized cloud accounting services. Does your company need a full-time small business accountant? Or do you simply need to fill a few gaps among your existing staff? Whatever your small business needs, we have scalable accounting services that suit you. The services in our accounting packages for small business include: Bookkeeping and financial reporting Preparing annual statements of accounts Preparing and filing all relevant income tax documents Self-Assessment tax return Landlord Accountancy Services Payroll services VAT