Gov’t support for businesses and employees

Cash grants

£10,000

All businesses with premises in England, who are eligible for small business rate relief or rural rate relief and have a tradeable value below £15,000 will be eligible for the grant. The Government stated that the various local authorities are responsible for writing to you regarding this.

£25,000

A further grant of £25,000 will be available to those in retail, hospitality and leisure who operate from smaller premises, with a rateable value over £15,000 and below £51,000. Again – the local authorities are responsible for writing to you regarding this.

VAT holiday

For businesses, a three-month VAT holiday means registered firms will not need to pay VAT until the end of June. However, those bills will still need to be repaid in full by January 31, 2021, subject to further change.

Similarly, a July 31st Income Tax Payment can be deferred to January 2021 if you have one to make – at which point your normal January 2021 tax bill will also be due.

IR35 changes deferred to April 2021

The Government has delayed extending the Off Payroll Working rules, and they will now come into effect for private sector businesses from April 6, 2021. 

Funding for SSP payments

Statutory Sick Pay (SSP) is granted from day 1 of an absence rather than day 4 and the government will reimburse small employers for up to 2-weeks of SSP per eligible employee. 

The extended SSP will be available for all those who are advised to self-isolate, even if they haven’t yet presented with symptoms. Eligible employers are those who had less than 250 employees at the end of February 2020. Employers should ask for an isolation or sick note, which the individual can complete at NHS 111 online.

Business rates holiday

The Government is giving businesses in the retail, hospitality and leisure sectors a rates exemption for the tax year 2020 to 2021. This should be organised automatically by your local authority and is for the 12 months to March 31, 2021.

Business interruption loans

The government is giving banks and other lenders financial support with the aim of issuing loans under the CBIL scheme. Included is a 12 month interest holiday, paid for by the government. Banks and lenders under this new plan would be open as of this week.

How to remain connected to clients in times of uncertainty

Now more than ever, digital communication is vital for Accountancy firms to remain connected with their clients in times of such uncertainty.

As the nation is adapting to life in lockdown and listening to the daily updates from the Government, one thing that is certain is that the communication gap is widening. A lot of people are wondering what to do next with their business, and how to take advantage of the support that is being made available.

With your own branded communication App, built on our OneApp platform, you can make sure to inform customers of the latest grants, business support and general help available to them.

Over the past few weeks, our current customers have been using their App to frequently communicate with their clients about the ever-changing situation through automated push messages; managed and sent by us, to save you time – daily Government updates, tax cuts, loan schemes and more. Communicate the latest information above and use Push Notifications which gives your firm a much higher response rate than email and is essential for effective client communication.

Click below to demo the App completely free, and see how the communications can help revolutionise the way your firm engages with clients.

Calm. Care. Communicate: Now’s the time to be the trusted advisor

As the Coronavirus pandemic sweeps the globe, it would be all too easy to see only the negative in what is happening. The challenges for businesses, large and small, are undoubtedly huge and it is a worrying time for everybody. Our advice is simple; stay calm, care for your employees and your clients and communicate with both effectively.

Calm
Stay calm. During uncertain times, people look to leaders for reassurance and guidance and here lies a real opportunity for accountants to take on the true role of trusted adviser and to find new ways of getting even closer to their clients to guide them through this crisis.

Care
Show you care. Right now, your clients and your employees need you more than ever. They’re likely anxious about what lies ahead and want to feel someone they trust is looking out for them. Make it a priority to speak with them regularly to keep them up to date with a steady flow of accurate information while at the same time reassuring them you are always available to provide practical advice.

Communicate
Communicate as much as possible. Disregard all the old rules about when and how to communicate and call, email, Skype, text and use push notification messaging to talk about the challenges your clients face and let them know you are on their side. Everyone needs help at a time like this and with Government advice changing daily, there is definitely no shortage on the guidance you can share with them through digital channels, from the latest government advice, monitoring cash flow right through to helping arrange finance.

This is a fast-changing situation and those that take the opportunity to make this all-important gear shift and get closer to their clients will be in the best position to emerge stronger. To set the ball rolling here are our top recommendations for staying operational and at the same time client-focused. The same tips can also be passed on to your clients.

1. Utilise all the technology now available

The Government has advised that non-essential travel and contact is to be avoided so the use of technology will need to be ramped up and used wherever possible to stay in constant touch. It’s never been a better time to invest in collaboration technology tools and modernise your communication methods as it’s likely even after this situation passes that the way we work will have changed significantly for the long-term.

• Look at using cloud servers to share data in real time
• Instead of holding meetings in person, conferencing applications such as Skype or Zoom, that are now as close as possible to face-to-face meetings, are a great alternative
• Use chat-based collaboration tools such as Slack or Microsoft Teams to keep up to date with colleagues and even clients in real-time. You can utilise features like document collaboration, one-on-one chat and team chat. They also have their own mobile App, so you’re always connected
• The focus will be on video chats and phone calls to keep in touch. This approach is likely to receive your clients blessing as spending time away from their businesses in meetings is increasingly seen as a waste of valuable time
• Developments in technology have made electronic signatures the most secure and fast way to get paperwork and returns authorised. If a client is working from home due to the virus and the document has been sent to his office, there will inevitably be a time delay before it gets signed. Use the current situation as the perfect opportunity to move to electronic signatures, using tools such as Docusign, Adobe Sign or a mobile document scanner (we have a free version available in OneApp) wherever possible for a faster and more environmentally friendly turnaround

2. Keep connected with clients

The current state of uncertainty is unsettling and businesses, now more than ever, will need their accountants’ help to ride out the coming months. The budget announced a £12bn raft of measures in a bid to help those who need to preserve cash including HM Revenue and Custom’s suspension of ‘time to pay’, business rates relief, £3000 grants for the smallest businesses, the Coronavirus Business Interruption Scheme and the reclaiming of the cost of 14 days sick pay. The Government has since announced a financial rescue package including state loan guarantees worth £330bn along with a further £20bn of financial handouts to help struggling businesses cope with the economic catastrophe caused. Your clients will want to know how this affects them and how they can access the funding if needed – it is your role to guide them through it.

The pace of the announcements and the ever-changing situation we currently find ourselves in means you need instant and effective ways of connecting with your clients to keep them updated and show you care. At MyFirmsApp, we have been sending timely push notifications to our customers’ Apps in order to keep their clients up to date with the latest developments. Some of our customers have also benefitted from sending their clients regular push messages themselves via their App  – the advantage of push messages is that they are instant and almost always read, rather than being lost in the email inbox, which is vital when news is continuously changing.

3. Contingency planning

Maintaining the highest levels of client care will remain a firm priority. Here are just a few areas to consider:

• Look at policies surrounding business travel and if a ban is imposed, advise clients of alternative methods
• Establish who will be responsible for advising clients if members of staff are tested positive for the virus or are self-isolating
• Instigate back up policies in case staff are unable to fulfil time critical tasks
• Hold an IT review for those working at home to check that systems are as secure as if working in the office. Ensure all client information remains confidential, stored on a central server or in the cloud and is backed up
• Ensure the technology is in place to hold physical meetings remotely, you’ll likely be pleasantly surprised at how easy online meetings actually are!
• Plan resourcing strategies to minimise the risk of disruption if large numbers of staff are absent such as the re-allocation of staff, the splitting of teams and the cross-training of staff who perform business-critical functions
• Develop contingency plans for cost savings in case revenues are negatively impacted, in order to ensure business continuity as much as possible. This may include minimal salary reductions across all staff to help retain full employment
• Establish digital procedures for signing of documents

The time for leadership is now

The full consequences of Coronavirus are still unclear but one thing we do know is that the human and business impact is set to be massive. Accounting firms have an obligation right now to care for their employees and clients and address the challenges being presented head-on. Now more than ever, Accountants need to present themselves as the trusted adviser in a time of crisis and maintain strong client relationships through effective communication and the use of modern, collaborative technology.

New Advisory Fuel Rates and mileage allowances from March 1st

Latest rates show a cut in mileage rates for petrol cars with an engine of over 2,000cc by 1p per mile.

HMRC estimates that 750,000 people a year out of the 11.5 million who should file the paperwork for Self-Assessment fail to lodge their return in time!

It was reported going into the final week of January this year that more than 3 million people were yet to send their 2018/19 tax return in. That figure was likely to have reduced, but it’s certainly amazing when you consider the penalties and charges for missing the deadline and subsequent late filing.

Tax penalties apply for the late filing of Self-Assessment (SA) tax returns and late payment of tax due under SA.

It’s important to remember as well that, for your clients, the late filing penalty system changed for returns and payments from the 2010/11 year onwards. This can bring severe implications for clients of yours that have to file for Self-Assessment and end up missing the January deadline.

An initial fine of £100 will be imposed to clients if they didn’t get their info to you – or to HMRC – in time.

90 days is then provided to file after which a fine of £10 per day will begin to incur and could see a potential penalty of up to £900. After 6 months, a further penalty of either 5% of the tax due or a £300 charge will be owed, and your client will be further out of pocket – whichever is greater.

How can you effectively manage client communications around tax filing and penalties?

With your own App you can set up small client groups for Self-Assessment and send notifications to prepare clients for the deadline. Whether they are filing themselves or you are filing for them and need their documentation – notifications are five times more effective than email and land straight on their device home screen.

You can also detail the relevant penalties at each stage post-deadline, so it enables your clients to receive important information immediately on what they need to do – and the consequences if they don’t. This helps to strengthen the relationship and save you valuable time and resources as you prepare for and come out of the busiest period of the year.

Thousands of firms worldwide are already using push notifications as part of their digital strategy and engaging with clients on their chosen device 24/7.

To find out more about how your own App can benefit your practice, reduce stress, save time and ease your firm both into and out of the self-assessment period and other important deadlines then book a free demonstration today.

In the news: A look ahead to next month’s post-Brexit Budget and your free Budget App

While Brexit may have been dominating the headlines, the Conservative government and Chancellor Sajid Javid will also be preparing to deliver the first post-Brexit Budget on March 11^th.

It’s set to be the UK’s first Budget in more than four decades as a non-EU state but what key areas of key finance should you be prepared for?

What to look out for – and what surprises could the government spring?

Tax cuts and thresholds

The election manifesto included a tax cut for more than 30 million workers in the form of an increase in the threshold for paying National Insurance – due to save workers earning more than £12,600 around £100 per year.

Currently, on earnings over £8,632, you must pay 12% NICs. If the Chancellor’s election promise is confirmed in the Budget, this tax will only be payable on earnings over £9,500.

Property

Previous plans to overhaul stamp duty – raising the threshold for paying it from £125,000 to £500,000 at the same time as lowering the top rate from 12% to 7% – was dropped from the Tory manifesto but it’s worth keeping an eye on whether this could make a comeback in the Budget.

A promise was initially made in the Queen’s speech with regards to helping first time buyers by launching the First Home Scheme, resulting in local homeowners getting a 30pc discount on property. It’s claimed this will save first time buyers tens of thousands of pounds.

Pensions

The topic of pensions is likely to centre on the tapered annual allowance. In their manifesto, the Conservative Party promised to launch an urgent review of the taper problem in doctors’ pensions.

The annual limit was in excess of £250,000 as recently as 2010/11, but it has been cut dramatically and now stands at just £40,000. For higher earners an additional ‘taper’ brings the allowance down further to just £10,000 for individuals with total earnings of £210,000 or more.

Senior clinicians in the NHS are facing huge tax bills if they and their employer pay into a pension above the tapered annual allowance. Workers have chosen to turn down work and overtime, rather than risking a retrospective pension tax charge.

Other announcements

There may also be announcements on topics such as social care, environmental policy and even IR35 – stricter tax rules for contractors that are set to be rolled out across the private sector from this year. But with a review of the extension taking place this month, could IR35 be delayed further?

How can accountants effectively communicate key Budget updates to clients?

The digital age is helping accountants to achieve transformational efficiencies and be proactive rather than reactive, all through App technology.

Instead of producing Budget cards that list the changes announced, which then need to be sent to clients, or pulling together email content to send to your client list, the digital age allows an instant turnaround that enables key changes to be communicated in almost real-time via your own App.

Your free Budget App

One of the features of OneApp, the leading App for Accountants in practice, is the Budget Pack and live notifications which allow you to communicate budget updates to your clients effortlessly. OneApp contains a library of Budget information which is kept up to date by our in-house content team so your clients can access it in your App at any time. On the day of the Budget our team send out push notifications straight to your clients’ Smartphone which contain key announcements and updates instantly as they happen. Best of all is you don’t need to do a thing – our team writes, collates and sends the information for you. This adds massive value to the service you provide your clients – as they are receiving real time, accurate, important information all via your own branded App.

You can download a free trial of our budget App in advance of next month’s budget here!

New Guide Makes It Easier for Accountants to Choose the Right Receipt Management Tool for Every Client

‘The plastic bags rammed full of receipts are becoming a thing of the past and most clients are looking for ways to make their day-to-day lives easier’

MyFirmsApp has unveiled the latest in a series of helpful guides for Accountants in practice. This latest version makes it easier for accountancy practices to choose the receipt management software that is right for them and their clients. The ‘Definitive Guide to Receipt Management Software’ explores the options that are available for business clients to snap receipts automatically in real time and simplify the process of managing receipts. Its intention is to help accountants make an informed choice by providing summaries of their respective features and benefits in a quick and easy read and covers:

• Where to begin when thinking about Receipt Management Tools
• The security around this technology, and the storage of data
• Detailed reviews of the main Receipt Management Tools on the market
• How to encourage business clients to start using a Receipt Management App

Allison Plager, a leading writer to the profession and author of the well-received ‘Definitive Guide to MVD Bridging Software’, has conducted extensive research of the market to produce this invaluable guide. As she points out, there are many different receipt management tools available on the market; all with different features and benefits that are designed to take full advantage of the move to digitalisation.

“The plastic bags rammed full of receipts are becoming a thing of the past and most clients are looking for ways to make their day-to-day lives easier, so they can concentrate on their core business rather than time consuming administration,” Allison comments. “It is a legal requirement that businesses keep records but, even under Making Tax Digital, HMRC will not insist on scanned copies of receipts. Businesses now have a choice whether to keep physical or digital records but for those that go the digital route, there are distinct advantages in terms of generating efficiencies and time savings for both elements of the partnership: the business owner and the accountant.”

Daniel Richards, Strategic Partnerships Director at MyFirmsApp – developers of the leading OneApp platform that includes an in-built free receipt management tool for accountants to give to their clients says: “As we make our way in the brave new world of digitalisation, apps such as receipt scanners will become commonplace. They are clearly suited to businesses as they seek to automate processes, free up admin time and adjust to HMRC’s Making Tax Digital project.”

All the products reviewed in the guide have in common the facility to scan receipts and store them in the cloud. While, some products are essentially a means of tracking employee expenses, saving the need for paper expense claims and often resulting in speedier payments to the employee, others are aimed squarely at small businesses that wish to speed up and automate their bookkeeping by using their phone to take a photo of a receipt.

Accountants that go down the digital route are seen to be helping their clients find an easier way to manage their finances by making it quick and easy to capture receipts and information. The accountant gains too as digital receipt management tools generate valuable practice efficiencies saving hundreds of hours that would once have been spent sifting through paper receipts.