July 23, 2019

We are very please too announce two huge successes within the firm! 

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Firstly, Futurelink Accountancy Services Limited - Chartered Accountants have been shortlisted for three awards at the British Accountancy Awards 2019 which are being held in London in September!  

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Secondly, we have become a Xero Champion partner, in partnership with the cloud-based accounting software! 

January 10, 2019

So as we are nearing the end of the deadline to file tax returns, accountants are getting stressed and people are getting panicked about getting their tax returns completed. 

Although the returns are due by January 31st, they are issued on the 6th April which enables 9 months available in which to fill out a tax return and get yourselves sorted before the big rush in January. 

Here are some reasons of why it may be easier to file your tax return earlier:

1 - No last minute panic of getting your details together and getting the return completed. 

2 - Lower Accountancy fees - January is a busy time for accountants with many last minute requests and because of this their fees rise over January in order to accommodate those people who have left it until January. 

3 - Budgeting - If you complete your tax return a few months earlier than the deadline, then you will have time to save some money to be paid to HMRC as you will know how much you will need to pay back. 

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Any help with filing tax returns, please contact us on 01923 277900 or email FLAccountancy@futurelinkgroup.co.uk. 

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January 09, 2019

Interest is now payable on an amount of unpaid tax from 30 days after the relevant date. From 1st March 2019, where a return and tax due is required within 14 days, interest is payable on any unpaid tax from 14 days after the relevant date. 

January 09, 2019

The minimum pension contributions are increasing as of April 2019.

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Between 6th April 201 and 5th April 2019, the minimum contribution is 5% with at least 2% from the employer. However, this is increasing and from the 6th April 2019, the minimum contribution will become 8% with at least 3% from the employer. 

November 26, 2018

Congratulations to our Finance Director, Adam Becker, for the winning the Best Accountant of the Year award at The Global Venture awards! 

October 30, 2018

There has been much lobbying from the small business sector to reduce business rates to enable traditional retailers in particular to compete with internet traders.

The Chancellor has announced a one third reduction in business rates for small businesses with premises with a rateable value up to £51,000.

October 30, 2018

The VAT registration limit normally increases in line with inflation each year. However, It was announced last year that the limit would be frozen at £85,000 until 1 April 2020. It has now been announced that the limit will now remain at the same level until 2022.  The deregistration limit will remain at £83,000.

October 30, 2018

The amount of repayable R&D tax credit for Small and Medium Sized Enterprises (SMEs) will again be restricted by the amount of the claimant company’s PAYE and NIC liability from April 2020.

The new limit will be set at three times the company’s total PAYE and National Insurance contribution (NICs) payment for the period.

October 30, 2018

A new 2% straight line tax deduction is being introduced for the cost of construction or renovation of commercial buildings and structures.

This tax break will apply to eligible construction costs incurred on or after budget day and will be available to commercial property landlords as well as trading businesses. The cost of the land is specifically excluded.

October 30, 2018

The Annual Investment Allowance (AIA) which provides businesses with a 100% write off against profits when they acquire plant and machinery has been temporarily increased from £200,000 to £1 million for two years from 1 January 2019. This will again mean that the timing of expenditure will be critical. It may be advantageous to delay expenditure until after 1 January 2019 to get full benefit in certain circumstances.

However, the current enhanced capital allowance for energy efficient plant will be abolished from April 2020. A further change is that the writing down allowance for special rate pool equipment, broadly long-life assets and fixtures in buildings, is being reduced from 8% to 6% from April 2019.

October 30, 2018

As previously announced the current 19% rate is scheduled to reduce to 17% from 1 April 2020.

October 30, 2018

The Chancellor has announced that the minimum qualifying period for CGT entrepreneurs’ relief will be increased from 12 months to 24 months for disposals on or after 6 April 2019.

There are further changes affecting shareholdings in personal companies. In addition to the individual holding 5% or more of the ordinary share capital and voting control they will also now be required to be entitled to 5% or more of the company’s distributable profits and assets in a winding up.   As now the individual must also be an officer or employee of the company concerned; and the company must be a trading company or the holding company of a trading group.

October 30, 2018

Very controversially, the Government have decided to extend the rules for personal service companies in the public sector to workers in the private sector from April 2020.

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This follows a consultation in Summer 2018 on how to tackle non-compliance with the intermediaries legislation (commonly known as IR35) in the private sector. The legislation which has applied in the public sector since April 2017 seeks to ensure that individuals who effectively work as employees are taxed as employees, even if they choose to structure their work through a company. There will be further consultation on the detailed operation of the rules, and small businesses (yet to be defined) engaging such workers will be excluded.

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This will represent a significant administrative burden on large and medium-sized businesses who will be required to decide whether the rules apply to payments to such workers and deduct tax and NICs.

October 30, 2018

The basic rate of income tax and higher rate remain at 20% and 40% respectively, and the 45% additional rate continues to apply to income over £150,000.

There had been rumours that the dividend rate might be increased, but dividends continue to be taxed at 7.5%, 32.5% and then 38.1% depending upon whether the dividends fall into the basic rate band, higher rate band or the additional rate. Note that only the first £2,000 of dividend income is now tax free.

The annual ISA investment limit increased to £20,000 from 6 April 2017 and remains at that level for 2019/20. Dividends on shares held within an ISA continue to be tax free.

The much rumoured further restriction in pension tax relief failed to materialise.

October 30, 2018

The Government’s manifesto pledge back in 2015 was that the personal allowance would rise to £12,500 in 2020 and the higher rate tax threshold to £50,000. However, the Chancellor has decided to bring forward these increases one year early from 2019/20, taking an estimated 1 million taxpayers out of higher rate tax.

Note that up to 10% of the personal allowance (£1,250 from 6 April 2019) may be transferred from one spouse or civil partner to the other if unused and the transferee is a basic rate taxpayer.  As announced last year, this transfer is now available on behalf of deceased spouses and civil partners.

October 30, 2018

As previously announced, these were the main themes of the Chancellor Phillip Hammond’s third budget but what we were waiting to hear was where the extra money was going to come from? Had he found a “Magic Money Tree”, or would tax and borrowing have to increase?

We now know that the extra money will come from better than expected economic growth and consequential increased tax revenues. But there may have to be a Spring 2019 Budget if Brexit negotiations don’t go to plan….

July 19, 2018

We have the pleasure of announcing that Futurelink Accountancy Services Limited have been shortlisted for two awards at the British Accountancy Awards 2018!

February 08, 2018

Hertfordshire based Chartered Accountancy firms Norman Stanley and Futurelink Accountancy Services Limited are pleased to announce they are merging on 1 February 2018.

The new firm, based at the offices of Norman Stanley in Theobald Street, Borehamwood will be called Norman Stanley Associates Ltd.

“We are delighted to have linked up with Futurelink Accountancy Services. Our two firms have complementary skills and client bases. The merger will enable us to strengthen our market position in the South West Hertfordshire area and beyond. It was crucial to find the right firm who share the same vision and ethos. The merger will create a fresh new approach, coupled with a vibrant, young and experienced team. We look forward to an exciting future and to expanding the practice further,” said Norman Schuman who will remain as managing partner.

Award winning firm Futurelink Accountancy Services Limited, based in Kings Langley specialises in contractors and payroll services. In 2017 Futurelink Accountancy Services Limited was short listed in the much acclaimed British Accountancy Awards for no less than 7 prestigious awards including New Practice of the Year, Best Client Project of the Year, Rising Star of the Year (Jack Smith) and Finance Director of the Year (Adam Becker).

“In an ever changing market place, it is vital to harness opportunities that the digital age offers and become an early adopter of solutions that benefit clients. Futurelink Accountancy Services Limited embraces the opportunities that Making Tax Digital has to offer and is well placed to seize those opportunities. Our aim is to provide a professional yet personal service to all our clients and this will remain our ongoing focus as we look towards an exciting and prosperous future. Our strategic merger with Norman Stanley will enable us, the enlarged practice and the combined clients to benefit from our award winning expertise.” Said Futurelink’s Group Finance and Tax Director - Adam Becker who joins the Board of Norman Stanley Associates Ltd.

Richard Schuman, will remain as a part time consultant and Mesut Hussein will remain as Practice Manager.

February 08, 2018

Making Tax Digital (MTD) for VAT is scheduled to start in April 2019 which means that your VAT information needs to be submitted to HMRC digitally.

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On 18 December 2017, HMRC published draft legislation together with examples of how the business account records might link with the HMRC computer in order to comply with MTD for VAT. The legislation specifies that “functional compatible software” must be used to record and preserve prescribed VAT related data.

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What are Digital records?

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“Functional compatible software” must be used to calculate the VAT due, report the VAT figures (as per the current VAT return) to HMRC, and to receive information back from HMRC.

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VAT related data for each sale and purchase made by the business includes the time of the supply, the value and the rate of VAT charged, or in the case of purchases, the amount of input VAT allowed.

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There is no requirement in the draft regulations that the electronic recording of this data must be done at the time the supply is made, or when the purchase is received. As long as the data is recorded electronically by the earlier of the date that the VAT return must be submitted, or is actually submitted.

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Digital Links in the Trail

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The business can use more than one piece of software to keep its digital records, but those separate software programmes must be “digitally linked”. HMRC provides examples of what it means by digitally linked in the draft notice.

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One example is a business which uses one piece of accounting software to record all sales and purchases. This software then calculates the return and submits it to HMRC. As well as the records in the accounting software, the business uses a spreadsheet to keep track of a fleet of cars and work out its road fuel scale charges. The draft guidance suggests that the business can type the adjustment into its accounting software.

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We can of course work with you to make sure that your accounting systems will comply with the new VAT rules before they start in 2019. Note that MTD for VAT will not be mandatory where turnover is below the VAT registration limit, currently £85,000 per annum.

February 08, 2018

Many of you will have just paid your 2016/17 tax bill before the 31 January 2018 deadline, and some of you will also have paid 50% of next year’s tax on account. Here are a couple of tax planning ideas that can help you obtain a tax refund.

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Invest in EIS or Seed EIS qualifying companies

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Before 6 April 2018, individuals may invest in companies that qualify under the Enterprise Investment Scheme (EIS) and treat that investment as having been made in 2016/17. The tax relief is 30% of the amount invested. So a £20,000 investment can reduce the 2016/17 tax liability by £6,000. Investing in a Seed EIS qualifying company is even better as there is a 50% tax relief. Such companies tend to be riskier than EIS qualifying companies. You should therefore obtain specialist advice from an IFA if you are considering such investments.

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Investing in an EIS qualifying company can also enable you to defer capital gains tax. In order to do so, you must reinvest the amount of the gain within the 3 years following the date of the disposal giving rise to the gain. (The investment could also be within 12 months prior to the disposal).

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Increase your Pension Savings before 6 April 2018 to reduce payments on account

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Unfortunately, investing more in your pension now will not reduce your 2016/17 tax liability. However, if you invest before 6 April 2018 that payment can be taken into consideration in computing your 2017/18 liability and hence you might be able to claim to reduce your payments on account, if you make them. The maximum pension contribution is generally £40,000 each tax year, although this depends on your earnings. It is also possible to add to this any unused relief brought forward from the previous three tax years.

February 08, 2018

If your pension savings exceed the annual pension input limit, (generally £40,000) then there is an annual allowance charge. The effect of the annual allowance charge is to reduce tax relief on any pension saving over the annual allowance.

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The annual allowance charge is not at a fixed rate but will depend on how much taxable income an individual has and the amount of their pension saving in excess of the annual allowance. Hence for a higher rate taxpayer, the charge would be 40% on the excess over the annual pension allowance. Note that annual pension input includes any contributions made by the employer and it may be those contributions that trigger the charge.

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You can ask your pension provider to pay HMRC out of your pension pot if you’ve gone over your annual allowance and the tax is more than £2,000. You must tell your pension provider before 31 July if you want them to pay the tax charge for the previous tax year.

February 08, 2018

Many of the recent changes in the taxation of buy to let rental businesses do not apply to property businesses that qualify as furnished holiday lettings (FHL).

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In particular, the restriction on deductibility of finance costs that started to apply from 2016/17 does not apply to furnished holiday lettings. It may be worth considering investing in such properties to take advantage of a number of other generous tax breaks.

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Tax reliefs that apply to furnished holiday letting businesses

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Furnished holiday letting businesses are treated like a trading business for many, but not all tax purposes.

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1. Capital allowances are available on furniture and equipment such as cookers, washing machines, beds.

2. Profits count as earned income for pension purposes

3. CGT entrepreneurs’ relief applies on disposal of the holiday rental business

4. Capital gains may be rolled over into FHL property

5. CGT gift holdover relief available on the gift of the rental business.

Note that inheritance tax business property relief does not generally apply on the transfer of FHL property businesses.

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What is a furnished holiday letting (FHL) businesses?

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There are strict rules for a property rental business to qualify as furnished holiday lettings. The most important conditions are:

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1. Property must be situated in the UK or European Economic Area (EEA)

2. Furnished and let on a commercial basis

3. Available for letting for 210 days a year,

4. Actually let for 105 days a year

5. Not normally let for more than 31 consecutive days to the same person (i.e. short lets)

In other words, lettings in excess of 31 days are excluded from the 105 day test as are periods let to family and friends on a non-commercial basis

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Averaging Election

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For individual landlords, the 210 day and 105 day tests apply to the tax year or the first 12 months on commencement of the rental business.

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If the 105 day test is not met, it is possible to make a “pooling” or averaging election where several FHL properties are rented out in the tax year. You can elect to apply the letting condition to the average rate of occupancy for all the properties you let as FHLs. There are separate elections or pools of UK and EEA properties.

February 01, 2018

After being nominated by clients, and presenting to a panel of judges, Futurelink Accountancy Services Limited and our sister company Futurelink Group have now been announced as Finalist for Best Legal and Financial Services Provider award in the Biz4Biz Awards 2018!

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The Awards Ceremony will be taking place on Friday 2nd March - wish us luck!

January 09, 2018

Futurelink Accountancy Services Limited are proud to announce that we have won two awards in the ACQ5 Global Awards 2017;

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1. UK - Niche Payroll Solutions Provider of the Year (Construction)

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2. UK - Game Changer of the Year (awarded to our Finance Director, Adam Becker)

January 05, 2018

Futurelink Accountancy Services Limited are proud winners of the 'Best Payroll Solutions Provider - South England' Award in the 2018 Accounting, Audit & Tax Awards.

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Well done team!

August 30, 2017

Today we received our award for Best Sole Trader Payroll Services in the International Finance Awards 2017!

August 10, 2017

We have the pleasure of announcing that Futurelink Accountancy Services Limited and our sister company, Futurelink Group, have been shortlisted for SEVEN awards at the British Accountancy Awards 2017! Winners to be announced on Friday 13th October - keep your fingers crossed for us!

The latest version of the Futurelink app is now available to download featuring 2017/2018 calculators, a GPS mileage tracker as well as full integration with our various accounts software suites. The app is available in both the IoS and Play store. Start benefiting by downloading today.

July 14, 2017

Our Practice Manager, Jack Smith, got married on 15 July to long term girlfriend Faye. She only had to wait 10 years! But all good things come to those who wait…..

The Government has responded to pressure from accountants and other interested parties and announced the delay of Making Tax Digital for Business to 2020 at the earliest.

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Quarterly VAT reporting using the new system will be mandatory from 2019.

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In a further U-turn, three million small businesses and buy to let landlords below the VAT threshold will now not be required to keep digital accounting records but will be able to move to the new system for keeping tax records at a pace that is right for them. For such businesses, Making Tax Digital will be voluntary.

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Mel Stride, the new Financial Secretary to the Treasury and Paymaster General, announced that the roll out for Making Tax Digital has been amended to ensure businesses have plenty of time to adapt to the changes. Under the revised timetable:

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• only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records, and initially only for VAT purposes from 2019

• businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020

As VAT already requires quarterly returns, no business will need to provide information to HMRC more regularly during this initial phase than they do now.

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All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes. This deferral will give much more time for businesses, supported by their advisers, to identify for themselves, at their own pace, the benefits of digital record keeping. It will also ensure that many more software products can be developed and tested before the system is mandatory.

It has also been announced that the second Finance Bill will legislate for all policies that were included in the pre-election Finance Bill but had to be dropped in order to rush through the Finance Act 2017 before the snap general election in June.

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The Government has re-confirmed that all policies originally announced to start from April 2017 will be effective from that date.

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This means that the planned changes to corporation tax such as the new losses rules, will take effect from 1 April 2017 after all, as will the changes to deemed domicile which will take effect from 6 April 2017.

Working parents can start applying for two new Government childcare schemes launching this year – Tax-Free Childcare which begins immediately and 30 hours free childcare which starts in September.

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This means that working parents of children, aged under 4 on 31 August 2017, can now apply through the new digital childcare service for Tax-Free Childcare and receive a Government top-up of £2 for every £8 that they pay into their Tax-Free Childcare account. This will apply to children under 12 years old but parents of disabled children under 17 will also be able to apply for Tax-Free Childcare.

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This new scheme is designed for working families, including the self-employed, in the UK. For every £8 you pay in, the Government will add an extra £2, up to £2,000 per child, or £4,000 per year for disabled children under 17 years old. The special account is then used to pay for childcare with an OFSTED registered nursery or childminder.

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In addition, parents of 2-3 year olds, who will be eligible for a 30 hours free childcare place in September 2017, can apply through the childcare service and start arranging a place with their childcare provider.

The House of Commons Work and Pensions Committee has recently published a report calling on the Government to close the loopholes that allow “bogus” self-employment practices, which burden the welfare state but reduce the tax contributions needed to sustain it.

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This follows the “Matthew Taylor” inquiry which took evidence during February and March 2017 from witnesses including representatives of companies such as Uber, Amazon, Hermes and Deliveroo. Most of the people working for such organisations were not on the payroll and have limited workers rights and are paid for each delivery or “gig”. The Committee recommended a default assumption of “worker” status, rather than “self-employed”, and said that the incoming Government should set out a roadmap for equalising the NICs paid by employees and the self-employed.

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Mr Taylor was also asked to produce a report on the status of such workers and suggested that a new category of “dependent contractor” should be established, but the report did not conclude on how such a worker should be taxed.

A scheme using Employee Benefit Trusts (EBTs) as a means of remunerating directors and staff has been defeated by HMRC in a recent Supreme Court case.

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Such schemes had been used by many employers to avoid PAYE and national insurance contributions (NICs) and involved complicated trust structures and “loans” to the employees. The Supreme Court judges have ruled that these loans were in substance employment earnings when payments were made to the trusts and are thus ineffective in avoiding PAYE and NICs.

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The anti-avoidance rules have also been strengthened in the latest Finance Act with the intention of blocking the use of similar schemes including the transfer of the liabilities to the employee.

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Many employers were awaiting this decision and must now decide whether or not to settle with HMRC for the outstanding tax due. If you have been involved in such schemes please contact us to discuss what action you now need to take.

Up until 6 April last year, the distribution of cash to shareholders on the winding up of a trading company by a liquidator, was usually taxed as a capital gain potentially taxed at just 10% with the benefit of entrepreneurs’ relief. However, last year’s Finance Act introduced a targeted anti-avoidance rule that may tax such a distribution as a dividend at income tax rates up to 38.1% under certain circumstances.

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HM Revenue and Customs have recently issued guidance in an attempt to clarify when the new anti-avoidance rule would apply.

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Broadly the anti-avoidance is intended to catch situations where the old company is wound up and a similar business is carried on by a connected business. Note however, the distribution would only be taxed as a dividend at income tax rates if one of the main purposes of the transaction was to avoid tax. This is a complex area so please contact us to discuss your plans so you do not fall foul of the new anti-avoidance rule.