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Get on top of your tax return
Why 2019/20 is the year to get it done early.
With everything that’s happened so far this year, it might be easy to forget your obligations to file a tax return for 2019/20 by midnight on 31 January 2021.
The coronavirus pandemic and subsequent economic crisis has caused chaos with businesses up and down the country, most of which closed entirely during April 2020.
The Government has introduced several unprecedented measures to help them with the crisis, including deferring some key dates and deadlines involving self-assessment.
One of the biggest temporary measures, certainly for sole traders and partnerships, was the self-employed income support scheme (SEISS), which offered grants based on trading profits.
The use of the term ‘grants’ suggests they might be tax-free money from the Government, but they definitely are taxable at your marginal rate if you were lucky enough to be covered by the scheme, and should be reported on your self-assessment tax return.
How much is your business worth?
Whether you’re making exit plans or you want to give confidence to investors, knowing the value of your business is a vital step.
From the inside, it might be hard to say what that value is. You’ve put long hours of hard work into building your business from the ground up, but what does that mean to a buyer or investor in monetary terms?
As a starting point, it’s important to work out what it is you’re actually selling. Is it the business’s name, and the reputation that comes with it? Is it the lease on the premises – and is this currently owned by you or by your company?
The kind of business you run, the sector it’s in, the assets it holds and the people who work there could all make a difference to its overall value.
Setting all of this information out from the start will help you to reach an accurate valuation, and to communicate it clearly to potential buyers.
As part of our ongoing partnership with Sevenoaks Chamber of Commerce, one of our Director's Andrew Appleton recently took part in their "7 Questions" feature to introduce Andrew and our organisation to Chamber members. In case you missed it, have a read below......
1. Tell us about your typical Monday morning?
Being an avid twitcher I enjoy being outside so try to start the day with a walk in order to get some fresh air, hopefully see some interesting birds and prepare myself for the week ahead.
2. Can you explain about Hilden Park and what you offer?
Hilden Park Accountants is a growing accountancy practice and we now have fifteen people working for us. We offer corporate and personal tax advice, accounting services, book-keeping and also incorporate a growing payroll bureau. Our clients include businesses, individuals, trusts and charities from across the South East.
3. Tell us something interesting about your offices?
We recently discovered that our premises in Hildenborough have been used in a variety of different ways over the years. They were originally a bakery, before becoming a dairy and then eventually in 1967 they became a doctor’s surgery. I remember waiting in reception to see my doctor and collecting prescriptions from what is now one of our meeting rooms! The surgery moved out in 1991 and we moved here, from Tonbridge, later that year.
4. What is hot news in the accounting world?
Covid-19 has brought challenges for businesses over the last few months and we have spent time talking and assisting clients with the various
opportunities and assistance available from the government and other sources.
There have been many tax changes this year - not least with capital gains tax which affects the exit planning advice we give to business owners.
There will be further reforms in ‘Intermediaries Legislation’ in the next twelve months. This legislation, also known as ‘IR35’, will remove the tax advantages of providing services via a limited company for individuals (HMRC call them ‘disguised employees’) who are not really in business on their own account. This will affect large and medium-sized organisations who will become responsible for assessing the employment status of individuals working for them through their own limited company.
5. How are you attracting and keeping your clients?
We pride ourselves on building lasting relationships with our clients and it is important to us that they realise their current potential and achieve their long term goals. The majority of our new business comes from existing client recommendations and word of mouth which is a good indicator for us that we are providing a service worth talking about.
6. What advice or services can you offer Chamber Members?
As a firm we offer a free initial consultation to all prospective new clients. In addition to this we also have a promotional offer available of a 12 months free Xero subscription to all new clients.
7. If you had more spare time, how would you spend it?
I would love to travel more. Seeing the wildlife in the further away parts of Europe and a trip or two to South America are high on my to-do list. I would also like to spend more time working with charities - I am currently a trustee of the Dungeness Bird Observatory which monitors bird migration and other wildlife in the area and am also involved with a charity helping children in poverty in Zimbabwe.
COVID-19
Coronavirus Job Retention Scheme (Furlough)
From 1 September, the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough. Employers will top up employees’ wages to ensure they receive 80% (up to £2,500). The caps are proportional to the hours not worked.
Unless you’re making a new claim for an employee who is a military reservist or is returning from statutory parental leave, you can only continue to claim through the scheme if:
- you have previously furloughed the employee for 3 consecutive weeks between March 1 and 30 June
- you submitted your claim before 31 July
The Coronavirus Job Retention Scheme will close on 31 October 2020.
Please take a look at our latest video! It showcases ways we support and engage with our local community.
Tax Investigation Service
We recommend to all our clients that they consider subscribing to our Tax Investigation Service. There has been an increase in the number of enquiries raised on individual returns and the tax authorities now have more powers than ever to investigate UK businesses.
Taking out the Tax Investigation Service costs less than you think and is certainly less than other risk management measures that you can pay routinely each year. A small cost now could save you thousands of pounds in the future.
For more information on what is included in the service please contact us or click the link below:
Hilden Park Accountants Limited is registered in England and Wales with registered company number 5903760. The registered office is at Hilden Park House, 79 Tonbridge Road, Hildenborough, Kent, TN11 9BH. Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.