one offs »

[10 Jun 2016 | Comments Off on Credit Notes | ]
Credit Notes

“I need to issue a Credit Note. What should I do?”
A credit note is simply a negative invoice. It replicates the original invoice is almost every way except that the amounts and the figures are shown as negatives. The date on the Credit Note is normally the date you prepared it, unless there are compelling reasons to use a different date.
Use whatever the next number is (in your normal invoice number sequence) for the credit note. If your software forces you to use a different number sequence for credit notes, …

one offs »

[12 May 2016 | Comments Off on National Insurance Contributions and the UK State Pension | ]
National Insurance Contributions and the UK State Pension

We are accountants and tax advisers, and we do not get involved in pension matters. However, this is what we know about the interaction between National Insurance Contributions and the UK State Pension.

If you are following our recommended director shareholder payments pattern, then your salary should be high enough to give you a National Insurance credit, even though you don’t pay Class 1 National Insurance.
A full year at this level is a “qualifying year”. This page used to say:
“You might not pay National Insurance Contributions because you’re earning less …

featured, routine »

[8 Apr 2016 | Comments Off on Director shareholder payments 2016/17 | ]
Director shareholder payments 2016/17

In the good old days there was an easy way to work out the optimum pattern of salary and dividends for directors of small UK companies. With the advent of the Finance Bill 2016 the situation has become hopelessly complex and that prompted AccountingWeb to publish a critical blogpost. Here’s the first bit with the all important table:

If you want to see the blogpost in full you’ll have to sign up for membership of AccountingWeb. It’s a free resouce for accountants!
And, as we said in our 30 Nov 2015 blogpost, …

getting things done, routine »

[14 Mar 2016 | Comments Off on Meal allowances | ]
Meal allowances

It’s long been a policy of ours that all employee expense claims (and directors’ expense claims) should be supported by receipts, proving that the relevant expenditure has taken place, and that the employee’s claim is for a legitimate business expense. That’s set out in our guide:
Claiming back expenses from your own Limited Company
We don’t need to see every receipt from Pret a Manger for £2.99 sandwiches, but we want the reassurance that you the client make a point of keeping your staff (and yourself) within the rules.

So, here is something …

getting things done »

[12 Feb 2016 | Comments Off on Wriggle Room and Late Filing Penalties | ]
Wriggle Room and Late Filing Penalties

Do you have a penalty notice from HMRC relating to the late filing of a 2013/14 or 2014/15 Self Assessment tax return?
Then you may be interested in a working practice which HMRC introduced recently, because they don’t have enough staff to check “reasonable excuse” claims. And whatsmore, they have extended the meaning of “reasonable excuse” which used to be limited to things like . .

Death of a close relative

. . . to include a number of lesser reasons which they previously refused to accept. So “reasonable excuse” now includes . …