Visit google

Google Reviews

reviews

How to Claim the Working from Home Tax Relief

If you’ve been working from home since the COVID-19 pandemic, you may be eligible to claim tax relief on your expenses. The government offers a flat rate of £6 per week, which is available to all employees who work from home for at least one day during the tax year because it’s required by your employer. You can only claim for things to do with your work, for example, business phone calls or gas and electricity specifically for your work area. You can’t claim for things that you use for both private and business use, like your broadband.

Can I claim?

Employees can apply directly for tax relief for working from home via GOV.UK for free.  If you use the online service, you’ll need to create a Government Gateway account (if you don’t already have one) and give basic information about your employment. You’ll also need to provide evidence of your working from home expenses, such as receipts or bills. You can claim through your self-assessment tax return, online or by filling in a P87 form. 

Not everyone who works from home is eligible to claim tax relief. To be eligible, you must meet certain criteria, including;

  • You must have been required to work from home by your employer if they don’t have a place of work, such as an office.
  • You must have incurred additional household costs as a result of working from home.
  • You must not be receiving expenses directly from your employer to cover the extra costs of working from home.

The deadline for claiming the tax relief for working from home is 31 January, following the end of the tax year. For example, the deadline for claiming tax relief for the 2022/23 tax year is 31 January 2024.

How to claim

The steps to claim the working from home tax relief in the UK are:

  • Check if you’re eligible. You’re eligible to claim if you work from home at least part of the time and are not self-employed.
  • Calculate your expenses. Don’t forget you can claim for expenses you incur as a result of working from home but not for things that you use for both personal and private use. So business calls – yes, Netflix – no. 
  • Keep evidence of your expenses. Keep all receipts or bills to support your claim.
  • Claim online or through your self-assessment tax return. You can use the HMRC online service or submit your claim through your self-assessment tax return.

Claiming tax relief for working from home helps you save money on your tax bill. If you’re eligible, make sure you claim what you’re owed. If you’re unsure of whether you’re eligible or what expenses you can claim for, or any other tax-related query, we’re always here to help.

Related news and events

Personal Tax
Personal Tax

14 August 2024

Exploring Tax-Efficient Investment Opportunities

Personal Tax

2 November 2023

What is the personal tax allowance for 2023/24

Personal Tax

4 October 2023

What is a SA302 form?

Visit google

Google Reviews

reviews

How Does Business Turnover Determine the Health of Your Business?

When it comes to understanding turnover, it can be much easier than understanding profit, with gross and net to contend with. Business turnover is the total revenue generated by a business in a given period, such as a year. It’s an important measure of a business’s financial health and can give you an idea of how well the business is performing and whether it’s growing or shrinking.

Factors that can affect business turnover

There are lots of things that can affect your turnover, from the overall economic climate to the industry you’re in as well as how effective your marketing and sales strategies are. A healthy business typically has a high turnover rate, indicating it’s attracting new customers and retaining existing ones.

A low turnover rate might not necessarily be a red flag, you may have just started out, gone part-time or been on maternity leave for much of the year. But if your business’s turnover rate is declining for no obvious reason, then it’s important to take a closer look at what may be making your turnover take a turn for the worse.

How to improve a business’s turnover rate

There’s no magic wand you can wave to boost your business’s turnover, but are some things you can do to give it the best chance of bouncing back or continuing to grow, including:

  • Invest in marketing and sales. A strong marketing and sales strategy helps you reach new customers and generate more revenue.
  • Build a strong brand. A strong brand helps you stand out from your competition and attract new customers.
  • Provide excellent customer service. Delivering excellent customer service helps you build relationships with customers and keep them coming back for more. 

By taking steps to improve the turnover rate, businesses can boost their financial health, and give them the best chance of long-term success.

Extra tips to improve business turnover

Here are a few more top tips for boosting your business’s turnover:

  • Focus on your target market. Ask yourself ‘Who are my ideal customers? What do they need or want?’ Then tailor your marketing and sales strategies to reach these customers and show them that your product or service can address their pain points. 
  • Make it easy for customers to buy from you. This might sound like a strange one but you’d be surprised how many websites make it hard for customers to find what they’re looking for at a few clicks of a button. Make sure your website is simple to use, and the checkout process is streamlined. Offer multiple payment options and make it easy for customers to get in touch if they’ve got a question.
  • Provide excellent customer service. Go above and beyond to meet the needs of your customers. Respond to enquiries as swiftly as you can, don’t keep customers waiting as they’ll soon turn to someone else. 
  • Keep your products and services up-to-date. Stay ahead of the competition by offering new, innovative products and services, and give existing ones a new lease of life. 
  • Invest in marketing and advertising. Tell people about your business! Some businesses spend 5% on marketing and advertising and others spend 20% and more. If your target market doesn’t know about you, they can’t buy from you. So, invest in marketing and advertising to reach new customers and generate more revenue.

Following these tips could give your businesses a little lift or a big boost and we’re here to help with money matters like tax whenever you need it. 

Related news and events

Business Tax & Compliance
Business Tax & Compliance

19 August 2024

Reducing the Tax Gap: Tips for Small Businesses

Business Tax & Compliance

10 July 2024

How to Work Out Your Transitional Profit if You’re Self-Employed

Business Tax & Compliance

18 March 2024

Merging R&D Schemes: What Changes in 2024

Visit google

Google Reviews

reviews

Understanding the P11D and What to Include to Meet the July Deadline

Tax and filling in forms go hand in hand. If you’re an employer and your employees receive taxable benefits in kind, then you need to know about the P11D as it must be completed by the 6th of July each year.

The important P11D sections to complete

There are different sections in the P11D form to complete in full. The most important sections include:

  • Section 1: employee details. This section includes the employee’s name, address and National Insurance number.
  • Section 2: benefits in kind. This section lists all the benefits the employee has received during the tax year.
  • Section 3: calculation of taxable benefits. This section calculates the amount of tax due on the employee’s benefits.
  • Section 4: employer’s declaration. This section must be signed by the employer to confirm the information on the P11D is correct.

If you’re an employer, you must complete the P11D form correctly and on time. If not, you could be hit with a fine from the HMRC.

Tips for completing the P11D

Here are our top tips for completing the P11D form:

  • Start early. Don’t wait until the last minute to complete the P11D form. Give yourself plenty of time to gather all the information you need.
  • Use the right version. There are different versions of the P11D form depending on the type of business. So, make sure that you use the right version for your business.
  • Check your work. Once you’ve filled in the P11D form, check it then check it again.
  • Submit the form on time. Always submit the P11D form to HMRC by the 6th of July each year to avoid penalties.

P11D extra tips

  • Keep good records. Keep all the information needed to complete the P11D form, such as receipts, invoices and contracts.
  • Use a payroll software program. This helps you calculate the tax due on your employees’ benefits.
  • Get help from a professional. If you’re unsure how to complete the P11D form, always get help from a qualified accountant or tax adviser.
  • We’re here to help make sure you file your P11D right the first time, on time. So before the deadline rolls around again next year, get in touch to find out more.

Related news and events

Payroll
Payroll

3 April 2024

How the 2024 Paternity Leave and Pay Amendments Benefit UK Families and Employers

Payroll

19 February 2024

Salary Sacrifice Arrangements for Employers Explained

Payroll

2 February 2024

Navigating HMRC’s Latest Off-Payroll (IR35) Compliance Guidelines

Visit google

Google Reviews

reviews

The Difference Between Personal Accountants and Bookkeepers in the UK

If you’re a business owner in the UK it’s likely you know there are many different financial experts to turn to. Two of the most common are accountants and bookkeepers, but do you know the difference between the two?

What’s a bookkeeper’s role?

Bookkeepers keep your financial records in order. They’ll track your income and expenses, prepare financial statements and balance the books, like income statements and P&Ls. They can also help with invoicing, payroll and tax preparation.

What’s an accountant’s role?

An accountant provides more specialised financial accounting services, like tax planning, financial forecasting and business analysis. They’ll also represent you with tax authorities to fight your case.

In summary…

Bookkeepers look after the books on a day-to-day basis, dealing with the financial operations of a business.

An accountant looks after more strategic matters and provides long-term financial advice.

Which should you choose?

To answer a question with a question; it depends on your specific needs. For small business owners that are financially savvy, a bookkeeper to manage your books on a day-to-day basis is probably all you need. But for a larger business, or if you’re not that good with finances, or want specialist advice, an accountant will be a better option.


It’s worth noting that there is sometimes a crossover between the two roles. Some bookkeepers offer accounting services as well, albeit limited, and some accountants offer bookkeeping services. So, when choosing your financial professional, make sure you dig deep into their financial qualifications and experience.

Top tips for choosing a financial professional

Here are some top tips to help you make pick the right person to help with everything from balancing your books to keeping on top of your taxes:

● Ask friends, family or colleagues for their recommendations. You don’t have to take their advice, but it may help you decide.

● Don’t pick the first one you meet; shop around first.
● Find out about their qualifications and experience that is relatable to your business and industry. Don’t be afraid to ask questions.
● Get quotes and find out exactly what’s covered in their cost.

Choosing the right financial professional for your needs can be tricky. But follow these tips, and you’re in a much better position to make the right decision. There are lots of brilliant bookkeepers out there and impressive accountants, and we’re proud of what we think are some of the best in the business. So get in touch to find out how we can help.

Related news and events

Personal Tax
Personal Tax

14 August 2024

Exploring Tax-Efficient Investment Opportunities

Personal Tax

2 November 2023

What is the personal tax allowance for 2023/24

Personal Tax

4 October 2023

What is a SA302 form?

Visit google

Google Reviews

reviews

What IS Employer’s Liability Insurance?

What is employer’s liability insurance? ELI?

In the UK, employers must legally have employer’s liability insurance (ELI) if they employ one or more people. It’s a form of insurance that protects businesses from employee legal claims for things like work-related injuries and illnesses.


The minimum level of cover is £5 million, although many employers decide to increase this to a higher amount. ELI covers the cost of any claims for employers, including medical expenses, lost wages and legal fees.

Benefits of Employer’s Liability Insurance

There are several benefits to having Employer’s Liability Insurance, including:


● Peace of mind. Knowing you and your business are financially protected should one of your employees become ill or suffer an injury is worth its weight in gold.
● Covers the cost of claims. In most cases, if an employee makes a claim, your insurance will cover the cost of the claim, rather than having to pay out of your own pocket.
● Improved staff morale. With ELI in place, you’re showing your employees that you’re taking their safety seriously by providing a safe working environment. This can lead to a happier, more positive and more productive workplace for everyone. And happier staff makes for a better business.

How to get ELI?

You can buy Employer’s Liability Insurance from various insurance companies that offer this type of cover. Choose a policy that meets all your needs and provides the right level of cover.

Employers’ Liability Insurance: extra tips

Now you know what ELI is and why it’s important for all employers to have this insurance protection in place, here are some extra tips to help you get the best cover:


● Get quotes from multiple insurers. The cost of ELI can vary, depending on your needs and the insurer. So, get quotes from several providers before making your decision.
● Make sure the policy covers all your employees. Regardless of job title or location, your ELI insurance policy should cover every employee in your business, wherever they work from.
● Read the policy carefully before signing on the dotted line. Make sure you read through the policy thoroughly, particularly understanding the terms and conditions, before you put pen to paper.


Securing the best ELI policy for your business is not just a legal requirement, it’s an important way to protect your business, too.

Related news and events

Payroll
Payroll

3 April 2024

How the 2024 Paternity Leave and Pay Amendments Benefit UK Families and Employers

Payroll

19 February 2024

Salary Sacrifice Arrangements for Employers Explained

Payroll

2 February 2024

Navigating HMRC’s Latest Off-Payroll (IR35) Compliance Guidelines

Visit google

Google Reviews

reviews

What Are the Top Small Business Taxes in the UK?

As a small business owner in the UK, various taxes must be paid to HM Revenues & Customs (HMRC) and the government. Let’s look at the most common types of tax a small business has to pay.

Corporation tax

This is a tax on your business’s profits. Essentially, HMRC takes a percentage of what you make, after costs. The current rate of corporation tax on small businesses is 19%.

Income tax

Another tax on what you make is income tax but this tax is on what you earn as an individual. How much you pay in income tax depends on how much your income is, as there are several different levels of tax.

National Insurance (NI)

This tax is paid by the employer and the employee. This, along with how much you earn as an individual, determines how much National Insurance each party will pay. 

Value Added Tax (VAT)

This is a tax on goods and services bought and sold in the UK, whether you are a business or an individual. The standard rate of VAT is currently 20%.

How much tax do small businesses pay?

How much tax you are liable for as a small business depends on a number of different factors, including the size of your business, how much profit you make and how many employees you have.

However, as a general rule of thumb, small businesses in the UK should expect to pay around 20% of their profits in tax, which includes corporation tax, income tax and National Insurance.

How can small businesses reduce their tax bill?

Want to reduce your tax bill? There are a number of ways you can do this, such as:

  • Claiming business expenses. Businesses can claim a deduction for various business expenses (but not all), including travel expenses, office supplies and equipment.
  • Make use of tax reliefs. There are a variety of tax reliefs that businesses can apply if they are eligible. These include the small business rate of corporation tax and a research and development tax credit.
  • Set up a limited company. Businesses that are set up as a limited company can benefit from lower rates of corporation tax.
  • Use tax planning strategies. Various tax planning strategies can be used to lower the amount of tax your business has to pay. But before you implement any such strategy, get the help of an accountant or tax advisor to make sure that (a) the plan is right for your business and (b) it does what it says on the tin!

Taxes are a necessary evil for businesses. They can be complex and confusing, so it’s important to not only understand the different taxes you have to pay but also to seek the advice of professionals to help reduce your tax bill.

Paying your taxes: extra tips

Here’s some extra tips to help small businesses lower the tax bill:

  • Keep good records. It’s important to keep good records of your income and expenditure, as this will help when it’s time to file your tax returns.
  • Use accounting software. Accounting software packages and apps are great at helping you keep track of all your financial incomings and outgoings. They can also help with the preparation of your annual tax returns.
  • Get professional help. As we always recommend, if you’re unsure about anything related to personal or business taxes, always seek professional advice from an accountant or tax advisor.

We know tax can seem scary, but by following these tips and advice, you can make sure you’re not only paying the right amount of tax but are also taking advantage of all the tax deductions and reliefs you’re entitled to.

Related news and events

Business Tax & Compliance
Business Tax & Compliance

19 August 2024

Reducing the Tax Gap: Tips for Small Businesses

Business Tax & Compliance

10 July 2024

How to Work Out Your Transitional Profit if You’re Self-Employed

Business Tax & Compliance

18 March 2024

Merging R&D Schemes: What Changes in 2024

Visit google

Google Reviews

reviews

How Long Should You Keep Your Tax Records in the UK?

There are a few factors that determine how long you should be keeping tax records, from your income to your employment status and the type of records you have. Let’s look at the what, when and for how long in more detail.

Individuals

For individuals, it is recommended you keep your tax records for a minimum of 22 months after the end of the relevant tax year. For example, if you file your 2022/23 tax return by the filing date, you should keep your records until 2025.


However, in case you find yourself chasing a tax refund or are tackling a tax dispute, it’s a good idea to keep your records for even longer.

Businesses

For businesses, it’s recommended you keep your tax records for a minimum of five years following the end of the relevant accounting period. For example, if your accounting period ends on 31 December 2022, you should keep your records until 31 December 2027.


Like individuals, in case you should be faced with a tax dispute or want to claw back some tax through a refund, keep your records for longer.

What records should you keep?

The types of records you should be keeping to support your tax return include:


● Sales and income.
● Eligible business expenses.
● If you’re registered for VAT, then your VAT records.
● If you employ people, your PAYE records.
● Details about your personal income.
● Details of any grants you’ve claimed, such as COVID-19 business grant schemes.

If you’re self-employed, as well as the above, you should also keep records like:


● Travel expenses.
● Eligible meals and entertainment expenses.
● Business equipment expenses.
● Professional fees.
● Details of any grants you’ve claimed, such as the Self-Employment Income Support Scheme.

Accounts filing

Where should you keep your records?

Make sure you keep your records in a safe and secure place, whether that’s a safe deposit box, at home or even with your accountant in their office. (We’d advise against shoe boxes under the bed). It’s also a good idea to keep them organised to make it easy to find any evidence you may need in the future for tax purposes.

What if I lose my tax records?

If you lose your tax records, get in touch with HMRC as soon as possible. They may be able to help you reconstruct them for you.


You may also be able to get a copy of your tax records from your employer, bank or other financial institutions.

Work smarter, not harder

Keeping your tax records for the recommended length of time will help you avoid any penalties and interest if HMRC decides to audit your tax return. You can also make sure you’re claiming all the relevant tax reliefs and deductions you’re entitled to, as well as resolve any disputes if they arise.

Need somewhere safe and secure to keep your tax records? Get in touch with Norwich Accountancy today.

Accounts files

RELATED NEWS AND EVENTS

Business Tax & Compliance
Business Tax & Compliance

19 August 2024

Reducing the Tax Gap: Tips for Small Businesses

Business Tax & Compliance

10 July 2024

How to Work Out Your Transitional Profit if You’re Self-Employed

Business Tax & Compliance

18 March 2024

Merging R&D Schemes: What Changes in 2024