Paul Malin Consultancy’s Post

What does HMRC mean by “keeping proper books and records”? Most advisers will respond with “everything the accounting software package has” including wages. Those who are more old school may think “cash book, sales day book etc.”. The problem What if there are no “books and records” that have been kept other than bank statements? My client not only manufactured clothes for high street stores but also sold “the excess” to market stall traders. But he had no idea how many garments of each line he had sold to market stall traders, but he did know the price of each garment. The solution By me talking in depth to the client, asking the right questions and thinking outside the box. The client said that each and every garment had a plastic covering like you have on any clothing you retrieve from the dry cleaners. So as the covers came in bulk on a roll, it was quite easy to calculate the throughput of total garments made based on the covers used. Each roll of material could make so many garments in total. We knew how many had been sold to the high street shops and distributors, so the balance was sold to market stall traders. Also, an agreed amount was adjusted to reflect spoilage. The outcome HMRC were shown around the workshop to put everything in perspective and the calculations presented to them. The outcome was that HMRC had no alternative calculation and accepted our figures without alteration. One happy client.

HMRC can’t fix Class 2 NI problem - Dunhams News Blogs Read the full article:- https://lnkd.in/eatE829s Small Business Accounting for Class 2 NI Problem HMRC can’t Help Big Business Accounting Partners Some people have been receiving mysterious refunds of Class 2 NI in recent weeks. HMRC has now provided an update on the issue. What’s going on? HMRC can’t fix Class 2 NI problem Class 2 NI has been collected via self-assessment for a while now, but there are still problems. It was recently reported that HMRC’s systems were reversing payments where the (separate) NI system doesn’t have a self-employment record set up. It’s often overlooked that a self-employed person still needs to register separately for income tax and NI purposes. Now, the Institute of Chartered Accountants has identified a further problem with the payments for 2022/23. The issue arises where the payment was made on or just before 31 January 2024. The problem is that HMRC payment processing that should have taken place on 2 February was delayed by three days. Some people may have received an SA302 saying that they have paid late. If you are affected, you will have either had a refund of the Class 2 NI, or the amount will be unallocated on the self assessment system. If you would like any assistance with any of these points. Please Call Us on 0161 872 8671

Not all accountants are equal. Our client, YW Ltd, met with us on Thursday to discuss their final year end accounts for 31 March 2024 and by the end of Friday, the accounts were approved. Last year, their accounts were not filed until October 2023, and no tax planning and strategy meetings were held. We were able to deliver the accounts quickly and efficiently because:- 👍 our client maintains their books and records regularly in Xero 👍 within a week of each month end they share the data we need to make adjustments and journal entries 👍 we deliver management accounts within days of each quarter end and discuss in a meeting, along with tax estimates 👍 we held a meeting 3 months before the year end to undertake tax planning and discuss adjustments 👍 we had a final accounts meeting, briefly reviewing the accounts, but mainly focusing on the future and next years plans. The benefits of working in harmony with each other are 🌟 no surprise corporation tax bills 🌟 we were able to prepare the directors Self Assessment early and reduce the payment on account for July 2024 🌟 our client wants to make an investment in their business over the next 3 months to build a website and marketing strategy. We were able to work with Swoop to identify a potential grant to help fund the project and provide them with up to date financial statements to support a potential loan application. If you feel you are not getting what you need from your accountant and you want to work with someone who will make it a mission to make sure you know and have access to your numbers on a regular basis, book a call. https://lnkd.in/dSAQ8Fw2 #knowyournumbers #financialclarity #3Ns #Directors #smallbusinessowner

Here are two smart strategies to keep more cash in your business longer: 1️⃣ Switch to VAT Direct Debit Instead of manually paying VAT early, set up a Direct Debit with HMRC. They deduct payments automatically around the 10th to the 12th of the month, giving you an extra week to hold onto your money. This is especially helpful for managing short-term cash needs. Setup is easy through your HMRC account, and it eliminates the stress of manual payments! 2️⃣ Use the VAT Cash Accounting Scheme If your VAT taxable turnover is under £1.35 million, this scheme is a game-changer. Normally, VAT is due based on the invoice date—even if your customer hasn’t paid yet. With this scheme, you only pay VAT once you’ve received payment, reducing the strain of covering VAT on unpaid invoices. Switching is simple—adjust your bookkeeping system settings, and you’re ready! Pro Tip: Always keep records and receipts to comply with HMRC guidelines! Need guidance on exploring other cash flow solutions? DM me—let’s make your business finances work smarter for you! #smallbusinessuk #tips #finance #financetips #bookkeeping #essex #VAT #Cash #cashflow

🤔I’ve chatted with a few prospects recently who weren’t happy with the service they were receiving from their previous bookkeeper or accountant. Complaints included: ❌They only hear from them once a year (or possibly quarterly at VAT return time) and even then only with a figure to pay HMRC along with their invoice (neither of which may not be consistent with what they were expecting to pay) ❌“They don’t explain anything about my profits or lack of” ❌“How can I be profitable if there’s nothing in the bank? I don’t understand.” ❌“They’re not approachable and don’t get back to me” ❌“I don’t really know what they do” 😲This is not how we work! ✅We will have a meeting with you as part of our discovery process to discuss exactly what your needs are, what issues in your business are causing you problems, stress or worry and tailor a bespoke proposal for the services you require, and which we believe will help solve these issues. ✅We’ll include within the package we put together regular phone calls or meetings going forward (and we are happy for you to contact us more regularly if you need to) ✅We use GoProposal to quote you a fixed monthly fee, based on the services you require and the volume and complexity of transactions, so it’s completely transparent and you know how much you’re paying us every month and what for. We review this quarterly and may adjust the price up or down in line with the volume of transactions/services so that it’s always fair for both of us. ✅When you work with us you will get plenty of communication (I’m always asking for info/paperwork/explanations!) - so you will know that we are regularly looking at your accounts and keeping on top of things! ✅We don’t use formal jargon and are happy to take the time to chat with you and really explain your figures and discuss between us any underlying factors, good or not so good, which may be contributing to these, and help you to work out solutions. ✅We are flexible and will work with you to implement systems and processes that work for you whilst enabling us to get all the information and paperwork we need to make sure that your accounts are fully compliant with HMRC rules. ✅We pride ourselves on getting to know you and your business, so we can really understand what is important to you, what’s working and what’s not, and help you by providing a sounding board for ideas, worries and solutions about anything business-related - someone you can talk to who has a really clear overview of how your business is doing, as well as lots of experience working with other businesses who may also have gone through similar scenarios. 😊How does that sound? 💁🏼♀️If you’d like to find out more about how we can work together then please get in touch!

There is an online tool, developed by HMRC, that allows taxpayers to check if they need to notify HMRC about additional income. The online tool can be found at https://lnkd.in/d8KKm89z. #HMRC #SelfAssessment

Advance notice of making an R&D claim - Does this new requirement apply to your business? First time claimants, or companies who have not made a claim in one of the previous three accounting periods, will need to inform HMRC in advance that they intend to make a claim, otherwise the claim will be disqualified. This applies to accounting periods started on or after 1st April 2023.   This notification process is to be done using a digital service, and you can submit the notification from the first day of the accounting period (to which the claim relates) to 6 months after the end of the period of account in concern. That means, for those who has a March year end, if your first ever R&D claim is for the 2024 accounting period (i.e. 1st April 2023 – 31st March 2024), or if you haven’t claimed in the past three consecutive accounting periods, you must submit your notification to HMRC before the end of September 2024!   If you have any concerns or questions, please feel free to reach out!

Here are some important points regarding E-invoice, which we all should know: 1) Applicability:- E-invoice is mandatory for all registered taxpayer whose aggregate turnover exceeding 5 crores in any financial year from 2017-2018 to 2021-2022. 2) Transaction type:- Its mandatory only in case of B2B transaction. 3) Time limit:- We have to generate e-invoice for all tax invoice/credit note debit note within 30days from the date of invoice, however this rule does not apply to taxpayer whose aggregate turnover is less than 10 crores. 4) Exception:- Under GST, there are certain registered persons on whom e- invoicing is not applicable, irrespective of turnover. 5) Process:- You can easily generate e-invoice from the portal: https://lnkd.in/g5hHj8ef or your accounting software like – Tally. 6) Latest Information:- On December 17, 2024, GST Network released an advice to broaden the scope of requiring 2FA on NIC for taxpayers. Use 2FA starting on January 1, 2025, if your company has AATO over Rs. 20 crores. Similarly, starting on February 1, 2025, 2FA will be required for companies with annual revenue between Rs. 5 crore and Rs. 20 crores. Starting on April 1, 2025, all taxpayers, regardless of turnover, must use 2FA for the creation of e-invoices and e-way bills.

🚚 Finding it challenging to manage taxes as a truck driver? Here are 6 handy tax management tips that could make a real difference in how you handle your finances. 💡 - Use the Right Accounting System to track income and expenses effectively. - Handle Checks with Care to prevent misuse and fraud risks. - Maintain Your Books Daily; a small daily effort can keep your finances in check. - Opt for a Banking Account with a Month-End Cutoff for clearer monthly records. - Keep Your Books Audit-Proof by separating business and personal finances. - Choose the Right Bookkeeping Service tailored for truck drivers' specific needs. What are your thoughts on these tax management strategies for truck drivers? Share your opinions and experiences below! 🚛💸✨ https://lnkd.in/e33nuZr