Newsletter - LK & Associates Limited

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Dear Client,

Welcome to our very first LKA newsletter!

Laura Kenyon We received such positive feedback from the updates we shared with our network about the Coronavirus financial measures early in the pandemic, we thought – why limit our communications to during a global crisis?

Our very ethos is to work with our clients throughout the year, as opposed to just at the year end, so let’s keep you up-to-date on a quarterly basis with timely updates; focused useful articles; key dates and top tips.

Britain’s economy has continued to grow this Summer with ‘pandemic spirit’ seeing a huge growth in start-up business. A recent NatWest report quotes that one in seven people plan to become entrepreneurs. In fact the 2008 global economic crisis saw the creation of Uber, WhatsApp, Instagram and Airbnb where business owners took advantage of lower rents and the availability of staff. What a great time to be in business!

Our team at LKA has spent a lot of time questioning how we can support our clients at this exciting period. We’ve beefed up our team bringing in more amazing talent and we’ve honed our vision: ‘To change the perception of accountants and be seen as trusted business advisors and partners’. Find out more about our vision and values here.

This month we’ve brought together some of the latest news are facts of interest to our network, including:

Meet the LKA Team – an intro to each of our fabulous staff members, with a fantastic new photo from the brilliant Annie Armitage so you can put a face to the name
VAT reduced rate for hospitality ending soon
What happens after the furlough scheme ends
Finance Director support at a fraction of the cost
Tax on second properties – don’t get caught out
Bookkeeping Tips
Exit planning for your business

With best wishes,
Laura

VAT reduced rate – ending 30th September 2021 – are you ready?

The reduced rate of 5% which was introduced by the Chancellor in July 2020 to help support the hospitality and tourism sectors is coming to an end on 1st October 2021, when the rate will increase to 12.5%.

Read the full article

What happens after the furlough scheme ends?

From 1 August 2021, the Government’s grant reduced a final time to 60% of employees’ wages. Employers need to contribute 20% to staff wages and this will remain until the scheme ends on 30 September 2021.

Read the full article

Hire a Finance Director for your business at a fraction of the cost

Virtual FD Growing a business is tough. So little time and so much to do. Vital financial tasks can often be side-lined.

If your business is at the point where you need someone to manage the finance aspects of your business, but don’t want the added complications and expense of employing someone full time, the LKA virtual FD service is the answer.

Find out more

HMRC Fraud

HMRC have updated their guidance on checking whether a letter received from the Department is genuine.

Further details can be found on HMRC’s website.

NI and Dividend Tax Changes

The Government has announced that it will increase NI and Dividend Tax rates to pay for social care from April 2022. We will shortly send a separate update to outline how this may affect you and your business.

Tax on sale of second properties – what you need to know

Rumoured increases to Capital Gains Tax (CGT) rates at the last Budget appear to have triggered the speedy selling of assets (second homes / shares etc). Figures just through show that, in the 2019-20 tax year, the Government saw a 3% increase in capital gains payments to HMRC.

The CGT rates are unchanged for now, however, £1 billion of this additional revenue can be attributed to the changes to UK property CGT reporting and payment rules which were introduced by the Chancellor last year. These changes require UK property CGT reporting and payment to be made within 30 days of the property sale completion. These changes have resulted in many penalties and interest charges to those who were unaware.

If you are considering selling your property, please take the time to read our article on this subject and keep in touch. We can advise on all aspects of CGT reporting and ensure you are not subject to these tough new penalties.

Bookkeeping Tips

Bookkeeping tips

If you are VAT registered – setting up a direct debit with HMRC extends your payment deadline by 3 working days!
Xero bank feeds – set a reminder in your calendar every 3 months to reconnect your bank feed.
Check your draft invoices – there may be an important invoice you forgot to approve/send.
Consider using Dext (formerly Receipt Bank) software – uploading receipts directly into Dext can save up to 50% in bookkeeping time!

Exiting your business – The importance of forward planning

Exit Planning With all the uncertainty over the past 18 months due to the Covid 19 pandemic, many business owners have had the time and opportunity to reconsider the future direction of their business.

If you are considering closing or selling your business within the next few years, taking steps to plan your exit strategy should start now.

Successful exit strategies can take years to plan, and with the Treasury Select Committee considering increases in CGT rates in the near future, it is even more important to kick start this process.

Our specialist team can help. From maximising the value of your business to helping you minimise your tax liability we have the expertise to guide you through this difficult process. If you would like to find out more, please Contact Us or read our Guide to Exit Planning.

Dates for your diary

Dates for your diary

7th October – Deadline for VAT returns and payments of Accounting Quarter period ending 31st August 2021
30^th December – deadline for submission of Self Assessment Tax Return if you want tax collected via your PAYE coding notice
31^st January – deadline for submission of all Self Assessment Tax Returns.

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