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Nimbus

By Nimbus

November 5, 2012

Would you like to make money from the VATman?

November 5, 2012 | By |

If you run a VAT registered business, have you considered going on the flat rate? Providing your turnover is less than £150,000 HMRC will let you pay a fixed percentage of your sales (including VAT) each quarter, rather than analysing all the expenses and deducting the VAT you have suffered on your purchases from the VAT collected on your sales.

The VATman has a list of rates applicable to various industries, which can be found here: http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm#5 We suggest you calculate the payment that would have been due in your last quarter, if it is lower then it maybe time to change to the flat rate.

If you would like to talk to one of our chartered accountants about this, or any other accounting matter, please give us a call on 01273 782 742. 

Tax
Nimbus

By Nimbus

November 5, 2012

Limited company contributions to a pension

November 5, 2012 | By |

If you run your business through a limited company and have made a profit that has not been declared as a dividend, we would recommend that you consider making a contribution to a pension.

Contributions to a pension, up to the £50,000 limit in any one input period, can form a deduction from the profits chargeable to corporation tax in the period in which the payment is made. Contributions within the limits do not give rise to tax or national insurance on the individual concerned, therefore making it an attractive method to extract funds from a company.

As part of our service at Nimbus Accounting, we regularly discuss the options available to our clients to help minimise their tax liability. If a pension contribution is something you are interested in, we recommend speaking to an independent financial advisor to ensure you get the best product to suit your current and future needs. If you would like us to help with this or any other tax matter, please give us a call on 01273 782 742.

Tax
Nimbus

By Nimbus

November 5, 2012

How to streamline you business with Xero, ReceiptBank and DropBox.

November 5, 2012 | By |

Are you the type of business owner that still keeps a bag of receipts? If this sounds familiar, then it is unlikely you are in complete control of your finances.

At Nimbus Accounting we help our clients develop a robust accounting system, which allows them to maintain all the necessary business records.  This not only gives our clients the peace of mind that everything is in order, but delivers the timely financial information to enable them to make informed decisions.

Our solution, that suits the majority of our clients, is a combination of three cloud based products.

We recommend Xero as your core financial management tool.  We believe it is so important that we include it at no extra cost in our fixed fee packages. Xero is an online accounting solution that will take care of your invoicing and account for all your business transactions.  Xero can download your bank transactions every evening, which allows you to keep track your financial position and performance. We have previously written about the many benefits of Xero, if you would like to find out more about what the software has to offer please follow this link – http://www.nimbusaccounting.com/why-we-recommend-xero-online-accounting-software-to-enhance-the-accountantclient-relationship/

Xero will handle all the transactions that go through the bank, but in order to digitise your purchase invoices, you will need to consider the services of ReceiptBank. ReceiptBank is, as the name suggests, a storage service that keeps all your receipts in one place.  More importantly, rather than you manually entering the details into Xero, ReceiptBank completes this for you, giving you more time to focus on growing your business. The company has developed an app which allows you to take a photo of a receipt and within 48 hours it will appear in Xero. You can also forward electronic receipts by email or put them in the post, so all formats are covered. Whichever method you use, all your receipts will be uploaded to the cloud, providing you with access to the original paperwork at all times.

Once you have Xero and Receipt Bank working in harmony, the final piece of cloud software you need is online file storage. There are an increasing number to choose from, one of the biggest and early entrants into this arena is DropBox. It offers you an initial 2GB of storage, which is sufficient to get you started. The facility enables you to save everything in the cloud and sync all your files on every device you use, giving you access to all your important documents wherever you are. You can even share specific folders with other users, such as your accountant, allowing those larger files that are to big to email to be easily shared.

Nimbus accounting can guide you through setting up your business to embrace cloud technology. We provide all the advice and support you require through our team of qualified accountants, who specialise in assisting entrepreneurs grow and manage their businesses.

If you want to know more about how we can help you, please call us on 01273 782 742 for a chat. 

Software
Nimbus

By Nimbus

September 4, 2012

Software Review – Sage One

September 4, 2012 | By |

We recently had an online demonstration of Sage One, which is the first cloud product the company has launched. They offer two versions, Cashbook and Accounts, which are priced at £5 and £10 per month (+VAT) respectively. Sage claims to have between 5,000 and 10,000 users of Sage One.  There must be something that appeals to these customers, we wanted to see for ourselves what it was.

Our first impressions were very good. The interface is very well designed and Sage has clearly listened to their customers.  There is 24/7 telephone support,  all the traditional Line 50 accounting terminology has been translated into plain English and the nominal codes are hidden from view.  Accountants need not fear as all that remains in the Accountant Edition.   

Sage One Cashbook, as the name implies, records cash entries.  That is pretty much the limit of the software. This version can’t raise invoices or monitor anyone that may owe you money – it is no good for anything other than a cash business.  The transactions you record will replicate your bank and petty cash accounts, but you have to manually enter every transaction. Once this is done you need to check all your transactions against the actual bank statement, another manual check. In terms of reports, there is One. It will generate a Profit & Loss report (on a cash basis) and that is it.

Sage One Accounts is identical in look and feel to Cashbook, but has more features.  It has the ability to issue sales invoices and record your purchases. If you keep your bank reconciled, it will be able to produce statements for both. There are only four invoice templates, so be prepared to change your current layout if it doesn’t fit the mould. The software can also submit your VAT returns directly from the software. It has only five reports – Profit & Loss, Balance Sheet, Debtors, Creditors and Trial Balance. 

It is clear that the cloud will strengthen the accountant / client relationship by being able to collaborate on a real-time basis. But the question is, has Sage delivered a product that is better than the competition?  The Nimbus Accounting view is no. In this day of live bank feeds and CSV uploads, offered by other cloud based software such as Xero and FreeAgent, it is surprising that Sage still make you repeat the work your bank has already done on your behalf.  So for this reason, Nimbus Accounting do not recommend Sage One.  We believe Xero offers a much more powerful solution for a small to medium sized business and FreeAgent is a better fit for a freelance consultant.  Both place the bank account at the heart of the software and have the ability to automatically download bank transactions each night.  With live data in your software, producing your accounts can’t get any easier.

If you are based in the Brighton & Hove or Sussex area and want to discuss how your business can benefit from integrating the cloud, please don’t hesitate to give us a call on 01273 782 742.  Nimbus Accounting staff are all qualified accountants and have a specialist knowledge of SME accounting and taxation.

Software
Nimbus

By Nimbus

August 30, 2012

Seed Enterprise Investment Scheme

August 30, 2012 | By |

Seed Enterprise Investment Scheme

With the banks still not lending to small businesses, are there other forms of external investment? The government has introduced the Seed Enterprise Investment Scheme (SEIS), which will sit alongside the existing Enterprise Investment Scheme (EIS), to promote investment in the smaller, early stage companies that would normally be overlooked by the EIS investor.

Does your company qualify?

The company must have fewer than 25 employees and assets of less than £200,000.  It can raise a maximum of £150,000 through the scheme, but no investor can receive more than 30% of the company.  The trade being carried on by the company at the date of issue of the relevant shares, must be less than two years old. The majority of trades are included, however there are exclusions and some other conditions to be aware of. More information is available at  http://www.hmrc.gov.uk/seedeis/how-to-qualify.htm.

How does the investor benefit?

The investor will receive 50% of the cost of the shares off his personal income tax bill, up to a maximum annual investment of £100,000. For the 2012/13 tax year only, if the investor has chargeable gains, realised on any assets in the year, he can also invest those in a qualifying SEIS in the same year (up to £100,000).  In both cases, if the shares are held for more than 3 years, on disposal there is no capital gains tax to pay. Therefore, it is possible to reduce your income tax bill by £50,000 and completely avoid capital gains tax on £100,000, so the maximum tax saving is £78,000 for a £100,000 investment. For more details and other conditions please visit  http://www.hmrc.gov.uk/seedeis/invest.htm

What do I do next?

Obviously you need to find investors; therefore you need an attractive proposition and a detailed business plan.  Once you have that in place, one of our professionals can help you obtain advance assurance from HMRC that your company will qualify for SEIS, something investors will insist on this prior to parting with their money. You also need to complete Form SEIS1 after the first 4 months of trading, or if not yet trading once you have spent 70% of monies raised, something we can help you with.

If you would like more information about the Seed Enterprise Investment Scheme, or any other approved tax saving opportunities, please get in touch http://www.nimbusaccounting.com/contact-us/.  Nimbus Accounting staff are all qualified accountants and have a specialist knowledge of SME accounting and taxation. We have offices in Brighton & Hove and offer face to face meetings in Sussex and virtual meetings to the rest of the UK. 

Tax
Nimbus

By Nimbus

August 29, 2012

Getting ready for RTI

August 29, 2012 | By |

You have probably heard that HMRC are introducing a new method of PAYE reporting. Historically HMRC would receive either monthly or quarterly PAYE payments from employers and would only be able to reconcile these once the employer submitted their year-end return (Form P35). In the past the employers in financial difficulty were able to use HMRC as a creditor, by not paying the PAYE due and HMRC would not be aware of this debt.

HMRC have now introduced Real Time Information (RTI), not quite up to the minute, but real time information month by month. Therefore, from April 2013 or October 2013 (depending on the size of your business) all employers are required to submit their PAYE data to HMRC on a monthly basis. The payment dates remain the same, either monthly or quarterly, depending on the size of your PAYE liability.

There are potentially a few losers with the introduction of RTI. Students will unfortunately lose the ability to earn their full personal allowance in their summer holidays without being taxed! The good news is they will be able to claim back the tax, but will need to complete a Form P50 after their summer job has finished.

So what is all the fuss about? As with all changes in procedures there is a reluctance to adopt something new. At Nimbus Accounting we are well prepared for the change. Our payroll software will automatically transmit the necessary information to HMRC at a click of the button. There are firms, as always, trying to scare clients that there will be extra administration. If this sounds familiar, pick up the phone and give us a call at Nimbus Accounting, we will give you honest straight forward advice in plain English.

If you are based in the Brighton & Hove or Sussex area and want to discuss this, or any other matter affecting your business, please don’t hesitate to give us a call on 01273 782 742. Nimbus Accounting staff are all qualified accountants and have a specialist knowledge of SME accounting and taxation.

PAYE
Nimbus

By Nimbus

July 8, 2012

The benefits of using a qualified accountant

July 8, 2012 | By |

There is increasing concern in the accounting world about the number of unqualified accountants. The Institute of Chartered Accountants have listened to their members and produced a brochure which highlights the benefits of using a qualified accountant, over one of our unqualified counterparts.

All our accountants at Nimbus Accounting have undergone rigorous training to obtain their professional qualifications and have to maintain it with continuing professional development. You can be assured that the advice you receive from Nimbus Accounting is the best available.

ICAEW “Don’t take a chance with your finances”

If you have doubts about your current accountant, or just want the reassurance of the “gold standard” in the accounting world, why don’t you pick up the phone and give Nimbus Accounting a call on 01273 782 742.

Nimbus

By Nimbus

July 6, 2012

Cloud Accounting

July 6, 2012 | By |

Are you running your own business and wondering how the cloud can help?

At Nimbus Accounting we have embraced the cloud in all aspects of our business. We operate a paperless office and have all our data securely stored in the cloud.  Our experience of adopting this technology and expertise in cloud accounting solutions provides us with the ability to help and advise our clients to get the most out of cutting edge technology.

The major advantage of moving your accounts into the cloud is the realtime access you have to your figures.  We hear time and time again that business owners want to access an up to date profit & loss and quickly see their current and forecasted cash position.  Most turn to their accountant but find their accounts are two or three months behind.  They are left no option but to resort to crude spreadsheets to try and control their business. 

The advent of the cloud accounting solution has brought with it a platform which can be accessed simultaneously by you and your accountant.  It draws live data from the bank, has an interface that displays all the key financial information a business owner needs.  The systems are also intuitive and use logical and easy to understand terminology.  

We support a whole range of cloud platforms, but our preferred solution for the small to medium sized enterprise is www.xero.com.  If you are wondering how integrating a cloud accounting solution into your business can help give you a competitive edge and keep your finger on the financial pulse of your business, give Nimbus Accounting a call on 01273 782 742. 

Nimbus Accounting is a firm of Chartered Accountants based in Brighton & Hove.  We offer inclusive fixed fee packages to all our clients, including unlimited support by telephone and email.  You can always drop in to see us for a face to face meeting, if you are local to Sussex.  If you operate from further afield, like a number of our clients, we offer virtual meetings with screen sharing. For more information please visit us at www.nimbusaccounting.com.

Nimbus

By Nimbus

May 23, 2012

Does IR35 apply to your business?

May 23, 2012 | By |

The economy in Brighton is thriving with new start-up businesses, the majority of which are freelancers and contractors.  HMRC is keen to make sure that your business is bona fide and not disguising an alternative scenario. IR35 is the legislation that prevents someone, who if engaged directly by their end client would ordinarily be an employee, from trading through an intermediary (limited company or partnership) to pay less Tax and National Insurance. It is worthwhile spending some time making sure you are compliant, if you don’t the unpaid tax, fines and penalties could prove a nasty shock sometime in the future.

HMRC have published a risk based approach to help you assess whether your business entity is IR35 compliant. The 47 page document contains 12 questions, typical backup evidence required and 6 example scenarios to illustrate when and why IR35 may apply to an engagement.

  • Business premises test – Does your business own or rent business premises which are separate both from your home and from the end client’s premises? (10 points if yes)
  • Previous PAYE test – Has the current end client engaged you on PAYE employment terms, within the 12 months which ended on the last 31 March and with no major changes to your working arrangements? (Deduct 15 points if yes)
  • Business plan tests – Does your business have a business plan with a cash flow forecast which you update regularly? Does your business have a business bank account, identified as such by the bank, which is separate from your personal account? (1 point for each question if yes)
  • Client risk test – Has your business been unable to recover payment for work done in the last 24 months of more than 10% of yearly turnover? (10 points if yes)
  • PII test – Do you need professional indemnity insurance? (2 points if yes)
  • Efficiency test – Has your business had the opportunity in the last 24 months to increase your business income by working more efficiently? (10 points if yes)
  • Assistance test – Does your business engage any workers who bring in at least 25% of your yearly turnover? (35 points if yes)
  • Advertising test – Has your business spent over £1,200 on advertising in the last 12 months?  (2 points if yes)
  • Repair at own expense test – Would your business have to bear the cost of having to put right any mistakes? (4 points if yes)
  • Billing test – Do you invoice for work carried out before being paid and negotiate payment terms? (2 points if yes)
  • Right of substitution test – Does your business have the right to send a substitute? (2 points if yes)
  • Actual substitution test – Have you hired anyone in the last 24 months to do the work you have taken on? (20 points if yes)

The total score is used to assess your risk profile as follows:

Less than 10 points High risk
10-20 points Medium risk
More than 20 points Low risk

If selected for an IR35 enquiry, the first thing HMRC will look at is your contract.  It is extremely important that this is reviewed carefully before accepting any appointment and that it fairly reflects all aspects of the proposed engagement.  HMRC will not only review the contract but will look for evidence to support the tests above, so ensure you retain the necessary documents. You should review your status each time you take on a new assignment/contract. 

If you would like Nimbus Accounting to review your current engagement and contract for IR35 compliance, please get in touch.  We have put the above questions into a form on our website (follow this link).  You can answer all the above questions and upload your supporting documents. Upon receipt we will contact you to discuss your situation, our terms and conditions and the cost/type of report we will prepare.

Nimbus Accounting is a Sussex based business with offices in Hove – we specialise in contractors and small businesses.

Nimbus Accounting

t: 01273 782 742 e: hello@nimbusaccounting.com

Nimbus

By Nimbus

May 23, 2012

FreeAgent Discount Code…

May 23, 2012 | By |

If you are curious as to how to get FreeAgent at a permanently discounted rate then continue reading…

Barclays bank have joined forces with FreeAgent to provide a package that will help all small businesses take control of their finances and a lot more besides.

Starting a business is both an exciting and sometimes daunting experience. It is difficult to know what has to be done and what can wait until funds permit. The first thing that you need to do is develop a plan, this will enable yourself critically appraise your business idea. Once that plan is finalised you need to execute it.

All the basic tools needed to get your business from the drawing board through the early stages are included in MyBusinessWorks from Barclays. Combine all this with a qualified accountant and you have everything at your disposal to create a successful business.

For more information about the MyBusinessWorks from Barclays can help your new business follow this link – http://www.barclays.co.uk/Businessservices/MyBusinessWorks/P1242593823223

Nimbus Accounting is FreeAgent friendly and offers free support and training in our monthly fee to help you get the most out of your accounting software.

Nimbus Accounting is a Sussex based business with offices in Hove – we specialise in contractors and small businesses.

Nimbus Accounting

t: 01273 782 742 e: hello@nimbusaccounting.com

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