Accounting Changes

In March 2015 the UK Government approved new regulations that implement the requirements of the new EU Accounting Directive into UK company law. While the changes introduced by the regulations are wide ranging, some of the most significant relate to the small companies regime.  The changes to company law are effective for financial years beginning on or after 1 January 2016.  The small companies regime has now been split into two parts, micro-entities and small companies, with the split based on thresholds set for turnover, balance sheet total and average number of employees The financial reporting requirements of each regime get progressively more complex and comprehensive the further up the suite of standards that an entity goes.  We will contact all our clients on an individual basis to discuss the impact of these changes on your company.

Companies House changes

The annual return which is currently lodged at Companies house is being replaced with an annual check and confirm “confirmation statement”.  These changes are scheduled to come into force in April 2016.

In an attempt to reduce fraudulent activity, the day the director was born is no longer made public at Companies House – only the month and year is now visible on the public register.  However, the new rules do not appear to remove historic data previously filed with this information on it.

If you have any queries or would like to know more please let us know.

Annual Investment Allowance

The Annual Investment Allowance is the amount that a company can obtain a 100% write down against its profits each year for qualifying expenditure on items such as plant and machinery etc. The current level of Annual Investment Allowance is set to fall from £500,000 to £200,000, to take effect from 1 January 2016.  Please be aware that any expenditure incurred after 1 January 2016  you would not be entitled to a £200,000 write down.  Due to the calculation rules relating to accounting periods straddling 1 January 2016, the allowable expenditure can be very low indeed. If you are planning of this type of expenditure then it may be more beneficial to do this before the end of the year.

For example, if  a client company with an accounting year end of 31 January 2016  incurs expenditure before 31 December 2015 they can claim capital allowances of up to £458,333, but if they leave it until 1 January 2016 they could only claim a maximum of £16,667. Similarly, if a client company with an accounting year end of 31 March 2016 incurs expenditure before 31 December 2015, they can obtain capital allowances of up to £375,000, but if they leave it until 1 January 2016 they could only claim a maximum of £50,000.

The timing of the expenditure can therefore make a lot of difference.  Perhaps a spending spree is needed now!

Please contact us if you would like to discuss this in more detail.

Budget 8th July 2015

The Chancellor George Osborne gave his budget speech (and the first Conservative majority one for some time) today. A lot of changes were announced including changes to company and personal taxation, pensions and wages.

We will be analysing the details of these changes in the coming days and will be in contact with our clients where any of these changes affect them. In the meantime if clients both existing and prospective have any queries then please contact us.

Emergency Budget 8th July

The chancellor has announced a second, ’emergency’ budget for 2015 which will be on the 8th July. The main purpose of the budget will be to begin implementing the promises made by the conservative party in their election campaign and set out the austerity measures the have planned.

We will keep our clients informed of any announcements which will affect them once the budget has been delivered.

General Election

Following the General Election result it is likely that there will be policy changes and new legislation which may affect your finances. Additional budgets are also a possibility.

We will be monitoring any announcements and will keep our clients informed of any changes and how they may be affected.

If you need any assistance with your business or personal accounting and taxation affairs then please get in touch.

Budget 2015 (March 18th)

As we approach what will be an important budget (being the last one before a General Election), many will be looking to see if there are any last minute details to win over voters in addition to the details which have already been set out.

As in previous years we will be sending our clients a newsletter containing detail on all the key announcements shortly after Budget Day.

If you have any queries on how any changes may affect you or your business then please get in touch.

Thank you!

Thank you to all our clients for the prompt provision of their tax return information which allowed us to ensure that 100% of client returns were filed by the deadline!

We will be in touch again after the end of the current tax year for the process to start all over again!