So another year (to be fair only the second year) of Come Dine With TaxAssist has come to a close.
Just to give you a little bit of background so you know what on Earth I'm talking about:
Each Autumn we run Come Dine With TaxAssist. Team members either pair up with other team members, husbands, wives, girlfriends, boyfriends or even just mates.
We then randomly draw names out of hat and the pairings are up against two other groups.
Each group hosts the other two who then score them out of ten for food, entertainment and overall how much they enjoyed the night.
This time round we had an Australian and s*%t jumper night which just happened to be on hallowe'en and therefore (obviously) involved dookin' for miniatures... obviously.
We had French Night which featured some pretty terrible French Cafe music and charades. One of the films was Free Willy... I leave to your imagination to work out how that one was mimed out.
There was Oriental Night with some pretty fantastic cooking and finally, last week, Eighties Night.
Eighties Night involved a fair amount of plastic jewelry, espadrilles, leg warmers and Lycra!
It also featured two game shows from my youth - Bulls Eye and Play Your Cards Right!
All brilliant nights out; this year the team have really thrown themselves into the event and loads of effort was put into each evening by both the hosts and it has to be said the guests. Amazon has done very well out of us this year.
Except for Eighties Night... Richard seemed to have most of his outfit already in his wardrobe!
So all that's left now is to announce the winners which we'll do at our Christmas Night out.
All just a bit of fun through the Autumn and in the run up to Christmas but I just wanted to say a big thank you to everyone who put in so much effort to make this year's event such a good one.
Onward and upward next year with even more couples taking part and more 'interesting' and varied themed nights!
Wednesday 28 November 2018
Monday 19 November 2018
Scams - people pretending to be HMRC
Be careful out there people...
The scammers and ne'er do wells are out and about trying to con you out of your hard earned...
You may have heard of these two scams before but a timely reminder is probably in order.
Just to re-iterate - HMRC will never get in touch with you by email about a refund or money that needs to be paid to them.
So, this is how the two scams work:
Someone pretending to be HMRC will either call or email and say that you are due a refund. If it's a call they'll ask you for your bank account details so a refund can be made.
If it's an email it will either ask you to click a link and enter your bank details or respond to the email with bank details. In both instances horrible things will happen to your PC...
Sometimes the email received looks pretty convincing but often it just doesn't look right; it doesn't have the right layout or privacy message and often the English isn't very good.
The real giveaway, though is if you hover (DO NOT CLICK) over the email address - it may say HMRC in the description but when you hover it comes up with something completely different.
So, the real HMRC will never ask for your account details this way. If a refund is due it will either be paid to account details submitted with your tax return, by cheque or there will be a refund via PAYE in your salary.
The second scam is even more worrying.
Someone pretending to be from HMRC will call and say that you have an unpaid tax bill that has to be paid today if you are to avoid enforcement action. Sometimes it's by email.
Usually the amount isn't very much - maybe £300 - £500 - and the person on the other end of the 'phone will ask you to make a payment by card immediately.
Over the 'phone.
Or face dire consequences.
HMRC will never ask for money in this way. If you are concerned that a call may not be from HMRC ask for some proof over the 'phone or tell the person that you will hang up and call in to the HMRC public telephone numbers.
NEVER GIVE ANY INFORMATION AWAY. YOU MAY GET ASKED FOR YOUR NATIONAL INSURANCE NUMBER TO PROVE WHO YOU ARE.
DO NOT GIVE IT.
The best plan of action is simply to hang up because the more you engage with these people the more they will sound credible and you'll doubt yourself.
If you are really unsure about whether it's HMRC and you're one of our customers - give us a call - 0131 202 9888 - and we'll call HMRC for you just to set your mind at rest.
And the people the scammers are targeting: older people and students.
Please share this blog to get the message out there.
The scammers and ne'er do wells are out and about trying to con you out of your hard earned...
You may have heard of these two scams before but a timely reminder is probably in order.
Just to re-iterate - HMRC will never get in touch with you by email about a refund or money that needs to be paid to them.
So, this is how the two scams work:
Someone pretending to be HMRC will either call or email and say that you are due a refund. If it's a call they'll ask you for your bank account details so a refund can be made.
If it's an email it will either ask you to click a link and enter your bank details or respond to the email with bank details. In both instances horrible things will happen to your PC...
Sometimes the email received looks pretty convincing but often it just doesn't look right; it doesn't have the right layout or privacy message and often the English isn't very good.
The real giveaway, though is if you hover (DO NOT CLICK) over the email address - it may say HMRC in the description but when you hover it comes up with something completely different.
So, the real HMRC will never ask for your account details this way. If a refund is due it will either be paid to account details submitted with your tax return, by cheque or there will be a refund via PAYE in your salary.
The second scam is even more worrying.
Someone pretending to be from HMRC will call and say that you have an unpaid tax bill that has to be paid today if you are to avoid enforcement action. Sometimes it's by email.
Usually the amount isn't very much - maybe £300 - £500 - and the person on the other end of the 'phone will ask you to make a payment by card immediately.
Over the 'phone.
Or face dire consequences.
HMRC will never ask for money in this way. If you are concerned that a call may not be from HMRC ask for some proof over the 'phone or tell the person that you will hang up and call in to the HMRC public telephone numbers.
NEVER GIVE ANY INFORMATION AWAY. YOU MAY GET ASKED FOR YOUR NATIONAL INSURANCE NUMBER TO PROVE WHO YOU ARE.
DO NOT GIVE IT.
The best plan of action is simply to hang up because the more you engage with these people the more they will sound credible and you'll doubt yourself.
If you are really unsure about whether it's HMRC and you're one of our customers - give us a call - 0131 202 9888 - and we'll call HMRC for you just to set your mind at rest.
And the people the scammers are targeting: older people and students.
Please share this blog to get the message out there.
Monday 5 November 2018
What's on in 2018 (or at least what's left of it...)
Is time pinging by really fast for anyone else?
Or is it just me?
www.xmasclock.com (just saying)
Actually I know the answer to that question. Everyone I ask says that 2018 has flashed by like no other they can remember.
It was summed up neatly when I overheard one of our team (who's 24 (when I was 24 years old Friday seemed like a lifetime away on a Monday morning)) talking to a colleague.
'Monday morning, again!' said the colleague with a bit of a sigh in her voice.
'I wouldn't worry about it,' says our 24 year old, 'it'll be Friday again in five minutes!'
And I get the sense that time isn't going to slow up just yet, especially when there's so much to get through in 2018 - and into 2019 if I'm honest.
Okay, so let's start with tax (well we would, wouldn't we).
Having delayed its introduction for a year Making Tax Digital is very much on the radar again - and HMRC have confirmed that the new process for reporting will go live from April 1st 2019.
Without doubt, no more delays, it is happening... according to HMRC.
I actually learned what HMRC is trying to do with Making Tax Digital the other day. They want to become the most digitally enabled tax authority... in the World.
Nice
The first group of businesses to go live with Making Tax Digital are VAT registered limited companies... and companies with turnover of more than £85,000 even if not VAT registered - because they are making non-VATable supplies for example.
What MTD means is that companies and eventually just about everyone, will have to submit returns to HMRC four times a year and then submit a consolidating return, too. It all has to be submitted digitally.
Over the first year returns will simply include the headline figures. In future HMRC will have access to the background workings...
With Making Tax Digital on the horizon it's time to start the conversation again and we'll be out to all our customers who are affected by the new legislation with suggestions, plans, communications and processes... we'll do it bit by bit over the next five months.
Ahead of our communication about MTD if you have any questions get in touch - it's better to know!
Or is it just me?
www.xmasclock.com (just saying)
Actually I know the answer to that question. Everyone I ask says that 2018 has flashed by like no other they can remember.
It was summed up neatly when I overheard one of our team (who's 24 (when I was 24 years old Friday seemed like a lifetime away on a Monday morning)) talking to a colleague.
'Monday morning, again!' said the colleague with a bit of a sigh in her voice.
'I wouldn't worry about it,' says our 24 year old, 'it'll be Friday again in five minutes!'
And I get the sense that time isn't going to slow up just yet, especially when there's so much to get through in 2018 - and into 2019 if I'm honest.
Okay, so let's start with tax (well we would, wouldn't we).
Having delayed its introduction for a year Making Tax Digital is very much on the radar again - and HMRC have confirmed that the new process for reporting will go live from April 1st 2019.
Without doubt, no more delays, it is happening... according to HMRC.
I actually learned what HMRC is trying to do with Making Tax Digital the other day. They want to become the most digitally enabled tax authority... in the World.
Nice
The first group of businesses to go live with Making Tax Digital are VAT registered limited companies... and companies with turnover of more than £85,000 even if not VAT registered - because they are making non-VATable supplies for example.
What MTD means is that companies and eventually just about everyone, will have to submit returns to HMRC four times a year and then submit a consolidating return, too. It all has to be submitted digitally.
Over the first year returns will simply include the headline figures. In future HMRC will have access to the background workings...
With Making Tax Digital on the horizon it's time to start the conversation again and we'll be out to all our customers who are affected by the new legislation with suggestions, plans, communications and processes... we'll do it bit by bit over the next five months.
Ahead of our communication about MTD if you have any questions get in touch - it's better to know!
Tuesday 23 October 2018
What is a Trusted Adviser?
There's a lot of talk about change in the accountancy profession at the mo... although I guess that's true of any profession or indeed any walk of life.
Traditionally accountancy has been about historic data; getting a bunch of figures relating to income and expenditure that may have happened up to 21 months previously, knocking them into shape and creating a set of accounts for a customer to sign off.
But things are changing... or more accurately... have changed and will continue to change.
The phrase I hear a lot is 'from computation to consultation.'
I think I understand that. Accountancy used to be about adding things up then taking them away to arrive at a figure - typically a profit or loss and as a result a tax bill or refund.
But customers are getting much more demanding - quite rightly so - and are looking for their accountant to provide much more than simply a set of accounts.
They want contact, information, help, advice and so on. They want a 'Trusted Adviser'.
Apparently.
I thought I understood what one of those was but when someone asked me the other day I fumbled around for an answer for a few minutes before smiling weakly and sloping off to another meeting.
So, I did some research and I was pretty encouraged by what I found...
Firstly, a Trusted Adviser (I'll call them a TA from now on) is asked for by name and clients will seek them out for advice that goes beyond what might be expected.
For example, I was asked the other day about whether a customer could afford a new piece of machinery. Something, as an accountant, you might expect to be asked. On the same day I was also asked if I knew someone who could help fix a coffee machine and what would be a good rate to pay for dog walking.
In other words - the relationship isn't just technical. There's the technical element in it, but it's more about a wider world view.
When asking about, our customers also said they liked the fact that we dress relatively casually - no pin striped suits for us. That's because we want to like our customers not different from them. We are business owners first and foremost and can fully appreciate the stresses and strains of running a business.
Other things that I discovered about TAs include 'communicating beyond the question'. In other words, not just answering the question that was asked but giving the answer context and perhaps even exploring alternative solutions.
Business acumen is needed by a TA, big picture thinking, being technically strong as well as confidence in problem solving.
But the thing that separates TAs from any other 'service provider' is called Customer Thinking.
And that means thinking about any given situation from the customers point of view; asking the question 'how would I feel about that if I were the customer?'
And that's a TA
Traditionally accountancy has been about historic data; getting a bunch of figures relating to income and expenditure that may have happened up to 21 months previously, knocking them into shape and creating a set of accounts for a customer to sign off.
But things are changing... or more accurately... have changed and will continue to change.
The phrase I hear a lot is 'from computation to consultation.'
I think I understand that. Accountancy used to be about adding things up then taking them away to arrive at a figure - typically a profit or loss and as a result a tax bill or refund.
But customers are getting much more demanding - quite rightly so - and are looking for their accountant to provide much more than simply a set of accounts.
They want contact, information, help, advice and so on. They want a 'Trusted Adviser'.
Apparently.
I thought I understood what one of those was but when someone asked me the other day I fumbled around for an answer for a few minutes before smiling weakly and sloping off to another meeting.
So, I did some research and I was pretty encouraged by what I found...
Firstly, a Trusted Adviser (I'll call them a TA from now on) is asked for by name and clients will seek them out for advice that goes beyond what might be expected.
For example, I was asked the other day about whether a customer could afford a new piece of machinery. Something, as an accountant, you might expect to be asked. On the same day I was also asked if I knew someone who could help fix a coffee machine and what would be a good rate to pay for dog walking.
In other words - the relationship isn't just technical. There's the technical element in it, but it's more about a wider world view.
When asking about, our customers also said they liked the fact that we dress relatively casually - no pin striped suits for us. That's because we want to like our customers not different from them. We are business owners first and foremost and can fully appreciate the stresses and strains of running a business.
Other things that I discovered about TAs include 'communicating beyond the question'. In other words, not just answering the question that was asked but giving the answer context and perhaps even exploring alternative solutions.
Business acumen is needed by a TA, big picture thinking, being technically strong as well as confidence in problem solving.
But the thing that separates TAs from any other 'service provider' is called Customer Thinking.
And that means thinking about any given situation from the customers point of view; asking the question 'how would I feel about that if I were the customer?'
And that's a TA
Tuesday 24 April 2018
New Tech
I don't very often need to be reminded how tech is changing the world but sometimes I get a reminder when I wasn't even looking for one.
Here's the reminder I was thoughtfully provided with by the Universe the other day...
A mate of mine had been sent by his wife to buy new shoes for his two year old daughter.
Now I will admit it's been a while since I had to buy shoes for my daughter - she's 21 - but I can just about remember doing it. Here's the process:
Get a good description of what you are to buy, take some money with you and buy the shoes. And woebetide if they were wrong. Daughter would be upset and wife would be cross... and you would be back at the shop tout suite to return the offending items.
So, I met my mate ahead of having a swift half on a Saturday lunchtime and this is what happened. In the bar he took the shoes out that he'd bought. He took a photo of them which he sent to his wife using WhatsApp to gain pre-approval before he went home.
thirty seconds later he got a response and thirty seconds after that we were back in the shoe shop asking for a refund.
It was almost deja vu on Monday when I checked what our Support Centre was suggesting in terms of what they are calling our 'Software Estate' and I have to say even I am impressed with what we can now do.
When a new customer comes on board we have to provide something called a Letter of Engagement - this has all been streamlined. Going forwards we will only have to set up a new client in one place and that will populate everything else. Currently we have to type the same details into at least three, sometimes six different places.
Our bookkeeping system can suck through bank transactions automatically, reconciles bank accounts and provides us with client portals.in preparation for GDPR... (more about GDPR in future posts).
For customers who can't access Internet Banking we can now take paper bank statements and scan them directly into spreadsheets or - even better - directly into Quickbooks.
Another app allows us to take photographs of expense claims and our accounts production software will be fully Making Tax Digital ready.
We can provide management accounts and dashboards to our clients providing them with up to the minute information about how their business is performing.
I love all this stuff and can't wait for the chance to implement it all even though I was a bit nervous about online only accountants that are springing up.
But then I was reassured when I read the following piece in a magazine:
'You are at the centre of a raging tornado of innovation. We must embrace technology but not become it. Clients will engage, relate and buy services based on the experiences they are provided. Customer Experience is rated as the single most exciting opportunity in client growth and retention.
Remember, people buy from people first.'
And suddenly I wasn't nervous anymore - and neither should you be even if your industry is going through as much change as ours...
Here's the reminder I was thoughtfully provided with by the Universe the other day...
A mate of mine had been sent by his wife to buy new shoes for his two year old daughter.
Now I will admit it's been a while since I had to buy shoes for my daughter - she's 21 - but I can just about remember doing it. Here's the process:
Get a good description of what you are to buy, take some money with you and buy the shoes. And woebetide if they were wrong. Daughter would be upset and wife would be cross... and you would be back at the shop tout suite to return the offending items.
So, I met my mate ahead of having a swift half on a Saturday lunchtime and this is what happened. In the bar he took the shoes out that he'd bought. He took a photo of them which he sent to his wife using WhatsApp to gain pre-approval before he went home.
thirty seconds later he got a response and thirty seconds after that we were back in the shoe shop asking for a refund.
It was almost deja vu on Monday when I checked what our Support Centre was suggesting in terms of what they are calling our 'Software Estate' and I have to say even I am impressed with what we can now do.
When a new customer comes on board we have to provide something called a Letter of Engagement - this has all been streamlined. Going forwards we will only have to set up a new client in one place and that will populate everything else. Currently we have to type the same details into at least three, sometimes six different places.
Our bookkeeping system can suck through bank transactions automatically, reconciles bank accounts and provides us with client portals.in preparation for GDPR... (more about GDPR in future posts).
For customers who can't access Internet Banking we can now take paper bank statements and scan them directly into spreadsheets or - even better - directly into Quickbooks.
Another app allows us to take photographs of expense claims and our accounts production software will be fully Making Tax Digital ready.
We can provide management accounts and dashboards to our clients providing them with up to the minute information about how their business is performing.
I love all this stuff and can't wait for the chance to implement it all even though I was a bit nervous about online only accountants that are springing up.
But then I was reassured when I read the following piece in a magazine:
'You are at the centre of a raging tornado of innovation. We must embrace technology but not become it. Clients will engage, relate and buy services based on the experiences they are provided. Customer Experience is rated as the single most exciting opportunity in client growth and retention.
Remember, people buy from people first.'
And suddenly I wasn't nervous anymore - and neither should you be even if your industry is going through as much change as ours...
Thursday 12 April 2018
Tax - It's Complicated...
...or at least people like me would have you think so.
It has to be said, though, that this year there is some justification to the claim that 'tax is complicated' especially if you live in Scotland.
The new tax year started on 6th April - we are in the 2018/19 tax year - and in Scotland that date is particularly significant.
It represents the day that the Scottish tax regime diverged significantly from the rest of the UK. Instead of the four tax bands we had up to 5th April there are now six for those of us who live in Scotland.
(And if you're unsure whether you are subject to the Scottish rate of Income Tax have a look at your tax code - you'll find it on your payslip. If it has an 'S' in front of it then you are part of the Scottish regime).
So, the new standard tax bands in Scotland are (and this assumed you have standard tax code of S1185):
Income:
From nil to £11,849 - 0%
From £11,850 to £13,849 - Starter Rate - 19%
From £13,850 to £23,999 - Basic Rate - 20%
From £24,000 to £43,429 - Intermediate Rate - 21%
From £43,430 to £149,999 - Higher Rate - 41%
Above £150,000 - Top Rate - 46%
The effect of all this depends on your income levels. If you are a 'lower' earner you would pay a bit less. A 'higher' earner would pay a bit more.
For example, if you have a £15,000 salary in the 2018/19 tax year this is how your tax would work out in Scotland (not taking into consideration National Insurance):
£15,000 salary less the personal allowance of £11,850 = £3,150 taxable income
£2,000 of this would be at the Starter Rate of 19% = £380
£1,150 (the rest of the taxable amount) would be at Basic Rate of 20% = £230
Total tax = £610.
If you earned the same amount of money in England you would pay £630 - £20 more than Scotland.
However, if you earned £45,000 in 2018/19 it flips. Here's the calculation:
£33,150 would be taxable after taking off the personal allowance.
£2,000 of this would be at the Starter Rate of 19% = £380
£10,150 would be at Basic Rate of 20% = £2,030
£19,430 would be at the Intermediate Rate of 21% = £4,080.30
£1,570 would be at the Higher Rate of 41% = £643.70
Total tax = £7,134
If you lived in England and earned the same salary the total tax bill would be £6,630.
You pay £504 more if you live in Scotland.
So - more complicated because of the increased number of tax bands. And remember the more sources of income you have the more complicated it gets.
If you have some salary, but have a business that you earn from, too, you have some bank savings and some dividends and you rent out a property (and heaven forbid if you sell it during the year and have Capital Gains Tax to calculate!) it does get a little messy.
But not to worry - there's a really good calculator on the BBC website - you can get it here:
http://www.bbc.co.uk/news/business-17442946
To help work out where you are and whether you will be better or worse off.
If you'd like to talk about any of this then feel free to get in touch - we'd be delighted to talk it through with you.
It has to be said, though, that this year there is some justification to the claim that 'tax is complicated' especially if you live in Scotland.
The new tax year started on 6th April - we are in the 2018/19 tax year - and in Scotland that date is particularly significant.
It represents the day that the Scottish tax regime diverged significantly from the rest of the UK. Instead of the four tax bands we had up to 5th April there are now six for those of us who live in Scotland.
(And if you're unsure whether you are subject to the Scottish rate of Income Tax have a look at your tax code - you'll find it on your payslip. If it has an 'S' in front of it then you are part of the Scottish regime).
So, the new standard tax bands in Scotland are (and this assumed you have standard tax code of S1185):
Income:
From nil to £11,849 - 0%
From £11,850 to £13,849 - Starter Rate - 19%
From £13,850 to £23,999 - Basic Rate - 20%
From £24,000 to £43,429 - Intermediate Rate - 21%
From £43,430 to £149,999 - Higher Rate - 41%
Above £150,000 - Top Rate - 46%
The effect of all this depends on your income levels. If you are a 'lower' earner you would pay a bit less. A 'higher' earner would pay a bit more.
For example, if you have a £15,000 salary in the 2018/19 tax year this is how your tax would work out in Scotland (not taking into consideration National Insurance):
£15,000 salary less the personal allowance of £11,850 = £3,150 taxable income
£2,000 of this would be at the Starter Rate of 19% = £380
£1,150 (the rest of the taxable amount) would be at Basic Rate of 20% = £230
Total tax = £610.
If you earned the same amount of money in England you would pay £630 - £20 more than Scotland.
However, if you earned £45,000 in 2018/19 it flips. Here's the calculation:
£33,150 would be taxable after taking off the personal allowance.
£2,000 of this would be at the Starter Rate of 19% = £380
£10,150 would be at Basic Rate of 20% = £2,030
£19,430 would be at the Intermediate Rate of 21% = £4,080.30
£1,570 would be at the Higher Rate of 41% = £643.70
Total tax = £7,134
If you lived in England and earned the same salary the total tax bill would be £6,630.
You pay £504 more if you live in Scotland.
So - more complicated because of the increased number of tax bands. And remember the more sources of income you have the more complicated it gets.
If you have some salary, but have a business that you earn from, too, you have some bank savings and some dividends and you rent out a property (and heaven forbid if you sell it during the year and have Capital Gains Tax to calculate!) it does get a little messy.
But not to worry - there's a really good calculator on the BBC website - you can get it here:
http://www.bbc.co.uk/news/business-17442946
To help work out where you are and whether you will be better or worse off.
If you'd like to talk about any of this then feel free to get in touch - we'd be delighted to talk it through with you.
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