On 30th October 2024, the nation stood still as the long-awaited Autumn 2024 Budget aired live on TV. Delivered by Chancellor Rachel Reeves, it marked a moment in history, being the first to be delivered by a female, who is also the first female Chancellor of the Exchequer.

As expected, this budget, quickly dubbed the “Halloween Budget” by the media, sent shockwaves through the nation with a range of unexpected fiscal and policy measures aimed at tackling longstanding issues like housing shortages, NHS funding, and the need for sustainable economic growth. It is a major pivot from past Conservative approaches, and Labour’s ambitious targets and bold fiscal changes suggest a reimagined path forward for the UK’s economic landscape.

In this blog, we take a look at what Reeves has proposed, how it will help the economy, what this means for you and tips on how to prepare.

Quick Jump Menu

Budget Aims
National Insurance
Tax
National Minimum and National Living Wages
Capital Gains Tax
Inheritance Tax
Stamp Duty
VAT on Private School Fees
Benefits
Pensions
Alcohol, Fuel and Tobacco Duty
Electric Vehicles and Air Passenger Duty
Energy
Other Announcements
Top Tips

Budget Aims

What is the Chancellor Rachel Reeves trying to achieve with the Autumn 2024 Budget?

During the announcement, Reeves declared that her Autumn Budget seeks to manage the UK’s substantial debt (£2.77 million) as a priority, whilst also addressing economic priorities like improving public services and boosting infrastructure investment, as well as tackling social challenges, housing issues and the ever-growing issue of skilled labourers and workplace fairness.

She revealed that there are seven key pillars that the Labour Government are focusing on, which the budget will support.

Restore Stability
Get Britain Building
Focus on Local Growth
Skills England
Research and Development
Clean Energy

What is clear is that Reeves is trying to get the nation out of debt and make it more attractive to investors so that we our borrowing needs reduce significantly. Speaking to the nation, she said that “we should not be borrowing to fund day to day spending” and that we had become accustomed to “wasteful spending.”

Key Point – Over 50% of the tax hikes totalling £40bn will be paid by businesses. This is to happen alongside an increase in National Living and National Minimum wages and adaptation to workers’ rights.

Guide to Changes Announced

National Insurance

Employers National Insurance

Quite possibly the biggest change announced in the budget was to Employers National Insurance. From April 2025, employers NI will increase from 13.8% to 15% – a 1.2% increase. Alongside the rate hike, the threshold at which employers begin to pay NI will be lowered from £9,100 to £5,000.

It is said that this adjustment is projected to generate approximately £25 billion in tax revenue, supporting the government’s efforts to reduce the budget deficit.

Example

Business A has two employees earning £25,000 and £35,000 respectively.
Under the current rules, for a salary of £25,000 the Employer’s NI will be £2,194. Under the new rules, it will be £3,000.

Under the current rules, for a salary of £35,000 the Employer’s NI will be £3,574. Under the new rules, it will be £4,500.

This means Business A will be subject to an additional cost of £1,732 just for those two employees.

Employment Allowance

To counteract the impact on small businesses, the Employment Allowance—a tax relief for eligible small businesses—will increase from £5,000 to £10,500. This change is predicted to exempt an estimated 865,000 small businesses from paying NI altogether next year, with an additional million businesses seeing no change or even a reduction in their NI burden.

Example

The increase in Employment Allowance will allow eligible businesses to offset their NIC liability against the new amount, meaning that if their liability is less than £10,000, they won’t have to pay any.

Let’s imagine Business A above in fact only had two employees with a salary of £25,000 each. Under the previous rules for Employers NI, the business paid £ 4,388. Under the new rules, this will increase to £6,000. If the Employment Allowance had not been increased, they would have needed to pay £1,000 to HMRC which they are not used to paying. However, because the allowance has been increased, they do not have to pay anything and have £4,000 of allowance still left.

Our thoughts

Unfortunately, the NI increase will mainly affect larger employers, which we fear may lead to pressures on wages and potentially impact hiring practices. In addition, some firms may have to raise prices which in turn could lead to issues.

Whilst we support the fact that the government is trying to stabilise the economy and reduce debt, it seems that the impact on larger businesses has been overlooked with the changes to NI.

Tax

Income Tax Thresholds

Income tax thresholds are to remain frozen until 2028 in line with the previous government’s decision during the last budget. After this, they will rise inline with inflation to ensure that people remain in lower tax brackets at a time when wage growth will be pushing incomes upward.

The current thresholds are:

£0 to £12,570	0%
£12,571 to £50,270	Basic rate: 20%
£50,271 to £125,140	Higher rate: 40%
Over £125,140	Additional rate: 45%

Non-Domicile Tax Regime

As previously announced, the current Non-Domicile Tax Regime is to be abolished from April 2025. Instead of being taxed on income remitted to the UK, non-UK domiciled residents will be taxed based on residence. There will be a transition period though for existing non-domiciles.
The Chancellor hopes that the abolishment of this will reduce the amount of people incorrectly using it as a method of tax avoidance.

Read our guide to Non-Domicile changes here.

Benefits in Kind

Significant changes to the reporting of Benefits in Kind (BiK) have been announced, aiming to streamline and modernise the system for employers and employees. From April 2026, employers will be required to handle BiK reporting in real-time by “payrolling” these benefits. This change mandates that taxes and Class 1A National Insurance Contributions (NICs) on benefits in kind will need to be paid through payroll systems as they accrue, rather than the current post-yearend P11D process.

The new payrolling requirement covers a broad range of benefits, although certain benefits—such as accommodation and employee loans—will remain on a voluntary basis initially, with plans for mandatory inclusion in the future. Additionally, a new end-of-year reporting process is being developed to allow adjustments for complexities like partial employee contributions. The government also plans to simplify claiming processes for business expenses not covered by employers, aiming for faster relief for employees’ out-of-pocket expenses.

National Minimum and National Living Wages

We already knew that this budget would focus on the current cost of living crisis, so a rise in wages wasn’t a shock. The Chancellor announced that effective from April 2025, the National Minimum Wage for over-21’s will rise by 6.7% from £11.44 to £12.21.

In a similar vein, the rate for 18- to 20-year-olds will also rise to £10 from £8.60 and apprentice wages will rise from £6.40 to £7.55 per hour.

Example

This time let’s imagine Business A has three additional employees working 35 hours per week on at National Living Wage. Previously they would earn £20,820.80 pa, but under the new rates will earn £22,222.20 pa.

This increase in salaries will equate to an additional outgoing of £4,204.20 for the employer but an additional £1,401.40 pa each for the employee.

Our thoughts

The government has a long-term plan to eventually move towards one single adult rate of pay. These changes go some way towards achieving this goal, without an extreme sudden impact on business owners. However, when you couple this with the rise in Employers NI, businesses are still going to feel an impact and it’s yet to be revealed how this will affect current recruitment and training initiatives.

On a more positive note, we are pleased to see the current struggles those on minimum wage have are being recognised. The introduction of a higher minimum wage gives lower paid workers legal backing to be paid more, and this in turn will hopefully go some way to helping them cope with the ever-increasing cost of living.

Capital Gains Tax

Whilst changes to CGT were widely expected and we as a nation were somewhat privy to what the rise could be, it still hit hard when the rates were announced to be effective immediately.

Under the new CGT rules, basic-rate taxpayers will now pay 18% tax on assets sold that result in a profit rather than the old rate of 10%. Higher-rate taxpayers will be affected too, paying a whopping 24% tax on the sale of profitable assets instead of the former rate of 20%.

For investors, the news wasn’t good either. From April 2025, the investor’s relief lifetime allowance – specific reliefs that allow eligible business owners and certain individuals to reduce the CGT rate on gains within a defined limit – will decrease to £1m and will see tax rates increase from 10 to 14%. This will rise again in April 2026 to 18%.

Business Asset Disposal Relief – where qualifying business assets, such as shares in a trading company or interests in a trading business, can benefit from a reduced CGT rate – will also adhere to the same rates of 14% in 2025 and 18% in 2026 as above.

Example

Person A sells a non-residential property for a gain of £30,000 and earns £20,000 pa. The gain would be taxed at the basic rate of 18%. This means a cost of £5,400 instead of £3,000 under old rules.

Our thoughts

The alignment of Capital Gains Tax rates will bring some simplicity to the tax system, which is a positive. However, the increase in rates for non-residential gains may push people to delay realising, which could cause problems. With regards to BADR rates, we feel we need a pro tax environment if we want businesses to thrive and business owners to take risks.

Inheritance Tax

Though not unexpected, for the first time in 18 years, big changes have been made to Inheritance Tax. The good news is, the current thresholds remain unchanged until 2030, and the rate at which IHT is charged remains at 40%.

Thresholds and Rates

At the moment, the Nil Rate Band is £325,000 and the Resident Nil Rate Band is £175,000. The Nil Rate Band allows anyone to inherit property, money or possessions of someone who’s passed away up to a value of £325,000 before they begin paying tax. If a house is left to a family member, as above, an additional £175,000 of tax-free inheritance is allowed, as long as the descendant is a resident (the Resident Nil Rate Band). These bands will be frozen until 2030.

Agricultural Property Relief (APR) and Business Property Relief (BPR)

This is one of the areas of IHT which has seen the biggest amendments, with changes coming into effect as soon as April 2025. From this date, the APR will be extended to include any land managed under an environmental agreement with an approved UK body such as the government, local authorities etc.
From April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1m, inheritance tax will apply with a 50% relief, at an effective rate of 20%.

Pensions

Any inherited pensions are to now fall within the scope of Inheritance Tax, a major change as currently, pensions held within a trust fall outside the scope of IHT. From April 2027, any pension pots not used by the owner will become part of the persons estate. The Inheritance Tax on these pensions will be paid directly from the pot at the same rates mentioned above.

Stamp Duty

Stamp Duty Land Tax is a tax which often comes under fire during the budget. This year, significant changes were once again made, with some seeing rates revert back to those of 2022.

Additional Home Surcharge

Effective from 31 October 2024, those who purchase an additional property will be liable to pay a 5% surcharge, up from 3%. This two-point increase applies across all SDLT bands, impacting buyers in England and Northern Ireland purchasing rental or holiday homes.

Main Home Thresholds

The regular (standard) Stamp Duty Land Tax (SDLT) rates in England and Northern Ireland apply to buyers purchasing primary residences and are structured progressively, meaning each portion of the property price is taxed at a specific rate. It was announced in the budget that there will be a change to these rates.

Here’s a breakdown of the current SDLT rates and the changes coming into effect:

Up to £250,000: 0% – from April 2025, a 2% rate of SDLT will apply to residential property with a value of

£125,000-£250,000.
£250,001 to £925,000: 5%
£925,001 to £1.5 million: 10%
Over £1.5 million: 12%

First Time Buyers

First-time buyers currently receive a relief, with no SDLT paid on properties up to £250,000 and reduced rate of 5% on properties between £250,000 and £625,000. However, from April 2025, this will reduce to £425,000.

Example

Let’s imagine a first-time buyer was buying a property in London for £500,000. The stamp duty due on the property would at the moment be £3,750, however, from April 2025 it would be £10,000.
If a non-first-time buyer was purchasing the same property, at the moment stamp duty would be £12,500, but from April 2025 they would pay £15,000.

VAT on Private School Fees

We’ve known about this for some time, so many have already been able to forecast the impact this will have. Nevertheless, it will make a significant difference to the cost of sending a child to a private school.

From January 2025, the VAT exemption private schools currently have will be removed. This means all fees to parents will be subject to VAT at a rate of 20%.

Example

The average cost of sending a child to private school in the UK, outside of London, is £18,000. If we use this figure to determine the average cost with VAT added, it is forecasted that parents will pay an additional £3,600 per year.

£18,000 x 1.2 (20% VAT) = £21,600

Benefits

Carers Allowance

Effective immediately, those claiming Carers Allowance will be allowed to increase the number of hours they work in a week to 16 due to the rise in weekly earnings limit. This will mean they are eligible for full Carers Allowance whilst earning £10,000 a year or less.

Disability Benefits and Working Age Benefits

Disability benefits and working age benefits including Universal Credit will be increasing by 1.7%. According to the government, the increase is worth an average of £12.50 per month for a family on Universal Credit.

In addition to the increase, the rate at which debt can be directly recovered through UC will be reduced from 25% to 15%, known as the Fair Repayment Rate. The government suggested that this will significantly improve finances amongst benefit families who are struggling, estimated that 1.2m people will see more of their income each year because of this.

Pensions

As discussed above, the biggest change in pensions is the fact that unused pensions will no longer be exempt from Inheritance Tax. However, other minor changes were made to pensions.

The State Pension triple lock will remain in place for the current parliamentary term. As a result, both the basic and new State Pension are set to rise by 4.1% in 2025-26, reflecting the recent growth in average earnings.

The government will also adjust the tax rules on overseas pension transfers. Starting from October 30, 2024, transfers to Qualifying Recognised Overseas Pension Schemes (QROPS) in the European Economic Area (EEA) and Gibraltar will now be subject to the Overseas Transfer Charge. This change aims to prevent situations where individuals benefit from double tax-free allowances on these transfers.

Additionally, from April 6, 2025, the government will align requirements for Overseas Pension Schemes (OPS) and Recognised Overseas Pension Schemes (ROPS) based in the EEA with those outside this region.

In another shift, scheme administrators for registered UK pensions will need to be UK residents from April 6, 2026, to improve the tax administration process.

Finally, for the Mineworkers’ Pension Scheme, the Investment Reserve Fund will be transferred to the scheme’s trustees. This will allow the fund to be distributed as an extra pension benefit to scheme members, alongside a government-led review of the scheme’s current surplus-sharing model.

Alcohol, Fuel and Tobacco Duty

In the 2024 Autumn Budget, Chancellor Rachel Reeves announced a series of adjustments to alcohol, fuel, and tobacco duties:

Draft duty will he cut by 1.7% meaning the cost of a pint in the pub will be 1p less
Duty will be increased on hand rolled tobacco
The flat rate duty on vaping liquid will be increased to £2.30 per 10ml from October 2026
The fuel duty will remain frozen for another year
Tax on non-alcoholic drinks will increase inline with inflation

Electric Vehicles and Air Passenger Duty

Electric Vehicles

Although it keeps getting pushed back causing people to wonder if it will ever come into effect, the budget confirmed that the plans to ban new petrol and diesel cars from 2035 still very much remain. In a bid to achieve this, the Chancellor revealed a number of supportive measures that will be seen in the coming years:

First Year Rates for car tax on electric vehicles will be frozen until 2029-30 at £10
More investment (£200m) in electric vehicle charging points in 2025
An additional £120m will be dedicated to the purchase and manufacture of new EVs through the plug-in vehicle scheme.

Air Passenger Duty

The changes to Air Passenger Duty announced in the 2024 Autumn Budget will have minimal impact on short-haul commercial flights, with flights by private jets being affected the most. This is because the rate of Air Passenger Duty of those using private jets will increase by 50%. Whilst Reeves said that short haul commercial flights won’t feel much impact, she declared that the cost of a flight can be expected to increase by £2 due to APD rates needing to fall inline with inflation.

Energy

It was very apparent in the Chancellor’s budget that the government is prioritizing clean energy in line with their manifesto. One of the announcements made was that £100m is to be allocated for projects focusing on clean energy.
In addition, a number of measures are being introduced to improve home energy efficiency:

£3.4bn of investment will be given over the next three years to help people switch to low carbon technologies and improve home energy efficiency
There will be more funding for the Boiler Upgrade Scheme to continue
Heat pump manufacturers will receive funding to keep up with demand
£1.8bn of funding will be allocated to fuel poverty schemes

Other Announcements

Below is a summary of other announcements made in the 2024 Autumn Budget.

A £1.8bn pot will be made available for compensation for those subject to the Post Office scandal.
DWP fraud teams are to be expanded and a major crackdown on benefit fraud is to be seen. Debt is expected to be recovered in a better way and will see the DWP have authority to access bank accounts to recover debt. £214bn will be given for 16 trailblazer programmes designed to reduce the benefits bill.
There will be a major crackdown on tax avoidance. The HMRC are intending to ‘go after’ those who promote tax avoidance schemes. The government will be investing in modernising HMRC systems so they can increase compliance and better target fraud. This is expected to raise an additional £9bn.
£1bn will be set aside to extend the Household Support Fund.
The number of breakfast clubs across the UK will be tripled.
An additional £3.5bn will be allocated to the core schools’ budget to help hire teachers etc.
There will be an uplift in funding of £1bn to improve SEN outcomes.
£1.3bn will be delivered to local authorities for grant funding including £230m for homelessness and housing.
Funding will be allocated for Holocaust Memorial Day 2025 celebrations to commemorate the 80th Anniversary of the liberation of Auschwitz-Birkenau, as well as funds to celebrate VE and VJ day in 2025.
The new Employment Rights Bill, originally unveiled on 10th October 2024 and discussed in the budget, will bring forward 28 individual employment reforms (watch out for our blog on this).

Our Thoughts

We are pleased to see the government has recognised the increasing cost of living and responded in a way that gives workers more legal backing to earn more. However, we would like to have seen the government recognise that some businesses have had it tough and respond in a way that shows they have their back too.
We’ve always been of the mindset that a pro-business economy will generate economic growth, but with the changes due to come into force following the budget, we fear businesses won’t be encouraged or incentivised to invest and recruit.
We accept the country is in a tough state, but such tax rises need to come with a plan of where the funds are going and where will it be spent. For example, we would have liked a clearer breakdown of how public services will be improved. There are children and those with mental health conditions for example on waiting lists as long as 18 months.

Tips on How to Respond

So, with all these changes coming into effect, how can you respond?

Plan ahead. If you’re a business owner, begin with calculating what the increased costs will be. Once you have that figure, you can see what impact that will have on profits and decide how you will raise the additional revenue.

If you identify the need to increase prices, ensure it’s done the correct way. Start by communicating the price increases with your customers now so they have plenty of time to adjust and factor it in their forecasts too. Perhaps you could introduce incentives to purchase more now at a lower rate which would also help you raise money to have in the bank for the future.

If you have a portfolio of businesses assets, now is the time to consider whether those assets can be passed down to beneficiaries without incurring CGT and higher rates of Inheritance Tax. We can support you further to discuss how you can take advantage of any reliefs and trust structures.
In a similar vein, now is also the time to bring forward any planned transactions such as property purchases to avoid the additional SDLT charge.

From and Inheritance Tax perspective, one of the things we always ask clients to work out what their Inheritance Tax liability would be if something were to happen to them today. Once you’ve done that, invest in an insurance policy that would pay out the value of that liability. This will give you peace of mind that if something did happen, the IHT would be covered. From here, what you can do is mitigate your IHT. By this we mean exploring legal ways to reduce the amount due. For example, by setting up trusts, investing, and looking into specific reliefs such as the Gift Hold-over Relief.

If you’re struggling to understand how any of these changes will affect you or your business, please do not hesitate to reach out to a member of our team. Either call 01274 722666, or email hello@shenward.com.

Managing significant wealth is no mean feat. If you’re a high net worth individual or part of a high-net-worth family, you’ll be aware of just how complex it can be.

The truth is, managing significant wealth requires more than just basic financial management, and that’s often why people struggle when it comes to doing it alone.

Over the years, Accountants and Financial Advisors alike have become to recognise the need for a more holistic, customised solution – and that’s when the Family Office was born. In this guide, we take a look at what Family Office is, what services are offered, when they’d be required and more.

What Is a Family Office?

A family office is a firm established to oversee and manage the wealth of a single family or multiple families. The core aim of a family office is to provide a comprehensive suite of services, ranging from investment management and tax planning to family governance, estate planning, philanthropy, and more.

Think of a family office as a “one-stop shop” for all financial and non-financial services that may be required. Instead of having to deal with multiple advisors, accountants, and lawyers independently, a family office centralises all of these functions, therefore offering convenience, coordination, and highly importantly, cost efficiency.

Types of Family Offices

There are two main types of family offices: single-family offices and multi-family offices.

Single-Family Office (SFO)

A single-family office is dedicated to serving one family. Typically, this is used by ultra-high-net-worth families who have the financial resources to establish a fully customised office to oversee their wealth. A single-family office is highly personalised and tailored to the family’s specific needs, ensuring that the family’s financial goals and personal values are reflected in all decisions.

Multi-Family Office (MFO)

A multi-family office, on the other hand, serves several families simultaneously. It offers many of the same services as a single-family office but at a lower cost because the expenses are shared among multiple families. While not as bespoke as a single-family office, MFOs provide expert management and strategic advice for families who may not need or want the extensive infrastructure of their own office.

Key Services Offered by Family Offices

The services provided by family offices are highly diverse and are often tailored to meet the specific needs of the family they serve. However, there are some services which are most commonly used. We take a look at these below.

Investment Management

Family offices often oversee all aspects of a family’s investments, from developing strategies to managing portfolios and selecting asset managers. Investment management is one of the core services, and it typically includes:

Asset allocation and diversification strategies.
Risk management and performance tracking.
Alternative investments (real estate, private equity, hedge funds).
Impact investing, where the family’s values are aligned with their financial objectives.

Wealth and Estate Planning

Preserving wealth across generations is a critical priority for many families, and family offices excel in estate and wealth planning. These services ensure that wealth is passed down efficiently and according to the family’s wishes. Examples include:

Succession planning: Ensuring a smooth transition of wealth to future generations.
Trust and estate management: Creating trusts, drafting wills, and other estate planning vehicles.
Tax efficiency: Using strategies to minimize taxes on wealth transfer and asset growth.

Tax Planning and Compliance

A family office works closely with accountants and tax professionals to develop effective tax strategies while ensuring compliance with local and international tax laws. Services include:

Income tax planning.
Capital gains tax strategies.
International tax planning for families with global investments or members living abroad.

Philanthropy and Charitable Giving

Philanthropy is a key aspect of many wealthy families’ legacies. Family offices help families create charitable giving plans that align with their values and goals, often assisting in the establishment of family foundations, donor-advised funds, or charitable trusts. They also manage the legal and financial aspects of giving to maximise impact.

Family Governance

As wealth is passed from one generation to the next, family offices help foster strong governance frameworks that preserve both family values and wealth. This can include:

Family meetings and retreats to discuss financial goals, governance rules, and succession planning.
Education and mentoring of younger family members on financial literacy, investment strategies, and the responsibilities of wealth.
Establishing family councils or boards that govern how family assets are managed and distributed.

Lifestyle and Concierge Services

Many family offices go beyond financial management to offer lifestyle and concierge services that handle personal affairs, allowing the family to focus on their priorities. These services can include:

Travel and vacation planning.
Property management (for multiple residences).
Personal security and risk management.
Healthcare management, including finding the best medical care and managing health-related expenses.
Education planning for family members, including selecting schools, tutors, and managing educational expenses.

Risk Management

Family offices also help families protect their assets through careful risk management. This includes:

Insurance planning (for property, liability, and life).
Cybersecurity to protect digital assets and personal data.
Asset protection strategies to mitigate legal risks.

Why Do Families Choose Family Office Services?

Families with significant wealth face unique challenges that can’t always be handled by traditional financial advisors or wealth management firms.

Some of the solutions to these challenges which a family office provides are:

1. Customisation and Privacy

Family offices provide highly tailored solutions that reflect the family’s personal goals and values. They also offer a high level of privacy, with all financial and personal matters handled discreetly.

2. Centralised Management

Rather than juggling multiple advisors, lawyers, and accountants, a family office centralises all these services under one roof, making wealth management much more efficient and streamlined.

3. Long-Term Focus

Family offices are focused on long-term wealth preservation. This multigenerational approach ensures that wealth is managed not just for the present but for future generations.

4. Objective, Family-Aligned Decisions

Unlike other financial management options, family offices work solely for the family they represent, ensuring that all decisions are in the best interest of the family and are aligned with their unique values and objectives.

Is a Family Office Right for You?

Family office services aren’t just for ultra-wealthy individuals—they can also benefit families looking for highly coordinated and comprehensive wealth management services. If your family has complex financial needs, multiple income sources, significant assets, or requires help with non-financial services such as philanthropy or lifestyle management, then exploring a family office might be a wise decision.

A family office offers the chance to simplify the management of your family’s wealth, protect assets for future generations, and maintain privacy and control over financial matters. Whether through a single-family office or a multi-family office, the advantages of having a dedicated team of professionals managing your affairs can be invaluable.

Contact Us to Learn More About Family Office Services

If you’re interested in exploring how a family office can help your family manage its wealth and plan for future generations, contact us today. Our experienced team can guide you through the process of setting up and optimising a family office tailored to your unique needs.

Each year on May 7^th, World Laughter Day is celebrated. People from across the globe go the extra mile to make another laugh.

Because it’s a bit of a running joke that Accountants are, well, boring, in honour of World Laughter Day we’ve rounded up some of our favourite jokes about ‘boring Accountants’.

Go on, have a laugh.

Best Jokes About Accountants

Q: Have you heard the one about the fun accountant?

A:Me neither.

Q: How did the auditor propose to his girlfriend?

A: With an engagement letter.

Accounting is an accrual profession, where everyone works their assets off, and everybody counts.

Q: What do accountants suffer from that ordinary people don’t?

A:Depreciation.

Q: Why was the accountant making so much noise when eating?

A: Because he was crunching numbers.

Q: Where do homeless accountants live?

A: In tax shelters.

Q: What did the accountant do when she got a new door?

A: Adjust her entry.

Q: Why do Accountants get cremated?

A: So they can get the urned income tax credit.

Q: Why did the accountant quit saving?

A: Because she lost interest.

Q: Did you hear about the deviant Forensic Accountant?

A: He got his client’s charges reduced from gross indecency to net indecency.

Best Accounting Puns

It’s accrual world.

Be audit you can be.

Let’s get fiscal.

Excel at everything you do.

Mind the GAAP!

Where there’s a will, there’s a tax shelter.

The pool was the only liquid asset they had.

Accountants don’t retire, they just close the books.

Being an Accountant is taxing.

Make every day account.

Got any of your own which you think should have made the list? Get in touch and let us know and we’ll add them.

Broadly speaking, accounting is the quantification and communication of both financial and non-financial information concerning economic organisations, such as corporations.

More specifically and in terms of business, accounting is primarily the process of tracking and recording finances in order to keep track of money coming in to, and going out of a company. This allows companies to gain a deeper insight and understanding into their spending, as well as where their money is going.

Accountants themselves are professionals who carry out all these procedures and are also responsible for other tasks such as ensuring that financial data is recorded correctly and generating reports to represent this data in a way that makes it clearer for businesses to understand and interpret.

What do accountants actually do?

Whether the business is big or small, the role accountants play within the business tends to be extremely significant and carries a lot of responsibility.

An accountant will typically work with individual clients or larger businesses and organisations and bear responsibility for a range of finance-related tasks, such as explaining invoices and accounting policies to the client (or various facets of the business), determining payroll requirements, analyzing revenue and expenditure trends, and ensuring that the books are balanced correctly.

Other duties might include preparing and reviewing budgets, monitoring spending so the client can avoid unnecessary expenses, and even business planning.

What role would an accountant play in my business?

In addition to all the typical responsibilities we just discussed, an accountant helps businesses with financial management by recording, tracking, and quantifying data, and using it to calculate how much money they make and spend each month. This includes recording transactions such as invoices, receipts, and payments. They also keep records of assets and liabilities and stay continuously aware of finances in order to ensure that a company has enough money to, for example, pay its bills

Why should I hire an accountant?

No matter the size of your business, hiring a qualified accountant or outsourcing to an accountancy firm is important in order to make sure you are able to stay on top of the company finances, and all other financial affairs. A qualified accountant will be able to help out with reviewing the financial aspects of a business plan, explaining legal business structures, and correctly preparing tax documents, which is likely to save you both money and time.

If you’re running a small business, accounting on your own can quickly become overwhelming, especially when you have other aspects of the business to keep an eye on. Hiring an accountant in this instance can help to almost immediately alleviate some of the pressure you might be feeling. They’ll also be able to assist in areas such as calculating business metrics, which will help you run your business as efficiently as possible.

Equally, you may feel a little bit hesitant to hand over any control of the business you’ve worked so hard on, even though it can be stressful at times. As your business grows, delegating at least some parts may become increasingly inevitable, if only to allow you some time to rest. Choosing to delegate financial affairs can be a good place to start – going with the right accountant will mean you’re able to feel confident that your company’s finances are being well looked after by someone more even experienced than you are and allow you to concentrate on other aspects of your business.

Another reason you might consider hiring an accountant is if you plan to start a new business, or further expand your current one. In fact, accountants can also assist in handling growth transitions, such as hiring employees or deciding to acquire more office space.

Whether you’re a huge corporation or a small startup, the range of services an accountant can offer, along with their high level of expertise and professionalism, means that many of the most critical company responsibilities will be taken care of, completely hassle-free.

Types of accountants

The two primary types of accountants are non-chartered accountants (NCAs) and chartered accountants (CAs). Non-chartered accountants are not required to take exams but do still undergo education and training. Chartered accountants are required to train for up to five years, study intensely and pass a rigorous set of examinations.

Whilst both are permitted to practice as accountants, the key difference between the two is that chartered accountants are typically more qualified and experienced, and may also be a member of a professional body, such as the Association of Chartered Certified Accountants (ACCA).

Beyond these two initial categories, there are many different possible accountancy specialties, such as public accountants, management accountants and government accountants.

How much does it cost to hire an accountant?

It is most common for accountants to charge a fixed fee, and costs really depend on the level of services required, as well as the area in which you need assistance. Just like we’ve outlined, there are different types of accounts, and different types of accountants, so it’s important you choose one you feel is right for you.

Whilst many businesses prefer to pay a monthly fee to their accountant, it is absolutely possible to pay by the hour, or for individual services. You can also mix and match if that suits you. This is another reason why considering which accountant is best for your business is really important.

An initial consultation may be a good place to start. These are usually free and will help to outline the areas that you may want an accountant for.

Looking for an accountant?

Shenward is an established and highly respected family-run chartered accountancy firm, dedicated to providing exceptional client service. We are always happy to help out with any personal or business inquires you may have. Please do get in touch at hello@shenward.com.

HMRC recently announced that to ensure all claims made on research and development (R&D) tax are legitimate, and to prevent abuse of R&D tax credit payments, it will be strengthening its extensive compliance checks.

In this article, we explore why.

Background

£7.4bn is the estimated total amount of R&D tax relief support claimed for the year ending March 2020, an increase of 19% from the previous year. This corresponds to £47.5bn of R&D expenditure, which is 15% higher than the previous year. These newly implemented checks will not only seek to scrutinize any and all claims, but also aid in a better understanding of the scale and nature of errors and fraud associated with these particular reliefs.

Despite allocation of extra resources, including the hiring of 100 supplementary compliance officers, these additional checks mean HMRC’s standard processing time will increase significantly. In lieu of this fact, HMRC has also noted that it is seeking to return to standard processing time as quickly as possible.

What is Research & Development Tax?

Research and Development reliefs are tax credit payments designed to encourage investment in innovation from UK companies. It can be claimed by a wide variety of different companies, regardless of size, who are working on innovative projects that seek to research or develop an advance in their field or resolve a particular uncertainty.

For the work to qualify, it is essential for it to be part of a specific project aiming to make advances in the spheres of science or technology. However, this only applies to the project itself, not to to the company as a whole. The tax credit allows a company’s R&D spend to be recovered, either as a reduction in Corporation Tax or a cash repayment. It is also possible to claim for projects that were ultimately unsuccessful.

What costs can I claim?

Starting from the date you began working on the project or resolving the uncertainty, you can claim a range of costs right up until you discover or develop an advance, or the project comes to an end.

Costs that qualify for R&D tax credits include:

Staff – employee costs including salaries, pension contributions and employer’s National Insurance contributions.
Subcontractor/freelancer costs (up to 65%).
Some types of software, including software license fees.
Payments to volunteers who took part in any clinical tests or trials.

You cannot claim for the costs of rent, capital expenditure, production and distribution of goods and services, or the cost of land, patents or trademarks.

How do I claim R&D Tax Relief?

You can make a claim for R&D tax credit payments up to two years after the end of the accounting period that it relates to.

Essentially, to claim the relief, you need to submit your enhanced expenditure into the full Company Tax Return form (CT600). Following this, you should use the online service to support your claim.

To calculate enhanced expenditure, start by working out costs directly attributed to research and development – remember to reduce any subcontractor or freelancer payments to 65% of the original cost. Add all costs together and multiply the result by 130% – this gives you the additional deduction to put into your tax calculations. Add this figure to the original R&D expenditure cost to get the figure for enhanced expenditure. This is what you must enter into your tax return.

Whilst there is no legal obligation to do so, it’s a good idea to produce an R&D technical report that not only justifies the advancements/uncertainties of the work, but also sets out the eligible expenditure being claimed on a project-by-project basis. The report should also include a short summary explaining the project, the start and end dates of the relevant accounting period, and your 10-digit company unique tax reference number. It may be helpful to speak to an R&D tax specialist when compiling any supporting documents to ensure they cover all necessary ground and to maximise your claim.

What does the ramp up in investigation mean for businesses?

The main consequence of the enhanced investigations is longer processing time for tax credit payments. Despite the standard processing time being 28 days, HMRC currently aims to pay the tax credit within 40 days. This means businesses should be prepared to wait significantly longer to either receive payment or be contacted regarding a claim.

The additional compliance officers working to implement these checks also means an increased level of scrutiny when inspecting R&D relief claims. However, this is unlikely to cause any problems, particularly if the claim has been checked by a qualified and experienced accountant or tax specialist, and all procedures outlined below have been properly considered.

What procedures to follow

It’s important to follow correct procedures when submitting a claim for R&D tax relief to ensure your application goes as smoothly as possible, particularly given the added level of scrupulousness that HMRC is currently fostering.

When putting together your claim, there are several points to consider in order to ensure it will meet the required standard. Make sure all entries are completed on the R&D section of the corporation tax return (CT600 form) and stay up to date with the latest guidance on completing the CT600 form on gov.uk.

Submitting any and all additional information to support the claim, including the R&D report, will help HMRC process the claim quicker, reducing any potential additional processing time. And finally, be aware that if a claim is submitted that is incorrect, inflated, or fraudulent then you may be liable to a penalty.

Get in touch

Compiling tax relief claims can be overwhelming. If you need to discuss any aspect of the claims process for R&D tax relief, or anything specifically regarding your claim, please do not hesitate to reach out to us at hello@shenward.com.

In a post-covid world, where working remotely and ditching the physical office has become something of the norm, many are asking whether using a virtual office for their registered business is the next step.

In our view, using a virtual office is the final piece in the remote working jigsaw.

Why? Well, it removes the need for a costly physical office space for a start – and as we are constantly faced with the increased cost of living, keeping overheads low is a priority.

Furthermore, using a virtual office allows you to maintain professionalism and manage people’s perceptions of your company size because you’re provided with an actual business address, not a residential one.

Of course, there’s more to it than meets the eye. But, if you’re interested in finding out more about using a virtual office for your registered business, read on as we guide you through it.

What is a virtual office service?

A virtual office is basically what it says on the tin. An office which exists virtually. That means you get the office address, the telephone line, and office related services, without the need of having to pay for a physical office.

How does a virtual office service work?

A virtual office service is usually offered by a company which exists to provide a mailing address and registered office location for businesses who don’t have a physical office.

It’s usually a company which owns its own building and offers the address out legally for businesses who want to have a registered address.

You usually pay a small monthly fee to the company and in return, benefit from the use of the address, mail hub and sometimes even a telephone line. You are then legally allowed to register your business at that address with Companies House and across all your socials and website.

Beyond this, some companies even offer professional meeting spaces for virtual office customers – this is mostly provided by coworking spaces who have a virtual office service.

What are the benefits of using a virtual office service?

The biggest benefit, as we’ve already alluded to, is the cost reduction. No more large office overheads. No more large electricity and internet bills. It’s a no brainer.

However, there are also many other lesser-known benefits to using a virtual office service.

Professional image

Despite remote working becoming the norm, having a physical office address that isn’t residential still holds weight in the business world.

It’s perhaps something which may change over time, but right now, businesses looking to do business with other businesses still perceive those with actual office addresses to be more credible and trustworthy.

It’s a point for debate as to whether this should be the case, but we can’t ignore the fact that it’s a perception many hold. With a virtual office service, you’re given an official business address rather than a residential, but without the cost.

On hand receptionist

When running a business, you already wear multiple hats. Why also take on the role of a receptionist?

Most virtual office services offer call and mail handling. This means, you can focus on other areas of the business with the peace of mind that a professional is answering your calls and dealing with important mail.

It supports SEO

An often-forgotten key advantage of using a virtual office is the address – as the registered address of the business is an ‘SEO geolocation’.

This may seem obscure, and tech nerdy, but it is important. Because many online services still benefit from the ‘near me’ feature in internet search engines. Therefore, this allows prospective clients or business partners to seek out targets based on where they are located.

So, with a virtual office location, a business will appear to be located in a particular address, surrounded in turn, by potential clients. As all forms of business are becoming increasingly digital, the value a well-placed SEO geolocator pin brings should not be overlooked.

Professional meeting space

When meeting new clients, you are unlikely to want to hold a meeting at your home. Yet meeting up at a Starbucks or Pret is not always attractive either. In some virtual office situations, you can access formal meeting spaces, where clients will feel comfortable and relaxed. And it gives you the opportunity to get out of the house into a change of scenery.

Virtual Office Service for Overseas Businesses

Virtual office services are popular amongst business outside of the UK who wish to do business in the UK without purchasing an office.

You see, it’s a legal requirement to have a registered business address in the UK if you wish to do business in the country. This must be displayed on Companies House.

The reason virtual office services are popular therefore, is because foreign businesses can pay for a UK address without having to invest in and open a physical office space.

Shenward Virtual Office Service

When it comes to choosing the right virtual office package for your business, there is much to consider It’s important you understand what services and facilities your company needs to support day-to-day operations. For example, a manned reception desk to handle any administrative tasks, such as signing for mail or answering phone calls.

Here at Shenward, we meet the challenge companies face by offering a unique provision, extending our Company Secretarial Service to offer a virtual office service. This means, in short, offering businesses the opportunity to reduce business costs permanently through a professional virtual office service. It is a clear win-win proposition.

Our virtual office service comprises of a smart and professional UK office address, a local telephone number and a personal receptionist to handle calls and take messages and mail handling. Local telephone numbers with any UK area code and even international can also be arranged.

And, if you are an overseas business looking for further support to remain compliant, you can choose to benefit from a full finance function: this includes a dedicated bookkeeper to take care of the management accounts and tax, as well as a virtual company secretary to ensure the legal requirements of the Companies Act are met. Virtual working may well be the future of work and with a virtual office the future of business could be even brighter.

Making Tax Digital might seem like just a buzzword, but with the shift to mandatory digital accounting coming in April 2022 for all VAT-registered businesses, the doors are closing in fast. Now is the time to ensure you’re fully equipped with the right software.

Why the rush? If your business fails to comply within the required time, penalties will be put in place, such as:

Having a default recorded which is also included when missing a filing.
Entering a surcharge period for 12 months if you fault again.
A point system in which we later discuss if further faults occur within the twelve months.
Lastly to which the points translate into an increased percentage of surcharges for each accumulated default. (Starting from 2% – 15%)

There is still time to get prepared, however, and we’re here to guide you through what you need to know about Making Tax Digital and how to find the right software for your business.

What is Making Tax Digital?

Making Tax Digital (MTD) is a regulation brought in in April 2019 and is a key focus of the Government’s plan to make it easier for businesses – as well as individuals – to keep track of their affairs and taxes.

Currently, the regulation states that all VAT-registered businesses who have a turnover of £85,000 or more are required to keep all VAT and business records digitally and by law have to submit their tax returns via a software which is MTD compliant.

However, changes are coming. As of April 2022, all VAT-registered businesses, regardless of their turnover, will be required to follow the same rules under MTD for their first return. That’s why any VAT-registered business needs to get ahead and choose the right MTD compliant software before this date.

The Importance of Choosing the Right Software

There is a whole host of accountancy software to choose from, each which provides different features. Aside from the cost implication of choosing the wrong one, choosing the right software is vital when trying to get your head around a new process like this.

When exploring, you need to properly assess and evaluate the software to understand which meets your business needs and still meets the MTD requirements.

HMRC won’t allow for just any software to be used, so it’s better to find out as soon as possible whether the software you’re considering is MTD Compliant.

Here are the compliance regulations the software needs to meet in order to meet MTD regulations:

The software needs to be able to record your business’ details and all your VAT-related transactions for up to six years.
The software also needs to include the date and additional information regarding any VAT paid or withheld for each transaction.
It also needs to calculate what VAT you owe based on your incomings and outgoings.
Lastly the software needs to be able to submit your VAT return directly to HMRC via an API also known as an application programming interface.

HMRC has also created a list of MTD compliant software which is worth a read.

Key factors to consider when evaluating MTD software

Flexibility & Adaptability

Both factors are vital when it comes to the software you choose for your business as it can affect how your business functions.

You should always consider how the product can adapt to your business and how it meets the needs of your businesses tax requirements both now and in the future.

Consider also any global transactions and whether the software would meet international criteria. Rules surrounding this change from time to time and you need software which can quickly adapt.

Implementation Speed

As the deadline is creeping up, you need to be looking at what the turnaround time for implementation is. How quickly can your solution to MTD be deployed and integrated within your current business infrastructure?

Many businesses tend to have their own unique process already in place and when looking into new software you’ll need to make sure that the software vendor you are going with has the expertise to ensure the transition goes smoothly.

User Experience

Choosing a software that is easy to grasp and navigate shouldn’t become a major barrier for your business. That’s why when it comes to choosing any software for your business, always question if the software is easy enough for not only you to understand but also the employees that will be utilising it.

A good way to look into the user experience of software is to see how customisable it is to your business and how well it can integrate into the existing software you use.

With tax technology the main idea is to simplify your role as much as possible whilst still meeting legislative requirements. Due to the pandemic many of us still work from home or have a hybrid work style which means that the software should be able to offer the same experience and functionality from home as it does from the office. This is where cloud technology and its security come into play.

Maintenance

When dealing with software there are always small bugs or issues that may appear at some point later down the line, and so before committing to any software you should always look and assess at how much IT support it will require during and after the implementation.

In order to do this effectively, it’s best that you inform your IT department and ask for their guidance on software which doesn’t require a mass amount of work or money to maintain.

Support

With software vendors, support is vital. If there is lack of support or no support provided, it could potentially cost your business a substantial amount of time and money if anything was to go wrong.

In order to get the best support, especially when dealing with tax software, it’s best to audit the vendor. Due to the complexity of tax it’s good to see if their team is a balance of software engineers and tax experts. If their employees are mainly all software engineers, do they work in partnership with tax experts to provide the support needed for your business? The better support the vendor has the better it is for your business in the long run.

Does KashFlow fit your MTD needs?

If you are in the current process of looking for a fast, efficient and reliable solution for Making Tax Digital then why not check out our software KashFlow.

KashFlow is a Making Tax Digital compliant accounting software that is designed for small businesses and is developed here in the UK.

Its simple layout makes it easier for your employees to use, saves time and reduces training costs, thus allowing your accounting to run as smoothly and efficiently as possible.

From generating VAT returns quickly to generating email invoices, it provides the flexibility many businesses need. It even has a mobile app for iOS and Android for on-the-go management.

Speak to us at hello@shenward.com for more information.

2022 is set to be a year of financial changes, particularly where tax and national insurance is involved.

As always, we want you to be as prepared as possible and have instant access to digestible information. Below, you’ll find a list of all upcoming changes planned this year, with insight into how it may impact you.

National Insurance Changes

From April 2022, the National Insurance threshold and rates are due to change. This is in line with the government’s plan to introduce a health and social care levy – an effort to help tackle the NHS and social care crisis.

This means that the increase will be included in National Insurance from 2022, but the government plans to make it a separate payment as of 2023.

National Insurance Contributions (NIC) rates are set to rise an extra 1.25% from 6 April 2022. Thresholds are also set to change, with the lower earnings limit increasing 3.1% in line with inflation (at the time of the Autumn Budget).

See the table below to see how this change will affect you.

Dividend Tax Rates

The dividend is subject to a similar increase as National Insurance. Dividends will also be increased by an extra 1.25% from April of this year. If you are subject to dividend tax, see below how the changes may affect you.

Income tax band	2021/22 rates	2022/23 rates
Basic	7.5%	8.75%
Higher	32.5%	33.75%
Additional	38.1%	39.35%

Inheritance tax changes

At the start of the year, new rules came into force for reporting inheritance tax.

The rules around what can be classed as an excepted estate have changed for the estates of those who have passed away on or after 1 January 2022.

The new rules aim to reduce the reporting that excepted estates are required to do, extending the definition of an excepted estate.

The new rules include:

Raising the threshold value to £3million, up from £1million.
Raising the limit of specified lifetime transfers to £250,000, up from £150,000
Raising the time limit for HMRC to request additional information from personal representatives to 60 days.
Allowing cases where available IHT threshold was used when the first partner in a marriage or civil partnership passed away first, being able to claim for the unused percentage to be made available with the current estate.

Vehicle Excise Duty (VED) changes

Vehicle Excise Duty, more commonly known as road or car tax, is set to rise from April 2022 in line with inflation.

The cost of this tax is dependent upon your vehicle, such as its age and how environmentally friendly it is.

Vehicle Co2 emissions produced per KM	Current rates	Rates from April 2022
Over 255g /KM	£2,245	£2,365
Between 226g – 255g /KM	£1,910	£2,015
Between 76g and 90g / KM	£115	£120

Remember some vehicles are not subject to the charge of VED. This includes vehicles that produce zero emissions, cars registered between March 2001 and March 2017 with Co2 emissions of 100g/Km or less, and cars that are over 40 years old. It is important to note that these vehicles still have to keep paperwork up to date every year, just minus the charge.

Capital gains tax changes

This change actually came into effect following the Autumn Budget in October 2021.

The new rule is in regard to the reporting of capital gains tax. With properties sold on or after 27^th October 2021, those who make a capital gain after selling a second home, or a buy-to-let property will now have 60 days to submit a residential property return to HMRC of the gain. Previously, the allotted time to submit the return was within 30 days of the gain being made.

The change to 60 days was announced following the recommendation made by the Office of Tax Simplification who warned many people were not aware of the reporting requirement until after their property had sold, meaning many were acquiring unfair fines. Doubling the allotted time allows for people to have an appropriate amount of time to submit their return.

Be Prepared

It’s always important to stay aware of upcoming changes so you have plenty of time to prepare for any increase in your liabilities.

If any of these upcoming changes affect you, it is important to ensure you have the right kind of cash reserves in place to feel less of an impact when that time comes.

If you need to discuss these changes in further detail, or have any further questions, do not hesitate to contact hello@shenward.com. We are always happy to provide support.

Managing a business means you probably have 101 things on your to-do list every day, and organising your business finances usually takes a back seat until there is a need to.

Running a business is hard and staying organised can be difficult, but organising your business finances can actually take the pressure off, making other areas of your business run a lot smoother.

Why? The correct management of your money is what ultimately secures your business’ success, and that’s why we’re giving you eight tips designed to get you started with organisation today.

Separate business and personal bank accounts

This is the number one priority when it comes to business finance. Keeping organised is difficult anyway, but when your business transactions are mixed with your personal ones, you’re making things more difficult than they have to be.

Having a separate bank account for your business makes it easier when it comes to working out your taxes. Not only that, but the monthly bank statements you receive from your separate business account will enable you to get a clearer picture of cash flow.

Track your income

Tracking your income means keeping a note of all incoming business related revenue – that’s received and due to be received income. Knowing how much money you will have coming in will allow you to understand the limitations and opportunities of your budget, as well as supporting forecasting.

Many smaller businesses begin tracking their income on spreadsheets, but with the advancements of cloud accounting software, there are many apps that can make your life much easier (and organised!).

Apps such as Xero and Quickbooks, or our own app KashFlow, allow you to view your income and cash flow over different periods. These apps can also be useful as your accountant (should you have one), can be granted access to your accounts.

Track your expenses

It’s never a bad idea to keep a track on where your money is going. If you are not aware of your outgoings, it’s very easy to become disorganised and overspend.

Tracking your expenses isn’t only an organisational tactic, but a money-saving one too. Some of your expenses will be tax-deductible, such as travel expenses, so it’s always a good idea to have a clear structure for expenses organisation.

You can track your expenses with all the apps previously mentioned, so it doesn’t have to be a manual process.

Be strategic with how you receive payments

Ultimately your business, beyond your overall purpose, was set up to generate revenue for either a cause or for yourself.

That’s why deciding on the most efficient way to receive payments can help to ensure revenue continues to come in as expected.

If you sell a service, for example, it is important to sort out how often you will invoice your clients, and what methods of payments they can use. Direct debit payments for regular clients are a fantastic idea and can help keep you on track with your forecast.

Set aside money

We’re sure you’re aware of the importance of budgeting when it comes to organising your finances, but are you aware of the various tools you can use to set aside money for various outgoings?

Banks like Starling have created spaces within your account where you can separate money from your general balance to account for things like VAT, Tax, and even bonuses for your team at the end of the year.

If you don’t bank with Starling, that doesn’t mean you don’t have options. Check with your bank to see what’s available – you may just be surprised.

Make time to organise

The problem with running a business is that there is always something more important to be doing, and setting aside time to do admin is a mean feat.

However, setting aside even a small amount of time each week to get on top of your finances will work out better in the long run.

Spending half an hour to an hour every week sorting out receipts and invoices means you won’t become overwhelmed.

Not great with planning time? Try time blocking https://todoist.com/productivity-methods/time-blocking.

Go digital

Having loose papers everywhere can put even the most organised of people at risk of becoming disorganised.

Digitising your financial records and accounts makes it much easier to access and organise your documents, and reduces the risk of things slipping by the way.

We understand many business owners like to keep hard copies in case of emergency or fault, but unless it’s vital, it’s just an additional thing to manage. If it is vital to keep copies, make sure these are filed strategically and stored in a safe place.

Seek Help

Sometimes, the best way to stay organised is to seek the support of an expert who lives and breathes organisation.

Consulting with an accountant, financial advisor or a VA for example will not only save time and money in the long run, but it will also help you to develop the right level of organisation specific to your financial needs and concerns. As always, if you require our assistance here at Shenward, do not hesitate to get in touch. Email hello@shenward.com

Thinking of hiring an Accountant? Want to understand how to navigate the hiring process? You’re in the right place.

It’s no longer satisfactory to conduct a google search for your nearest accountant and make the call. It’s vital you dig deeper into whether they are the right match for your business. Not only does your accountant need to be a fit professionally, but also personally.

Here, we help you understand exactly what to look for in an Accountant when navigating the hiring process, and why Chartered is the first box to tick.

Choose Chartered

Choosing to hire a chartered accountant gives you guaranteed peace of mind over the quality of service you will receive.

Chartered accountants must be accredited by a professional body. This means they must undertake further exams and practices to ensure they meet the correct standards.

Chartered accountants usually become members of professional bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW), or the Association of Chartered Certified Accountants (ACCA).

Being a member of these groups means the accountant must adhere to their ethical and professional codes of conduct. You know that they are doing the right thing by you as if their working practices aren’t up to the respective standard, they may lose their accreditation. Chartered Accountants are required to have professional indemnity insurance, which means both you and the accountant will be covered if a mistake occurs and causes you financial or reputational losses.

Check if they have the relevant experience

Is it enough for your accountant to only have the capabilities to submit your taxes on time? Accountants are capable of helping you with so much more, especially if they have prior knowledge that is relevant to your business.

It’s always worth asking what kind of clients the accountant works with so that you can establish what their capabilities are to recommend the right course of action for you. Sometimes, it can be beneficial to also know what size businesses the accountant usually works with – it clarifies that they are more likely to be aware of your needs.

Check the Service Offering

This is an important one, for obvious reasons. Before hiring an accountant, you need to be aware of not only the services, they offer, but the services you require.

Many Accountancy firms offer a great deal more than the typical accounting services you would expect. The question is, what kind of services do you need? Are you only looking for assistance with your paperwork and Tax or VAT submissions, or would you benefit more from working with a multi-disciplinary firm?

Multi-disciplinary firms generally also offer services that complement your accounting needs. This could be anything from HR and payroll to health and safety or even marketing.

Ask if they are up to date with the latest technology or software

You don’t need us to tell you the business world has become predominantly digital, so when we say it’s important to make sure your accountant is up to date with the latest technology and software within financial services, you get it.

With VAT now being digital, and Tax following suit by 2024, you need to ensure your accountant has the technical capabilities to facilitate digital accounting. If an accountant has trepidation around new practices, they probably won’t be the most helpful going forward.

Asses their communication styles

This is less about the accountant’s expertise and more about how their working styles will suit your own. After all, alignment of values and workstyles plays a part in helping you decide whether an accountant is right for you.

When researching and talking to different accountants, asking how much contact they prefer to make with their clients and their preferred modes of communication – this will help you gain an understanding as to whether they value communication and the commitment they have to keeping you up to date with changes.

Final thoughts…

There’s a lot of consideration when it comes to hiring an accountant. Remember, you’re essentially hiring an integral part of your team – the fact they work externally makes no difference – so treat the process as you would if you’re taking on a new employee.