As a business owner, you’re likely familiar with the importance of providing your employees with accurate and timely documentation regarding their earnings and tax contributions. One crucial document that plays a significant role in this process is the P60 form. In this blog post, we’ll delve into why the P60 is essential for your employees and how you can ensure it’s completed correctly. Why You Need to Provide P60s The P60 form serves as a summary of an employee’s total earnings and deductions for the tax year. It’s typically issued to employees at the end of the tax year (April 5th in the UK) and provides essential information that employees need for various purposes, including: 1. Tax Returns: Employees use the information on their P60 to complete their annual tax return. It outlines their total earnings from employment, as well as the amount of tax and National Insurance contributions deducted throughout the tax year. Having accurate and comprehensive information on their P60 ensures employees can accurately report their income to HM Revenue & Customs (HMRC) and claim any entitled tax refunds or allowances. 2. Proof of Income : Many financial institutions, landlords, and other organizations may require proof of income when employees apply for loans, mortgages, rental agreements, or other financial transactions. The P60 serves as official documentation of an employee’s earnings and tax contributions, providing a reliable record for verification purposes. 3. Benefits and Credits : Some employees may be eligible for certain benefits or tax credits based on their income level. The information on the P60 helps determine eligibility for these benefits and ensures employees receive the correct entitlements. How to Complete a P60 As an employer, it’s your responsibility to ensure that each employee receives their P60 at the end of the tax year. Here’s a step-by-step guide on how to complete a P60: 1. Gather Information : Collect the necessary information, including each employee’s total earnings, tax deducted, and National Insurance contributions for the tax year. 2. Fill Out the Form : Complete the P60 form with the relevant details for each employee. Ensure accuracy and double-check all information before issuing the form. The right payroll software should do this for you if you've used it for the full tax year. 3. Distribute to Employees : Provide each employee with their completed P60 form by the statutory deadline, which is typically by May 31st following the end of the tax year. You can distribute the forms electronically or in hard copy, depending on your preferred method of communication. 4. Retain Records : Keep a copy of each employee’s P60 for your records. These records should be retained for at least three years from the end of the tax year to comply with HMRC regulations. In Conclusion Providing your employees with accurate and timely P60 forms is not only a legal requirement but also an essential aspect of maintaining transparency and trust in your employer-employee relationship. By understanding the importance of P60s and following the proper procedures for completing and distributing them, you can ensure compliance with HMRC regulations and support your employees in managing their financial affairs effectively. If you have any questions or need assistance with preparing P60 forms for your employees, please don’t hesitate to get in touch . We’re here to help ensure that your payroll processes run smoothly and efficiently.

As we approach the tax year-end for some businesses, it's the perfect time to reflect on financial performance and prepare for the upcoming fiscal year. Whether you're a small business owner, a freelancer, or a seasoned entrepreneur, reviewing these essential aspects of your finances can help you finish the year strong and set yourself up for success in the months ahead. Here are the top five things to review for your year-end: 1. Financial Statements - Take a close look at your financial statements, including your Profit & Loss account, Balance Sheet, and Cash Flow statement (if you have one!) - Analyse your revenue, expenses, assets, and liabilities to understand your business's financial health - Identify any trends or anomalies that may require further investigation Your financial statements provide valuable insights into your business's performance and can guide your decision-making for the upcoming year. 2. Tax Planning Year-end is an opportune time to review your tax situation and implement strategic tax planning strategies. Evaluating your tax liabilities and reliefs available will optimise your tax position. Consider making any necessary adjustments, such as deferring income or accelerating expenses, to minimise your tax burden. Consult with a tax professional ( we can help !) to ensure compliance with current tax laws and explore potential tax-saving opportunities for your business. 3. Budget vs. Actual Analysis - Compare your actual financial results to your budgeted projections for the year - Identify areas where you exceeded expectations and areas where you fell short - Understand the reasons behind any variances and adjust your budget accordingly for the upcoming year Conducting a thorough budget vs. actual analysis allows you to track your progress, make informed decisions, and improve your financial planning process moving forward. 4. Accounts Receivable and Accounts Payable Review your accounts receivable ageing report (your debtors) to identify any outstanding invoices and follow up with clients to expedite payment. You could consider offering incentives for early payment to improve cash flow. Similarly, review your accounts payable ageing report (your creditors) to ensure timely payment of bills and avoid late fees or penalties. Maintaining healthy accounts receivable and accounts payable balances is essential for managing your business's cash flow effectively. 5. Strategic Planning - Reflect on your achievements, challenges, and lessons learned throughout the year - Identify areas for improvement and opportunities for growth - Develop a comprehensive strategic plan that outlines actionable steps to achieve your business objectives in the coming year - Engage your team in the planning process to foster collaboration and alignment with your business goals Use the year-end review as an opportunity to assess your overall business performance and set strategic goals for the future. In conclusion, conducting a thorough review of these key areas can help you wrap up the year on a high note and position your business for success in the year ahead. By taking the time to evaluate your financial performance, plan for taxes, analyse budgets, manage accounts receivable and payable, and set strategic goals, you can make informed decisions to help drive your business forward. Remember, your year-end review is not just about looking back; it's about laying the foundation for a brighter future! We can help you review your numbers and offer the reports you need to aid with decision-making. Give us a call if you'd like support in growing your business.

Did you catch the Chancellor's Spring Budget yesterday? Here's a quick roundup of how businesses and individuals will be affected from April 2024: Employees The main rate of employee National Insurance (Class 1) is being cut by 2p from 10% to 8%. Combined with the 2p cut announced at Autumn Statement 2023, this will save the average worker on £35,400 over £900 a year. Self-Employed Individuals The main rate of self-employed National Insurance (Class 4) is also being cut by a further 2p on top of the 1p cut announced at Autumn Statement 2023, reducing from 9% to 6%. Combined with the abolition of Class 2, this will save an average self-employed person on £28,000 around £650 a year. High Income Child Benefit Charge The High Income Child Benefit Charge income threshold is being raised to £60,000 (currently £50,000), taking 170,000 families out of paying this tax. The rate of the charge will also be halved so that Child Benefit is not repaid in full until you earn £80,000 (currently £60,000). The estimate is that nearly half a million families will gain an average of £1,260 in the next tax year as a result. VAT Registration The sales threshold for VAT registration is being increased to £90,000 on a 12-month rolling basis (currently £85,000). You can visit the budget in more detail on the Government website here . If you need any support with your business taxes or advice on how this affects you, please give us a shout and we'd be happy to schedule in a meeting to discuss how we can help you.

When you first start out building a property portfolio, you may decide to purchase each property in your own name. While this keeps things simple, there are some clear-cut advantages to creating a limited company to own and manage your properties. We’ve suggested five reasons why you should consider setting up a limited company in this blog. 5 reasons to run your properties through a limited company Creating a limited company and becoming a company director may sound like a big move, but in reality running a limited company can make managing your property portfolio a whole lot easier, as well as reducing liability and improving your tax position. A limited company structure offers you the following benefits: Limited liability – by moving your rental properties into a limited company, you can limit your personal liability if something goes wrong with the property. This means that if the company runs into financial difficulties, your personal assets will not be at risk. Tax efficiency – using a limited company can be more tax-efficient than owning rental properties personally. Individual landlords are taxed on their rental income at their own personal rate of income tax, which could be up to 45%. Companies are taxed on their profits via corporation tax, at a lower rate of between 19-25%. On top of this, there may be additional tax benefits from being able to claim expenses and allowances against your company's profits. Better access to finance – a limited company can have better access to finance and borrowing than an individual landlord. Lenders may view a company as a more stable and professional entity, which makes it easier to secure loans for additional properties, expansions or renovations. This can be helpful when growing your portfolio. Improved management – managing multiple rental properties can be a complex and time-consuming task. By moving your properties into a limited company, you can streamline the management and could even potentially hire a professional property manager to oversee the day-to-day running of your portfolio. Estate planning – transferring rental properties to a limited company can be a useful estate planning tool. When your properties are held within a limited company, this can allow for easier transfer of ownership to heirs or beneficiaries in the event of your death. It can also provide greater flexibility for structuring your estate and managing any inheritance tax liabilities. There are, however, some disadvantages and limited company set-ups aren't for everyone. It can be more expensive for basic-rate taxpayers, there are additional legal responsibilities and costs and there will be no capital gains allowance if you sell (which, under current tax rules, is the case if you own a property as an individual). You may also find some BTL (Buy-To-Let) mortgages are a more expensive option as a limited company.. Talk to us about limited company structures If you’re planning to expand your rental property portfolio, or want to maximise the efficiency of your existing portfolio, moving ownership to a limited company may make a lot of sense. As your adviser, we can run you through the process of getting incorporated as a limited company and can connect you with experienced legal advisers, if necessary. Get in touch with us to talk about setting up a limited company.

We understand that in current times it can feel daunting planning for business growth. We've listed ten ways to make sure that you continue to drive through each business quarter with purpose, vision and encouragement to super-charge your business. 1. Eliminate distractions: "I don't have time. I'm too busy". Time is the scarcest resource and the biggest killer for most businesses. When we get busy we can also get distracted and focus too much time and energy on the wrong things. Hey, I've been there and still visit more than I should! But be brave - try to slash standard meeting times, reduce unnecessary admin and delegate roles and responsibilities to others if you can. 2. Say goodbye to bad customers: Do you find there are some customers where your heart sinks when you see their number pop up on your phone? If possible in your business, get rid of ten time-wasters, bad payers, or customers who cause you pain. You will feel instant relief and it will enable you to spend your time better elsewhere. 3. Invest More: Having freed up time and headspace from putting into action points one and two above, make sure you ring-fence time, key people, and money for some of the initiatives below. Redeploy with passion! 4. Get a Plan: You don't go on a journey without a map or any idea of where you're headed - so why fly blind with your business? Have a planning process, create that arse-kicking plan - and then execute it. We can help you get started if you're stuck. 5. Surround yourself with positivity: Make sure the people in your business understand and share your vision. Bring them onboard, listen to them and give them ownership. Don't let people who don't get it, or don't care, be a millstone around your neck. If they're not right or you and what you want to achieve, do them and you a favour and free up their time for better things. 6. Use Technology: Technology is ever improving and it can help you decrease admin, improve comms, improve reporting and accountability. Whether it's for team communication or cloud accounting and recording of data, ditch the paper and automate using tech wherever possible. 7. Keep on top of the numbers: Do you have enough information to monitor business cashflow and see emerging trends? We can help you identify your ow KPIs (key performance indicators, or metrics) to track on a regular basis, in order to run your business efficiently. Make sure to add these into your business plan and then you can see how well you've done compared to the plan. 8. Be Different: Break the mould and position yourself to attract ambitious, growing and engaged clients, and employees. Is there a USP that you have that will make you stand out from the crowd? Use it! 9. Get Marketing: Create a simple marketing plan to increase reach and infiltrate the market. Set aside a budget and treat it seriously. Start by making sure you really understand your customers and who you are looking to attract. Find out where they hang out and are likely to find you. Existing customers are prospects too, keeping them happy is your first step. The more you know about them, the easier it will be to attract more of the same and if you treat them well they are likely to come back again and recommend you to others. And finally... 10. Take a well-earned break: Don't underestimate the time you have away from your business. It can allow you to come back refreshed with new enthusiasm and inspiration for the way forward. I've often felt that if I stopped for any length of time (and was even worried about holidaying) that I would lose momentum and forget where I was, but have always found that it's made me even more keen to get started again with more motivation. Often the best ideas will arrive at the most random times, usually when you're not thinking about business. We're always here to help with your business numbers, analysis and reporting to make it as easy as we can for you to see where you are, where you've been and where you're heading. Drop us an email for more information on how we can help.

Accounting is a vital aspect of running a business in the UK, and the topic is surrounded by many misconceptions and myths. In this blog post, we will address some of the most common accounting myths and debunk them to help you better understand the importance of proper financial management for your business. Myth 1: You only need an accountant when your tax return and accounts are due to be filed Many business owners believe that they only need an accountant during “tax return season”. However, this is far from the truth. An accountant can help you with many aspects of your business, including financial planning, budgeting, bookkeeping, and compliance with UK tax laws and regulations. They can also provide valuable advice on investment strategies and help you make informed decisions that will benefit your business in the long term. A corporation tax or personal tax return is currently submitted once a year in the UK (until MTD ITSA comes into play in 2026) and by only having accounting support once the period in question is over and therefore it’s too late to make any operational changes, it means you have lost important planning opportunities. Myth 2: Accounting is only for large businesses Another common misconception is that accounting is only necessary for large businesses with complex financial systems. In reality, accounting is essential for all businesses, regardless of their size. Accurate financial records are crucial for making informed decisions and keeping your business financially stable. An accountant can help you develop a financial plan and ensure that your finances are well-managed, regardless of the size of your business. They can also advise on the best way to store and access your data and for how long, to ensure you don’t come a cropper if HMRC come knocking. Myth 3: Accountants are too expensive Many business owners believe that hiring an accountant is too expensive and that they can handle their finances on their own. However, hiring an accountant can save you money in the long run. They can help you identify areas where you can save money and reduce costs, and ensure that you are compliant with all relevant tax laws and regulations. Additionally, they can help you avoid costly mistakes that could result in penalties and fines (which often increase the longer an error/delay continues). Myth 4: You can rely solely on accounting software Accounting software can be a valuable tool for managing your finances. However, it is not a replacement for an accountant. Software cannot provide the same level of expertise and advice that an accountant can, and it cannot replace the human touch when it comes to financial management. Additionally, software can be prone to errors and may not be suitable for all businesses, particularly those with complex financial systems. Having an accountant support you with your software use can improve its accuracy - thinking of the phrase “rubbish in, rubbish out”, a system is only as good as the data that is input in the first place. Depending on the software you use, they can help create bespoke reports for your business within the system so you can keep an eye on your numbers in a format and using specific metrics that make sense to you and your business. Myth 5: Accounting is boring and unimportant Many people believe that accounting is a boring and unimportant aspect of running a business. However, accounting is a vital part of financial management and can have a significant impact on the success of your business. By keeping accurate financial records and making informed financial decisions, you can ensure the stability and growth of your business. At IJC Finance we love the parts a lot of business owners – putting it frankly – despise. As self-confessed numbers nerds our role we make it our mission to bring more interest to what your numbers are telling you and help make things easier to understand without too much technical jargon. Conclusion Accounting is an essential aspect of running a business in the UK, and there are many misconceptions and myths surrounding this topic. By debunking these myths, we hope to help you better understand the importance of proper financial management and the value that an accountant can bring to your business. By working with an accountancy firm like IJC Finance you can ensure that your finances are well-managed, compliant with tax laws and regulations, and positioned for long-term success. Contact us for more information on how we can get you started. You can read more on the services we offer here .

Managing finances can be a daunting task, especially as a business owner. The UK tax system is complex and constantly changing, and it can be difficult to keep up with all the rules and regulations. An accountant can help you manage your finances and ensure that you comply with all the relevant tax laws. In this blog post, we’ll discuss why you might consider utilising an accountant’s services. Complex tax laws and regulations The UK tax system is complex, and the laws and regulations can be difficult to understand and keep up with the changes. An accountant can help you navigate this complexity and ensure that you are compliant with all the relevant rules and regulations. They can help you submit your taxes to HMRC correctly, identify tax reliefs and deductions that you may be eligible for, and advise you on tax planning strategies. They'll be able to tell you what you can and can't claim for and what is allowable or disallowable for tax purposes. Time-saving Managing finances can be time-consuming, especially if you are not an expert in this field. An accountant can take care of your finances, leaving you with more time to focus on other aspects of your business. They can also help you identify areas where you can save time and money, such as streamlining your bookkeeping processes. Financial planning and budgeting An accountant can help you develop a financial plan for your business and create a budget that will help you achieve your goals. They can help you identify areas where you can reduce costs, increase revenue, and improve profitability. They can also help you monitor your cash flow and ensure that you have enough funds to meet your financial obligations. Expertise and experience An accountant has the expertise and experience to handle complex financial matters. They have a deep understanding of the UK tax system and can provide valuable advice on financial planning and risk management. They can also help you understand the financial implications of business decisions and provide guidance on the best course of action. Reduced risk of errors and penalties Mistakes in financial reporting can result in penalties and fines from HMRC. An accountant can help you avoid these penalties by ensuring that your financial records are accurate and up-to-date. They can also help you prepare for HMRC investigations and ensure that you are compliant with all relevant regulations. In conclusion, if you are a business owner in the UK, there are many reasons why you might need an accountant. They can help you navigate the complex tax system, save you time, develop a financial plan for your business, provide valuable advice, and reduce the risk of errors and penalties. By working with an accountant, you can ensure that your finances are in good hands and focus on growing your business. At IJC Finance we make it our mission to make life easier for our clients by leaving us to worry about the topics you don’t have time to. Drop us a message on our contact form or book in a Discovery Call to see how we can support you.

Have you heard the saying “Cash is king”? Many coaches, accountants, banks, and financial experts will tell you that to survive a recession you need to protect your cashflow. According to Trustnet ( https://www.trustnet.com/news/13318089/five-rules-for-resilience-in-rocky-markets--and-uk-stocks-ticking-the-boxes ), “An indicator of resilience is a business’ ability to generate cash. Cash is important.” Businesses have a habit of repeating old mistakes in new recessions. Here’s 3 ways an accountant can help you protect your cashflow so you don’t just survive the recession; you thrive regardless of whatever the next 18 months throws at us. 1. New eyes, new ideas When you work with IJC Finance we are not just here to ensure you pay the right amount of tax and get your employee wages right. With our reports and investigative work (makes us sound like detective or spies, right? Spies into success maybe!) you can see where you are open to risk, where you are wasting money and where you could be improving things. These are obviously essential for great cashflow. We can offer management accounts reports and one-off analysis projects for your business so you can decide what you'd like to focus on to help you make decisions. 2. Make HMRC your friend Okay, so maybe you won’t ever enjoy giving them your money, but by working with an accountancy firm like ours you often find we can make the calls for you, saving you time (and stress) and ensuring you are paying the right amounts at the right time. We can also help you plan when and how to pay so that your cashflow is happier too. If you ever have any issues with payments, HMRC would always prefer you to make contact rather than bury your head in the sand. There will often be some way to help. 3. Spot the signs So we made ourselves sound like spies, now imagine us as fortune tellers. Only joking. Working with a great accountancy firm ensures you spot the tell-tale signs that something is going wrong. We can spot that time of year where sales die off or where you think you are making good profit, but in actual fact it’s just high turnover and a big risk to your future. Comparing monthly, quarterly and annual figures is a good way to identify trends and a starting point for making plans for any changes you need to make. There are a lot of ways we can grow your business, protect your profits and ensure whatever the next 18 months throws at you, you thrive. Get in touch to learn more.

The world is going digital, and we understand that can be a scary prospect for some. A lot of business can now carried out online or virtually as well as face-to-face, which does have both advantages and disadvantages. But here we’re going to explore what it means to go digital with your numbers and why it is a benefit all round. We do confirm, however, that although the majority of the work we do includes the use of computers there is very much a human aspect at IJC Finance. We use our experience and know-how alongside our software solutions to support our clients and keep them up-to-date with their finances. Not everything can be replaced by a machine and we wouldn’t want it to be that way, but we keep up with the advances in technology and use it to enhance the customer experience. When we say going digital with your numbers, what we mean is using accounting software instead of pen and paper or spreadsheets. Here are some of the advantages in using software, for you and for us. Ease of use Even the less tech-savvy among us should find software a breeze, as the two cloud-based systems we use ( Xero and FreeAgent ) have been built for micro to medium businesses – and of course we can help you select the right one for your business. They are designed to be user-friendly and offer step-by-step guides and How Tos in the support and knowledge base sections of their main websites. The interfaces are intuitive and if there are any questions then the team at IJC Finance are also fully trained and certified and can help you in the right direction. Saving time If using spreadsheets alone – or worse still, nothing to record your numbers (!) – you are missing out on the features offered by accounting software that help save others time and effort in keeping your finances up-to-date and organised. Both our software options include access to auto-extract technology for receipts and invoices to speed up the recording of purchases, and you have the ability to raise invoices and quotes for customers and email these directly from the software without the need for copying and pasting into a word document and then emailing separately... This itself can save much time and can assist with tracking those outstanding payments. You can also send chaser payment emails and statements! Accuracy Spreadsheets, even when designed by Excel whizzes, are prone to error. Copy and paste errors, missing rows out and overwriting formulas, or losing the whole file and receiving those dreaded “corrupt file” messages can all be disastrous. Our software sits in the cloud and so there isn’t the worry about losing data and the concern over miscalculations is removed. Keeping your data secure We are often warned of the risks of others gaining access to our confidential data, and by using software this risk can be mitigated with the implementation of two-factor authentication (2FA). Even if you don’t use software, we would advise adding a password to your confidential and financial files and storing them somewhere secure. Seeing your progress We’re often told by new clients that in the past they’ve found it difficult to see where their business is going and how it is performing financially, and the main reason is that there hasn’t been anything available for viewing their numbers in real time. A benefit of software is that the data contained within (such as sales and expenses, customer information, assets owned and liabilities owed) can be manipulated in varying ways to produce useful reports specific to what each business owner wants to track. By default the standard Profit & Loss and Balance Sheet reports will be available at the click of a button, and also real-time information on debtors and creditors and any taxes owed such as VAT and payroll taxes. Depending on the software used, we can also see estimated calculations for business income taxes such as corporation tax and Income tax relating to sole trader activities. Bespoke reports can also be produced and from this a set of management accounts (more on these here ). A lot of accounting software also links to third party apps offering solutions such as e-commerce sites, cashflow management, credit control, and stock management to name a few. It means that better control of your financials and metrics is within reach. We can offer advice on the best apps to use for your business needs. MTD ITSA for Sole Traders and Property Income Whilst software is something we always recommend for limited companies (due to the current reporting requirements to Companies House and HMRC), the introduction of MTD ITSA in April 2024 has sparked a fresh surge in software uptake. HMRC are changing the way and frequency it receives data from sole traders and landlords whose annual sales income is £10k or above, meaning data will need to be submitted via approved compatible software. Both Xero and FreeAgent have been preparing their software for this new requirement, and FreeAgent has recently released its landlord subscription to accounting practices as the first step in this change. If you are yet to embark on your accounting software journey and it's something you'd like to get started on, please send us a note and we can help review the best solution for your business.