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BUDGET 2021: a snapshot summary for business owners

Budget 2021 summary

Budget 2021: top 5 things you need to know.

Rishi Sunak, the Chancellor, has confirmed some key changes that will impact you and your business. We are analysing the detail of the changes and we will update you very soon on what it means specifically for your business.

We feel that the Chancellor has listened to the concerns of business owners and their professional advisers and whilst the Treasury needs to balance the books, the good news is that the main tax rise (corporation tax) isn’t effective until 2023.

The ‘super deduction tax break’ (see below) looks very interesting and we will be looking more closely into this to see where our clients can benefit. Capital Gains Tax (CGT) rules appear to remain unchanged – but we will be checking the detail of the official budget report today.

The top 5 things you need to know today are: 

1) Furlough extended until October 2021

This measure is helpful if your business needs ‘breathing space’ to enable your business and staffing levels to normalise steadily as the economy revs up after lockdown The scheme tapers with a 10% contribution expected by employers in July – and a 20% contribution in August and September. Speak to us for help in processing your new furlough claims accurately.

2) Corporation tax increase 

Corporation tax will rise to 25% (up from 19%) in April 2023 – but only for firms with profits of more than £250,000. A new, ‘small profits rate’ will be established at 19% (as it is now) for firms with profits up to £50,000. In addition, the rate of 19% will taper up steadily to 25% for companies with profits above that level up to £250,000.

3) New ‘Recovery Loan’ Scheme  

A new loan scheme (separate from bounce-back loans and CBILS) is being launched, of which 80% will be underwritten by the Government for lenders). We will be looking closely at who can apply, how the rates will work and what the lending criteria will be. So far we know that the loans range from £25,000 up to £10m and firms have until the end of the year to apply.

4) Super deduction tax break

A new super deduction tax break has been launched for firms that will reduce their tax bill by 130% of what they spend on investment. It’s a significant change to current capital allowances legislation. We will be checking this area very carefully.

5) Last orders…

Want to buy your local pub? A new £150m Community Ownership Fund will give you the chance to buy into endangered pubs, sports clubs, theatres, music venues and even post office buildings. Under the fund, which will open in the summer, community groups will be able to bid for up to £250,000 matched-funding to buy local assets to run as community-owned businesses. Bids are to open later in the year. Cheers! 

SPEAK TO OUR TEAM IF YOU NEED MORE SUPPORT ON IMPLEMENTING THE CHANGES CONFIRMED IN TODAY’S SPRING BUDGET.

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Growing your team (and ours) in a pandemic

newly qualified accountants manchester

New skills have been acquired by all business owners during the past twelve months. Entrepreneurs are a resilient bunch and many have successfully been able to evolve their businesses and their skillsets during the pandemic. In many sectors, they are beginning to thrive again or at least, as the vaccine is being rolled out, starting to feel more positive about the future.

Therefore, the mindsets of many business owners have turned from ‘survival mode’ to ‘growth mode’ as they tentatively seek to expand their teams to enable them to thrive in the looming post-Covid business climate.

For most people, business growth is synonymous with hiring new people.

Recruiting in a pandemic certainly presents its challenges. We talk to many business owners who say the way they hire people will have to change if they are to attract the best staff not only during lockdown but afterwards too.

Remote-recruiting

On the one hand, it’s easier and more convenient than ever before to undertake interviews and assessments via tools like Zoom and Teams.

Attracting candidates digitally through social media and the ease of applying for jobs on platforms like Linked In means that, in theory, it should be simple to attract people to roles that need to be filled. Recruitment agencies can also play a positive role if they are fully tuned into the candidate you’re looking for and can articulate it well to the ‘marketplace’.

On the other hand, some people are reluctant to make the move from their existing employers in these times of uncertainty and competition is fiercer than ever before for the right candidate.

We’re hiring!

Alexander Knight & Co is a typical example of a business that is growing and hiring during 2021.  We’re currently looking for a Newly Qualified Accountant to join our team (if you know somebody suitable please do feel free to send an email to alison@alexanderknightaccountants.co.uk).

It’s an attractive role -plenty of opportunity for the right candidate to succeed in a supportive environment, along with flexible working arrangements on a hybrid basis from our Grade A office space in Hale village. Despite us only just starting the search we’re in the fortunate position of having strong interest in the role already and we are happy to take our time in selecting the right candidate.

Take your time

Some businesses, however, aren’t as fortunate as us and don’t have the luxury of time and/or the magnet of being an ’employer of choice’ in their marketplace. It’s these types of business that will have to work harder than ever before in modernising their recruitment process in order to attract good candidates in 2021.

If there’s one piece of advice I’d offer, based on my experience of running a business and working with many successful entrepreneurs, it would be that it is far better to wait for the right person to add to your team than recruit in haste and regret it for a long time afterwards. Taking care to select the right person for the job will pay dividends further down the line as we emerge from lockdown.

You can find out more about new positions available at Alexander Knight & Co on our website (www.alexanderknightaccountants.co.uk) or email your CV to alison@alexanderknightaccountants.co.uk

Accountants Hale

Accountants in Hale

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Bookkeeper vacancy in Hale

We are looking for a bookkeeper to join our team of accountants in Hale, Greater Manchester.

Our clients are entrepreneurial businesses mainly based in Greater Manchester and Cheshire.

Key Responsibilities:

  • Manage a portfolio of clients to ensure their day to day bookkeeping requirements are met ✅
  • First port of call in assisting clients with bookkeeping queries ✅
  • Preparing and posting journals including accruals, prepayments, depreciation ✅
  • Assisting the accounts team with the preparation of annual statutory accounts ✅
  • Preparation of client VAT returns ✅

The ideal candidate will have solid experience working within a similar role, experience with Xero and Sage will also be preferable, you will also have good IT and communication skills. We offer very flexible working practices – currently a mix of office-based (in our Grade A office space in Hale village) and home-working.

APPLY NOW TO BE OUR NEW BOOKKEEPER.

Send your CV and a covering letter to:

alison@alexanderknightaccountants.co.uk

Accountants Hale

Accountants in Hale

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WANTED: Apprentice Accountant to join our team in Hale

  • Do you want to launch your career in accountancy? 
  • Perhaps you have recently left 6th form, college or University? 
  • Join our growing practice in Hale as an apprentice accountant

The role: Apprentice Accountant 

Alexander Knight & Co is a leading accountancy and audit practice based in Hale, Greater Manchester. We have a strong, positive and entrepreneurial culture, reflected in our impressive client base.

We are growing and we’re hiring now. We pride ourselves on recruiting the best people so that our clients can be assured they’re in safe hands. We are now looking for an apprentice accountant – at either L3 or L7 – to join our team at the start of 2021. We have a good track record of helping the next generation of accountant develop in their career.

Jack joined us as an apprentice and is now progressing in his career as an accountant.

Read Jack’s story here – he joined us as an apprentice and he’s now progressing a successful career in accountancy at Alexander Knight & Co.

What you’ll get if you join us as an Apprentice Accountant:

  • Supportive, friendly and flexible working environment.

  • Grade A office in the heart of Hale village.

  • Regular training and career development.

  • Competitive salary + flexible benefits.

The successful candidate’s duties will be varied, and office/client based. Our clients are spread across the Greater Manchester and Cheshire area and in some instances the apprentice will be expected to travel to see clients independently.

Key responsibilities will include:

• General accounting and office duties – and checking and analysing client invoices
• Drafting financial statements
• Assisting with personal and business tax
• Credit control
• Updating and creating spread sheets and using computerised accounting software
• Basic costing duties

Desired skills

• High level of numeracy and literacy essential
• Computer literate with experience of Microsoft Word, Excel and PowerPoint, plus excellent keyboard skills
• Accurate and analytical approach, paying attention to detail
• Strong communication and organisational skills, plus effective time management and attention to detail

Personal qualities

• Must be professional with a smart appearance
• Punctual, hardworking and keen to learn and progress within a professional environment
• Enthusiastic, self-motivated but conscientious and able to work both independently and as part of a team

Desired qualifications

The successful candidate must have achieved:

  • A minimum of 5 good GCSEs to include Maths & English (ideally at the highest level A/A* or 8/9)
  • A minimum of 2 A-levels (or equivalent)

plus 

  • A degree (or equivalent for Level 7 of the Apprenticeship)

APPLY NOW TO BE AN APPRENTICE ACCOUNTANT AT ALEXANDER KNIGHT & CO.

Send your CV and a covering letter to:

alison@alexanderknightaccountants.co.uk

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NEW furlough scheme launched

New furlough scheme aimed at firms ‘forced to shut’ due to local lockdown measures.

Chancellor Rishi Sunak today unveiled the expansion of the Job Support Scheme, which is a successor to the furlough scheme.

The government says it will pay employees who cannot work 67% of their salaries, up to £2,100 a month. The scheme will come into force on 1 November and run for six months before being reviewed. Employees must be off work for a minimum of seven days to be eligible.

We are closely examining the details of this scheme as they emerge over the next few days to see what it means for your business. 

We understand that this scheme will only apply to businesses told to close – rather than those who choose to shut because of the impact of Covid restrictions.

Until November businesses that are asked to close can continue to use the furlough scheme.

It is important that if you are making claims under the new scheme you calculate the amount you can claim accurately. If you need support to make your claim – email Murray Patt now.

We are awaiting further details of this particular scheme to see of this applies to all our clients.
If you wish to discuss in more detail what these new measures mean for you and your business – please contact us now.
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New support measures announced in September 2020

New support measures announced for company directors by the Government.

A series of new measures were announced today by Rishi Sunak, the Chancellor, aimed at providing businesses more support during the ‘long winter’ ahead. We are currently analysing what these new measures mean for all our clients and as more details emerges we will update you on what it means for your business.

More time to repay loans 

These measures are helpful to the firms who have managed to trade through the crisis so far but were getting increasingly worried about repaying the fresh debt taken on in the form of Government support.

Entrepreneurs who took out bounceback loans or CBILS will welcome the increasing flexibility of repayments. The ability to reduce the monthly payments by spreading it across a further four years (up from six years) will certainly help the cashflow situation of many SME’s.

Further VAT deferrals

Many SME’s deferred their VAT bill and the opportunity to spread the repayment of this (due in March 2021) throughout next year will be snapped up by many business owners who should be planning to focus on cashflow during the winter months as the furlough scheme dries up.

New ‘Job Support Scheme’  

Unfortunately, the new Job Support Scheme, which we are dubbing the “little brother of furlough”, is merely marginal support for companies who are still trading. Firms who have not been trading during the past few months will find no solace in this scheme and stand to gain very little. Put simply it looks like this:

It is important that if you are making claims under the new scheme you calculate the amount you can claim accurately. If you need support to make your claim – email Murray Patt now.

And finally…

Around 11 million self-assessment taxpayers will be able to benefit from a separate additional 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.

We are awaiting further details of this particular scheme to see of this applies to all our clients.
If you wish to discuss in more detail what these new measures mean for you and your business – please contact us now.
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Our local community campaigns

We are proud supporters of our local community. That’s why we’ve now confirmed a new sponsorship arrangement with our leading local media publication, Altrincham Today. If you live in Altrincham, Hale, Bowdon, Hale Barns and Timperley – you’ll be seeing us frequently during the remainder of 2021 and into 2022.

Here’s a sneak preview of our Winter 2021 campaign:

 

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Starting a new business during lockdown?

We're recruiting in Hale for a new accountant

Many people have used the opportunity of lockdown or redundancy to start a new business during the past few months.

If you’re thinking of setting up a business, you’ll probably be looking forward to doing things your way without pressure from managers and directors trying to get you to do things which make no sense.

Being in charge of your own destiny – even in these challenging times – can be thrilling and rewarding for people with an entrepreneurial mindset and the right accountant.

Rushing into starting a new business can be tempting – it can’t be that hard, can it? Yes, of course it is possible to start straight away with no planning or thought – however, the most successful businesses are those that have considered the detail of what they need to set-up.

That’s where we come in. After all, we were a start-up once! That means we understand what you’re going through.

Once you’ve decided on the finance you need and the premises you’ll be working from it’s a good idea to think about business structure.

Predominantly, business owners tend to set themselves up as a sole trader or limited company. It’s important you make this decision with our help as it can affect your take home pay after tax.

Our team will assist you with:

  • Company registration with Companies House
  • Structure of company and shareholders
  • Registration with HMRC
  • Tax planning
  • VAT registration
  • Payroll and drawing money out from your new business
  • Cloud accounting and invoicing

Contact us on (0161) 980 8788 if you are starting or just about to start a new business venture.

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Electric cars continue to boom for directors

Download our electric car tax guide for entrepreneurs and business owners.

Demand for electric cars amongst our business owner client base continues to rise as prices fall. This drop in price on lease deals and RRPs for electric cars coupled with tax breaks means many company directors are going electric.

Company car owners paid a zero benefit-in-kind on certain fully-electric vehicles in 2020-21, compared to as much as 37 percent on vehicles with high CO2 emissions. For the tax year 2021-22 the benefit-in-kind on fully electric vehicles will be just 1% (of the vehicle’s list price, with accessories).

As a result of this premium electric vehicles could save business owners £1000s – compared to traditional vehicles.

You can download our free company car tax guide here to see how much you can save.

The launch of luxury models such as the Mercedes-Benz EQC, Audi E-Tron, together with Porsche and Range Rover hybrid vehicles follow the success of the Tesla Model 3 which is already considered to be a cult company car for British sales executives

Company cars have been deeply unfashionable for more than a decade now. In that time, most business owners have understood that they were better off buying a car personally and then claiming the associated expenses.

 One client of ours saw more than £10,000 knocked off his tax bill because he plumped for the Range Rover hybrid model over the diesel version.

With more e-charging points being installed across the country, improvements to the range of electric engines and a steady fall in the price we are predicting a renaissance of the company car.

If you need advice on the most tax efficient way to procure an electric car speak to our tax team on 0161 980 8788.

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Dealing with HMRC over deferred VAT payments

Early on in the pandemic, HMRC confirmed that all payments of VAT due between 20 March 2020 and 30 June 2020 could be deferred until 31 March 2021, to help businesses manage their cash flow.

Many businesses took them up on this offer, but they do need to eventually be paid!

The next few months will be as big a challenge as anything so far seen in 2020 for many businesses.

Focusing on your cash position during the remainder of 2020 should be the top priority for company directors.

Now is a good time to review your existing business plan and incorporate the repayments schedule of any CBILS, bounce back loans or VAT payments due.

We are always proactive with our clients to ensure they are clear on the dates of the deadlines for payments to HMRC to avoid penalties.

A number of tax deadlines fall between now and March 31st including deferred VAT payments (made between March 20 and June 30), self-assessment income tax payments on account and potentially your corporation tax liability.

Given that these liabilities could become payable within quick succession it means that business owners should ensure they’ve got sufficient levels of cash in their business to enable the servicing of existing debts and tax bills leaving them to focus on maintaining and growing their business during 2021

Speak to our team about structuring your tax repayments/VAT payments and ways to preserve and manage optimal levels of cash in your business.

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