Business Services Costs rise in Gloucestershire

The costs for business services rose in Gloucestershire over the summer.

The costs for business services rose in Gloucestershire over the summer.
According to the Office for National Statistics (ONS) the whole economy Index of Labour Costs per Hour (ILCH), seasonally adjusted, increased by 1.4% in Quarter 2 (Apr to June) of 2017, compared with Quarter 2 2016 and recorded 0.9% growth compared with the previous quarter, Quarter 1 (Jan to Mar) 2017.

Wage costs per hour worked increased by 1.2% in Quarter 2 2017 compared with Quarter 2 2016 and non-wage costs per hour worked increased by 3.9%.

Labour costs per hour in the private sector increased 1.3% in Quarter 2 2017 compared with the second quarter of 2016, while public sector labour costs per hour increased by 2%.

The financial and insurance activities industry saw the largest increase in Quarter 2 2017 compared with Quarter 2 2016, of 8.8%.

The arts, entertainment and recreation industry had the largest decrease in Quarter 2 2017 compared with Quarter 2 2016, of 3.8%.

All of which means that organisations in Gloucestershire will have to pay more for their business services administration- bookkeeping, accounting, payroll and pension administration.

Estimates from the ONS’s Labour Force Survey show that, between February to April 2017 and May to July 2017, the number of people in work increased, the number of unemployed people fell, and the number of people aged from 16 to 64 not working and not seeking or available to work (economically inactive) also fell.

There were 32.14 million people in work, 181,000 more than for February to April 2017 and 379,000 more than for a year earlier.

The employment rate (the proportion of people aged from 16 to 64 who were in work) was 75.3%, the highest since comparable records began in 1971.

There were 1.46 million unemployed people (people not in work but seeking and available to work), 75,000 fewer than for February to April 2017 and 175,000 fewer than for a year earlier.

The unemployment rate (the proportion of those in work plus those unemployed, that were unemployed) was 4.3%, down from 4.9% for a year earlier and the lowest since 1975.

Latest estimates show that average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 2.1%, both including and excluding bonuses, compared with a year earlier.

Latest estimates show that average weekly earnings for employees in Great Britain in real terms (that is, adjusted for price inflation) fell by 0.4%, both including and excluding bonuses, compared with a year earlier.

All of which means that the growing burden of payrolls, pensions payments and administrative burden on businesses here in Cheltenham, Gloucestershire and the South West has never been greater.

So if you would like some help with your payroll calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Glos business services accounts grow

Gloucestershire (Glos) business services accounts grow to record levels.

Gloucestershire (Glos) business services accounts grow to record levels.Demand for business services in Gloucestershire is still growing according to the Office of National Statistics (ONS) as local employment is at record levels.

Cheltenham Business Services

According to the ONS there were 465 men and 250 women looking for work in Cheltenham at the latest monthly count in July. This represents 1.4% of the Cheltenham male population and 0.7% of the female population.

Year on year this is a 0.1% decline for Cheltenham men and a 0.1% decline for women.

Cotswold Business Services

According to the ONS there were 210 men and 140 women looking for work in the Cotswolds at the latest monthly count in July. This represents 0.7% of the Cotswold male population and 0.5% of the female population.

Year on year this is a 0.1% decline for Cotswold men and a 0.0% decline for women.

Forest of Dean Business Services

According to the ONS there were 365 men and 230 women looking for work in the Forest at the latest monthly count in July. This represents 1.4% of the Forest male population and 0.8% of the female population.

Year on year this is a 0.1% decline for Forest men and a 0.0% decline for women.

Gloucester Business Services

According to the ONS there were 745 men and 445 women looking for work in Gloucester at the latest monthly count in July. This represents 2.0% of the Gloucester male population and 1.2% of the female population.

Year on year this is a 0.3% decline for Gloucester and a 0.0% decline for women.

Stroud Business Services

According to the ONS there were 285 men and 155 women looking for work in Stroud at the latest monthly count in July. This represents 0.9% of the Stroud male population and 0.5% of the female population.

Year on year this is a 0.1% decline for Stroud men and a 0.0% decline for women.

Tewkesbury Business Services

According to the ONS there were 330 men and 215 women looking for work in Tewkesbury at the latest monthly count in July. This represents 1.1% of the Tewkesbury male population and 0.7% of the female population.

Year on year this is a 0.2% decline for Tewkesbury men and a 0.1% decline for women.

Which means the growing burden of payrolls, pensions payments and administrative burden on businesses here in Cheltenham, Gloucestershire and the South West has never been greater.

So if you would like some help with your payroll calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Bookkeeping and Accountancy Services Demand at Record levels

Demand for bookkeeping, accountancy and business services are at record levels.

Demand for bookkeeping, accountancy and business services are at record levels.

According to the Office for National Statistics’ latest research the UK unemployment rate fell to 4.4% in the 3 months to June 2017 – the lowest it has been since 1975.

The employment rate reached a new record high of 75.1% and the inactivity rate fell to a new record low of 21.3%.

Real average weekly earnings fell by 0.5% in the 3 months to June 2017, both excluding and including bonuses as consumer price inflation continued to outpace growth in wages.

Estimates from the Labour Force Survey show that, between January to March 2017 and April to June 2017, the number of people in work increased, the number of unemployed people fell, and the number of people aged from 16 to 64 not working and not seeking or available to work (economically inactive) also fell.

There were 32.07 million people in work, 125,000 more than for January to March 2017 and 338,000 more than for a year earlier.

Estimates from the Labour Force Survey show that, between January to March 2017 and April to June 2017, the number of people in work increased, the number of unemployed people fell, and the number of people aged from 16 to 64 not working and not seeking or available to work (economically inactive) also fell.

There were 32.07 million people in work, 125,000 more than for January to March 2017 and 338,000 more than for a year earlier.

UK employment rate reaches a new record high

Estimates from the Labour Force Survey show that there were 32.07 million people in work in the 3 months to June 2017, which was 338,000 more than for a year earlier and 125,000 more than for January to March 2017. There was an increase in full-time employment (up 91,000) to a record high of 23.58 million and part-time employment (up 34,000) to 8.49 million compared with 3 months ago.

There was an increase in the number of people in self-employment (up 21,000) since the 3 months to March 2017. By age category, there were increases in the number of employees for three age groups: 25 to 34, 35 to 49 and 50 to 64.

The level of employment decreased for three age groups: 16 to 17, 18 to 24 and 65 and over. The employment rate was 75.1% in the 3 months to June 2017, the highest since comparable records began in 1971.

UK unemployment rate falls to its lowest since 1975

The unemployment rate declined by 0.2 percentage points in the 3 months to June 2017 compared with 3 months ago to 4.4%, its lowest since 1975. The total unemployment level decreased by 57,000 compared with 3 months ago to 1.48 million. Unemployment decreased for three age groups: 16 to 17, 25 to 34 and 35 to 49, it increased for three age groups: 18 to 24, 50 to 64 and 65 and over. A fall in unemployment was accompanied by a fall in inactivity.

Total inactivity level decreased by 64,000 since the 3 months to March 2017 to 8.77 million. The inactivity rate for 16 to 64 year olds decreased by 0.2 percentage points since 3 months ago to a record low of 21.3%. Inactivity decreased for three age groups: 18 to 24, 25 to 34 and 35 to 49 and increased for three age groups: 16 to 17, 50 to 64 and 65 and over. The next section analyses some longer-term trends in economic inactivity.

Which means the growing burden of payrolls, pensions payments and administrative burden on businesses here in Cheltenham, Gloucestershire and the South West has never been greater.

So if you would like some help with your payroll calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

Business Services Provider in South West

Demand for Business Services Provider in South West grows.

Demand for Business Services Provider in South West grows.

The latest figures from the Office of National Statistics shows that demand continues to grow for business services providers in Gloucestershire and the South West of England as the economy continues to increase in size.

In 2015, the approximate gross value added at basic prices (aGVA) generated by local activity of the UK non-financial business economy was estimated to be £1,146.2 billion; out of the 12 UK regions, 11 experienced growth in aGVA in 2015 compared with 2014.

The North East was the only region showing a decrease in aGVA of 1.1% in 2015 compared with 2014; the main contribution to the fall was from the production sector falling 12.2% (£1.1 billion).

The highest contributions to local level UK aGVA in 2015 came from London, the West Midlands and the South East; the region with the largest aGVA growth between 2014 and 2015 was London, with a rise of 5.0% (£13.6 billion).

London contributed most to the non-financial service sector representing approximately one-third of its local level aGVA; London also had the largest value contribution to the sector’s growth in aGVA between 2014 an 2015 with an increase of 4.6% (£9.6 billion).

In the production sector Scotland continued to contribute most to local level aGVA in 2015 despite a fall in aGVA between 2014 and 2015 of 8.9% (£2.7 billion); this was due to the Extraction of crude oil industry where continuing falls in commodity prices were noted as a factor.

How has the aGVA econimic grown across the regions in 2015?

In 2015, approximate gross value added (aGVA) of the UK non-financial business economy at a local level was estimated to be £1,146.2 billion. This was an increase of 5.4% (£59.0 billion) in 2015 compared with an increase of 8.5% (£85.3 billion) in 2014 and a continuation of the growth seen between 2009 and 2014, with the increase in 2014 being the largest over the period.

The main components of aGVA are turnover and purchases. Figure 1 shows the levels of total aGVA, turnover and purchases from 2008 to 2015. The level of turnover increased gradually between 2009 and 2013 but has fallen in the most recent years. The level of purchases followed a similar path until 2013 but has since declined more sharply; this has resulted in the level of aGVA increasing in the latest period.

Growth in non-financial services for all regions in 2015

The non-financial service sector contributed £659.7 billion, over half (57.6%) of the approximate gross value (aGVA) total of £1,146.2 billion in 2015 to the UK non-financial business economy at the local level.

Figure 5 shows that following the period of the economic downturn in 2008, this is the sixth consecutive year of growth in aGVA for this sector at the local level. Between 2014 and 2015, turnover within this sector increased at a higher rate than purchases; 4.2% (£50.3 billion) compared with 1.8% (£10.2 billion). This resulted in an increase in aGVA of 6.7% (£41.3 billion).

Which means the growing burden of payrolls, pensions payments and administrative burden on businesses here in Cheltenham, Gloucestershire and the South West has never been greater.

So if you would like some help with your payroll calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page

Bookkeeping services demand in Gloucestershire as employers at record levels

Demand for bookkeeping services in Gloucestershire is rising as employment is at record levels.

Demand for bookkeeping services in Gloucestershire is rising as employment is at record levels.According to the latest figures from the Office of National Statistics (ONS) for the 3 months ending April 2017, the highest employment rate in the UK was in the South West (79.1%) and the lowest was in Northern Ireland (68.8%).

For the 3 months ending April 2017, the highest unemployment rate in the UK was in London (6.0%) and the lowest was in the South West (3.4%).

For the 3 months ending April 2017, the highest economic inactivity rate in the UK was in Northern Ireland (27.2%) and the lowest was in the South West (18.0%).

Between December 2016 and March 2017, the largest increase in workforce jobs in the UK was in the West Midlands, at 65,000, whilst the largest decrease was in the East of England at 36,000.

In March 2017, the region with the highest proportion of workforce jobs in the service sector was London at 91.9%, which had decreased by 0.4 percentage points since December 2016, whilst the East Midlands had the highest proportion of jobs in the production sector at 13.9%.

The highest average actual weekly hours worked, for the 12 months ending December 2016, was in London at 33.7 hours and lowest in Yorkshire and The Humber at 31.3 hours for full-time workers, it was highest in London at 38.4 hours and for part-time workers it was highest in Northern Ireland at 17.0 hours.

Record business services demand

Estimates from the Labour Force Survey show that, between November 2016 to January 2017 and February to April 2017, the number of people in work increased, the number of unemployed people fell, and the number of people aged from 16 to 64 not working and not seeking or available to work (economically inactive) also fell.

There were 31.95 million people in work, 109,000 more than for November 2016 to January 2017 and 372,000 more than for a year earlier.

The employment rate (the proportion of people aged from 16 to 64 who were in work) was 74.8%, the joint highest since comparable records began in 1971.

Which means the growing burden of payrolls, pensions payments and administrative burden on businesses has never been greater.

So if you would like some help with your payroll calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershireor please fill the form at the bottom of the contact us page

Record number of UK workers- official stats show

The Office for National Statistics have announced a record number of UK workers.

The Office for National Statistics have announced a record number of UK workers.
Of the 20.7 million households (where at least one member is aged 16 to 64) in the UK, 11.9 million (57.6%) had all household members aged 16 and over in employment, up 160,000 or 0.7 percentage points over the past year.

Growth in the share of working households in the UK has been driven partly by increased proportions of lone parents working, which has risen 1.4 percentage points to 67.8% in 2017.

There were 5.7 million households (27.6%) with a mix of at least one working and one workless adult, down 70,000 or 0.3 percentage points over the year.

There were 3.1 million households (14.9%) where no member of the household was in employment, down 80,000 or 0.4 percentage points over the last year.

The proportion of working households continues to rise

Out of the 20.7 million households in the UK in January to March 2017, 11.9 million (57.6%) were classed as working, a further 5.7 million (27.6%) were classed as mixed, and 3.1 million (14.9%) were classed as workless. Within the 14.9% of workless households, 83.7% of those were economically inactive (with no-one in the household participating in the labour market).

Excluding student households, which are more likely to be workless than the rest of the population, there were 20.5 million households. Of these, 11.9 million (58.0%) were classed as working households, 5.6 million (27.5%) as mixed and 3.0 million (14.4%) as workless households. Student households are more likely to be economically inactive households; as a result, the percentage of households that are economically inactive is lower, at 12.1%, when excluding students compared with 12.5% for all households.

Working households increased by 160,000 or 0.7 percentage points compared with the same period a year ago, to stand at 11.9 million or 57.6% of all households for the period January to March 2017.

The proportion of workless households has been generally falling since comparable records began.

Over the past year this has decreased by 0.4 percentage points to 14.9% of all households.

The number of households in which no adult has ever worked was down 34,000 over the year and now stands at 290,000. In relation to all households in the UK containing at least one person aged 16 to 64 years, the percentage of households containing only people who have never worked was 1.4%, down 0.2 percentage points over the year.

In January to March 2017, the percentage of all households with dependent children, that were workless, was 9.1% (727,000), down 0.6 percentage points on the same period a year ago.

Overall there are more workers in the UK now than at any time since the current records started to be compiled in the early 1970s.

Which means the growing burden of payrolls, pensions payments and administrative burden on businesses has never been greater.

So if you would like some help with your payroll calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershireor please fill the form at the bottom of the contact us page

Glos small business confidence still growing- despite red tape

Confidence among Gloucestershire small businesses has risen to the highest level in over a year despite spiralling business costs, according to the latest Federation of Small Businesses.

Confidence among Gloucestershire small businesses has risen to the highest level in over a year despite spiralling business costs, according to the latest Federation of Small Businesses.The Federation of Small Business’s (SFB) Small Business Index (SBI) stands at 20.0 in Q1 2017, the highest figure since Q4 2015, and up considerably from the -2.9 recorded after the EU referendum.

The strong recovery has been spurred by increased international trade. A net balance of 15.6% of small firms report a rise in export activity during the past three months, with a net balance of 30.5% expecting international sales to increase over the next quarter. Both figures are at their highest level since the SBI began.

Mike Cherry, FSB National Chairman, said: “It’s hugely encouraging to see our small businesses trading more overseas, driving an exports-led recovery. We know small firms that export have higher turnovers than those who rely on the domestic market, so it’s crucial that the Government maximises cross-border trade opportunities for small firms.

The recovery in the headline SBI comes despite a surge in the cost of doing business.

A net balance of 64.5% of small firms report an increase in operating costs over the past quarter, the highest proportion since the summer of 2013. Fuel (36.8%) and labour (35.9%) are cited most often as the main causes of this increase, with the exchange rate (26.9%) also frequently flagged.

The average FSB employer will face £2,600 in additional employment costs over the coming year as a result of the rise in the National Living Wage, resulting National Insurance contributions and auto-enrolment. These cost pressures are being exacerbated by rising inflation. The Consumer Price Index (CPI) rose above the Bank of England’s 2% target to 2.3% in March. Firms are struggling with increased prices when buying supplies, products and services, but the rise in inflation will also impact other bills, such as business rates.

Mike Cherry continued: “At a time of unprecedented political and economic uncertainty, small firms are being hit from all sides by mounting cost pressures. This month alone many have had to absorb a hike in business rates and the National Living Wage. Added to this are costs that have steadily risen, such as fuel, which our members are increasingly pointing to as a major cause of higher outgoings.

The net balance of small businesses intending to increase employment over the next three months is also up, to a near two-year high of 11.3%. However, the balance of small firms reporting higher headcount for the last quarter has fallen from 2.9% in Q4 to 2.1% in Q1.

The SBI now stands in positive territory across most UK regions. Scotland is the exception, having posted negative confidence for five straight quarters, though its Q1 figure (-10) is the highest since Q2 2016. The East Midlands reports the highest confidence levels for this quarter (39.3) while London has rebounded from -1.7 in Q4 to 24.5 in Q1.

So if you would like some help with your business’s administration from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershireor please fill the form at the bottom of the contact us page.

Minimum Wage pay rises tomorrow

The Minimum Wage pay rises tomorrow up 30p to £7.50 for workers aged over 25.

The Minimum Wage pay rises tomorrow up 30p to £7.50 for workers aged over 25.So please make sure you check the rates and update pay roll so your staff get paid correctly.

If you are a worker aged 25 and over, and not in your first year of an apprenticeship, you are legally entitled to at least the National Living Wage. Until 31 March 2017, this is set at £7.20 per hour. From 1 April 2017, it will go up to £7.50 per hour.

If you currently earn less than £7.50 per hour, you should automatically see an increase in your pay after 1 April 2017. It is illegal for your employer to pay you below the National Living Wage, so check your pay and talk to your manager to make sure you’re getting what you are entitled to.

Not sure what your current hourly rate is? Use our calculator to check.

Don’t think you’re getting paid the right amount? Talk to your manager. If you have been underpaid, your employer owes you back pay. Make sure you get what you’re owed.

So if you would like some help with your payroll calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershireor please fill the form at the bottom of the contact us page.

Latest payroll figures show further growth

The latest job payroll figures show employment has remained steady in the three months to December.

The latest job payroll figures show employment has remained steady in the three months to December.

There are 31.84 million people in work, a figure largely unchanged from the previous three months. The number of self employed people has increased by 125,000 since this time last year, with the self employed now totalling 15.1 per cent of all those in work.

Gloucestershire
(numbers)
Gloucestershire
(%)
South West
(%)
Great Britain
(%)
All people
Economically active 336,900 85.6 80.8 77.8
In employment 321,900 81.7 77.3 73.9
Employees 270,700 69.6 65.0 63.1
Self employed 48,900 11.5 11.9 10.4
Unemployed 15,000 4.5 4.1 4.9

So if you would like some help with your payroll calculations for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershireor please fill the form at the bottom of the contact us page.

Tax return deadline looms for 15/16 year

The tax return deadline day looms for submissions of your 2015/16 accounting year.

The tax return deadline day looms for submissions of your 2015/16 accounting year.Midnight on Tuesday 31st January is the absolute deadline for filing your tax retunrs online- though as happened on the past few years the website has crashed as so many people have left their online returns to the absolute latest minute- and sufferered as a result.

After which the arrears start to get expensive- £100 in the first instance with more daily fines on the horizon.

The self employed and small business owners who have yet to register their business with HMRC are rapidly running out of time if they want to get their Self Assessment tax return submitted to HMRC.

ESB Accountancy warns business owners that failing to register for Self Assessment in the next week will mean they are unlikely to be able to submit their tax return on time, and will be fined by HMRC.

Before you can submit your Self Assessment tax return you must first register with HMRC and get your unique activation code sent to you by post. You simply cannot file your return without this.

It’s a relatively straightforward process but, as you’re relying on snail mail to get your code, it can take a while to receive the information you need. And if you leave it too late, you won’t get your code in time to be able to meet the January 31st deadline.

Remember that HMRC doesn’t accept failing to register in time as an acceptable excuse for filing a tax return late, so if you don’t get your code and you can’t submit your Self Assessment return, you’ll receive an automatic £100 fine. In addition, if you don’t pay your tax you’ll also face extra financial penalties which can quickly escalate.

It’s better to act quickly and register with HMRC now than risk leaving it until it’s too late.

During the last Self Assessment season, 870,000 people fail to submit their tax return before the January 31st 2016 deadline- leading to the automatic £100 fines from HMRC.

So if you would like some help with your online tax returns for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershireor please fill the form at the bottom of the contact us page.

Bookkeeping Services wishes you a Happy New Year

ESB Accountacy bookkeeping services wishes you a Happy New Year for 2017.

ESB Accountacy bookkeeping services wishes you a Happy New Year for 2017.

About ESB Accountancy and how we can help you

ESB Accountancy specialises in helping small businesses, charities and the self employed- particularly those who are not VAT registered.

– Small payrolls are a speciality.

– We ensure accounts and tax returns address your needs. If you are in a refund situation we encourage early submission of returns and claims as you benefit from having the funds.

– We discuss your vehicle running policy for tax efficiency.

– We understand the needs of trustees of smaller charities and the compliance burden that exists on them.

Where ESB Accountancy Operates

Most of our clients are in Gloucestershire– particularly Cheltenham, Cirencester, the Cotswolds, Evesham, Forest of Dean, Gloucester, Stroud, Tewkesbury and Worcester– but we have had clients based in Baku, Glasgow, London and Sydney. Location is no longer critical to supporting you.

So if you would like some help with your bookkeeping and online tax returns for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershireor please fill the form at the bottom of the contact us page.

 

Making Tax Digital help in Gloucestershire Cheltenham

Making Tax Digital help in Cheltenham Gloucestershire by ESB Accountancy.

Making Tax Digital help in Cheltenham Gloucestershire by ESB Accountancy.Making Tax Digital- (MTD) Moving to a digital age

Under the Government’s Making Tax Digital strategy, most businesses will be required to keep track of their tax affairs digitally and to update HMRC at least quarterly. To comply with your requirements in the new digital age, you will need to keep digital tax records and record and categorise your receipts and expenses. Apps and software will be available for these purposes. It will be essential that you update your records on an on-going basis so that you are able to provide the information to HMRC on time for each quarterly update.

Making Tax Digital Exemptions

If you are an unincorporated business or landlord with an annual turnover below £10,000 you will be exempt from the digital tax obligations.

MTD cash basis for larger traders

If your turnover is below the VAT registration threshold (currently £83,000) you can opt to prepare your accounts using the cash basis (money in and money out) rather than using the more usual accruals basis. The opportunity to use the cash basis is to be extended to larger unincorporated business as part of the proposals for moving to a digital tax world. Speak to your adviser to discuss whether a move to the cash basis is for you.

MTD Cash basis for landlords

The opportunity to use the cash basis is to be extended to some landlords in order to simplify the tax rules under Making Tax Digital. If you are an individual business, or a partnership where all the partners are individuals, you count as an unincorporated property business and you will be able to opt to use the cash basis. Speak to your adviser to find out what is involved and if this is likely to be for you.

MTD Pay as you go payments

Once Making Tax Digital is up and running, taxpayers will be able to make voluntary payments on account of their tax liabilities throughout the year. This may help you in managing your cashflow and ensuring that you are able to meet your tax liabilities on time.

Getting ready for Making Tax Digital in Gloucestershire

Although you will not need to start providing HMRC with digital updates until April 2018, it is never too early to start planning for the transition to a digital tax world. It is advisable to discuss with your tax adviser sooner rather than later what Making Tax Digital will mean for you and what changes you need to make to your existing processes to ensure that you will be able to comply with your digital reporting requirements.

So if you would like some help with your Making Tax Digital online tax returns for your organisation from someone with several decades of financial experience here in Gloucestershire you can either ring us now on  – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershireor please fill the form at the bottom of the contact us page.