October News

Here are a few news items from our October Tax Tips Newsletter (which you can subscribe to on our website):

Online Accounting Seminar

As you likely already know, we at One Accounting are huge advocates for online accounting systems. We’ve seen the positive impact it has on our clients, the time and money saved and we really appreciate how much easier it can make year end for everyone. So we had a little chat with Xero about cohosting an informal seminar and wouldn’t you know, they said yes!

The event is all set for the morning of 27 October. If you’re available, and curious to know how online accounting can benefit you, then we’d love to have you join us. More information can be found on the events page of our website.

New National Minimum Wage Rates

The National Minimum Wage (NMW) is the minimum amount per hour that workers in the UK are entitled to be paid. This amount increased on 1 October. Be sure to make the necessary changes to your payroll if affected.

The new rates are:
– Aged 21 £6.08
– Ages 18-20 £4.98
– Ages 16-17 £3.68
– Apprentice rate £2.60

Past NMW rates can be viewed on the Low Pay Commission website.

Business Record Checks Update

The Taxman believes that a lot of businesses do not pay the right amount of tax because they don’t accurately record their business income and expenditure. In other words their business records are not of a high enough standard to produce accurate accounts. We agree that many businesses do not keep perfect records but we work with business owners to help them retain the necessary documents, and use those records alongside a good understanding of the business, to produce a reasonable statement of profit or loss for the tax return.

Unfortunately the Taxman is not taking such a helpful approach. He is now sending out 120 tax officers to examine the un-sorted raw records held at thousands of businesses. If the tax officer (who is not a trained accountant), judges the business records to be inadequate the business owner could receive a penalty of up to £3,000.

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