John Moffat, our CEO has completed his first 50 days of the Walk 100 challenge for the Scottish Huntington’s Association!

As an accounting firm, we love our numbers and statistics.

Check out John’s stats so far:

• 910,787 steps
• £360.00 raised so far
• £2000.00 fundraising target
• 40,293 highest daily steps
• 18,216 average daily steps
• 4 drenchings
• 7lbs in weight loss
• 26 Strathclyde country park circuits
• 5 Chatelherault country park circuits

If you want to help John reach his fundraising target, please donate today here.

As of 8 August 2023, all Research and Development (R&D) Tax Credit claims require the submission of an online Additional Information Form (AIF) providing supplementary project details.

The form must be completed prior to the submission of the company tax return. If the form is not submitted, the R&D claim will not be incorporated into the company tax return (CT600).

The form can be completed by a representative of the company or an agent, but it must include information about the senior internal R&D contact who is responsible for the claim, as well as any agent involved in the claim process.

HM Revenue & Customs (HMRC) has expressed concerns about the behaviour of some agents in relation to R&D.

The requirement for details about the agent and a senior responsible individual is designed to foster transparency in the claim process and ensure that R&D compliance is supervised at a high level within organisations.

The form applies both to ongoing projects and accounting periods that have already concluded.

Companies must capture all necessary information, and they may need to adjust their internal systems to collect this information efficiently.

The form also demands details about qualifying expenditure, encompassing qualifying indirect activities and specifics about the R&D projects undertaken.

Companies with a large number of projects can provide information about a selection of the projects, but this must include at least three projects that account for a minimum of 50 per cent of the qualifying R&D expenditure.

Details must also be provided of advancements in technology, the technological baseline, the technological uncertainties, and the strategies used to overcome them.

There are concerns among some advisers that current reports may not meet the new requirements, particularly if the projects are similar and relate to the same technological uncertainties.

Allocating costs between projects may also pose challenges, potentially leading to increased administrative costs for businesses that comply with the new rules.

Unsure of how these changes affect you and your claims, now and in the future? Speak to our experienced team today.

In the second quarter of 2023, overpayments on pension tax in the UK reached £56 million.

This was an increase of nearly £8 million from the first quarter of the year, according to HM Revenue & Customs (HMRC).

This figure is almost double the £33.7 million collected in the same period the previous year.

During this quarter, approximately 16,000 reclaim forms were processed, with an average reclaim amounting to £3,551. This is the second-highest figure since the introduction of pension freedoms in 2015.

Over the past eight years, people aged 55 and over who have been overtaxed on their early pension withdrawals have reclaimed almost £1.1 billion.

The need for taxpayers to reclaim overpayments has arisen because people withdrawing from their pension pots early have typically been charged emergency tax, usually significantly above the amount that is ultimately owed.

The figures suggest that an increasing number of over-55s are using their pension freedoms, with some commentators suggesting that this is a result of the cost-of-living crisis.

The HMRC data also revealed a decrease in the number of transfers into qualified recognised overseas pension schemes (Qrops), falling from 3,900 in 2021 to 2022 to 3,250 in 2022 to 2023.

Despite this, the total value of these transfers increased from £517 million to £680 million over the same period.

If you are concerned that you may have paid too much tax on pension withdrawals in the past, please get in touch.

Introduced in 2014, Employee Ownership Trusts (EOTs) provide an attractive alternative to traditional business succession strategies, offering a series of unique benefits to businesses, their employees, and the wider economy.

Employee engagement and productivity

One of the most immediate benefits of EOTs is their positive impact on employee engagement and productivity.

As beneficiaries of the trust, employees have a direct, vested interest in the success of the business.

They become not just workers, but also part-owners, which nurtures a stronger commitment to the company’s objectives.

Studies suggest that companies with engaged employees perform better on multiple measures, including reduced absenteeism, increased productivity and higher customer satisfaction rates.

Financial incentives

From a financial perspective, EOTs also offer significant benefits. For business owners looking to sell, the sale of a controlling interest (more than 50 per cent) of the business to an EOT is free from Capital Gains Tax (CGT), providing a cost-effective route for succession planning.

The employees, as beneficiaries of the EOT, also gain the opportunity to receive tax-free bonuses, up to a capped limit per annum.

These incentives can result in substantial tax advantages for both the selling owners and the employee beneficiaries.

Stability and longevity

EOTs promote business stability and longevity, particularly in the context of succession planning.

In contrast to a traditional sale of a business, where future directions may be uncertain, a sale to an EOT ensures that the business continues in a manner consistent with its established values and goals.

The employees, many of whom may have dedicated significant portions of their careers to the business, are naturally invested in its continued success.

This can reduce business disruption during the transition phase and enhance long-term business prospects.

Economic resilience

On a macro level, businesses owned by EOTs contribute to the resilience of the economy. Research has shown that employee-owned businesses are less likely to fail during economic downturns.

This resilience stems from their focus on long-term sustainability over short-term profits.

Additionally, they are more likely to retain employees during tough economic times, providing stability at a company and community level.

Societal impact

Finally, EOTs can foster a sense of social responsibility and collective welfare.

Businesses owned by their employees are often more invested in their local communities, contributing positively to societal welfare.

EOTs offer a robust alternative to traditional business structures and should be considered as part of a business’s succession or exit planning.

These trusts are likely to play an increasingly significant role in shaping a more inclusive, resilient, and sustainable business environment. If you would like advice on EOTs, please speak to us.

Accountants are often seen as guardians of tax and compliance. However, their expertise extends far beyond these areas.

They can act as problem solvers, assisting with a range of tasks that can set the stage for a smooth and profitable business operation. Here are eight ways your accountant can help your business flourish:

Assisting with business formation

Launching a new business is never straightforward, and there can be bumps in the road that may not become apparent until it is too late.

The structure of your business, whether it is a sole trader, partnership, or company, comes with unique tax obligations, paperwork, and, potentially, personal liabilities.

An accountant can guide you in choosing the most suitable structure for your business, potentially saving you significant time and money.

Guiding business acquisitions or sales

If you are considering selling your business or acquiring a new one, consulting with your accountant should be your first step.

Accountants can assist with business valuations, develop exit strategies, and compile the necessary financial reports and documents to ensure you make informed decisions.

They can also help minimise costs and protect you from entering into deals that will not benefit you in the long run.

Improving cash flow

Inadequate cash flow management is a common cause of business failure. Your accountant can help by conducting a comprehensive business analysis, rebalancing your budget and debts, optimising your cash flow, and building cash flow forecasts.

By helping you understand your financial obligations and adjusting the way funds are used in the business, you can avoid disrupting relationships with suppliers and staff, ensuring your business operates as smoothly as possible.

Streamlining business operations

Decisions that may seem straightforward can become critical when they involve financial considerations.

Accountants can assist with decisions such as whether to buy or lease equipment, where to rent office space, and how to evaluate supplier terms and conditions.

They can help price your products to maximise profit and reach a broader customer base. Accountants can also identify underperforming areas in the business and suggest potential expansion opportunities.

Implementing cloud software

Your accountant can help automate many of your business’s monthly bookkeeping tasks and establish an invoicing system that provides a clear overview of paid and unpaid invoices using the latest cloud accounting packages.

This intelligent software, such as Xero, Sage or QuickBooks, can even send reminder emails to clients about unpaid invoices, saving you time and helping you stay on top of your finances.

Networking

Effective accountants build relationships with other successful businesses. If you are seeking suppliers or investors, your accountant may be able to connect you with the right people.

Securing funding

At some point in the life of a successful business, additional financing may be necessary.

Whether it is securing a loan to navigate challenging times or attracting investors for essential expansion, obtaining this funding will require well-structured and clear financials.

Your accountant can help you structure your investment proposals and loan applications in a way that appeals to investors, showcasing your business and increasing the likelihood of your funding efforts succeeding.

Managing inventory

Daily inventory management can be challenging. However, your financial records can provide your accountant with valuable insights into your stock room operations.

Your accountant can analyse trends over time and suggest necessary changes to ensure peak operational efficiency.

The role of an accountant can extend far beyond just assisting with taxes.

By helping you in every aspect of your business, your accountant can help you sidestep various challenges and contribute to the creation of a successful, efficient, and streamlined business.

If you would like to know more about how we can help your business flourish, please contact us today.