by Steve Wiltshire

I mowed my lawn last week.

Amidst all the gloom surrounding the crisis currently facing the world, how lovely it has been to see some sunshine over the last few weeks.  I love this time of year, when lighter evenings and brighter, warmer days make us feel more inclined to be out in the open air.

Looking out of the window, I decided that a good tidy up of the lawn would help my mind to feel more ordered as I look at the view from my desk, and get some fresh air in my lungs during this enforced period of working from home.

Hauling the mower at the back of the shed, I put in some fresh petrol, and tried to start the engine.

But it didn’t want to start.  After several minutes of increasingly fatigued tugging at the starter cord, the engine reluctantly came to life, spluttering unhappily.

I adjusted the wheels to their highest setting, so as not to overwork the mower as it tackled the long grass, and one of the front ones was stuck.  I eventually freed it, and began to move around the lawn, but the wheel didn’t want to stay in place, seemingly determined to keep moving back to its preferred low, ‘cricket pitch at the height of summer’ level, repeatedly sending the mower off course without notice.

And that was when it occurred to me: “Perhaps this is the year for a new mower!”

It’s the thought I have every year during the first mow of the season.  The business case is certainly there: I’ve had this trusty old mower for many years, and I’ve had good use out of it.  Yes, buying a replacement one would mean some investment, but it would make mowing the lawn so much easier.  It’d be quicker for a start – no more struggling to get it started at the beginning of the season, and it would be much more willing to move in the direction I want it to.  And I’d be much happier with the state of the lawn afterwards too.  Which would make me more content when I’m back at my desk looking out of the window.

But every year, what do I do about it?  Nothing.

Sure, I have a look online at the mowers I might buy, and perhaps even doing some price comparisons on a particular model.  But I never actually buy one.  “Well, I’m busy you see.”  “…And the lawn needs mowing now, I’ll just use the old one this time”.  “Perhaps I’ll order a new one next week…”

Then every week, I have the same fight with the starter cord, the same wrestle to make it go in the direction I want, and the same continual need to adjust the height of the front right-hand wheel so that the lawn doesn’t end up a mess at the end of the day.

You might have the same situation with your accountants.  You’ve been with them for years, and you trust them.  Sure, they might seem unhurried to get under way with your accounts and tax return once the tax year has ended, but they get going eventually.  And the job they do is fine – not great, and not exactly the way you’d like it done – but it’s fine.  And you do find yourself having to step in and make sure they’re going in the direction you want them to.  And changing to a new accountant would need you to invest lots of time and effort too, wouldn’t it?

You go through a similar thought process every year, but stick with the status quo, even though you know you’ll wish you’d moved when you find out how much tax you owe at the last minute in January… again.  After all, you did last year.

At Frost Wiltshire, we’re different.  We won’t try to sell you the idea that your accounts or tax return process is going to excite you.  But you can be assured of dealing with people who think that the process needn’t be boring.  And we certainly believe that the client experience should be hassle-free – and maybe even a little bit enjoyable.  We will agree a clear timetable with you at the outset, tell you exactly what we need from you, and aim to get your accounts and tax return sorted swiftly after the end of the tax year, so you know your liability in plenty of time and can plan for it.

I’ve ordered my new lawn mower.  Perhaps this will be the year when you make the change too.  Go on… get in touch!

 

Photo by Fauzan Saari on Unsplash

By Mel Hackney

In the past, whenever a client has posed the question “….and how about a company car?” (usually with a hopeful glint in their eye), I have always been pretty quick to quash their dream of a sparkling new Jaguar, paid for by their company, being a brilliant, tax efficient benefit of business ownership.

Up until now.

From 6 April 2020, the taxable benefit of an electric company car is going down to nil.  This means that a director (or employee) of a company can use an electric car owned by the business with no personal tax liability arising.  In addition, the company will suffer no Class 1A National Insurance on the benefit either.  Although this is set to rise very slightly from 2021, compared to previously this is potentially an extremely tax efficient way of remunerating employees or owners.

Not only does the employee have the unrestricted use of a car with no income tax or national insurance arising, the company also gets a corporation tax deduction in the year of purchase.  If the car is new, the full cost can be deducted from profit when working out corporation tax.  So, for example, if the company buys a car for £40,000, the corporation tax saved in the year of purchase would be £7,600.  Currently, this tax saving is only available until April 2021.  But it’s possible that this will be extended into future years.

The array of electric cars available, such as the Jaguar I-PACE, is increasing all the time.  But if a fully electric car is unavailable, or unsuitable for your needs, the tax rules for ultra-low emissions cars with CO2 emissions of less than 75g/km are still pretty attractive.

So perhaps the time has come to splash out on that new Jaguar.  And with the blessing of your accountant too.  How times have changed.

If this might be of interest to you, please get in touch – we’d be happy to discuss the options with you.

by Steve Wiltshire

This week, HMRC will begin to contact people who may be eligible for the Self-Employment Income Support Scheme (‘SEISS’).

The scheme, which will provide a taxable grant worth 80 per cent of a self-employed individual’s average trading profits up to a maximum of £7,500, will be paid in a lump sum by the start of June.

 Eligibility

HMRC has developed an online tool that allows the self-employed and their accountants, to assess whether they are eligible for the funding.  You can access the tool here.

 Making a claim

The claims portal will open on 13 May 2020.  It’s important to note that it will be down to each individual to make their own claim – agents cannot do this on their behalf.  HMRC has reassured taxpayers that the process will be simple and that eligible individuals will receive the grant in their bank account by 25 May, or within six working days of completing a claim whichever is later.

 Any questions?

If you need help checking whether you are eligible, or with calculating your average trading profits and income for the purposes of a claim, please get in touch – we’ll be happy to help.

 

Photo by Matthew Waring on Unsplash