May Newsletter

It might be May (already?!) but there will be no ‘May Day’ emergencies on our watch.
We’re not just here for your ‘nuts and bolts’ accountancy needs, though these are always important.

We’re here to keep our ear to the ground and to keep on top of everything you need to know, and everything you need to do, to keep the financial side of your business running smoothly.

In this newsletter, we give you the low down on the P11d – does your company need to complete these forms and, if so, what do you need to do and when do you need to do it? We also touch on Brexit, small business rate relief and the continuing impacts of Covid-19.
Form P11d (Expenses and Benefits): Filing deadline is  6th July

In a nutshell, the P11d is a tax form filed online by employers for each director and each employee, to report benefits provided, and expenses made, to employees by employers that are not put through the payroll.

The company is liable to pay class 1a national insurance contributions on the value of benefits provided by 19th July. Employees pay tax and employee national insurance on the value of the benefits. This is collected through the payroll or via your self-assessment tax return.

There are 14 categories covered in Form P11d, including Cars and car fuel, mileage allowances, living accommodation, medical health (i.e. physio appointments) and qualifying relocation expenses payments, to name a few. Click here for full details.

There are a few exceptions that don’t need to be reported including business travel, eye tests (and screen glasses if needed), phone bills, business entertainment expenses and uniforms and tools bought for work.

Working out whether you need to report a taxable benefit at all can be complicated and we can help you to decide what needs to be reported.

For example, if the company pays your physio costs as you have a bad back caused by sitting too long at your computer. This may seem like a company expense and a lot of employers would agree to pay this for their employee, however the cost will still be treated as a taxable benefit and should be reported on the P11d form.

Another example would be an Apple watch – even though it may be used for work, there is inherently a ‘duality of purpose’ as you can also use this for telling the time personally. Therefore, it would be treated as a P11d item and should be reported. If anything purchased for your company can also be used personally then generally it would be reportable on form P11d and should be declared.

If you are unsure as to whether a particular expense should be reported on form P11d do get in touch and we can look into it for you.

We will be in contact with all of our Limited company directors over coming weeks to prepare your P11d’s if required.  Please let us know if you have benefits to report and haven’t yet heard from us.

What is small business rate relief?

You can get small business rate relief if:

  • your property’s rateable value is less than £15,000
  • your business only uses one property – you may still be able to get relief if you use more

If you are eligible, you will not pay business rates on a property with a rateable value of £12,000 or less.

For properties with a rateable value of £12,001 to £15,000, the rate of relief will go down gradually from 100% to 0%. For example, if your rateable value is £13,500, you’ll get 50% off your bill. If your rateable value is £14,000, you’ll get 33% off.

If you get a second property, you’ll keep getting any existing relief on your main property for 12 months and you can still get small business rate relief on your main property after this if both the following apply:

  • none of your other properties have a rateable value above £2,899
  • the total rateable value of all your properties is less than £20,000 (£28,000 in London)

Good news even if you don’t qualify for small business rate relief

If your property in England has a rateable value below £51,000, your bill will be calculated using the small business multiplier, which is lower than the standard one. This is the case even if you do not get small business rate relief.

Brexit

New rules apply to things like travel and doing business with Europe. Have you used the Government’s Brexit checker to get a personalised list of actions for you, your business and your family?

And did you know that the SME Brexit Support Fund could give you up to £2,000 to help with training or professional advice, if your business has up to 500 employees and no more than £100 million annual turnover? Find out if you are eligible and apply for a grant here, if you are new to importing or exporting and could benefit from getting professional advice and training so your business can meet its customs, excise, import VAT or safety and security declaration requirements.

PricewaterhouseCoopers (PwC) is administering the grants for HMRC. Applications will close on 30 June 2021 or earlier if all funding is allocated before this date.

Continuing impact on Small Businesses of Covid-19

We understand how much the global pandemic has impacted so many of our clients and will continue to do so for some time to come. We want to remind you that we stand beside you with our support and advice, whenever you need us.

We are here to help you navigate your way through the changing circumstances of your business and the government’s various support schemes.

We respect and applaud your resilience and adaptability.

Every business is unique and our approach to your needs reflects that in the solutions we provide you with.

We hope that you’ve found this newsletter helpful. If there are any topics you would like us to cover in our next newsletter please let us know.
Take care and do get in touch any time. Your business is our priority.
Warm wishes, Trudi and the team

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