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As an accountant working closely with various businesses and individuals across the UK, one question that frequently arises is whether specific expenses can be claimed as tax-deductible. One such expense that generates curiosity among clients operating through Limited Companies is the purchase of reading glasses (I wear glasses myself and I can’t work without them).

So let's explore if you can claim reading glasses as a tax-deductible expense, in line with HM Revenue and Customs (HMRC) guidelines.

Remember, for all expenses claimed, you should keep detailed records, including dates, the purpose of the trip, and receipts. Personal expenses or costs incurred for non-business-related activities cannot be claimed. Also, travel to and from work is not in the production of income and can’t be claimed as a business expense.

Just as you thought that you had made it to the end of January and that you could forget about government rules and regulations for a day or two, Companies House comes rocketing out of left field with a whole slew of new regulations. Oh joy!

These only apply to those of you who conduct your business as a limited company and are therefore obliged to adhere to the rules laid down concerning entries on your company records.

By: Esmerelda Doman

On the 16th of January 2024, Annja presented a workshop at EGG in Edinburgh on the subject of tax self assessment. Now this isn’t always a subject that brings joy, however her enthusiasm for all things accountancy won the day!

Important: Remember to file your self-assessment before the end of January 2024, and it’s always better to do this before Christmas. Those who file their return before 30 December may also have the option of paying any tax owed through their PAYE tax code thereby spreading the cost.

Filing early also means that if customers owe money, they have plenty of time to explore which of the payment options available is best for them.

I watched the funniest show at the fringe last week, called the Drag-queen Accountant. It was a lovely show and very funny.

I love when people can laugh at how bizarre their profession can be. Hope everyone had a great time at the fringe.

PAYE and how it affects HMRC on a monthly basis

I know, I know – taxes and payroll can be a bit mind-boggling, but fear not! I'm here to break it down and make it painless.

So, let's unravel the mysteries of PAYE, ensure your payments are on point, and even sprinkle in some details about that sweet thing called Employment Allowance.

Today, we're diving into a topic that might seem a bit overwhelming at first glance, but trust me, it's not as scary as it sounds: getting VAT registered in the United Kingdom.

Now, I know what you're thinking – taxes and paperwork, ugh! But don't worry, I'm here to guide you through the process and make it as painless as possible.

We hope all our lovely clients and community are having a lovely summer. We have been busy with lots of exciting stuff:

• Annja and Esmerelda did non-executive director training through the ICAEW and it was really insightful; one of our blogs is about that 😊

• Annja also ran the Edinburgh Half Marathon and it was a lot of fun in the sun, although legs were heard to complain afterwards!

• International Coaching week was a great success. We got great reviews and one from Christine Smith stood out:

We had a lovely day in London, walking around and listening to all the fabulous vendors and going to the webinars.

The main focus this year was on the cloud accounting software companies expanding their report offerings and also making payment integration easier and quicker.

Because of the training we did this month, we thought it will be a good idea to remind our clients that as directors of their limited companies, what their roles are.

Strategic Decision-Making:

Directors of small limited companies play a crucial role in shaping the strategic direction of the business.

One area that often goes overlooked is special capital allowances available to Limited Companies for tax purposes. If you are intending on investing in your business by purchasing capital assets i.e. machinery, renovating a building etc., please contact us and we will assist you in understanding these allowances.

In this blog post, we will explore the various types of special capital allowances that can be claimed:

Happy new tax year our lovely Anlo community. Everyone worked hard to get all the 2021/2022 tax returns submitted and paid on time.

We start a new tax year, and working towards getting financials and returns calculated early so that we stay on the good side with HMRC but also have some time to do some cashflow planning.

If your situation has changed or you have moved or have new contact details, please get in touch so that we can update your details where it is appropriate.

We can start your personal tax return as early as the 6th of April, so if you want to be an early bird, then send your information on 😊

I don’t know what else to say other than I have really missed taking the time to write this newsletter. Sitting down and writing our company newsletters was like writing to friends and telling them about things that can make their lives easier.

I can only apologise for being so quiet, and I promise to write more 😊

So here goes….

We haven’t done a newsletter in a while, and I honestly can’t tell you why not 🤔. It has been a hectic few months of ups and downs in the United Kingdom and there is so much uncertainty that the best answer was that I couldn’t write about tax matters as they were changing by the month (or week)!

The change regarding tax seems to have stabilised for now and I can get back to my routine of writing about relevant matters. I hope our clients and community have been doing well and luckily I have been in touch with my clients on a monthly basis.

Making Tax Digital is part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. We think it encourages business owners to take their accounting processes more seriously and use the numbers to improve their business.

Making Tax Digital (MTD) is not a new concept and we have been filing VAT returns for businesses since 2020. But from the tax year starting 6 April 2024, all sole traders/self-employed businesses and landlords whose income or turnover is over £10,000 will need to also use MTD to file their returns.

The team is hard at work at making our clients' lives easier and, we hope, better. Loads of business owners want to do their own accounts, but don’t know how Xero works, or want to have an accounting practice to help them to do it properly and accurately themselves, because they want to learn.

We have supported businesses in the past with a Xero (an accounting package) training session where Irelene would help business owners and bookkeepers, via Zoom or in person, understand how the program works and how to use this effectively and efficiently in their business.

Remember back in April I said I am going for a surfing lesson? It went well, but gosh did I work some muscles! The idea behind it was to do something out of your comfort zone. Surfing, I realised, isn't just out of my comfort zone, it is also the best way to get completely away from everything.

When you are in the water, waiting for the next wave, you can’t think of anything else except surfing or how to get yourself standing on the board. And it was an amazing way to connect with nature. I highly recommend it!

Now let's talk about tax and accounts 😊

Written by Roulon du Toit

We mentioned this in the June newsletter, but we thought it will be worth expanding on this topic a little more.

The employer allowance has increased from £4000-£5000 for the 2022/2023 tax year. This is claimed as part of your monthly payroll and is deducted from the employer portion of the National Insurance contribution if the company qualifies. 

If we do your monthly payroll, then we have activated this allowance if this allowance is applicable, but if you are unsure, please don’t hesitate to ask us. This allowance is on the first £5000, so later in the year when the allowance is used up, your monthly PAYE contributions will increase. 

I would also like to remind our lovely clients that the following expenses are deductible in your self-assessment if you are working from home: