Double entry demystified
Most business owners will know the difference between a profit statement and a balance sheet.
Both are created from a process known as double-entry bookkeeping.
If asked to consider two aspects of a £50 purchase from a stationery store, most would say that their cash reserves have dropped by £50
Beware requests from bogus charities
It has been estimated that almost £350,000 of charitable donations last year ended up in the pockets of criminals.
Government recently issued advice to reduce this activity. They said:
The vast majority of fundraising appeals and collections are genuine, however criminals can set up fake
HMRC’s Annual Tax Summary
The Annual Tax Summary is a document provided by HMRC that provides details on the tax you pay and how this is used by government.
The Annual Tax Summary shows:
your taxable income from all sources that HMRC knew about at the time that it was prepared
the rates used to calculate your Income Tax
Pay January tax by instalments
The deadline for submitting your 2019-20 Self-Assessment tax returns online is 31 January 2021. You should also be aware that payment of any tax due should also be made by this date. This includes the payment of any balance of Self-Assessment liability for the 2019-20 plus the first payment on
Confirmation of Minimum Wage increases 2021
The Chancellor used the recent Spending Review to confirm that increased National Minimum Wage and National Living Wage rates will come into effect on 1 April 2021.
From 1 April 2021, the National Living Wage will increase by 19p to £8.91. This represents an increase of 2.2%. The National Living
EU exit – did you read this letter?
The Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma has written a letter to businesses in the professional services sector. The letter (available in English and Welsh) provides tailored advice on what key actions businesses must take after the transition period ends on
Deadlines for paying deferred VAT
The coronavirus VAT payment holiday gave businesses the chance to defer the payment of any VAT liabilities between 20 March 2020 and 30 June 2020. The option for businesses to defer their VAT payments ended on 30 June 2020.
There are two options available for repaying this VAT.
The first option is
New advisory fuel rates published
Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. The rates can be used by employers who reimburse employees for business travel in their company cars or where employees are required to repay the cost of fuel used for private travel. HMRC accepts there
Treasury directive re third SEISS grant
HM Treasury has published a further Treasury Direction made under the Coronavirus Act 2020, ss. 71 and 76, which modifies and extends the effect of the Self-Employment Income Support Scheme (SEISS).The Direction mainly deals with the expansion of the SEISS from 1 November 2020 to 29 January 2021,
Accounting and Reporting standards from 1 January 2021
The Department for Business, Energy and Industrial Strategy (BEIS) and the Financial Reporting Council (FRC) have jointly published a letter to the accounting and audit sectors setting out the UK’s legal framework for accounting and corporate reporting at the end of the transition period on 31