Claim VAT on outstanding Debts

Businesses using the Flat Rate VAT Scheme may be able to claim VAT windfalls on outstanding business debt!

Accountants Liverpool - Claim VAT on outstanding Debts

This claim can be made regardless of when the business provided the initial sale on your VAT return as it accounts for FRS tax when it receives payment from customer rather than the invoice date received


Ian builds websites and uses the flat rate scheme. His flat rate percentage is 10% and he provides for VAT upon receiving final payment from his clients. However one of his major clients go under before paying owing his company £4,000 + VAT.

Providing the debts are older than 6 months and the debts have been written off in his accounts he can then claim the VAT windfall of £380.

How is this worked out?

VAT is 20% of £4,000 = £800

£4,800 x his Relevant Flat Rate percentage 10% = £480

VAT – Relevant Flat Rate percentage = £380

Hence the business needs to be compensated for the VAT loss of £380

Reference – HMRC Notice 733, section 14

Higher Rate Relief What’s It All About

For the year 2015/16 tax a higher-rate taxpayer is actually someone who earns a lot more than £42, 385.

If you’re a higher-rate taxpayer the taxman enables you to claim your higher-rate tax relief whenever you submit your taxes return. Alternatively, if you’re a company worker, higher-rate tax alleviation can be supplied immediately by decreasing the tax paid in your salary via your own PAYE code.

For more accountancy and personal wealth advice from Liverpool’s No.1 Accountants with over 20 year experience please call us today.




9:30 am Registration, breakfast will be available

10.00am Seminar to starts

12.30pm Seminar will finish no later than

The topic is ‘Wealth Protection & Tax Mitigation’ and will help you:-

  • Reduce or even eliminate all forms of tax, yet remain completely UK Tax compliant.
  • Protect assets from Litigation and divorce.
  • Protect your Balance Sheet and Retained earnings from Legal or Employee claims.
  • Control who is able to enjoy your wealth even when you are gone.

You don’t believe it is possible……………well why not come along and find out and any questions you have will be answered. Join an elite group of people who have the attitude and belief that the wealth you have worked hard to achieve should be protected.

Andrew Keates Seminar Invite

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Speeding Up A PAYE Refund

speeding up a PAYE refundMany local businesses around the Wirral and Liverpool have found PAYE more frustrating than ever. After calling the HMRC’s PAYE department many businesses found themselves disappointingly on hold for hours only to be informed that they may have to wait up to 10 months to get their PAYE refund processed.

It seems the government completely over-looked over-payments when creating the RTIs. The words that come to many minds may be, ‘great at taking money, poor at giving it back.’ When cash flow is so important how can some businesses be expected to wait 10 months to receive back their hard earned cash?

The blockers have been reported as a combination of over sensitivity to fraudulent claims and internal data integrity issues. As vague as that sounds the obstacles it has created are very obvious. Unless there is a review by an external agency, which seems very unlikely, these issues are going to remain evident year after year.

So how can a business combat these potential problems?

The answer is reducing human errors. A study by Bloomberg showed that human errors are the number one issue when it comes to accounting. The biggest of which is made during the data entry stage. Another form of error is using incorrect calculations. Neglecting to enter the right details or omitting items that could be included as taxable benefits is also another very human error.

When it comes to payroll it is very important to have an accountancy firm that cares. If you would like any information on speeding up your PAYE refund please call one of our friendly accountants for a free no obligation chat.

8 Ways We Can Help

8 ways accountants can help

In our strive to help as many local businesses as we can we have dedicated ourselves and our staff to providing 8 ways that we can provide free advice to Liverpool and Wirral based companies. In our quest to add value to our customers we believe that below are 8 of the most worrying and important factors that we day-to-day proactively help our clients with:

  1. Profits: As a business profit isn’t just a word it’s a must. Whereas most accountant’s favourite word will be ‘CUTS’ we have dedicated ourselves to the word ‘GROW’. How can we help you grow your profit not cut your costs!
  2. Cash flow: Plan, manage, raise and collect. We can help with every stage of cash flow. As the life blood of a company is there anything more important to be well informed about?
  3. Personal income: We help our clients to focus on increasing what they take home after tax.
  4. Other tax bills: No company wants to pay taxes and we will help you find ways to reduce your tax bill. If big companies like Starbucks can get away with not paying a penny why should you pay a penny more than you have to?
  5. Business value: Most accountant companies only care about the books we care about how and where you want to grow your business and can provide advice to suit.
  6. Personal wealth: Retire when you want and in the style you want. Financial planning is essential to personal wealth. Why not start today!
  7. Work-life balance: Lots of little things can add up to one very big stressful thing. We consider good accounting to be lots of little things done well. Bookkeeping, pay roll and financial planning can easily become a business owner’s worst nightmare. Having a good accountant means less stress and more time with your family. Let us help.
  8. Improving the financial situation of key family members: Often we work for our families, once all the hard work is done don’t let a lack of financial knowledge erode the help you provide to your family be it education funding or transferring wealth. We have years of experience that could save your family a lot of time and money.

Our friendly staff would love to help you with any of our top 8 factors. So call today for a free, friendly no obligation chat and find out how we can help you.

Is the Grass Greener For Other SME Owners?

liverpool accountant

If you are a small business owner then the likelihood is that at one time or another you will have found yourself doing jobs that are otherwise below your pay grade… Wondering do all business owners have to run down to the shop to buy milk for everyone? I’m sure one time or another you have asked yourself… Is this really going to work will I still be in this same small office in the next 5 years? Or maybe you have found yourself working at unusual hours wondering… Do all small business owners work at 2 am in the morning? Well a recent study may have the answers all those questions and more.

According to a recent survey by AXA PPP Healthcare the next half a decade spells a time of prosperity for Small Businesses. The survey found that 62% of small business owners are prospering and that 2/3 of SME owners have very positive predictions for the next 5 years of business.

Whilst 58% of SMEs acknowledge the additional flexibility that owning a business allows them to have. 70% of all SMEs in the surveyed mentioned that that are proud, inspired and happy to be owning their own business. Business director for AXA PPP Healthcare, Glen Parkinson, said: “The future looks bright for the UK’s SMEs, which is great news for the economy, as they are the backbone of our economic output.”

Business strategy was the area that most surveyed small business owners said preoccupied most of their time with 81% of business owners involved in business strategy daily. A further 61% of small business owners are also involved in the day-to-day tasks of business operations. Painting the picture of a very hands-on approach for small business owners.

Over 1/3 of business owners are happy to switch off from their business after work hours and find themselves enjoying time with family (35% of time), exercising (22% of time) and going down the local for a few refreshing pints (11% of time).

In total 2/3 of all SME owners have stated that they have a good work-life balance!

If you want to keep more time for yourself, reduce stress and spend time working on what you are really good at, then why not have Andrew Keates Liverpool Accountants take care of your payroll and finance. To find out how we can help you and your business book a free no-obligation consultation today.



Auto-enrolment ‘blind-spot’ could be the end of your business!


Sage, the accounting the popular software company, has issued warnings that thousands of UK SMEs could be caught off guard by what has been termed the auto-enrolment ‘blind-spot’ because of the new National Living Wage changes.

With only six months until the new National Living Wage changes come into effect, Sage is advising small businesses to make significant preparations as the auto-enrolment contributions for over one million employees is set to dramatically increase.

The changes to National Living Wage means that small businesses will need to budget for a wage cost of over £5,000 per employee.

Staff are eligible for auto-enrolment if that are more than 22 years of age, less than the state pension age, are primarily UK based and are earning over £10,000 per year. As of yet over 5 million UK professionals have been placed on the auto-enrolment pension scheme. Which is a scheme that is required for any workplace that has more than one member of staff.

Lee Perkins, managing director, Sage UKI, said: “Business owners are bracing themselves for the impact of increased staffing costs with the NLW.

The managing director of Sage UKI said that in his opinion businesses are ready for the increase in staffing cost but are not currently preoccupied with preparing for the impact that the, “increased pension contributions required for a tranche of employees that will be earning an additional £5,000”.

Overall this means that by October 2018 small businesses will have to contribute 3% of an individuals annual salary into the pension scheme.

Small business owners need to be aware of this unexpected cost and act as soon as possible. If you need help preparing for these unforeseen changes please speak to one of our payroll advisors. If you aren’t currently a client please take advantage of a free no-obligation consultation to find out more about these changes.



A Good Accountant Is The Differenece Between SME Growth Rate

This month a study at the ACCA found that the difference between a fast-growing SME and slow-growing SME could well be your accountant. The study found a strong connection between the financial functions of a small business and it’s rate of growth.

Accountants Wirral

Sounds pretty straight forward to Andrew Keates – accountants wirral, the better the financial function of a company surely the better the company and the better the growth rate anyway? Well no not really, the study found that a company that had key financial functions beyond just an auxiliary role and instead took on roles similar to a strategic partnership massively increased the rate of growth of an SME.

The study was based around 8 interviews with financial officers and financial controllers at businesses growing by 70% over 3 years. The study ultimately found that financial controllers that were freed of the small stresses of the simple accountancy and given more time to play a central role in the business planning attributed greatly to the large growth rates.

All the financial controllers in the study had roles that extended beyond the traditional operating day to day tasks associated with a financial controller. Growth was shown to be driven through, cash flow estimates, local tax regimes, and analysing cash flow injections for potential new markets. All tasks that you would expect to promote growth in a company!

If you’re an SME why not let Andrew Keates – Accountants Wirral, Liverpool and Chester take away some of the day to day accounting stresses and give your team time to inject growth into your company. For more information on the study please see here ACCA.