Employment Costs Rocket!

Liverpool accountants take on national minimum wage increase

Andrew Keates Accountants we are continuing our explanation of July’s Announcements George Osbourne and their effects on Liverpool’s Small businesses,

In July Chancellor declared a 50% raise to the national insurance employment allowance coming from £2, 000 to £3, 000, which will support small enterprises to decrease their wage bill and may even offset the elevated Living Wage charge.

The decrease to corporation tax may also aid in relieving the cost demand of the wage increases but a lot depends on the amount of low-paid employees a company has and its particular degree of profitability.

As outlined by accountancy firm BDO, the Employment Allowance is only going to allow business employers (who are paying minimum wage) to balance out the cost of the Living Wage increases approximately up toTwo Thousand hours. From then on, the company will be a net loser unless of course it is profitable enough to take advantage of the cut in the rate of corporation tax.

Many small company pundits were not impressed from the announcement.

Philip Salter, director of the Entrepreneurs Network, explained: “The Government should keep the decision of exactly what level to set any wage floors in the hands of the professionals at the Low Pay Commission, making sure that companies aren’t compelled to sack personnel if payroll costs climb an excessive amount.

“If the Chancellor wished to help the lower paid workers, he needs decrease Employers’ National Insurance, 70% of which is taken care of by the employees, as opposed to just raise the Employment Allowance from £2, 000 to £3, 000 per year.

For more information from Liverpool Accountants Andrew Keates and how the employment cost changes will affect your business please call one of our advisor for no obligation chat today!

£5,000 Tax Fee Pay For Liverpool Business Owners. Good news or Bad?

George Osbuorne tax changes

Liverpool Accountants Andrew Keates Explain How To Make The Most Out Of George Osborne’s July Budget Announcements. Few businesses know the pain of small business taxes as well as we do. We have been working with small businesses across Liverpool for over a decade and know from experience that far too often tax changes are bad changes!

But July’s budget announcement came with a small sweetener for any micro-business owner that is sick of hearing the latest way for their profit margins to be squeezed. From April 2016 the government will scrap its current dividend tax credit and will replace it with a new tax-free dividend allowance of £5,000 a year.

However as good as this sounds for micro businesses, it may not be good for larger businesses. These changes will inevitably lead to small UK businesses paying 7bn more a year in taxes. Because with this tax break also comes a tax rate increase, only the 1st £5,000 a year will be tax-free! At the moment small business owners have the option of paying themselves dividend income at 30.6% tax rate. From next year this will increase to 38%. But capital gains tax is currently 28% and will not change next year! This places enormous pressure on Liverpool businesses to sell up and to benefit from the capital gains tax.

So can you make this tax change work in your favour and make sure that you keep more of your hard earned cash and give less away to the government? Well as top Liverpool Accountants of course we have the answer and we are happy to help, it’s important to know there isn’t one simple solution as no one businesses is the same so to get the answer that is right for your business call us on 0151 277 5353 for a now obligation chat with one of our tax advisors.

Money Savings for your business and home

We are in the process of helping our clients not only with their accounts but cutting costs in general including utility bills.

One of our associates may be able to save you a considerable amount not only for your business but also for your home.

She offers a number of services which can save you money such on the following: –

  • Energy – Both Gas and electric (Business & Home)
  • Home Phone
  • Broadband
  • Mobile

I have a number of clients who have already benefitted from using this service and, my colleague has personally benefitted and saved £600.00 on her home energy costs alone.

my colleague has stated “I originally did not have the time to look at my household costs or transfer the account over but this was completed for me and even the transfer of the account from my existing energy company to the new one was undertaken without any inconvenience to me at all.”

As a practice we have not and will not benefit at all as a result of any savings you obtain but obviously everyone at the moment is looking at costs savings exercises and we feel this may well interest you.

If you feel this will benefit you please contact us on:


or telephone 01512275353

Is this help for the small business?

The potential impact of the introduction of RTI (Real Time Information) by HMRC is hugely demanding on the ‘small business’ in addition to all the other commercial issues of general business. So yesterday an announcement has been made that the introduction of RTI for ‘small businesses’ has been deferred whilst they carry out various consultations during the summer.

However it hasn’t gone away and those businesses will have until 5 October 2013 to have everything in place and then they must operate wages/payroll under this regime.

In the meantime those employers can choose to file their wage information with HMRC but if they do then it must be filed before wages are paid, certainly no later than the end of the tax month, 5th of each month.

So just when the facts were becoming clearer HMRC have muddied the waters.

Are you confused as to whether or not RTI is immediately required for you?

Where you ready in the first place and do you know what information is required to be filed? Do you know the extent of the information being placed in the hands of HMRC?

If you have answered ‘no’ to anyone of these questions or have concerns over the operation of RTI then please contact Andrew Keates on 0151 277 5353 or you can visit our website www.andrewkeates.com

We can help with PAYE/Payroll Real Time Information (RTI) Changes in April 2013

Undoubtedly one of the most important changes ever to the operation of payroll/PAYE since it first commenced.

Although it has already been in operation for a few months for larger organisations the real impact for small/medium businesses really kicks in from the 6th April 2013. The ‘start date’ depends upon your PAYE reference number however that does not prevent anybody preparing to implement the new system.

Care and attention needs to be made to ensure that all the data held for employees is complete and correct for all the filing requirements laid down by HMRC. Equally important is to endure that your software, or that of your advisor, is fully compliant.

Basic information such as employee’s full names, dates of birth and NI numbers need to be full and correct, these are just some of the basic requirements and frequently this information is actually noted incorrectly.

The details are required so that everything is compliant with HMRC’s system and will also provide up to date details regarding all employees and therefore any application for the new ‘Universal Tax  Credit’ system.

Information is to be provided within and by a specific date/time and failure to comply by the deadline and/or pay any liability by the due date will, in due course, result in interest/penalty charges. All the information is to be reported as well before the wages are paid, so accuracy becomes hugely important

We can’t emphasise enough the need to take proper professional advice and if you have any queries or feel we can be of assistance then please contact us on 0151 649 1545 as a matter of urgency, remember the date – 6th April 2013!!

Andrew Keates Company Liverpool Accountants saving you time and money

We can help with your company accounts with a number of Accountancy services to save you time and money while ensuring all the necessary areas are covered, whether you are a Limited Company, sole trader, partnership, LLP or CIC (Community Interest Company).

Our Liverpool Accountants ensure your accounts will be prepared and submitted by the due dates regardless of your status. For Limited Companies we will guarantee that Accounts and all associated paperwork are filed at both Companies House and HMRC by the due dates.

For more information please visit our company accounts page here

or contact us on: 0151 227 5353