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Three reasons your business should love cloud accounting

Thursday 20th June
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Investing in cloud accounting is a wise move for businesses of all sizes. The convenience, security, and flexibility....

Cloud accounting is growing in popularity amongst businesses of all sizes. Bookkeeping, accounts, taxation, and financial management are all core elements of every business operation – moving those services to the cloud has considerable benefits to offer all businesses.

If your business hasn’t yet tried cloud accounting, here’s why you should contact a specialist cloud accountant.

Superior accessibility

Cloud accounting will allow you, your employees, your accountant, and any other parties you deem necessary, to have access to the important figures anywhere, any time. Not only does this free up your ability to manage your business in a more convenient way, but multiple people can be looking at the same figures in real time, even when they’re miles away from each other. If you’ve found traditional accounting methods to be too inflexible, cloud accounting is going to be the answer you’ve been looking for.

Regular updates

Investing in cloud accounting can actually save your business money – not only because you’ll have more free time to put towards growing your business. Traditional accounting methods can need laborious, and sometimes expensive, manual updates at regular intervals to remain as efficient as possible and take advantage of any new features. This isn’t the case with cloud accounting, as your cloud service operator will manage the update of the software for you – allowing you to access brand new features as they come available.

Clear overviews

Cloud accounting can provide you with an overview of your business, in real time, at the touch of a button. The overview can be as general or as granular as you like, either focussing on the whole business or one single revenue stream/area of cash-flow. Ultimately this allows you to make more informed financial decisions, as you’re always able to see exactly where your business stands. When you use a specialist cloud accountant, they too will be able to have consistent and accurate information available to them.

Investing in cloud accounting is a wise move for businesses of all sizes. The convenience, security, and flexibility make traditional bookkeeping methods seem borderline obsolete. Contact the specialist cloud accountancy team at CJR Financial today, to learn more.


Three reasons you need an eCommerce accountant

Monday 17th June 2019
When it comes to managing your eCommerce business finances, you need good accounting skills.

When it comes to managing your eCommerce business finances, you need good accounting skills. Unless you’re qualified, there is no substitute for an eCommerce accountant and their services. There are many benefits you can realise that can help increase profits for your eCommerce business. Here are three benefits of using the services of an eCommerce accountant.

1. Save on taxes

Tax laws are challenging, but accountants know them very well and can sometimes see opportunities for your business. There could be incentives, tax allowances or laws that could help you save on tax bills. Just speaking with them can help you make savings on your tax bills.

These funds could be put into ensuring you have more stock or investing in your business’ infrastructure to make it more effective and profitable.

2. Saves you time

You aren’t in business to do accounting. You’re selling online because you love your products and customers. Doing your accounts is probably something that takes you away from this and can be very demotivating. That is why you should consider hiring a qualified accountant for your eCommerce business.

An eCommerce accountant can take the financial burdens away from your business to allow you to focus on what is more important to you: servicing your customers and selling products.

3. Identify opportunities within the business

The best accountants are adept at spotting financial opportunities within businesses. They can see when you’re spending too much money in certain areas of your operations, and where you can make more from better investments. Using this information, you can improve your business’ operations, sell more products and lower costs. The end result is more profit for your business.

A good eCommerce accountant will offer you a return on your investment from their services. Therefore, in the end, your business will be more of a success. They might also show you ways in which you can fund growth within your business.

Conclusion

There is no single reason to hire an eCommerce accountant. The numerous reasons all contribute to a more financially healthy online business that will prosper at a time when high-street shops are failing and customers are turning to the internet to buy products they want.


Accountancy tips for small business owners

Thursday 13th June 2019
Small businesses are the very backbone of the UK's thriving economy, but it's important for any small business owner to follow good accounting practices from the outset of trading.

Small businesses are the very backbone of the UK’s thriving economy, but it’s important for any small business owner to follow good accounting practices from the outset of trading. CJR Financial are accountants based in the Grantham area, and we also offer Xero training for startups and sole traders seeking to place their accountancy firmly within the cloud. Our team of experts has come up with this short list of vital tips to help any small business owner ensure accountancy problems don’t become a major issue:

1. Always keep your business and personal finances separate

It’s really easy to mix up the finances of startups and smaller businesses. Yet, using your personal bank account for business purposes can cause real problems when it comes to maintaining accurate financial records. Don’t get caught out, as it’s an easy matter to set up a business bank account at the outset of trading.

2. Keep accurate records

Maintaining efficient, accurate accounting records can be much easier when you opt for an effective software system like Xero. Day-to-day record keeping helps ensure greater accuracy and speed when you need to prepare detailed records, like your annual accounts or financial forecasts.

3. Think about taking on tax accounting services

You may not want to pay out money for professional accountancy services within the first few months or years of trading. However, a tax accountant can actually save your business lots of money. We offer cloud accountant services throughout the UK and this can be an extremely cost-efficient solution for small business owners and also provide the benefits of expert advice on ways to save your business cash when it comes to issues relating to tax.

4. Stick to all tax deadlines

Keeping to the subject of tax, it’s vital to meet all your tax deadlines as late returns can result in hefty fines for your business. Using professional tax accountants like CJR Financial means you won’t ever miss any business tax deadlines and your tax returns will be fully completed and submitted on due dates.

Don’t hesitate to give us a call to find out more!


Transitioning to Xero, or other cloud-based accounting software

Monday 10th June 2019
If you are a business owner who is over the VAT threshold of £85,000, you will be aware of the new Making Tax Digital initiative...

If you are a business owner who is over the VAT threshold of £85,000, you will be aware of the new Making Tax Digital initiative, which was introduced in April 2019. Digitising all financial records is considered a necessary way of modernising the VAT system, and makes the process of submitting a VAT return faster and more accurate. This means all businesses who are required to comply with Making Tax Digital must transition to cloud-based accounting software.

What is cloud-based accounting software?

All cloud-based book accounting software will link to your companies’ digital HMRC account, and VAT returns can be filed as usual on a quarterly basis through your software. This software also has many features which will make managing your business accounts and monitoring cash flow more straightforward and less time-consuming.

Managing the transition to cloud-based accounting software

For a small business, time is a precious commodity, and the stresses and strains of managing day-to-day operations are enough to keep you busy, without having to try to navigate your way around new digital accounting software. However, once the software is integrated within your business, the new system should effectively streamline all of your financial admin tasks.

Which software should I use?

Currently, Xero is one of the market leaders in cloud-based accounting software and is praised for its functionality and for being a cost-effective option for many companies. It can allow you and other employees with access to manage your accounts from anywhere. It also links with your bank statement feed, and you can categorise and reconcile incoming and outgoing transactions to easily manage income and expenditure day by day. You can even use Xero to send invoices, manage your payroll, and even create an inventory to manage stock.

How can an accountant help?

If you are grappling with your new cloud-based accounting software and trying to adjust to the new Making Tax Digital changes, your accountant may be able to support your business through this transition and help you to get to grips with digital bookkeeping and implement the software within your business.

CJR financial are accountants in Grantham, who provide in-house Xero training for you and your employees. We can ensure that you and your staff are fully briefed on how to maximise all of Xero’s features and we also offer monitoring following any training. Contact us so that we can support you with your business’ Xero transition today.


How accountants help you work both on and in your business

Friday 7th June 2019
As reliable accountants Grantham businesses turn to, and with a focus on digital, cloud-based accountancy services using Xero accounts software...

This was a point raised a few years ago by an expert working with both entrepreneurs and small businesses. Many people start a business because it covers an area of work they enjoy, or one where they have already gained wide experience. This often means that they spend time working ‘in’ the business, accomplishing tasks based on their skills.

However, it’s at least equally important that they work ‘on’ the business. This is where the owner takes a step back from the day-to-day functionality to assess the level of progress being made. From this, plans can be made for future development, and ways can be considered to avoid being sent off course by those humps in the road that any developing business will experience.

How an accountant can provide valuable help in both these areas

Time spent ‘in’ the business can soon add up, leaving less to use ‘on’ it. Building an effective relationship with your accountant can be vital in both these areas. Internally, valuable assistance is provided in the keeping of your books, in helping with the short and longer term management of your finances. Much time can be saved within your day-to-day business activities, allowing more space for careful thought as you plan for the future.

In this area, your accountant can deliver effective future projections. Their expertise can help ensure that you are taking full advantage of any grants currently available or tax relief entitlements as you make those forward-facing plans. Their experience in working with other businesses can deliver insights regarding problems others have faced and how these have been avoided or overcome.

How can CJR Financial help with the ‘ins’ and ‘ons’ of your business?

As reliable accountants Grantham businesses turn to, and with a focus on digital, cloud-based accountancy services using Xero accounts software, our talented team help new and established companies by providing clear pictures of how their business is currently operating, as well as bespoke bookkeeping, payroll, VAT and management accounts services. We also help our clients to develop those clear, forward-thinking, plans for future steps.

If you feel it’s time to make use of our cloud accountant expertise, then call 01476 589340 and take advantage of our obligation-free initial consultation and review…


3 Key Benefits of moving to Xero

Monday 27th May 2019

There is no doubt that Cloud accountancy and Cloud accountant solutions are major news now. Perhaps the most popular and well-used Cloud accountancy package for business is Xero. This superb solution makes keeping on top of your company’s financial information much simpler and straightforward. If your organisation has yet to make the move to Xero, here are some reasons to think about doing so:

1. Full of powerful features

One beneficial aspect of this accounting solution is how many powerful features there are packed into it. From bank reconciliations to raising invoices, cash coding and beyond, there are some great ways to look after your finances included. Even better, all are designed with the primary aim of making it quicker and easier to run your business.

2. Xero is very user friendly

One thing that many people who use Xero comment on is how user-friendly it is. The intuitive dashboard and sensible layout make it no problem to find the tool or information you need. It looks visually impressive too and this means it is pleasant on the eye when you are using it. Although this may seem a small thing, when you have been entering financial information on there for a little while, you will really appreciate it.

3. Real-time business data

Previous ways of handling your business finances, like Sage, only gave historic information. This could be a problem when you need up to date figures to make decisions on. Xero is totally different as it only presents real-time data for you to use. Invoicing is a great example of this – you simply set up an online invoice in the software, mail to the client and this is then automatically pulled into your records online.

Of course, with being based in the Cloud, this online solution gives you the chance to view financial records via your smartphone. This mobility is great for modern business, where you may not always be in the office but need access to up to date numbers.

Contact CJR Financial today for Xero training

If you are looking for a Cloud accountant in the Grantham area who understands Xero, give us a call today. Although simple to pick up, getting expert external training in this package will help you make the most of it. This will not only mean improved productivity and efficiency for your business but also help any staff to use Xero to the full.


Are you doing everything you need to when it comes to Payroll?

Friday 23rd February 2018
Adding a new member to your team, whether it is your first employee or thirtieth, is a huge responsibility that should not be taking lightly. There are many different aspects…

Adding a new member to your team, whether it is your first employee or thirtieth, is a huge responsibility that should not be taking lightly. There are many different aspects to think of when employing someone; from registering as an employer to HMRC (if not already); to making sure you pay your employees correctly; to submit reports to HMRC.

With so many considerations it is easy for employers, especially new employers, to fall short when it comes to compliance.

PAYE Scheme
As an employer, it is your responsibility to inform HMRC and register under the PAYE Scheme as soon you start employing staff. You must register before the employee’s first payday. We would recommend starting the process before the employee’s contract begins as the process can take upto two weeks to be complete.

Under the scheme, employers are responsible for making deductions from employees pay for Income Tax and National Insurance Contributions and making payments on their behalf to HMRC. Along with the payments, submissions to HMRC are required; detailing certain information that they need (this is explained below). Failure to submit the necessary information or miss a payment of PAYE and you can be subjected to charges and penalties.

Employers Responsibilities

Register under the PAYE Scheme (as outlined above)
CJR would recommend you register with HMRC as soon as you can

Gather all relevant information from your Employee
Once registered with HMRC, you will need to set up your employees onto the payroll. The following information will bed needed from your employee:
1. Employee’s Salary and personal details
2. Employee’s Tax Information (Tax Code, Student Loan Repayment Plan etc)
3. Employee’s Bank Account details
4. Balance of employee’s pay and tax already paid from previous employment

Produce Payslips
Once all information has been collated and input into the payroll, payslips should be produced and provided to each employee for each payroll ran. Details to be shown on a payslip include (but not limited to):
1.Gross Pay (Total earned before deductions);
2. Deductions (eg Tax and National Insurance);
3. Amount to be paid to the employee after deductions (Net Pay)

Real Time Information (RTI) Submission to HMRC
For each payroll ran – HMRC requires you to submit certain information to them. To do this, you need to complete a Full Payment Submission (FPS) on or before the day the employee is paid. Information includes figures for each employee from the payroll run including year to date figures; along with information on the employee AND the employer.

Payment to HMRC of the Tax/National Insurance deducted
Payment for your PAYE bill is due to HMRC by the 22nd of each month. The payment will include the tax and National Insurance you owe according to the FPS report submitted to HMRC on or before your payroll (the payroll/s for the previous tax month).

At the end of each tax year, employers must also provide employees with a form P60 – detailing how much in total the employee has been paid for the tax year, along with any/all deductions of tax from their salary. These reports are crucial as employees will need to provide a P60 in certain situations. For example, applying for a mortgage or loan; applying for tax credits; completing their self-assessment tax return.

In addition to a P60; any employees who has received any ‘benefits in kind’ during the tax year will need a form P11D produced and sent to HMRC. If you need any further information on P11Ds please contact us on 01476 589340

Other issues to consider
The above outlines the foundations of payroll; however there are many other issues that you may need to consider when it comes to paying employees. Issues such as Auto-enrolment, Benefits in Kind and Employee expenses will not be discussed here but will all need to be considered when it comes to producing a pay run and submitting it to HMRC.

Here at CJR Financial, we appreciate the above may seem daunting and worrying to any potential employer looking to expand their business but with no experience on issues surrounding payroll. That’s why we are here for you. With a wealth of experience in running and processing payrolls for all business sizes; outsourcing your payroll to a professional really is a no brainer.

If you are wanting to expand your business further and take on new employees; please contact us on 01476 589340 or contact us online at www.cjr-financial.co.uk/contact-us to arrange a free, initial consultation and see how CJR Financial can help you today.


Keeping your records in order – The importance of bookkeeping

Wednesday 28th February 2018
What is bookkeeping? By definition, bookkeeping is the process of recording your, or a company's, financial transactions and is the first, basic step of the accounting function. Based on this, bookkeeping…

What is bookkeeping?
By definition, bookkeeping is the process of recording your, or a company’s, financial transactions and is the first, basic step of the accounting function. Based on this, bookkeeping is the foundation that your financial information and accounts is based on and as such is a vital part of any business whether small or large.

Running a business and keeping on top of its finances can be a stressful and arduous task. Losing grip of where your business is at financially will ultimately result in the failure of your business; therefore keeping your records in order is crucial to the future and longevity of your business.

How will bookkeeping help you.

As already mentioned, bookkeeping is absolutely essential to understand where your business is at financially and helps you make the important decisions that define the future of your business. Using computerised accounting software, you are able to quickly and effectively obtain information about your business, allowing you to get a better understanding of where you are able to increase revenue and decrease costs. Having access to valuable data will help you plan effectively and accordingly for any future endeavours with your business.

Another advantage of maintaining your records is the fact that failure to keep comprehensive and accurate records could result in incorrect information being supplied to HMRC and consequently being penalised and fined. Maintaining your records will not only reduce your stress in the long run, but will make sure accuracy is intact and reduce the risk of incurring penalties.

Accurately maintaining your records will ultimately save you money. Bookkeeping consolidates your invoices, receipts, expenses, payments and other financial information into one easy-to-use format. When it comes to the end of year and completing your taxes, having your information and transactions already formatted and calculated will prove invaluable; it will save you time, money and stress.

If you are wanting to get a tighter grip on your finances please contact us on 01476 589340 or contact us online at www.cjr-financial.co.uk/contact-us to arrange a free, initial consultation and see how CJR Financial can help you today.


Do I really need an Accountant?

Friday 12th October 2018
Many businesses both small and large question whether the really need an accountant to help with the running of their business; many people see this as unnecessary but it can…

Many businesses both small and large question whether the really need an accountant to help with the running of their business; many people see this as unnecessary but it can play a role in helping to make well informed marketing, pricing and customer decisions.

To be able to grow and expand any business, the company needs to make sure that their finances are well-managed; you need to make sure that you know exactly how much money you must work with to make sure that you can meet immediate and long-term expenses. Both the systems needed, and the tasks involved in being able to keep on top of the books can be difficult to understand; after all you are not a trained accountant and non-compliance can lead to large fines for your company.
It’s not just about the money but also the time that it takes to make sure that all the bookkeeping is done correctly; you created this business to make money but you could find that you are spending hours doing all this work when you could be out making sales or attracting new business.

You can also find that an accountant can be good for helping with future projections and enable future planning which often requires the experience of a sound accountant. They should also be able to help you in terms of any grants or tax reliefs that you may be entitled to. In short, they should be able to help you save money and come up with ideas on who you are able to expand your business.
When thinking whether to outsource an accountant it is paramount to ask yourself whether you have the time to focus on all of these tasks or whether you feel your time would be better spent working on expanding and producing sales for your business as this after all is why you created your company.


National Living Wage – Are you Compliant

Monday 15th October 2018
So, what exactly is the difference between National Minimum Wage (NMW) and National Living Wage (NLW), NMW is the minimum pay per hour in which most workers who are under…

So, what exactly is the difference between National Minimum Wage (NMW) and National Living Wage (NLW), NMW is the minimum pay per hour in which most workers who are under the age of 25 are lawfully entitled to and NLW is the minimum pay per hour most workers aged over the age of 25 are lawfully entitled to.
HMRC have invested largely over the past years on cracking down on enforcing National Minimum Wage and national living wage compliance and this has led to many employers which have included some large names being found to be breaching these regulations.

The reasons for workers’ pay being below the NMW and NLW are varied and these can be anywhere from not recording correct working hours for staff to employers reducing pay for benefits like a staff party or day trip.

The implications of getting this wrong are hearty with the top penalty being up to £20,000 for each employee. HMRC also have the right to ‘name and shame’ any companies found failing to be complaint which could lead to issues with finding staff who will be willing to work for such a company. If you find that a mistake would could have been made for any employee then you would be best to review the situation and pay any arrears to the employee as quickly as possible.

Please see below for the current rates for National Minimum Wage and National Living Wage (October 2018):

£7.83 per hour for ages 25 and over.
£7.38 per hour for ages 21 to 24.
£5.90 per hour for ages 18 to 20.
£4.20 per hour for school leaving age to 17.
£3.70 per hour for apprentices.

If you have any concerns about your whether you company is complying with the NMW and NLW requirements, then please contact us a CJR Financial.


2018 Tax Changes – have you been affected?

Thursday 18th October 2018
In April 2018 many changes were made to taxes within the U.K and you may find some of these are hard to understand, below we look to explain what the…

In April 2018 many changes were made to taxes within the U.K and you may find some of these are hard to understand, below we look to explain what the tax changes may mean for you:

Personal Tax Allowance and Higher Tax Rate
Personal Tax Allowance has now been raised from £11,500 to £11850 this means that an additional £350 of your profits are no longer taxed by income tax. Higher Rate has also increased from £45,000 to £46360 this allows a company to earn an additional £1,360 profit before they must pay a higher tax rate.

National Insurance Contributions
If you are self-employed you can now make £6205 profit before you have to pay Class 2 National Insurance Contributions this has increase from £6025, although Class 2 rates have also increased by £0.10 £2.95 per week. Class 4 contributions have also been increased to £8424 from £8164 this means that if you make more between £8424-£46,350 you pay 9% and 2% thereafter National Insurance Contributions.

Capital Gains Allowance
You can now sell assets and make a profit of £11,700 before paying Capital Gains Tax, the rates for this depend on what tax band you are in, lower rates pay 10% whereas higher rates pay 205 on any profits made over £11,700.

Business Rates
In 2018 we saw a change being brought forward by two year which now means that business rates are linked to Consumer price index measure of inflation and no longer the retail price index. Last year the consumer price index was 3% whereas the retail price index was 3.9%.

Dividend Allowance
April 2018 also saw a large decrease in the dividend allowance this has been decreased from £5000 to £2000. This means that you can only earn £2000 dividends before they become taxable, the rate in which dividends are taxed at depends on the tax band of the first £2000.

Employee Changes
For business with employees a few other changes were made that you will need to be aware of National Living Wage was increased from £7.83 from £7.50 and employers put now pay a 2% pension contribution for eligible employees, this is set to increase to 3% in 2019.

If you have any questions regarding how any of the changes may have affected your company, then please do not hesitate to contact CJR Financial.


Making Tax Digital

Monday 22nd October 2018
What is it? This is a government plan which they are hoping to make getting taxes correct and keeping up to date with financial information easier and more efficient. Who is affected? Every…

What is it?
This is a government plan which they are hoping to make getting taxes correct and keeping up to date with financial information easier and more efficient.
Who is affected?
Every individual and company will have access to a personalised tax account, which will enable them to submit all VAT returns electronically making the process a lot faster and should essentially lead to less mistakes with a clearer process.

When will it come into effect?
It will not be mandated for companies to use digital tax until April 2019 at this point it will be made mandate for all businesses and individuals turning over more that the V.A.T threshold (£85,000 as of October 2018) to use the system for all V.A.T obligations only.

What’s needed to be compliant?
To make sure you are compliant you will need to make sure that you have computerised software that can link to you HMRC personal tax account therefore allowing you to submit your V.A.T return.

Although not yet confirmed it is widely believed that HMRC have a long-term plan of making sure that with every V.A.T return submitted a full V.A.T report is also submitted detail every transaction. The reason for this is thought to be that HMRC believe that millions of pounds worth of tax is not currently being paid.

If you would like any help with preparing to make you tax digital, then please do not hesitate to contact CJR Financial.


Why Cloud Accounting Software?

Tuesday 2nd April 2019
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Why Cloud Accounting Software? Bookkeeping sits fairly low on the list of priorities when it comes to new businesses and start-ups. Many businesses scrabble around when that first customer needs to…

Why Cloud Accounting Software?

Bookkeeping sits fairly low on the list of priorities when it comes to new businesses and start-ups. Many businesses scrabble around when that first customer needs to be invoiced, and end up piecing something together as a PDF. In the early days, it’s common to see your bookkeeping as a job to get to grips with once a year when tax return time looms.

Using a spreadsheet is one potential option to keep track of your finances and is a cheap option; however this is only suitable for new business when finances are relatively simple.

As your business grows and becomes more established; spreadsheets will soon become unreliable and more time consuming taking you away from the processes and tasks that will bring in more clients and more revenue.

So what are your options?

Cloud Accounting Software like Xero is a fantastic and useful tool to help businesses keep an accurate record of all their finances as the business grows. Xero is very user-friendly and is incredibly versatile. Whether your office is your living room, a dedicated office space, or your local coffee shop, Xero really is the right fit for everyone.

Why use software such as Xero?

Xero is ‘on the cloud’. This means that you can access it wherever you are, provided you can access the internet. Even better, if you are a client of CJR, we can also access it at the same time if you have any need any help or advice on anything!

Xero has direct Bank feed information by connecting online banking to Xero. This links the each individual bank transaction into Xero saving time on inputting and is much more accurate.

With the Xero App, you can have access to your finance and important information no matter where you are! Having access wherever you are, either on your phone or tablet, gives you the ability to raise and send invoices instantly.

Xero also helps reduce the need to keep all those paper invoices! You can email/scan purchase invoices into the Xero software and can be attached electronically onto the entry you

Xero bank reconciliation is is designed to make your life so much easier and save you so much time. By setting up ‘bank rules’ within the software, Xero will automatically allocate items to the correct analysis code.

You can automate the sending of statements and set up recurring invoices to really keep on to of money that is owed to you. Invoices and statements can easily be sent by email – reducing the time and cost of postage!

These are only some of the amazing features that Xero has to offer individuals and businesses of all sizes.

CJR Financial are Accountants in Grantham and Xero Certified Advisors who have been using Xero daily for a number of years so we know first hand how this software can help change your business for the better.

Get in touch now on 01476 589340 or email info@cjr-financial.co.uk to see how we can help you maximise Xero.


Personal Income Tax – 2019/20

Monday 8th April 2019
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Personal tax - Self-Assessment Return With a new Tax year upon us; this brings about changes to the tax bands and allowances for individuals. For the Tax year 2019/20, please find…

Personal tax – Self-Assessment Return

With a new Tax year upon us; this brings about changes to the tax bands and allowances for individuals. For the Tax year 2019/20, please find below important information that affects taxpayers:

The Personal Allowance
The personal allowance for 2019/20 has increased from £11,850 and will be £12,500. This means that the first £12,500 of your income is not subject to income tax.

The Marriage Allowance
The marriage allowance permits certain couples, where neither pays tax at more than the basic rate, to transfer 10% of their personal allowance to their spouse or civil partner.

Tax Bands and Rates
The basic rate of tax remains at 20%. The band of income taxable at this rate in 2019/20 is £37,500. This is an increase from £34,500 from the previous year. The threshold at which the 40% band applies is £50,000 for those who are entitled to the full personal allowance. Additional rate taxpayers pay tax at 45% on their income in excess of £150,000.

Tax on Dividends
In 2018/19 the first £2,000 of dividends are chargeable to tax at 0% (the Dividend Allowance). The Dividend Allowance will remain at £2,000 for 2019/20. Dividends received above the allowance are taxed at the following rates:

5% for basic rate taxpayers.
5% for higher rate taxpayers.
1% for additional rate taxpayers.
Dividends within the allowance still count towards an individual’s basic or higher rate band and so may affect the rate of tax paid on dividends above the Dividend Allowance.

To determine which tax band dividends fall into, dividends are treated as the last type of income to be taxed.

Tax on Savings Income
Savings income is income such as bank and building society interest.

The Savings Allowance, which was first introduced for the 2016/17 tax year, applies to savings income and the available allowance in a tax year depends on the individual’s marginal rate of income tax. Broadly, individuals taxed at up to the basic rate of tax have an allowance of £1,000. For higher rate taxpayers the allowance is £500. No allowance is due to additional rate taxpayers.

Some individuals qualify for a 0% starting rate of tax on savings income up to £5,000. However, the rate is not available if taxable non-savings income (broadly earnings, pensions, trading profits and property income less allocated allowances and reliefs) exceeds £5,000.

National Living Wage (NLW) and National Minimum Wage (NMW)
The government has increased the NLW by 4.9% from £7.83 to £8.21 from April 2019.

The following Minimum Wage Rates have also increased from April 2019:

21 to 24 year olds by 4.3% from £7.38 to £7.70 per hour.
18 to 20 year olds by 4.2% from £5.90 to £6.15 per hour.
16 to 17 year olds by 3.6% from £4.20 to £4.35 per hour.
apprentices by 5.4% from £3.70 to £3.90 per hour.

If you need any assistance with your Self-Assessment Tax Returns; whether you are a Sole Trader, Company Director or Landlord; get in touch with CJR Financial and we’ll be happy to help. Email info@cjr-financial.co.uk or call us on 01476 589340