NIC Reform for Self-Employed – Accountants in Cambridgeshire

NIC Reform for Self-Employed – Accountants in Cambridgeshire

Big changes are on the way for the self-employed and their National Insurance contributions. As of 6th April 2018, class 2 NI contributions are to be abolished and class 4 contributions will be reformed. The existing contributions provide the means by which the self-employed earn an entitlement to the state pension and to certain contributory benefits.

The self-employed currently pay two classes of National Insurance contribution, class 2 and class 4. By law, a worker is obliged to notify HMRC when self-employment begins, and again when it ceases. Registering for National Insurance contributions can be done at the same time as registering for tax. The necessary form, the CWF1, can be completed entirely online, or filled in electronically, printed and submitted via post. The applicant must have an NI number before completing the CWF1 form.

Class 2 Contributions

These contributions are payable for each week of self-employment, from age 16 to the state retirement age. The weekly rate for class 2 contributions is set at £2.85 per week for the 2017/18 period.

Liability to pay class 2 contributions only arises when a worker’s profits from self-employment fall above the small profits threshold (£6,025 for 2017/18). In the instance that profits fall below this threshold, the worker is still eligible to pay, but no longer liable. The worker will still have the option to pay these class 2 contributions voluntarily.

Although calculated using a weekly rate, class 2 contributions are now paid in an annual lump sum and must be paid by 31st January following the end of the tax year to which they apply. For example, class 2 contributions from the 2017/18 tax year must be paid by 31st January 2019.

When calculating a worker’s annual liability for class 2 contributions, weeks of self-employment include those where the worker was on holiday, or where they had no work, but were available to work, as self-employment does not cease during these periods.

Liability for class 2 contributions comes to an end in the week in which the worker reaches state retirement age, although it could remain beneficial, depending on the worker’s contribution record, to continue paying the contributions voluntarily until the end of this tax year, such that it still counts as a qualifying year.

Class 2 contributions earn the worker entitlement to a state pension, maternity allowance, bereavement allowance, and contributory employment and support allowance. This contributory role of class 2 will move to class 4 as of 6th April 2018, where class 2 will officially and technically be abolished.

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Phebys – Accountants in Cambridgeshire

Class 4 Contributions

Class 4 contributions currently function similarly to the income tax, in that they do not confer any entitlement to a pension or other benefits. Class 4 contributions are payable at a rate of 9% of earnings between the lower and upper profit margins. For 2017/18, the lower limit was set at £8,164 and the upper limit at £45,000. There is an additional rate of 2% on earnings above the upper profit limit.

Much like class 2, class 4 contributions are payable via an annual self-assessment and are due on 31st January after the end of the tax year to which they apply.

The Future

Following the abolition of class 2 as of 6th April 2018, class 4 contributions will become the means by which the self-employed accrue entitlement to a state pension and the other relevant benefits. The reformed class 4 contributions system, as outlined by the government, so far seems to resemble the class 1 system, as applied on a basis of annual earnings.

Phebys – Accountants in Cambridgeshire

If you are self-employed and are looking to find out what these NIC reforms will mean for you, do not hesitate to call Phebys Accountants on 01480 896267, or email admin@phebys.com, and we will be more than happy to advise you.

Accountants in Cambridgeshire

Phebys – Accountants in Cambridgeshire

Are You Eligible To Claim R&D Tax Credits?

Are You Eligible To Claim R&D Tax Credits?

What are R&D tax credits?

R&D tax credits appear to be one of the most untapped tax-saving tricks around. R&D stands for “research and development”, and generally encompasses any investment into the development of new products, processes, services or technologies; or the enhancement of existing ones. In 2000, the government introduced a tax relief scheme that would encourage businesses to invest more into innovation, with a mind to making UK businesses more competitive in the long term. The R&D tax credits can reduce taxable profit, sometimes even as far as to a tax loss, thus lessening a company’s corporation tax liability. It is also worth noting that the R&D tax credits can be redeemed irrespective of whether or not your business is profitable.

And yet, it has been shown that figures as high as 95% of businesses eligible for R&D tax credits are yet to claim. This is due, in part, to preconceptions about research and development. Many people believe that R&D only encompasses the work done by scientists in white coats in laboratories, but that is, in reality, not the case.

R&D Tax Credits

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Is my business eligible to claim R&D tax credits?

Many companies that believe themselves to be ineligible for R&D tax credits would actually be able to claim. Despite preconceptions about just who is eligible to receive R&D tax relief, any company that spends money on developing new products, processes, services or technologies; or indeed on enhancing pre-existing ones, is able to claim the relevant tax credits.

What R&D costs can I claim on?

R&D expenditure includes staff costs, such as wages, employer NIC and pensions contributions; expenditure on subcontractors and freelancers; the cost of consumables such as heat, light and power which are used for, or transformed by, the research and development process; and the money spent on some software and technology.

What do I do next? 

If eligible, it is usually possible to claim R&D tax relief for your two most recent completed accounting periods. Put simply, this means that, if you’re currently in your 2017 accounting period, your R&D expenditure and tax credits for 2015 and 2016 can be considered. The tax credits are calculated based on how much you spent on R&D within that accounting period and any qualifying expenditure is then identified and enhanced by the relevant rate, providing your ‘enhanced expenditure’. This is then deducted from your taxable profits, leading to a corporation tax reduction if you were profitable in that accounting period, a cash credit if you made a loss, or even a combination of the two.

Phebys – Accountants in Cambridgeshire

If you are looking to find out if your business is eligible to claim R&D tax credits, or want help in claiming them if it is, it will always help, in the first instance, to consult an accountant. Here at Phebys Chartered Certified Accountants, we are able to provide professional help and advice on this matter. Simply call us on 01480 896267, or email admin@phebys.co.uk, and we will be happy to discuss your options with you.

 

R&D Tax Credits

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Top 10 Tax-Saving Tips for Individuals – Accountants in Huntingdon

Top 10 Tax-Saving Tips for Individuals – Accountants in Huntingdon

Here at Phebys, professional accountants in Huntingdon, we believe that everyone should be certain that they’re paying a fair amount of tax (and not tipping the taxman!). Here are our top ten legal ways to save on tax.

1) Marriage Allowances

As of 6th April 2017, married couples and civil partners can transfer £1,150 of personal allowance from the lower-earning partner to the higher earner, saving them up to £230 in tax. This is only available if the higher earner is a 20% taxpayer.

2) Take in a Lodger

Rent a room relief is an optional scheme that lets you receive up to £7,500 (in both 2016/17 and 2017/18) in rent each year from a lodger, tax-free. This only applies if you rent out furnished accommodation in your own home. If two people who share a property take advantage of the scheme, they can only claim £3,750 each.

3) Invest in Pensions 

When you make a payment into your pension, you receive tax relief. If you have a personal pension, your contributions are paid into a fund after your income has already been taxed. For example, for every £80 you pay into an individual pension the taxman will add basic rate tax relief of £20. If you are a higher rate taxpayer, you can claim additional relief through your Self-Assessment Tax Return. If you are a member of your employer’s pension scheme, your contributions will be paid directly from your salary before it’s taxed, giving immediate tax relief. The tax you’d normally pay is invested into your pension instead. If you have given up existing salary or proposed salary increases to make additional contributions through salary sacrifice, you will not get tax relief, but you will save on income tax and national insurance contributions as you are reducing your salary in exchange for pension contributions.

4) Personal Savings Allowance

In 2017/18 (as with 2016/17), the first £1,000 of interest you receive from savings is tax-free if you are a basic-rate taxpayer. If you are a higher-rate taxpayer, the threshold is £500. Only when your savings income exceeds the allowance is any tax is due on it. This will no longer be deducted at source. If tax is due, you can pay it through your Self-Assessment Tax Return or have it deducted from your wages through an adjustment in your tax code.

5) Tax Breaks for Lower Incomes 

For those on lower incomes (below £16,500), you may also receive up to £5,000 of interest tax-free. The more you earn from other income (e.g. your wages or pension), the less your starting rate for savings will be. Your starting rate for savings is a maximum of £5,000, which is reduced by £1 for every £1 of income you receive over the personal allowance threshold (currently £11,500). For example, let’s say you have an annual salary of £15,000 and get £200 interest on your savings. Your Personal Allowance is £11,500 and is used up by the first £11,500 of your wages. The remaining £3,500 of your wages (£15,000 minus £11,500) reduces your starting rate for savings by £3,500. Your remaining starting rate for savings is £1,500 (£5,000 less £3,500).

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Phebys – Accountants in Huntingdon

6) ISA Allowance

Also as of 6th April 2017, the annual limit will rise to £20,000 (from £15,240 in 2016/17). This can all be put in a Cash ISA, all in a Stocks and Shares ISA, or split between both.

7) Set Up Children’s Savings Plans 

For those aged 18-29, consider paying into a Lifetime ISA (LISA). This is a tax-free wrapper that allows you to save up to £4,000 every year. The state will then add a further 25%. So, if you save £1,000, you’ll have £1,250 and if you save the full £4,000, you’ll have £5,000. And that’s before interest or growth. The bonus is paid every year until you hit age 50, so the maximum bonus you can receive, assuming you make the maximum investment each year of £4,000, amounts to £32,000. It’s designed for two specific purposes: the first is for first-time buyers to put towards a deposit for a residential property and the second is for later life.

8) Take Advantage of Dividend Allowances

All taxpayers have a £5,000 dividend allowance. This means any dividend payments you receive, either from a company shareholding or investments outside of an ISA or pension, will not incur a tax liability up to this level. Anything over £5,000 will be taxed at a rate dependent upon your marginal rate of income tax.

9) Make Charitable Donations 

Take time to understand your tax position so as to make the most out of tax breaks on charitable donations. Some key income thresholds to be aware of are:

  • £10,600 – the tax-free personal allowance that most people have;
  • £42,385 – the point at which 40% tax starts for most people;
  • £50,000 to £60,000 – the bracket in which child benefit is lost
  • £100,000 to £121,200 – where a quirk in the tax system means income tax shoots up to 60 per cent;
  • £150,000 and over – where the tax rate is 45 per cent.

For example, if you donate £100 to charity then they claim Gift Aid to make your donation £125. If you are a higher rate taxpayer you can personally claim back £25 (£125 x 20%) through your Self-Assessment or through your wages via an alteration to your tax code.

10) Avoid Inheritance Tax 

Lifetime gifts are not usually counted as part of your estate for inheritance tax purposes if you live for a further seven years after making them. Known as Potentially Exempt Transfers (PETs), they can reduce your residual estate significantly. Also remember that you can make exempted gifts up to the value of £3,000 each year, without them being added to the value of your estate. You can carry any unused annual exemption forward to the next tax year. Each tax year, you can also give away:

  • Wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great-grandchild, £5,000 for a child);
  • Normal gifts out of your income, e.g. Christmas or birthday presents – you must be able to maintain your standard of living after making the gift;
  • Payments towards another person’s living costs, such as an elderly relative or a child under 18;
  • Gifts to charities and political parties.

 

Phebys – Accountants in Huntingdon

Accountants in Huntingdon

Phebys – Accountants in Huntingdon

For further professional advice on how you can save tax, call Phebys on 01480 896267, or email admin@phebys.co.uk.

BT Profits Take Hit After Accounting Scandal – Phebys – Accountants in Huntingdon

BT Profits Take Hit After Accounting Scandal – Phebys – Accountants in Huntingdon

BT has seen profits fall by 42% after it took a £225m charge related to its Italian accounting scandal. BT reported that first quarter pre-tax profits fell to £418m, which was way below the estimated £751m, according to Reuters.

At the start of the year, the telecoms giant reported a £530m black hole in the accounts of its Italian business. Today, it said that it has settled a warranty claim with Deutsche Telekom and Orange, who also now both hold stakes in BT as a consequence of the deal that saw them sell the EE mobile network to the UK company.

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The revealing of the scandal, which also promoted the group to cut its earnings forecast, wiped around £8bn off BT’s share price earlier this year.

The UK’s accountancy watchdog, The Financial Reporting Council (FRC) is currently looking into the auditing of BT’s financial statements for the years 2015-17.

On another note, BT also announced that Marc Allera had been appointed as chief executive of its combined BT consumer business, while Cathryn Ross – currently chief executive of Ofwat – will become its new director of regulatory affairs.

Phebys – Accountants in Huntingdon

Thank you for reading the latest news from Phebys, we are accountants in Huntingdon. We offer a variety of different packages for our clients to ensure we can offer you the best possible service, no matter how big or small the business. For more information on any of our packages, visit our packages page or contact us today.

Holland & Barrett Sold for £1.8bn – Phebys – Accountants in Cambridgeshire

Holland & Barrett Sold for £1.8bn – Phebys – Accountants in Cambridgeshire

The UK’s biggest health food retailer, Holland & Barrett is being bought by a Russian billionaire for £1.8 billion.

L1 Retail, a fund controlled by Mikhail Fridman, is buying the chain from US private equity firm Carlyle. The US firm acquired the Nuneaton-based retailer as part of its £3bn purchase of US firm Nature’s Bounty, now NBTY, back in 2010.

Holland & Barrett has more than 1,300 stores worldwide and is expected to change hands in September of this year.

Holland & Barrett was founded back in 1870 by William Holland and Alfred Barrett in Bishop’s Stortford, Hertfordshire. They started off selling groceries and clothing but later split the two into separate businesses. The grocery business was sold to Alfred Button & Sons in the 1920s, but the name was never changed.

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The company then went on to change hands several times and eventually it started to focus on health foods. It now employs more than 4,000 people.

L1 Retail managing partner, Stephan DuCharme said: “Holland & Barrett is a clear market leader in the UK health and wellness retail market, with attractive growth positions in other European and international markets,”

He went on to say: “We believe that the company is well positioned to benefit from structural growth in the growing £10bn health and wellness market and has multiple levels for long-term growth and value creation.”

Who are L1 Retail – Phebys – Accountants in Cambridgeshire

The purchase is the first of its kind of L1 Retail, which was set up in 2016.

It aims to invest around $3bn in a small number of retail businesses that L1 believes can be market leaders by “moving with and leading long-term trends”

The fund’s advisory board includes John Walden, who was the former chief executive of Home Retail Group. Other members include Karl-Heinz Holland, former chief executive of Lidl Group and Clive Humby, one of the founders of dunnhumby, who came up with the idea for Tesco’s Clubcard.

L1 also has funds focused on energy, technology and health.

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Thank you for reading the latest news from Phebys, we are accountants in Cambridgeshire. For more information on our services, contact us today.

Accounting tips for small businesses – Phebys – Accountants in Cambridgeshire

Accounting tips for small businesses – Phebys – Accountants in Cambridgeshire

Business is all about numbers, but unfortunately, many small business owners focus more on the day-to-day running of the business instead of the number side of it. Focusing on the day-to-day running of your business can be essential to making sure your business performs to the best of its ability, but sometimes you need to take a step back and look at the whole picture.

Here at Phebys, we have put together a couple of tips to help you stay on top of your finances:

Keeping Good Records – Phebys – Accountants in Cambridgeshire

It’s important to trace elements of company spending as all business transactions should be recorded, no matter how big or small they are. When it comes to possible tax dedications and expenses calculations, having this information could help a company save money as well as remove the risk of potential fines and penalties.

At Phebys, we are Xero gold partners, Xero is a cloud accounting software that allows you to keep up to date with your finances on the move. We also use Receipt Bank which allows you to take pictures of your receipts and then send them into the ‘cloud’, meaning there is no reason to keep all your receipts and then end up rummaging through a box of them to find the right one, saving you a lot of time!

While storing receipts can be helpful, having an automates process removes the chance of any paperwork getting lost. Keeping records is also important as it allows you to track payments from customers. Xero allows you to track all your invoices, allowing you to see if they have been paid or if they are overdue.

Accountants in Cambridgeshire

Keeping Good Records – Accountants in Cambridgeshire

Meeting Legal Requirements

All business are required to meet a number of financial and legal issues and company directors need to be aware of them. Knowing how to extract profits from the business as far as the tax liabilities are concerned is incredibly important and failing to do so can result in massive fines

Dealing wit the administration side of a business can help it be more cost effective as unnecessary expenditure can be minimised.

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Phebys are XERO Gold Partners – Accountants in Cambridgeshire

Meeting Deadlines

Tax liabilities including tax returns and paying any associated bills should be seen as priorities for a company and this process can be made a lot easier as long as all accounts are kept in good order.

For a business that has a turnover of £81,000 or more, keeping quarterly VAT returns n file is a must as this can help to make sure paints of any liabilities are met.

Hire A Professional – Phebys – Accountants in Cambridgeshire

Here at Phebys, we offer a variety of different packages for our clients to ensure we can offer you the best possible service, no matter how big or small the business. For more information on any of our packages, visit our packages page or contact us today

Why Small Businesses Should Use Xero – Phebys – Xero Accountants

Why Small Businesses Should Use Xero – Phebys – Xero Accountants

Technology has changed the way we work and it will continue to do so in the next few years. Nowadays, technology plays a vital role in the day to day running of most small businesses. Using Xero technology can help you achieve your business goals, using a more streamlined process.

We’ve highlighted a number reasons why small businesses should us Xero software.

Work wherever

Xero software is able to run on a number of different systems, so whether you want to use your laptop, computer, smartphone or tablet. Xero lets you keep on top of your finances wherever you are! Xero also ensures you and anyone else who needs to access your finances, are working off the same data.

Better cash flow

Small businesses can often run into cash flow problems, not getting paid on time is one of the biggest problems start up businesses face, Xero can help improve your cash flow and get paid faster.

Xero allows you to go beyond using ‘traditional’ paper printed invoices, you can start using online invoices. The advantages? Not only is it faster, you can also track whether they have opened it, and they have the ability to pay you online through your invoices, the quicker the process, the quicker you get paid!

Xero saves you time

Xero’s smart and easy to use software helps you save times. Xero can perform this tedious, repetitive tasks that take you away from doing the things that can add more value to your business.

Xero’s automated invoice reminders can do the chasing for you. If your customer is taking some time to pay you, or you are spending far too much of your day chasing overdue invoices, then invoke invoice reminders is a must have. It will automatically send an email to your customers if an invoice is overdue, or about to become overdue.

Xero grows with you

Whether you’re a brand new business, or already using a number of systems, Xero’s ecosystem can help you. Xero is able to work with more than 500 products so you can craft the perfect solution that meets your needs.

Xero’s add-on marketplace gives you the flexibility to create a mix that meets your business’s specific needs, allowing the software to grow with you and when you need it to.

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Phebys are XERO Gold Partners

Phebys – Xero Accountants in Cambridgeshire

We’re proud to be Xero gold partners. For more information on our services, and how Xero could help your business, contact us today.

Weetabix Company to be Sold – Phebys – Accountants in Cambridgeshire

Weetabix Company to be Sold – Phebys – Accountants in Cambridgeshire

The UK Cereal company Weetabix is to be sold to US firm Post Holdings for around £1.4bn.

Weetabix has been made in the UK since the 1930s but was put up for sale in January by China’s Bright Food, which bought a 60% stake back in 2012.

At the time, Bright’s acquisition of Weetabix was the largest by a Chinese firm, they took over Weetabix as they looked to break into the cereal market over in China. But it is believed Weetabix struggled to gain a significant share in the market as Chinese consumers prefer a hot, rice-based breakfast, rather than cold cereal.

Although Weetabix more than doubled there sales over in China in 2016, the UK still accounts for the majority of its sales. Having said that, a spokesman for Bright Food, insisted that the sale of Weetabix did not mean they were abandoning its global ambitions.

Expansion – Phebys – Accountants in Cambridgeshire

Weetabix, which is currently based in Northamptonshire, has a royal warrant and was family owned up until 2004, when it was bough by private equity firm, Lion Capital. Its main factory in Kettering produces more than three billion Weetabix biscuits every year.

Currently, Weetabix is the latest producer of breakfast cereals in the UK, and employ over 2,000 people.

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Weetabix Sold – Phebys – Accountants in Cambridgeshire

Weetabix have a range of products which are exported to around 80 countries, while it also has factories in east Africa, Europe and North America.

The current director of marketing at Weetabix, Sally Abbott, will now become managing director of Weetabix UK and Ireland. While the current chief executive, Giles Turrell, will become the firm’s chairman.

In a statement Mr Turrell said: “Post is a leader within its markets and shares our commitment to providing great tasting nutritious products for the whole family. I’m confident they will help us open doors for continued expansion.”

Phebys – Accountants in Cambridgeshire

Thank you for reading the latest news from Phebys, we are accountants in Cambridgeshire. For more information on our services, contact us today

Tesco Fined £129m – Phebys – Accountants in Cambridgeshire

Tesco Fined £129m – Phebys – Accountants in Cambridgeshire

Tesco has agreed to pay £129m to avoid prosecution for overstating profits back in 2014.

Tesco’s subsidiary, Tesco Stores Ltd, reaches what’s known as a deferred prosecution agreement with the Serious Fraud Office, after a two-year investigation.

Tesco released a statement saying that there was ‘regret’ over the issues in 2014 and that they have been working hard to ‘restore trust’.

On top of the fine, Tesco also agreed to pay another £85m on compensation for investors which was ordered by the Financial Conduct Authority (FCA). This money will go to anyone who bought bonds or shares between 29 August and 19 September in 2014.

Misled Investors – Phebys – Accountants in Cambridgeshire

Those who will be compensated would have had misleading information from a trading statement on 29th August, which could have influenced their decision to buy shares or bonds due to the rosier assessment of its performance than actually was the case.

Tesco issued a corrected statement before the markets opened on Monday 22 September, which estimated it had overstates its profits by a quarter of a billion pounds, this figure later went up to around £325 million, after two internal investigations were launched.

Regret

The compensation order from the FCA is the first of its kind, although it has not imposed its own penalty, and Tesco accepted the regulator’s finding of “market abuse”.

Dave Lewis, Tesco’s current CEO, said: “Over the last two-and-a-half years, we have fully co-operated with this investigation into historic accounting practices, while at the same time fundamentally transforming our business.

“We sincerely regret the issues which occurred in 2014 and we are committed to doing everything we can to continue to restore trust in our business and brand.”

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Phebys – Accountants in Huntingdon

Phebys – Accountants in Cambridgeshire

Thank you for reading the latest news from Phebys, we are accountants in Cambridgeshire. For more information on our services, contact us today.

Vodafone to create thousands of jobs – Phebys – Accountants in Huntingdon

Vodafone to create thousands of jobs – Phebys – Accountants in Huntingdon

Vodafone is attempting to repair its poor customer service reputation of its UK arm by creating thousands of call centre jobs in the UK, when they were previously overseas.

Vodafone will create over 3,000 new jobs across the UK, by looking to create call centres in Manchester, Newcastle and Scotland.

Customer Service Issues – Phebys – Accountants in Huntingdon

The move follows a recent trend of onshoring in the telecoms industry, which is where a business will bring back operations from overseas. A number of telecoms companies have opted to do this in an attempt to improve their customer service, after the telecoms industry had a record number of complaints last year.

The issue is a particular concern for Vodafone UK, which has been losing market share to their competitors after a botched IT overhaul that caused huge billing errors and a huge increase in complaints. Ofcom, the industry regulator, hit Vodafone with a large fine of £4.6 million last October for ‘serious and sustained’ failings.

The new call centres will take on work that is currently carried out in India, Egypt and South Arfica. Vodafone have said that the move will enhance the quality of its customer service operation as part of an overall £2 billion investment on its home ground over three years. It is also injecting cash into its network to improve the coverage and capacity, after a slow upgrade to 4G relative to the company’s other European markets.

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The new chief executive at Vodafone UK, Nick Jeffery, had this to say: “These new, skilled roles will make a real difference to our customers and a real difference to the communities that are the focus of our customer services investment.”

Vodafone stated that the move underlined its long-term commitment to the UK.

Phebys – Accountants in Huntingdon

Thank you for reading the latest news from Phebys, we are accountants in Huntingdon. For more information on any of our services or packages, get in touch with us today.

New Pound Coin – Phebys – Startup Accountants in Cambridgeshire

New Pound Coin – Phebys – Startup Accountants in Cambridgeshire

Towards the end of this month, 28th March to be exact, 1.5 billion new 12-sided pound coins will enter circulation. There are a number of concerns for SMEs in regards to the change, which is why it is important that business owners are preparing in advance.

There are a number of important points that could you and your business make the switch as smooth as possible.

Collecting Old Coins

The old pound coins will cease to be legal tender on 15th October 2017. Therefore SMEs will have to dig out all of their old pound coins and spend or bank them before the cut off date, as anything kept after this date will have no value.

Adapting Premises & Property

The new coin will be different in shape, as well as weight. Therefore businesses will need to adapt any vending machines, lockers, self-service checkouts and even shopping trolleys. On top of this, local councils will need to update car parking machines.

Further Changes – Phebys – Startup Accountants in Cambridgeshire

A brand new £10 note will be added into circulation in the summer of 2017, following on from the success of the new £5 note. Looking even further ahead, a new £20 note is expected to be introduced in 2020.

Don’t Leave It Too Late

Whatever you’re doing, it is important to plan ahead. Leaving it to the last minute to update your machines or bank your old pound coins as this could result in you and your business losing out financially.

Seek Advice

If business owners are unsure of what they need to do, they should look for advice. The creators of the coin, The Royal Mint, display useful information regarding the change on their website.

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Phebys are XERO Gold Partners – Startup Accountants in Cambridgeshire

Phebys – Startup Accountants in Cambridgeshire

Have you just started a new business? Get in touch with us and see how we can help you take your first steps into owning a business.