Accountancy in 2018: Advice on the Year Ahead

As 2017 draws to a close, we at Phebys Accountants are beginning to focus our minds on the year ahead, especially with reference to important accounting advice and information that will directly affect our clients. We have hand-picked a few key dates and changes that are worth taking note of as we head into a new year in accountancy.

HMRC to stop accepting credit cards

HMRC has urged accountants to advise their clients that, as of 13th January, they will no longer be accepting credit card payments in the settling of a self-assessment bill. This comes as a result of the government’s ban on credit/debit card surcharges.

At Phebys, we understand the effect that this could have on some of clients. Whilst settling a self-assessment bill by credit card will perhaps be a last resort, backed by our accounting advice, many small businesses and sole traders often rely on this option as a fall-back.

There are a few options for our clients on how to deal with this. The first is to settle the self-assessment bill prior to 13th January, whilst credit card payments are still accepting. Phebys is, however, able to offer its clients a second option. We are pleased to work with LDF to ensure that our clients have access to the necessary finance for their business’ survival and growth, as and when they need it.

The NIC Reform for the Self-Employed

The year 2018 will see big changes in how the self-employed make their National Insurance contributions. As of 6th April 2018, class 2 NI contributions are to be abolished and class 4 contributions to be reformed.

As it stands, class 2 contributions earn a worker the entitlement to a state pension, maternity allowance, bereavement allowance and contributory employment and support allowance. This contributory role of class 2 contributions will be absorbed into the role of class 4 when class 2 is officially abolished in April. The reformed class 4 contributions, as outlined by the government, seem so far to resemble the class 1 system, as applicable on the basis of annual earnings.

Many of our clients will be affected by the NIC reform and anyone seeking accounting advice on what it will mean for them should not hesitate to contact Phebys Accountants on 01480 896267.

Increase in R&D Tax Credits

It was announced in the Autumn Budget 2017 that the government would be increasing funding into R&D tax credits. The increase in the RDEC rate will have effect on all R7D expenditure incurring on or after 1st January 2018.

It has been shown that as many as 95% of those business eligible to claim R&D tax credits are yet to do so and this becomes even more significant with the rise in funding for these businesses.

Anyone wishing to ascertain whether they are eligible to claim R&D tax credits, or looking for help and accounting advice in making the claim, should contact Phebys Accountants on 01480 896267, or by emailing admin@phebys.com.

Happy New Year for Phebys Accountants

All that’s left how is for Phebys to thank its clients wholeheartedly for their business over the past year and to wish you all a happy, healthy and prosperous 2018. Phebys Accountants is always here if you need advice and we look forward to working with you in the year ahead.

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