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Will There Be A Fourth Self-employment Support Scheme Grant?

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Covid-19 has wreaked havoc throughout the world. With the third lockdown now upon us, many self-employed workers are suffering from enormous losses to their income. The good news is help is available. The government’s new scheme, known as the Self-employment Income Support Scheme, was designed to help workers through the coronavirus crisis. 

The SEISS arrangement was first brought in last year in 2020, to provide grants to those whose income has been negatively impacted by the pandemic. From May 2020 self-employed workers were able to apply for the grant. However, applications for the first grant closed in July 2020. The second grant shortly followed, lasting between August-October and was worth up to £6,570. And finally, a third grant was brought into play to assist through the winter months. 

But is there going to be a fourth grant? 

The simple answer is yes, an economic update from the house of commons confirmed the scheme will be extended through February to March. 

A whopping three million people have already applied since the first grant release and over 20 billion pounds already handed out. 

So far the government has not given any indications to how much support you can get under the fourth grant but rest assured more information is due to be published shortly. 

Who can claim?

As the fourth grant covers February to April, it is time to get your applications in. Unfortunately, eligibility conditions have not changed. So if you were not eligible for the first three grants, you wouldn’t qualify for this grant either.

Here is what you need to know to apply:

  • You must show you are currently trading but have been impacted by reduced demand. 
  • You must declare you have been trading but are currently unable to do so due to the pandemic. 
  • You must show the impact put on your business at the time of the current grant.
  • If you filed a tax return for 2018/19 on or before April 2020, and provide proof, you were trading through that tax year. 
  • You must declare you intend to continue trading. 
  • Finally, you must declare you reasonably believe there will be a significant reduction to your trading profits at the time of your grant. 

Be wary, as there a few things that can affect your application, these being:

  • If your tax return was late, amended or under enquiry. 
  • You are a member of a partnership.
  • You have had a new child. 
  • You claim averaging relief. 
  • You have state aid. 
  • You are a military reservist. 
  • You have loans covered by the loan charge.
  • You are a non-resident or chose the remittance basis. 

To apply for the grant schemes, you must visit the Gov website before the end of April. Remember to make sure you have with you your unique taxpayer reference, national insurance number, government gateway user ID and password and your UK bank details. You will need these to begin your application process. 

5 Tips For Finding The Perfect Accountant For Your Small Business

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There are numerous reasons why your small business may need to hire an accountant; from spending far too much time on bookkeeping to merely desiring to organise your business finances a little better. If this is the case, it would probably be beneficial to hire a business accountant-but where to begin? 

These five simple tips will set you on the right path to finding the perfect accountant suitable for your small business.

Understanding

You must understand every single piece of information your accountant feeds you; therefore, ensure that they speak plain English. You must remember it is still your business and you are still liable to the taxman and the rest of the authorities. If they talk too much jargon and struggle to explain things to you, do not hire them. 

Does your chosen accountant fit in?

You should choose an accountant who has experience in the size and sector you are operating. 

Above and beyond number-crunching

Provide yourself with the assurance that your accountant will be proactive and reactive. For instance, an accountant who will give advice on saving tax in legal and ethical ways and will be able to provide excellent software and lessons on how to use it! 

Check your accountant is qualified

Hiring a qualified accountant gives you access to their professional body were they to make a mistake. Look into accountants who mastered their profession through the institute of chartered accountants or association of chartered certified accountants. 

Choose an accountant who will act on your behalf

An accountant who will act as your agent can save you a lot of difficult conversations. An accountant acting on behalf of your business can negotiate discussions for you with HMRC and the taxman.

In conclusion, no matter your business’s size, there is an accountant out there ready and waiting to assist with your every need. As long as you follow the five tips above, you will be well on your way to finding someone to fit your business. If you’d like to contact Herridge Accountants about your business accounting, you can contact us here. And if you’re still undecided as to whether you actually need an accountant, take a look at our blog giving five reasons we think it’s a good idea to have an accountant.

How to Reduce Your Debt

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According to an announcement from the National Audit Office, over 8 million people in the UK are currently struggling to pay their debts or meet their monthly household costs. Most homes are spending a substantial amount more than they are actually earning, with an extraordinary 8.1% more spending on credit cards within a year. It is crucial that people start to recognise the difference between essential and non-essential expenditure and borrowing in order to make significant changes towards lowering their total amount of debt. 

It is essential to realise that not all debt is the outcome of poor management; the amount of people requesting debt advice has increased in the past few years. TUC, general secretary, Francis O’Grady stated that: 

‘Years of austerity and wage stagnation has pushed millions of families deep into the red.’ 

Meaning that economic policies have increased taxes and decreased funding towards social services and a lack of wage growth. Following this, education costs are incredibly high; the average graduate from a three-year degree carries a whopping £50,000 worth of debt around with them. This does not even account for the exorbitant interest rates that go along with it. 

Diminishing credit card debt 

It is no secret that many families rely on credit cards to get by. It may seem impossible, but there are ways to reduce total debt. There are a variety of applications out there that offer users the opportunity to categorise and cut down on their spending, for example, Money Dashboard or Emma. They help reduce credit card debt by obtaining a repayment plan specifically targeting high-interest spending and comparing interest rates. Most banks offer refined programmes that identify fraudulent purchasing patterns; however, the purchase amount is often not large enough to alert the cardholder. Therefore, users must keep a close eye on establishing transactions made by fraudulent means. 

Debt management plans

Debt management plans can help guide people back onto the right track. They enable monthly payments to be made to the provider who communicates with creditors to negotiate supportive stipulations. A debt management plan is useful for those who have non-priority debts such as personal loans. Additional options include debt relief order suitable for those with low incomes, individual voluntary arrangements which often give several years in which the debt must be paid and bankruptcy which allows people relief from all debts. 

Those tackling finance problems should first try and cut down on unnecessary spending; however, if that does not solve any issues, financial planning may be mandatory in aiding those coping month to month.

All of the above solutions can be beneficial but should first be discussed with a financial advisor to ensure you are the right candidate for the plan picked out for you. 

A Brief History Of Louth

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If you are not acquainted nor familiar with Louth, this blog post will give you an insight into the town and its history. Louth is a large market as well as an industrial town situated in East Lindsey, Lincolnshire. It is located very rurally in the East of Lincolnshire and contains attractions such as St James’ Church, Hubbard’s Hills, the market, many independent retailers, as well as the last remaining cattle market in Lincolnshire.

Louth started off as a Saxon village. Its name originated from the Saxon word meaning ‘loud’ due to the loud gushing of the river. A monastery was built in Louth in the late 7th century. In the 9th century, the Danes took over Lincolnshire and subsequently destroyed Louth’s monastery. However, they gave Louth many of its street names.

In the 10th and 11th centuries, Louth became a small market town. Peasants from surrounding villages would use the market to buy and sell goods. Eventually, in the Middle Ages Louth had a population of around 1,500.

A Cistercian Abbey was built in 1139 at Louth Park. The parish church of St James was also an integral part of life for the people who lived there.

Henry VIII closed down Louth’s Abbey in 1536. The King sent a man to list valuables in the parish church which outraged the people of Louth. The man agreed to go and find out what the King intended to do with the valuables before proceeding.

This event sparked anger and men from Louth started a rebellion, marching towards Lincoln but were blocked by royal troops. As a result, the uprising broke down, and ringleaders were executed.

Louth prospered in the 16th and 17th centuries and its population grew, despite plague outbreaks. One outbreak in particular killed 700 people in Louth in 1631, which was a large chunk of the overall population.

A school was built in Louth in the 13th century, but the Grammar School was not established until 1551. The 18th century saw Louth grow even more and develop a carpet-making industry. A canal was eventually opened in 1770 to make trade easier of goods.

1801 saw a population of 4,250. This doubled 50 years later. 1825 saw a parliament act that cleaned the streets and a year later, the streets were gaslit, despite many Louth residents living in slums.

A dispensary was formed in 1803 for poor people to get free medicine and in 1873 Louth’s hospital was built. 1848 saw the railway reaching Louth which improved business from the canal method previously.

In the 1920s and 30s, the first council houses were established, and electricity lit up the town.

A War Memorial was established in 1922 in memory of those who fell in WW1. In WW2 15 people in Louth died from German bombings.

The population continued to grow in Louth from the 1920s onwards with around 17,000 people inhabiting the town now.

Please read my blog about some of the top reasons to want to live and work in Louth.

Accountants Face Exceptional Challenges For The End Of 2020 And Beyond

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With the COVID-19 pandemic causing more uncertainty and disruption, this has led to an increase in challenges in auditing financial statements for accountants. Not only this, but extra difficulties have come to light with regards to Brexit and the transition period finishing on 31st December 2020. Not only this, but climate change has become another important topic of 2020 as well as COVID-19 and Brexit.

These three key issues are predicted to alter areas of financial statements. This is because investors will want to gain information that will clearly explain how directors of businesses have responded to their implications. Transparency will be vital for this to occur.

Directors will also be obliged to review every area of every financial statement, which will be subject to judgement and estimation uncertainty. Furthermore, forecasting will also play a vital part in conducting impairment as well as concern reviews. The uncertainty of all this could require help from other sources.

Soon auditors will have to demonstrate levels of professional scepticism. This increased uncertainty amongst financial professionals will mean that they will need to take an approach that involves seeking good-quality corroborative evidence as well as evidence derived from different sources.

Those preparing annual reports are urged to commence the planning early due to the challenges in the upcoming reporting season. There must be a focus on transparency and engagement across organisations to gather information with auditors. It is also important to think about the reporting deadlines and making their scope as flexible as possible because of the extraordinary challenges that will be occurring for auditors and preparers. These challenges will not only be affecting their professional lives, but COVID-19, Brexit and the climate crisis will affect the personal lives of auditors too.

The key lessons that we can learn in preparation for this are to be as organised and flexible as possible to meet these deadlines. Preparing for the worst financial scenarios due to the three key challenges will also be important in ensuring no more challenges will arise from the ones already established.

The Institute of Chartered Accountants in England and Wales (ICAEW) provides lots of relevant resources and will be able to develop these resources to the changes which are occurring at the end of 2020. They offer technical support with regards to the COVID-19 situation with information for auditors and preparers free of charge.

Take a look at my blog here to see how some UK accountants are voicing their concerns about their environmental worries.

Top Reasons to Live And Work in Louth

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Louth is a stunning town situated in the East of Lincolnshire. Here are the top reasons why you should live and work here.

The Location 

Louth’s stunning location is second to none. It is situated in the heart of the Lincolnshire Wolds. The Lincolnshire Wolds is renowned for being an Area of Outstanding Natural Beauty. Its calming hills and deep valleys are striking against the coastal landscape of marshes and dunes.

Being East Lincolnshire, it is very near the coast so perfect for those summer beach days or winter walks next to the sea. The Wolds is sparsely populated, so pollution is at a minimum. Therefore, expect to see the sky and stars at night in all their glory! 

Without a doubt, Louth is the perfect location to work from home!

Louth Market

Louth is a traditional town and with that comes a quaint market which trades on Wednesdays, Fridays and Saturdays. Although with the pandemic, these days might vary or be cancelled so best to do your research if you wish to venture to the Louth Market. Once it is up and running, you can see what the market has to offer, from delicious food to pretty crafts; the market has it all!

The Beautiful Parks

There are some beautiful parks to visit, walk-in, have picnics in and socially distance in too! These are Hubbard’s Hills and West Gate Fields. Hubbard’s Hill was established in the early 1900s. It is beautiful in the summer where children can paddle in the river and families are seen catching crawfish with nets.

Westgate Fields has lawns surrounded by lime trees, oaks and ashes and has a beautiful view of St James’ Church poking over the tops of the trees. There are four leaf sculptures to visit, these are carved from oak and are owned by Louth Art Trail.

The Attractions (when they open!)

The attractions are limitless in Louth! There is much to see and do in this lovely town. All of which to be frequented when the lockdown is lifted once again! Louth has its own Golf Club, taking advantage of the hilly terrain and acres of grass.

Louth Museum opened in 1910 and was modernised in the early 2000s by the Heritage Lottery Fund’s money. It contains the largest collection of Victorian woodcarver Thomas Wallis paraphernalia in the country as well as other historical artefacts.

St James’ Church is a sight for sore eyes and worth a visit for its history and photogenic-nature. It was a gathering point for the Lincolnshire Rising in 1536. This was organised by Catholics to protest the Monasteries dissolution. There is a cafe and souvenir shop too.

When theatres re-open, Louth Riverhead Theatre is THE place to visit! It is owned and run by a small number of volunteers. There are touring productions, musicians, tribute bands, musicals, poetry recitals, evenings with television personalities and comedians who perform there.

Lincolnshire Wolds Railway is another great attraction of Louth. It runs for 1.5 miles between two stations, Ludborough and North Thoresby.

Playhouse Cinema is the only cinema for 15 miles and contains three screens. It was a former chapel and became a movie theatre in the 1920s. It shows the latest releases, classic films, independent ones as well as live recordings from the Royal Ballet and Royal Shakespeare Company.

If you need any help with the accounting of your business in Louth, don’t hesitate to get in contact with me.

Remote Working Continues For Accountants Seven Months Into The Pandemic

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The shared experience of working in the office vanished when the COVID-19 pandemic hit the UK. The feeling of company and teamwork in a space disappeared along with this and challenges soon arose for businesses trying to keep things running smoothly and remotely.

Some businesses coped better than others. Ones which were more used to removing sensitive financial data from the office were better equipped at working remotely. These organisations have been laying the groundwork for years of being able to balance the books from the comfort of their homes, so the pandemic was a good opportunity to put this into practice.

These businesses had worked to gain a continuous accounting process. This automates routine accounting tasks that require complicated calculations such as depreciation and amortisation. Therefore, these processes become continuous because of how automated they are. This automates the generation of financial statements, transfers with eliminations and reconciliation tools including AP sub-ledgers and the general ledger. Technology is an efficient way to process transactions for accountants and counteracts the complexities that come with working remotely.

The goal is for these automated processes to happen continuously. The pandemic has focussed on a need for automatic technologies and has also highlighted the importance of the cloud in doing so. The cloud allows sensitive financial information to be stored securely. This could involve data privacy as well as internal permissions when accountants are outside of the office.

Cloud-based technologies are updated regularly in line with the newest standards and regulations which often change. The cloud is kept modern and running smoothly. This maintains compliance for organisations.

With automated systems, there is increased accuracy. There is no need to rekey information from system to system manually. This reduces the chance of human data entry errors, so saves time that can be dedicated to other internal operations within the businesses. It also increases the quality of work-life for employees when functions are automated and left to the end of the month. The most tedious work has become more automated.

In conclusion, although remote working continues for accountants seven months into the pandemic, there have been advantages that have come with it. These advantages mentioned above have sped up the work of accountants by saving them time and removing more tedious aspects to complete. Accuracy has increased and the overall move to automation couldn’t have come at a better time for accountants.

If you need any help with your accounting needs, get in contact today.

UK Accountants Voice Their Environmental Worries About Businesses’ Approach To A “Sustainable Recovery”

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The Global survey of accountants this year has unearthed accountants’ disappointment of businesses environmental as well as social strategies. These accountants and financial experts support the move to a “sustainable recovery” but fear that businesses are only escalating negative environmental/social impacts.

The survey was part of a report by the Association of Chartered Certified Accountants (ACCA). It was titled “Mainstreaming Impact: scaling a sustainable recovery“.

In its research, it asked 829 accountants and finance experts around the world about the environmental progress and performance among the organisations they work for.

It was recorded that 90% of those questioned were not happy with the current environmental and social sustainability efforts carried out by their organisation. The accountants said that they want to see their organisations increase all their efforts to become more sustainable, and in doing so, create positive societal change post-pandemic.

One in 20 of the accountants and financial professionals surveyed said that finance teams did have an essential role in contributing to a “more socially inclusive and environmentally sustainable future”.

75% of respondents mentioned that the business they currently work for needs to target the social inequalities which still exist to this day. This could be through wealth, race, sexuality, sexual orientation, religion and gender.

However, an additional 10% to this said that businesses need to make more efforts in curbing the environmental damage, a forefront topic of 2020 behind the global pandemic.

A worrying statistic showed that only 54% of respondents believed that they had the training and skills that were vital to combat the environmental and social change in the business they are employed by.

Many of those surveyed highlighted the barriers businesses face to environmental and social improvements. For example, the cost implications, a narrow focus on returns and a lack of senior management.

Helen Brand, chief executive of ACCA stressed that accountants have “a huge role” to play in environmental performance improvements. She added that this was “because it’s through professional education that accountants can support the transition to a net-zero carbon world.”

Head of sustainability at ACCA, Jimmy Greer said that “Professional accountants and finance teams are central actors, with the skills, knowledge and ambition to do more” and that businesses “need to make board level governance commitment to additional and intentional social and environmental positive impact creation.”

Greer finished by saying that businesses “must allocate resources within finance teams and across organisations to build decision-making capabilities related to environmental and social impact.”

If you need any help with your accounting needs, get in contact with us today.

Five Changes Accountants Are Making To Their Way Of Working

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The COVID-19 pandemic has shaped the way accountants are re-inventing themselves. More specifically, it has led to the acceleration in the way that accountants are altering their way of working. Here are the main five changes that accountants are making to their style of working this year in response to the pandemic.

Saving it all to the cloud

With the pandemic changing accountants’ way of working to the work-from-home method, it has been more critical than ever to save, share and locate vital documents all in one place. Using shared digital resources has made accounting more accessible than ever before.

The cloud has been vital for scanning applications where all hard copy forms can be loaded onto a screen, making transactions much faster as well as suppressing the risk of transmission of the virus on paper sheets sent via post.

This not only saves time but money as well and brings with it the ability to operate documents anywhere at any time. Furthermore, any worries of a data disaster or losing vital hard copies becomes obsolete as the cloud continuously backs itself up. Accountants needn’t be concerned with losing anything as the cloud has been proven to hold data forever firmly.

Develop data analysis skills

Accountants are expected nowadays to produce data analysis that will allow their clients to make strong financial decisions. Information is vital and detailed analysis is more critical than ever. 

Analysing information will allow businesses, as well as individuals, to see if they are spending too much money or whether they have too many or too little employees working for them. As a result, brushing up on data analysis skills will enable accountants to become more productive and efficient, as well as more helpful to their clients.

Improving their social media presence and usage

Accountants used to rely on their services based on recommendations and word of mouth. This was their free and easy advertising method. However, now we are living in the age of social media, which is the new word of mouth, especially during the pandemic where many of us are staying at home a lot more and not socialising face to face with our peers.

When a business is looking for an accountant service, they will look online. Reviews and recommendations on social media platforms are what they will use to gauge what sort of accountancy firm you are. Implementing a healthy social media plan can get you that business and recommendations. Imagine all the other accountancy firms in your city having Twitter, LinkedIn and Facebook and your firm having none of those. You will not be recognised or stand out at all. You will lose out on important business. As a result, accountants are embracing social media and strengthening their social media and online presence to cover all bases.

Outsources for specific needs

Many accountants are outsourcing accountants from specific departments that can take care of a business’s specific financial requirements as opposed to general accountants who do not have full knowledge of some particular financial subjects. This is to cover all bases and make clients more trusting and feel more valued when dealing with accountants who have been tailored to their client’s specific needs. This also means that services are consistent as well as scalable with experienced and qualified accountants. Furthermore, other businesses can focus on other aspects such as the core of their business and leave the accounting to more experienced professionals.

Mobile accountants

Everything is now done electronically, with paper invoices long gone and digital receipts the new norm. Mobile accountants have access to software which now allows them to work remotely from their home. This gives them more time to service more customers and in more depth.  

Accountant’s Guide to Managing Your Business Finances

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Financial management can take many years to master. Managing your money is difficult but so vital to grow and develop your business. Nowadays, we are blessed with the ability to hire accountants to help manage our business finances for lower costs than you may think. However, you cannot be purely reliant on accountants alone as you are accountable for managing your finances. Here is your guide to equipping yourself with the essentials to manage your finances…

Understand the basics of finances

All business owners must have the basic skills of managing finances in order to have a successful business. There is terminology which is vital to know like the breakeven point, net profit, cash flow, expenses and gross revenue. These will be terms used on a daily basis so make sure you understand them all.

Furthermore, you must also understand business accounting documents such as revenue forecast, cash flow statement, income statement and balance sheet. If you aren’t familiar with these terms and documents, google them and research what they all mean and do. It will be invaluable knowledge for your business. 

Keep track of your cash flow

Cash flow is the money that goes in and out of your business and is easy to lose track of so ensure you are organised and know where it is at all times. The inflow of your business is from selling your goods whereas your outflow is the money your business spends on stock, payroll as well as marketing too. Try to always keep your outflow lower than your inflow, even though this could prove difficult. Just bear it in mind at all times and never lose track of your business goals.

Ensure your business and personal finances are kept separate

If you are a small business owner, it may seem easy and simple to have all your finances in one account. This is not recommended as it makes your business disorganised and can lead to tax issues as your business grows larger in the future. The first thing you should do when setting up your business is having two separate bank accounts for your personal life and company.

Spread out your tax payments

Paying your tax in a lump sum isn’t always the wisest of moves as large amounts of money leaving your cash flow can seriously affect it. Instead of this, try and opt for tax as a monthly expense. This will help you with budgeting.

Have a business cash reserve

Have a business bank account that can be used as a cash reserve. Top it up as often as you can and make it easy to withdraw money when needed for your business. This will take the pressure off when you have any additional bills to pay for your business.

If you need assistance with your business accounting, contact me today!