Cloud9 News

Cloud 9 has a New Member! Introducing Jojo

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amanda sqAccountant

Jojo - as Ioana likes to be called, is very friendly and open person with great positive energy around her. She joined our Cloud 9 in 2022. Straight away we knew she will be another perfect member for our team.

She has AAT Level 4 qualification, also currently studying Finance & Accounting at Anglia Ruskin University in London (will be graduating in 2023).

In her past she as well picked up several accolades. She was a manager in warehouse, where she led team of 5, handled 400 different production lines, did invoicing, reconciliation, accounting balance sheets.

Strong client relationship she developed when she was in a role of promoting and selling well-known branded accounting software.

Later on, she was again part of big production company, where she led team of 250 staff, responsible for accounting of the company, she designed and implemented a full Excel-based automated manufacturing and accounting management system – which led to improving efficiency, accountability and costs.

She also was part of cleaning company where she built the business from the ground up, run successfully and managed to sell it as a healthy going concern.

After that her lately steps led her to property management, where she was acting as manager, overseeing maintenance of 15 HMO rental properties and assisted landlords with bookkeeping and accounting.

As Jojo is very energetic, at the moment, while she is providing accounting service she is also acting as manager of construction company. There she is responsible for: managing all customer interaction, terms negotiation and contract management, analysing, managing and mitigating risk, handling all reconciliation, accounts payable/receivable, tax, VAT, CIS, invoicing, purchase orders, management accounting, budget setting and forecasting, assessing incoming project tenders, securing profitable terms and conditions, overseeing quality construction standards in line with industry best practice, planning projects, including manpower, and materials requirements, building in contingency plans to mitigate unforeseen circumstances, coordinating teams of 15 construction workers and subcontractors, across multiple project sites and regularly reviewing progress.


“Training and taking care of Rottweilers!"
"Dog training, hiking, nature, plants, etc… but especially dog training :-D!” – this is when you ask her what does she love to do in her spare time.
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Struggling To Pay Tax – What Should You Do?

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Struggling to pay tax – What should you do?

The January self-assessment payment deadline is not well timed, falling as it does in a month when people may be already struggling to pay their Christmas credit card bills. However unpalatable the 31 January tax deadline is, it is not one that should be ignored.

Taxpayers who are within self-assessment will need to pay any remaining tax due for 2020/21 by midnight on 31 January 2022, and also any Class 4 and Class 2 National Insurance liabilities for 2020/21. Where their tax and Class 4 National Insurance liability for 2020/21 was at least £1,000 and less than 80% of their liability was collected at source, such as via PAYE, the first payment on account must also be paid by midnight on 31 January 2022.

If you are struggling to pay what you owe, what can you do?

Contact HMRC

Ignoring the problem will not make it go away; rather, it will make it worse. If you think that you are going to struggle to pay what you owe in full by the 31 January 2022 deadline, you should set up a time to pay agreement or contact HMRC as soon as possible, and ideally before 31 January 2022. However, if you miss this deadline, all is not lost and you may still be able to set up or agree an instalment plan.

Paying in instalments

It may be possible for you to pay what you owe in instalments by setting up a time-to-pay agreement.

You can do this yourself online via your Government Gateway account if:

you have filed your latest self-assessment tax return; you owe less than £30,000; you are within 60 days of the payment deadline; and you plan to pay back what you owe within the next 12 months or less. If you do not meet all of the above conditions, you will not be able to set up an instalment payment plan online. However, you may be able to agree one with HMRC. To do this, you will need to call the Self-Assessment Payment Helpline on 0300 200 3822. The line is open from Monday to Friday from 8am to 4pm. If you cannot pay another type of tax, for example, corporation tax, you should instead call HMRC’s Payment Support Service on 0300 200 3835. The lines are open from Monday to Friday from 8am to 4pm.

When making the call, make sure that you have the following information to hand:

your unique taxpayer reference and National Insurance number; your VAT registration number if you are VAT-registered; your bank account details; and details of any previous payments that you have missed. HMRC will take into account what you are able to pay in full, your monthly income and outgoings, any savings and investments that you have and what you can afford to repay each month. If you have savings or investments, you will be expected to use these to clear your tax bill.

There is no set length for a time-to-pay agreement – it will depend on how much you can afford to pay each month to clear the tax that you owe. The payments are usually made by direct debit, and once the agreement is in place, it is important that payments are not missed and future liabilities are paid on time. You can pay more than the agreed amount if you are able to clear the debt more quickly.

If you do not make the payments, or HMRC will not agree to a time-to-pay agreement, you will be expected to pay what you owe in full. HMRC may use their debt collection powers if you do not do this.

Partner note: www.gov.uk/difficulties-paying-hmrc

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If Your Business Is ‘Chosen’ For An HMRC Enquiry

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What happens if your business is ‘chosen’ for an HMRC enquiry?

HMRC has the power to enquire into any return and request any information to establish whether that return is correct. No reasons need be given and invariably will not be disclosed.

An enquiry may be:

Full – checking a return as a whole including the accounts. Random – standard procedures as part of the overall crackdown on tax avoidance possibly targeting specific businesses deemed as high-risk. Previous enquiries have targeted the construction industry, private health care professionals and more recently, those involved with cryptocurrencies and obviously ‘cash’ businesses. Aspect (or ‘compliance check’). A full enquiry is both costly and time-consuming, for both sides, therefore should a business find itself the subject of one then it will be for a good reason – at least in the HMRC’seyes. As such, an enquiry letter will more likely be for an aspect enquiry where HMRC look at specific areas or claims relating to a return e.g. HMRC may have received information that a property is let but the owner has not completed the letting pages of the return or the taxpayer may declare a small amount of tax when turnover is high. Some compliance checks begin as ‘aspect’ checks before being upgraded to full enquiries if HMRC believes serious issues are evident.

Which businesses can be chosen?

HMRC identifies cases using various means, having invested in technology that collects data, analyses information, highlighting potential cases. Their ‘Connect’ computer system obtains information from a range of sources – newspaper advertisements showing a trade but no accounts submitted, lists of market stall holders, DVLA records, data of racehorses and their owners, estate agents details of rental properties or house sales, local authority lists, planning applications, Land Registry, credit card information from issuers, data from companies such as eBay, PayPal and Airbnb.

However, a sizeable number of investigations are made due to calls to HMRC’s fraud hotline or submission of an online form headed: “HMRC Fraud Hotline – Information report form”. Currently HMRC is concentrating on ‘compliance checks’ specifically relating to suspected CJRS fraud. HMRC believes that between 5% and 10% of CJRS grants contain mistakes or have been illegally claimed and has apparently received over 21,000 reports from the public of suspected CJRS fraud; 26,000 cases are being looked into, some of which include criminal investigations. The process is part of the government’s pledge to invest in a Taxpayer Protection Taskforce created to focus on fraud committed on any coronavirus support package.

Enquiry process

The first indication of a full enquiry is the receipt of a letter accompanied by a Code of Practice leaflet, confirming the type of enquiry, the information expected to be provided and the deadline for providing this information. A Statement of Assets may be included enabling the Inspector to ascertain whether any assets have been acquired of which HMRC was unaware, payment of which might have been via the use of undisclosed earnings.

A Disclosure Report will be issued at the end of an enquiry to include a Certificate of Full Disclosure signed by the taxpayer to the effect that a full disclosure has been made ‘to their best knowledge and belief’. Should any additional tax be due then a tax penalty will be levied, the amount being determined by consideration of the reasons why the underpayment arose and the amount.

CJRS grant compliance check letters confirm that HMRC are looking into whether the taxpayer has ‘received a CJRS grant payment and may need to repay some or all of the grant you have received. This is because you may have:

– claimed for a CJRS grant which is more than you are entitled to based on the information we hold about your employees

– not met the conditions to receive a CJRS grant – for example by including employees in your CJRS claim who are not eligible.’

A response is required within a set timescale (sometimes just two weeks from the date of the letter) otherwise a full compliance check will be opened.

HMRC has an official time limit of five years and ten months after the tax year end for compliance investigation which can be extended to 20 years where fraud or negligence is suspected.

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Applications Open for Self-Employed and Business Grants

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Financial support schemes for newly self-employed workers and close-contact businesses such as hairdressers and driving instructors have opened for applications. Grants worth £4000 will be available through a self-employed hardship fund and a scheme for mobile and home-based businesses unable to trade because they require close contact between people.

The Scottish Government has allocated £60m to the two funds and urged anyone who could be eligible for support to apply.

Finance secretary Kate Forbes said: “These new funds will support harder-to-reach businesses and newly self-employed people across Scotland as we continue to focus our efforts on helping those who are not captured by UK Government schemes.

“We’ve committed more than £3bn to support businesses and protect jobs during the pandemic, and I would encourage all those affected to check what support is available to help them through such a challenging time.”

To be eligible for the Newly Self-Employed Hardship Fund, which paid out more than £11m last year, applicants would have become self-employed on or after April 6, 2019, and before March 17, 2020, and therefore do not qualify for the Self Employment Income Support Scheme (SEISS).

Alternatively, those who became self-employed between October 1, 2018, and April 6, 2019, but are ineligible for SEISS due to being unable to prove 50% of income came from self-employment can apply for the grants.

Only Scottish residents with trading profits below £50,000 in the financial year 2019-2020 who have lost business income due to coronavirus restrictions are eligible.

Owners – rather than employees – of businesses such as tattoo and piercing salons, driving instructors, hairdressers, massage therapies and alternative medicines including homoeopathy can apply for the Mobile and Home-Based Close Contact Services Fund.

The business has to operate either at the owner’s home or on a mobile basis more than 50% of the time.

The funds will open for applications for four weeks, although the government has not said when it expects money to be paid out.

Information above is from STV NEWS page.

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Electric Cars From April 2021

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Electric Cars From April 2021 For 2020/21, it was possible to enjoy an electric company car as a tax-free benefit. While this will no longer be the case for 2021/22, electric and low emission cars remain a tax-efficient benefit. How are electric cars taxed?

Under the company car tax rules, a taxable benefit arises in respect of the private use of that car. The taxable amount (the cash equivalent value) is the ‘appropriate percentage’ of the list price of the car and optional accessories, after deducting any capital contribution made by the employee up to a maximum of £5,000. The amount is proportionately reduced where the car is not available throughout the tax year, and is further reduced to reflect any contributions required for private use.

The appropriate percentage

The appropriate percentage depends on the level of the car’s CO2 emissions. For zero emission cars, regardless of whether the car was first registered on or after 6 April 2020 or before that date, the appropriate percentage for electric cars is 1% for 2021/22. For 2020/21 it was set at 0%. This means that the tax cost of an electric company car, as illustrated by the following example, remains low in 2021/22.

Example

Jaz has an electric company car with a list price of £30,000. The car was first registered on 1 April 2020. For 2020/21, the appropriate percentage for an electric car was 0%, meaning that Jaz was able to enjoy the benefit of the private use of the car tax-free. For 2021/22, the appropriate percentage is 1%. Consequently, the taxable amount is £300 (1% of £30,000). If Jaz is a higher rate taxpayer, he will only pay tax of £120 on the benefit of his company car. If he is a basic rate taxpayer, he will pay £60 in tax. This is a very good deal. His employer will also pay Class 1A National Insurance of £41.40 (£300 @ 13.8%). For 2022/23 the appropriate percentage will increase to 2%.

Low emission cars

If an electric car is not for you, it is still possible to have a tax efficient company car by choosing a low emission model. The way in which CO2 emissions are measured changed from 6 April 2020. For 2020/21 and 2021/22, the appropriate percentage also depends on the date on which the car was first registered as well as its CO2 emissions. For low emission cars within the 1—50g/km band, there is a further factor to take into account – the car’s electric range (or zero emission mileage). This is the distance that the car can travel on a single charge. The following table shows the appropriate percentages applying for low emission cars for 2021/22. Appropriate percentage for 2021/22 for cars with CO2 emissions of 1—50g/km

Electric range -- Cars first registered before 6 April 2020 -- Cars first registered on or after 6 April 2020

More than 130 miles ---------- 2% ---------- 1%
70—129 miles----- ---------- 5% ---------- 4%
40—69 miles------------------ 8% ---------- 7%
30 – 39 miles------------------ 12% ----------- 11%
Less than 30 miles -----------------14% ---------- 13%

As seen from the table, choosing a car with a good electric range can dramatically reduce the tax charge. Assuming a list price of £30,000, the taxable amount for a car first registered on or after 6 April 2020 with an electric range of at least 130 miles is £300 (£30,000 @ 1%); by contrast, the taxable amount for a car with the same list price first registered before 6 April 2020 with an electric range of less than 30 miles is £4,200 (£30,000 @ 14%). The moral here is to choose a new greener model and you will be rewarded with a lower tax bill.

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