Timesheet APP Anyone?

From the Desk of the Bookkeeper Derby

Timesheets are a bit of a 'fried sausage'.

Past experience has taught me that just before month end there would be a departmental rush on the obligatory 'green form' followed by the scratching of 160+ pens as people endeavoured to remember which meetings off site they'd cover during the past month.  Some epistles were worthy of the Man Booker Prize - Fiction category.

Needless to say some of the most creative ones were moofed and returned to the hopeful author along with a fresh new green form for a rework.  So then began the challenging game of trying to get a work of fiction past me. Shlupppp.

Nooo....what we need is a Timesheet APP that can be downloaded to the phone or laptop.  Just prod a relevant button and it records all the data for you.  Then at the end of the month - do the wireless connectivity thingy and hey presto - out pops something that could nearly be considered genuine data.

Perhaps for an extra subscription you could get a voice activated Timesheet APP.

Perhaps I should now rush off and copyright my idea.


BKD


Inspirational Quote for Today:

"I have opinions of my own - strong opinions - but I don't always agree with them."
George Bush.

"Accounting for the Terrified"

From the Desk of the Bookkeeper Derby

Client Question: What sort of records do I need to keep?

The subject of record keeping is probably one of the greyest areas for anyone who has set up and is running their own business.  Their day is full enough trying to win contracts, dealing with clients/customers/members of the public that often times any thoughts towards setting up AND maintaining any sort of accurate detailed record keeping system is one of those AROUNTOIT jobs that keeps on getting pushed further and further down the line.

HMRC guidelines are amazingly and sweetly simple:

Basic records you must keep

You must keep records so that you can fill in the return fully and accurately.
Your basic business records must include:

• a record of all your sales and takings
• a record of all your purchases and expenses

You (or your book keeper) can then use these records to create a profit and loss account. It shows the sales income you've received and the expenses you've paid, and what profit/loss you've actually made.

But the key to any good (ie remarkably low) tax bill is the QUALITY of the records. 

Therein lies another painful decision - should the records be kept on a manual system or electronic?

If you've only just started out or are perhaps a year or so into your business then perhaps a manual system is a good starter for ten.  It is relatively cheap, around £15 and not only covers the ins and outs but has options to record telephone calls, mileage and other useful (to your bookkeeper) data that is perhaps not so obvious to the new-to-record-keeping-entrepreneur.

One of the easiest manual accounting systems for the Non-VAT Registered Small Business (and highly recommended to me by my mother-in-law) is the aptly named:

The Best Small Business Accounts Book (yellow Version): For a Non-VAT Registered Small Business ; This is ideal for those businesses with mostly cash sales.

There is also (equally recommended)  for the non-VAT small businesses with mostly invoiced sales also inspirationally entitled:

The Best Small Business Accounts Book (blue Version): For a Non-VAT Registered Small Business

Still find yourself  in the 'terrified' category?  Contact us here at Bookkeeper Derby - we may just be be able to help.


 BKD

Catch up with us later at Twitter:  @BookkeeperDerby

PAYE Real Time Information (RTI) - is it working?

from the desk of Bookkeeper Derby

Camping holidays are nice.  They are an opportunity to 'get away from it all' especially if one is forced to leave behind all means of connecting with the outside world, including my mobile-that can send emails/posts to twitter/facebook/surfs the net- phone.  It does mean though that on ones return to civilisation one is forced to spend a nominal day playing 'catch-up'.

There are several topics that caught the attention, the most intriguing being the topic of  PAYE Real Time Information (RTI). 

In an article posted on the HMRC website:  The tax revolution starts – PAYE Real Time Information (RTI) pilot begins

David Gauke, Exchequer Secretary suggested that:

”RTI will remove administrative burdens of £300 million a year from employers, mainly from the abolition of the end-of-year PAYE returns process – the biggest single contribution that any tax change could make.”

Currently the pilot scheme involves 10 volunteer employers with this number increasing to 310 employers joining in May and June 2012.  By March 2013 nearly 250,000 employers will be on board.

In the grand scheme of things introducing an up to date reporting system makes perfect sense, year old data is useless in anyones books.  And if it saves us all money -  well surely all of us will benefit. 

And I use the word 'benefit' loosely.

 RTI will eventually support the operation of universal credit, the government's welfare programme that brings together means-tested in and out of work benefits, tax credits and support for housing.

 Suddenly the call of the wild outdoors is very hard to resist.



BKD

External Sources:

HMRC:  The tax revolution starts – PAYE Real Time Information (RTI) pilot begins

The Guardian:  Real Time Information PAYE pilot goes live at HMRC

Tax-free £10,000 earnings likely 'within two years'

from the desk of Bookkeeper Derby

In the Tax Season ending 2001 the Personal Tax Free Allowance was £4,385.00 The recent increases have meant that for the Tax Season ending 2013 the Personal Tax Free Allowance will be £8,105.00 

Intriguingly a recent article in the Independant [speculates] that in next years budget the PTF will be set so that anyone earning £10,000 will no longer be required to pay tax.

Sounds like good news?

Perhaps not...

Rachel Reeves, shadow secretary to the Treasury, said the rise in tax personal allowance was not enough.

"Ed Balls said ahead of the Budget the best way of getting money in the pockets of ordinary people was a cut in VAT, but we said we would support an increase in personal allowance. But numbers from the Institute of Fiscal Studies shows that from next month the average family is going to be £530 worse off each year, and these changes only help by about £170." 


BKD


Source:  The Independant

Possibly the most important 10-digit number you will ever need…

from the desk of Bookkeeper Derby

…. that is of course, if you are self-employed. The 10-digit Unique Tax Reference number is often over-looked / misplaced and undoubtably ignored. Until that is, you need to submit an online return.

HMRC in their informative article: Understanding and using Self Assessment Online tells us that:

You’ll find your Unique Taxpayer Reference (UTR) on correspondence from HMRC. If you can’t find it, you can contact the Self Assessment Helpline and ask for it to be sent to your home address. HMRC can’t tell you your UTR over the phone.

It is my understanding from a variety of clients that trying to reach the right department within the HMRC is a challenge akin to climbing Mount Everest Summit. However, the elation of getting through to the right person with The Knowledge was swiftly quashed when it became apparent that the needed digits would not be told to them over the phone – but would be sent in a sealed envelope. Second class post.

So before embarking on this path, I would encourage those who have inadvertently misplaced your UTR to do a through search of all your paperwork – you are looking specifically for any document from the HMRC - the UTR number is nominally located in the top left of letters and is found in two blocks of five digits.

Have a Great Day! 

BKD

Other useful sources for reference:

UTR Help and Advice

Caught out by End of Year ......Again?

from the desk of Bookkeeper Derby

It comes as quite a shock to many of us just how fast the years whistle by us - especially as many of us have to deal with Year End accounts.  Once the euphoria of actually having submitted 'something' into HMRC has worn off then for many of us there comes the nasty surprise of actually having to pay the Tax Man his due.

Having been self employed for many years one of the best pieces of advice my accountant gave me was to skim off the top 20% of my earnings and put it in a savings account preferably under lock and key and labelled - DO NOT TOUCH!  This money grew, surprisingly (to me at any rate) fast as each week passed.  Thus I had a lovely pot of money that was ready to access to pay off any tax bills sent by HMRC.  Amazingly enough I usually found I had enough set by to pay my accountant too.

Just recently I came across a very useful free to use tool.  One that helps you work out how much of your income you should set aside.  I present to you the: Percentage Calculator.

Why is this useful I hear you ask?  Simply it saves brain ache, its so easy to use oh and did I mention it is free? 

Definitely recommend this tool to help make your life easier.  Save it to your favourites tab.

Quote for Today

Miracles: You do not have to look for them. They are there, 24-7, beaming like radio waves all around you. Put up the antenna, turn up the volume - snap... crackle... this just in, every person you talk to is a chance to change the world...        Hugh Elliott

Hope you have a great day!

BKD