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Help To Grow Grant Available

Government Discounts of up to £5000 on Accounting Software.

UK Government launches Help to Grow: a digital scheme designed to support businesses in their adoption of digital technologies.

The scheme is designed to support SME’S in making the most out of the number of digital technologies that are currently available to them.

Launched in January 2022, Help to Grow gives the opportunity to eligible business to receive a discount of up to 50% on any costs of an approved software, that is worth up to £5,000. The scheme provides access to practical specialised support. It also helps choosing which digital technologies are best suited in order to boost their growth and productivity.

At this moment in time there are three accounting software providers who are signed up to the scheme which include Sage, Intuit, and E- Crunch. The next step will be to extend the scheme to e- commerce software.

What is Help to Grow- Digital

A government led programme designed to help SME’S throughout their digital technology adoption journey. This includes diagnosing their needs all the way to weighing up purchasing options and technology implementation.

What businesses are eligible for the scheme?

To qualify for this scheme, you will need to meet a series of criteria.
Your business can be from any sector but must be based in the UK.
The business needs to be registered with Companies House, or a registered society that’s on the Financial Conduct Authorities Mutuals Register.
Five to 249 people need to be employed.
Your business needs to have been trading for more than 12 months, with an incorporation date of at least 365 days before your application.
You’re purchasing the software for the first time.
As part of the scheme, all businesses can also benefit from free advice via the online platform.

How to Apply

Before you apply for the financial discount you will first need to ensure that your business is eligible and decide on your chosen software. To check this there is a short quiz on the Help to Grow: Digital website if you are unsure of what is required

There are 4 parts to the application:

Your chosen software
Business details
Applicant information
Email verification

As well as this, you will need the following to support your application:

The business’s Companies House or Financial Conduct Authorities Mutuals Register number
Your name, role in the business and work email address
The number of employees working at your business.

Once the application has been completed and all fraud and eligibility checks have been passed, you will receive a link to the website of your chosen software supplier.

This link will take you to a final breakdown of costs. At this stage you can finish your purchase, with the discount applied.

This scheme is a great way for SMEs to improve their business and move ahead in this new digital world quickly and cost effectively. As a bonus, you also have the reassurance that its curriculum and validity is backed by the government.

While the Help to Grow: Digital scheme will require a small investment of your time and money, the return on investment can be considerable.

And remember, even if you don’t sign up for it, there’s a strong chance that your competitors will.

If you would like any further information regarding this scheme please give us a call on 01217775361.

Autumn Budget 2021

The Chancellor, Rishi Sunak, is due to announce the Autumn Budget on

the 27th of October. This budget usually entails financial and economic reports, and an update on the state of public finances. He will also announce changes to tax rates, any tax-free allowance adjustments and detail out plans for future government spending.

What we already know for this Autumn’s budget

We know that higher taxes are on the cards in the spring as the government finds ways of paying for their high rates of spending.

Here are some changes that we already know about:

National insurance contributions will increase by 1.25% from April next year.

Dividend tax will increase by 1.25%, which means investors will have to pay more on their earnings.

We also know that the government will give a £500m Household Support Fund to councils to help the most vulnerable families in England this winter.

In under two weeks’ time, we will know more about other economic changes, and how our finances will be affected both for our businesses and on an individual level.

If you’d like a free meeting with a Chartered Management Accountant, please contact us on 0333 444 1539.

Card Reader Options for Small Businesses

With today’s current climate and buying habits, it’s commonly accepted that most businesses accept card payments. The contactless spending limit is even due to increase from £45 to £100 later this year, the Treasury has confirmed.

However, it is often less obvious to decide how to accept card payments. There are many options available, such as fixed card terminals, portable machines, and mobile card readers. In this article, we’ll explore which type to use for your business, and why.
App-based card readers are becoming increasingly popular with small businesses and start-ups, especially those which operate a mobile business. They work by connecting the small device to Wi-Fi or a mobile phone connection to process the payment. For low-volume, low-value scenarios they are ideal with low start-up costs and no monthly fees. But their slower speed of operation and higher transaction costs mean they are not as suitable as volumes and values increase.
For larger operations, or businesses or charities who regularly accept card payments, especially where speed of operation is a requirement and/or high values are involved, traditional chip and PIN terminals are the preferred option.

These terminals include:
Countertop machines – where the machine sits on a counter connected by wires to a broadband or phone line port.
These machines are ideal for businesses or charities with a fixed location who serve customers at a till point.
Portable machines – where the machine sits in a cradle or base unit and can be picked up and used up to approximately 50 metres away from the base unit. The base unit is connected to an internet or phone line and charges the portable terminal and establishes a connection through Bluetooth or Wi-Fi.
Portable terminals are ideal for businesses with a fixed location who accept payments from around the premises such as restaurants and bars.

Mobile machines – a self-contained portable chip and PIN machine which uses mobile internet or Wi-fi connections to complete transactions. These machines are ideal for businesses and charities who operate at a variety of locations or events. Mobile food vans, pop-up shops and market stalls as well as charities canvassing for donations in different areas can all benefit from a mobile chip and PIN terminal.

Particularly for small businesses, we have found that SumUp offers the best card reader with the lowest running costs. Their wireless card reader can facilitate contactless and chip payments, connecting to a mobile device via Bluetooth. It accepts all major card types, including Visa, Mastercard, American Express, Apple/Google Pay etc. SumUp offers the lowest transaction fees, at 1.69%. The upfront cost is £29 (excl. VAT), and there are no monthly fees like a fixed card terminal.

If you’d like any other advice on becoming self employed or forming a limited company, please contact us to book a free meeting with a Chartered Management Accountant.

0333 444 1539

The Company Christmas Party in 2020 – Time for Virtual!

The Covid-19 lockdown restrictions have put a stop to the annual office party and have forced employers to think of alternative ways to wish employees a happy Christmas and to boost morale.

Christmas parties

Employers are allowed to host an annual event. This doesn’t have to be at Christmas, it could be held at any time of the year, the key here is that it is an annual event and is made available to all employees, or all in a particular location where an employer has more than one location, at a cost of less than £150 per head.

All costs of providing the event must be counted when calculating the ‘per head’ cost. This could include:

Entertainment

Food and drink

Transport and accommodation that enables an employee to attend

VAT

This list isn’t exclusive.

If the cost exceeds £150, then the whole amount will become taxable.

HMRC has now confirmed, that where all normal conditions are met, virtual events can be included when considering the £150 exemption.

An example of this may be a company holds one annual function in a tax year and does so virtually using IT. All employees are invited and each is provided with a hamper consisting of some food and drink to be enjoyed by the attendees during the party. The total cost per head is £100 which is within the £150 exemption and so the exemption applies.

This is great news to almost half of employers who confirmed in a recent poll, that they fund the full amount incurred for hosting the annual Christmas party.

Trivial benefits

The statutory exemption lays out certain criteria that must be met in order to be counted as a trivial benefit which ensure that:

The benefit is not cash or a cash voucher

The cost to provide does not exceed £50

The benefit is not provided as a contractual entitlement

The benefit is not provided in return for a normal service (or services) expected by the employee – e.g. hitting a pre-set performance target

Common examples seen include a gift of flowers on a birthday, a turkey at Christmas, or a modest layette on the birth of a child. More than one trivial benefit can be provided during the year; however, where the employer is a close company and the trivial benefits are given to a director, office holder or members of their families or households, an annual limit of £300 exists.

When all else fails

Otherwise referred to as a Christmas bonus, arguably a cash gift could present the employer with the most simple solution for saying thank you to their employees and spreading a little cheer during the festive season. Even a modest cash bonus can bring out the child in us (who didn’t love a £5 note from a favourite Aunt or Uncle tucked into our birthday or Christmas cards)?

A gift such as this, and for whatever reason it is given, will be subject to PAYE income tax and Class 1 NICs but the amount that the employee receives in their pay will depend upon their individual circumstances, and particular tax bands.

How do employers normally celebrate during the Christmas period?

A recent survey found that most employers demonstrated their Christmas spirit, and provided gift vouchers (4%), turkeys (1%), chocolates/biscuits (4%), a cash bonus (4%), an annual party (35%) and even some (1%) employers showering unlimited generosity (budget allowing). There remained a some Scrooge-like behaviour, with 46% of respondents admitting to being provided with nothing from their employers at Christmas. Bah Humbug!

Updated Job Support Scheme

Are you aware of the new government support available for your business and employees?

A newly updated Job Support Scheme will replace the furlough scheme on 1 November, in an attempt to help business owners retain their staff.

If you have to close your business, your staff could receive 67% of their wages, up to a maximum of £2,100 a month. The employee must be off work for a minimum of seven days to be eligible. You won’t have to pay towards their salary.

What if your business is open but not busy?

If your business can stay open but your employees have less work available, they can work part-time and still receive extra support. This is regardless of which tier you’re in.

You will have to pay your staff to work at least 20% of their usual hours per month. You must pay an extra 4% of total wages, and the government will pay 49% of their total salary.

In total, the employee would receive at least 73% of their salary for working 20% of their contracted hours. The maximum contribution the government will make is £1,541.75. To qualify, you must have been on your work’s payroll since 23 September.

You can be moved on and off the scheme, or work different hours, but each working arrangement must cover at least seven days. The scheme will run for six months from 1 November, and then be reviewed.

A grant available to self-employed people affected by coronavirus has also been doubled to 40% of profits, with a maximum grant of £3,750 over a three-month period.

At Integrity Accountancy Services, we are more than happy to help more businesses receive these support payments and grants. Even if you would just like to know more information about this, please don’t hesitate to contact us on 0121 777 5361