Limited Company or Sole trader? If your about to set up in business it is important to understand the basis between the different vehicles you can use, i.e. Company, sole trade, partnership etc. To start with Sole Traders. You are the business, you pay tax on the profits the business makes, not what you draw, which is a common mis-understanding. You will pay tax at 20 or 40% depending on your level of income, as well a National insurance (Class 2 at £2.85 per week – although this is being abolished from April 2018, and Class 4 at 9%). You are also personally liable for any liabilities the business has, so this route offers no protection of your personal assets should things go horribly wrong. Partnerships work in the same way as sole traders, but with more than 1 person, so enables you to split the profits of a business. A company is a separate legal entity, so pays its own tax (Corporation tax at 19%), but no national insurance, again on the profits generated. So why aren’t we all using companies? The answer is because as a director shareholder you are taxed on the money you draw from your company as its not your own personal piggy bank – another common mis-understanding. The biggest change recently in this area is the introduction of dividend tax on any dividends over £5,000 (currently). Traditionally the company route was used for larger businesses, but before the introduction of the dividend tax this route worked well for smaller businesses too. On the plus side, companies do have limited liability so unless you have given personal guarantees then your personal assets are protected, which can be really important. This is not a straight forward topic and I would advise you to speak to an accountant, as every situation is different.

We've recently had a request on our page to update the standard price range details on our about section. This is something included in the Facebook page system as standard, but the nature of what we do means the answer really is different for every client. We do however understand the need to budget and for this reason we offer a free initial meeting to discuss your needs and to enable us to provide you with a fixed fee quoted based on the standard of records to be provided to us. We will always speak to you first if our fees are likely to be more, because the records aren't as expected for example, allowing you the opportunity to either agree the additional fee or work on the records yourself to bring them to the agreed standard.

Are you or do you know an AAT qualified accountant with practice experience? We are looking for an experienced #AAT qualified #accountant to join our small, friendly office in #Ivybridge. As a small practice we have a range of clients from small rental accounts and tax returns, to larger corporate clients. We provide a range of services to these clients from bookkeeping, VAT, payroll as well as the usual accounts and tax advice. We have experienced solid growth over the last 18 months and anticipate to grow more in the near future, so very exciting times are ahead we feel. As part of a small team you will be exposed to all aspects of accounts and tax, with lots of client contact. Many of our clients are opting to use cloud based software and require telephone assistance, meaning we have regular contact with our clients forming a valuable relationship. We don't do timesheets, and try and adopt a slightly more relaxed approach than larger, more formal accountancy firms. You will help oversee and manage the workloads in the office, ensuring deadlines are met and systems are maintained. You will also provide support to lesser experienced staff. You will be an integral part of evolving the practice to cope with changes in legislation etc. which are on the horizon. We are very open to ideas to help make the office run smoothly, so your opinion will be valued. We are looking for someone who has completed their AAT qualification and has gained 3 years experience, at least, in a practice environment. You should be versatile and have an ambition to further your experience within the profession. As we grow, the opportunities for future progression will also become available. Experience with #Quickbooks, #Xero and #FreeAgent would be an advantage, but not essential as training can be given. In addition to a standard salary, which is dependent on experience, but ranging from £20,000, we offer a bonus scheme for new work won. A standard pension scheme will also be in place. In the first instance please send your CV to simonjilks@ivybridgeaccountants.co.uk with a brief covering email.

A great night out with the staff on the South Devon Railway for a fish and chip supper last night 🍟

We are looking for an experienced AAT qualified accountant to join our small, friendly office in Ivybridge. As a small practice we have a range of clients from small rental accounts and tax returns, to larger corporate clients. We provide a range of services to these clients from bookkeeping, VAT, payroll as well as the usual accounts and tax advice. We have experienced solid growth over the last 18 months and anticipate to grow more in the near future, so very exciting times are ahead we feel. As part of a small team you will be exposed to all aspects of accounts and tax, with lots of client contact. Many of our clients are opting to use cloud based software and require telephone assistance, meaning we have regular contact with our clients forming a valuable relationship. We don’t do timesheets, and try and adopt a slightly more relaxed approach than larger, more formal accountancy firms. You will help oversee and manage the workloads in the office, ensuring deadlines are met and systems are maintained. You will also provide support to lesser experienced staff. You will be an integral part of evolving the practice to cope with changes in legislation etc. which are on the horizon. We are very open to ideas to help make the office run smoothly, so your opinion will be valued. We are looking for someone who has completed their AAT qualification and has gained 3 years experience, at least, in a practice environment. You should be versatile and have an ambition to further your experience within the profession. As we grow, the opportunities for future progression will also become available. Experience with Quickbooks, Xero and FreeAgent would be an advantage, but not essential as training can be given. In addition to a standard salary, which is dependent on experience, but ranging from £20,000, we offer a bonus scheme for new work won. A standard pension scheme will also be in place. In the first instance, please send your CV with a covering email to simonjilks@ivybridgeaccountants.co.uk

It's great to be appreciated by our lovely clients 😊

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The hottest week of the year and Tesco have no Ice Creams in the freezer! Woops! It seems even the big businesses can't plan for all eventualities!

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Great networking meeting at The Watermark this morning hosted by SWLaw

So you’re thinking of investing in property… Historically property investment has been an effective way to invest and save for retirement, but the last decade has seen the benefits of property investment eroded. Between the house market crash in 2008 and the more recent attack on landlords in the tax system, how do you go about getting the best from your property investments once you’ve found the right property? More and more these days people are using companies to own property so they can take advantage of planning opportunities such as making company pension contributions to reduce the tax payable on the rental profits. Using a company to own property also affords the opportunity for inheritance tax planning by allotting shares to other family members, such as children. Using a company does not avoid the need to pay the additional 3% stamp duty if you are buying a second or subsequent property. If you are going to buy property to “do up” and sell on you are seen as trading by the tax man and this means all of the gain on the eventual sale is treated as income instead of capital. This can result in 40% tax rates being paid if you are already earning at the higher end of the basic rate threshold. Using a company reduces the tax on this trading income to the corporation tax rate of 19% and allows you to spread the personal tax cost by drawing the proceeds as dividends over a period of a few years in order to make use of the 0% rate of tax on dividends and any remaining basic rate band where dividends are taxed at 7.5%. Property investment still works, but in these times you have to plan harder to maximise the benefits.

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Good luck to our guys running the Ivybridge 10k tonight!

Do company cars still work? With the recent changes in how new cars are taxed perhaps it is time to consider if your company car still works for you. It hugely depends on how much private use you have. If you have very little then it is more likely the tax on a company car outweighs the benefit. By the way, driving a car to work constitutes private use, so even if you do not use it outside of this, then you are still caught by the rules unfortunately. So, which cars work? The system is currently favourable towards low co2 rating cars, so lower the better. Of course, fully electric cars are the best option. For example a Nissan Leaf with a list price of £31,335 could equate to only £564 tax charge for an entire year (2017/18 rates). Furthermore, for the company itself all of the cost of the car can attract tax relief, so potentially around £6,000 off the company tax bill. Hybrids are also a very viable option such as a Mitsubishi Outlander with a list price of £34,250, is still only £617 a year in tax. I would express caution however, as the government are increasing the amount of tax on company cars over the next 3 years. I would not dismiss the use of vans, including double cab pick-ups as these too can prove quite tax efficient, some of which such as a Nissan Navara can be a good alternative for an SUV type vehicle, currently attracting annual tax of £646 a year. As a commercial vehicle, corporation tax relief can be gained by the company and the VAT is reclaimable. However, do ensure these vehicles do qualify as a van if you are considering this route. In short, yes, company cars can still work, but for how long…….