Don’t lose your personal allowance!

For every £2 that your adjusted net income exceeds £100,000 the £12,500 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%.

The restriction applies between £100,000 and £125,000 adjusted net income. Another way that you could avoid this trap would be to agree with your employer to sacrifice some of your salary in exchange for a tax-free benefit in kind such as an additional pension contribution.


Nicholsons Coronavirus Statement

Here at Nicholsons it is business as usual as we take every precaution to protect our staff, clients and visitors.  We are asking anyone entering our offices to let us know if they have recently returned or have been in contact with anyone who has travelled from a high risk country within the last 14 days.

The high risk countries list is published on the Government website and is updated regularly which we encourage everyone to check.

We are keeping up to date with the official guidance as it is released and will continue to implement any necessary actions to ensure our offices remain open. As any new guidelines are released, we will update our procedures and information and keep you informed through our website and social media.  You are welcome to call us for clarity at any time.

Thank you for your co-operation over the coming weeks and if you do have any concerns please call our office on 01522 815100.


Billy Toulson – from apprentice to semi-senior

Billy started his journey into accountancy with some work experience during his time at school, this helped him decide on what career path to take.  Out of the five different businesses Billy worked at, he most enjoyed his week working in the accounts department within a local business.  He didn’t want to commit to going to university so enrolled at Lincoln College.  During his time at College, Billy took his Level 2 and 3 AAT exams, this confirmed his choice of career and after approaching a couple of accountancy firms, he was offered a position at Nicholsons in June 2016 on the apprenticeship scheme run by Lincoln College under the watchful eye of Nigel Hullett. Billy continued with his studies and past his Level 4 AAT exam within the first year.

Billy is currently studying towards his ACCA qualification which has a total of ten exams, 3 completed at present, he hopes to become a fully qualified accountant within the next two/three years. Once he is qualified, he would like to work in the agriculture department dealing with farm accounts.

During his time at Nicholsons Billy has been working in the agriculture team under the guidance of Senior Accountant Graham Pogson.  He also works closely with Richard Grayson, Head of the Farming team. Being a key member of the agriculture team has given him the opportunity to work on the accounts of some of the firm’s larger clients as well as being the key contact for several of the firm’s smaller clients, especially those that do their VAT returns monthly/quarterly. The number of clients he deals with is steadily growing giving Billy the chance to develop his role.  He also crosses over into the audit team as some of his work involves carry out audits.

Throughout his training Billy has worked hard to achieve his goals and as he continues to study his work within the agriculture teams increases giving him more responsibility.

Billy is a member of the firm’s social committee and is active with ideas in helping to raise money for Charity and sort out events.

As of April 2019 Billy got a promotion to semi-senior, with this promotion Billy has started to work more independently. But he still has a manager’s guidance when required. He plans on making the most of the position he has been given and wants to prove that he deserves to have it with the work he produces.


Pension Planning

For most taxpayers the maximum pension contribution is £40,000 each tax year, although this depends on their earnings. This limit covers both contributions by the individual and their employer.

Note that the unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the current tax year, but then lapses if unused.

Hence the unused pension allowance for 2016/17 will lapse on 5 April 2020 if unused. Note that under the current rules the net after tax cost of saving £10,000 in a personal pension for a higher rate taxpayer is only £6,000.

 


Effective internal communication

Effective internal communication is key to creating an engaged workforce.

Effective communication between a company and its employees enables businesses to fully tap into the unique knowledge, insights, and talents of its people. Having an effective internal communication strategy can help to avoid misunderstandings. For example, if your firm is working on multiple, complex projects, a good internal communication strategy will help to avoid confusion and ensure that each team member knows what they need to do, what the deadline is, what the budget is, what is expected of them, etc.

Good communication flows both ways. As important as it is to give feedback to your employees, it’s also crucial to teach your team members to give feedback. The key to this is an open and trustworthy culture that encourages dialogue between teams and individuals. Managers need to be willing to listen to their people and learn from them. They can use this information to help their teams to understand their role and how it fits with the objectives of the firm.

Internal communication should be part of a weekly routine. Employees want regular, real-time updates. They want to understand how their efforts are contributing to the success of the firm. Where employees are based in one location, weekly team meetings may be the best way to manage your communications. However, if your people are working from another location or they are mobile, it may be preferable to use a technology platform such as sharepoint, yammer or even video updates.

Finally, it is important not to overwhelm your team with too much information. People are constantly bombarded with emails, phone calls and social media. Your internal communications shouldn’t add to this. Instead, keep it brief and include the high priority information first. You want your team members to be able to glance at the message, understand what’s being communicated and what action is required (if any). When it comes to internal communication, keep it simple, ensure that your team feel informed and always welcome their feedback.

 


Getting ready for Brexit – update

Keeping in mind that HMRC are already writing to all VAT registered businesses about the implications on imports/exports of Brexit.  Do you think there is anything we need to do to make sure our clients are not ignoring the letters?  I would like to think that if clients are already dealing with the EU they already have this in hand but some people do like to bury their head in the sand.

“Make sure you are prepared to deal with import/export changes if there is a no deal Brexit.  https://www.gov.uk/government/publications/hmrc-brexit-communications-resources.”

 

 


What is an accounting disclosure?

An accounting disclosure is a statement released by a company, business, or corporation that identifies the financial strategies that are being used and reveals things like costs and profits for a certain calendar period. The main purpose of this sort of document is to inform both current and potential investors of the accounting strategies and methods used. These financial statements include, but are not limited to, the balance sheet, the statement of cash flows, the income statement, and the statement of stockholders’ equity. The full disclosure principle of most legal systems requires that any event that would have an impact on the financial statements should be revealed, and the laws of many countries set out specific guidelines for both how and when disclosures need to be made. Companies often release this sort of information in their annual reports, but there are a number of acceptable publication methods in most places.

An accounting disclosure is a statement that recognises the financial policies of a company, business, or corporation. The main purpose of disclosing accounting policies is to disclose any transactions or events that had an influence on the financial statements. They can be used to inform both current and potential investors of the accounting strategies and methods used. These financial statements include, but are not limited to, the balance sheet, the statement of cash flows, the income statement, and the statement of stockholders’ equity. The full disclosure principle of most legal systems requires that any event that would have an impact on the financial statements should be revealed, and the laws of many countries set out specific guidelines for both how and when disclosures need to be made. Companies often release this sort of information in their annual reports as it is compulsory by law and regulators to disclose accounting policies, but there are a number of acceptable publication methods in most places.

If you would like to speak to Darren about a disclosure please call him on 01522 815100.