Henderson Bookkeeping

Gaining qualfications via an apprenticeship can be beneficial to both the learner and the employer. Doing a specific job cannot be learnt in a classroom alone, it takes guidance in the work place in order to learn a trade of profession. This requires the employer to have the time and patience to train the apprentice, however there are great benefits to the business. 

• 81% of consumers favour a company that takes on an apprentice, so it can bring in more customers and improve the reputation of a business.

• 80% of employers agreed that it improved productivity in the work place.

• As of 1st of October 2012, the national minimum wage for apprentices is £2.65 an hour. For apprentices over 19 who have completed their first year of training, this increases to the national minimum wage rate applicable to their age. However, most employers decided to pay more than the minimum wage. 

• Training for 16 to 18 years olds is fully paid by the government. The employer only needs to pay the salary of the apprentice.

• Incentive payments are available if an employer hires an apprentice between the ages of 16 and 24. This is currently set at £1,500 and is applicable to employers with less than 1000 employees who have not hired an apprentice within the last 12 months and are not in the position to hire one due to financial constraints. 

HM Revenue & Customs have now included links on their site to applications for ipads, androids and tablets etc that are designed to simplify record keeping. Sounds brilliant to people on the go, who find the whole process of accounting records daunting right?

However, HMRC states that these applications have not been tested by them or have not carried out any security testing.  Some people may assume that as these applications have been listed on HMRC website, they must produce good records. HM Revenue & Customs make the point that the companies that have designed the mobile applications 'have advised HMRC that they have commercial mobile applications for record keeping that meet the HMRC specification'. Considering HM Revenue & Customs will be the first to pounce on you should the record keeping not be up to scratch, I would have thought it would be their responsibility to check these applications, before including the links on their website.

I have come across 'simplified' software for bookkeeping use before. The client has produced the records at the year end expecting my job to be quick and cheap, as after all they have a new computerised system. However, some systems have been simplified to such an extent that the records produced are useless and the accountant has to start again. Often, the program only has the capability to record one side of the transaction. This is fine if you only use one business account for every transaction and only need to produce a profit and loss account. But for anything more than this, the simplified software should not be used.

This does not mean that the applications for android and iphones etc cannot have their uses. They can certainly be used to keep track of what you spend when out of the office or traveling so that you record all expenses. For this purpose I imagine a lot of people would find it very useful. But I would suggest that they are used only as a primary record, and the transaction is recorded and referenced to the receipt using a system such as Sage or VT+ or a manual cash book if preferred. The web page fails to mention that this does not replace standard record keeping, and is simply a useful tool in the larger picture.

I find it worrying that there is software/applications sold which are not suitable to do the job that is necessary. When I have been given a computerised record using such a system, I have been shocked that it has been allowed to go on sale.

For anyone who is looking into getting any kind accountancy software, I would suggest speaking to your accountant first. If not, after 12 months of hard work and the cost of the software, you could end up with records that really aren't worth the paper they are printed on.

If you are newly self employed you have probably been advised to put back some of your earnings each month in order to pay your first tax bill. However, it is not always easy to work out how much this is going to be and how much you need to save each month.

HM Revenue & Customs have now come up with a handy tool to help newly self employed people work out how much their tax bill will be. To use it click here.

Please be aware that thisis an estimate based on your predicted income.

If you are newly self employed and have not yet registered with HM Revenue & Customs, you need to do this using form CWF1.

In addition to this, if your taxable income from self employment is likely to be less that £5,315 in the tax year you will be exempt from paying Class 2 National insurance. To inform the revenue that you do not need to pay class 2 national insurance, use form CF10.

As of 1st April 2012, all VAT returns must be filed online and all payments must be made electronically.

Most businesses already do this, however if you have not yet registered to file online as your turnover is less than £100,000, please be aware that you will now have to file your VAT return online. The online exemptions that HMRC allow for not filing your return online are if you are subject to an insolvency procedure, or if your religious beliefs prevent you from owning computer. So unless these currently apply, or you are considering adopting a new belief system, you need to register online if you have not already done so.

Registering to file your return online is straight forward, but you need to have the following information to hand:

-Vat registration number

-Business postcode

-Date of VAT registration, which is on your VAT registration certificate

-Final month of last VAT return submitted.

-Box five figure on the last VAT return, which is the liability or refund amount. 

To register click here.

If you use HM Revenue & Customs online services, please be aware that the services will not be available between 5th and 11th April to allow for IT upgrades. This does not mean all services will be down for the entire period, please check their website for details.