Happy New Year.
Firstly, we hope you all had a good New Year and it starts the year off well.
Our team are busy dealing with all the tax returns and as always, January is a little frantic with all the team working hard.
One of our biggest aims is to ensure that all our clients, both business and individuals do not get to January with any surprises. But more importantly we are here to work with you to make managing your personal finances and the financial side of your business as easy and stress free as possible throughout the year.
Over the past few years, we have been working hard to identify how the latest technology and software can help you reduce the time you need to commit to your finances and in addition help manage the time needed by us in managing your affairs.
Our search for new technology continues continuously, but so does our search for new talent to add to the team. As a specialist firm of accountants we have specific needs from across the board and we are are always looking to add the right people to the team.
As you will be aware we have put a big emphasis on creating the best working environment for our team to ensure that they are happy and able to focus on their work without distraction and this will continue in 2023, supporting the team with their health and wellbeing and giving them the opportunity to give back to the community. Watch this space for our charity updates throughout the year and maybe we will see a return of the Charterhouse gardening team later in the year.
If you have any queries we are always here so please contact us.
Staff Focus – Elaine Lynch
Elaine Lynch – Payroll Manager
A payroller will more than often say ‘I can only spare ten minutes on a non-payroll matter…….’
I have worked in payroll for many years and gained valuable experience across different industry types.
I gained my CIPP (Chartered Institute of Payroll Professionals) and remain a member in order to keep updated with compliance, best practice and know-how.
My experience has included working in a sole-role, as a member of either a small, medium or large team. Eventually leading to management position at Charterhouse Accountants. The office locations have been predominantly UK, however when needed, work in mainland Europe for a Global payroll implementation project.
During my years of working in the payroll field, I have seen many changes from the introduction of HMRC RTI (Real Time Information) to the virtual implementation of AI tasks. I am passionate about reducing the payroll admin burden on companies, but only if compliance areas are satisfied. When considering a payroll system it is important to ensure it is compliant, factual and serves the purpose leading to paying employees accurately and on time. The introduction of BREXIT has added further challenges of which push the boundaries of both compliance and data accuracy and cleanse.
The importance of a payroll function is to ensure eligible people are paid throughout all challenges presented and assist in providing all relevant reporting third parties with accurate information.
Recently, during the COVID pandemic the payroll operational role was recognised as being extremely important in applying the ever-changing compliance rules and calculations for payment to be made in respect of Furlough Coronavirus Job Retention Scheme (CJRS) and where applicable SSP (Statutory Sick Pay). As challenging as this was, the processes were followed, together with business as usual activities.
There will always be a need to reinvent and modify payroll duties, and that is what I continue to find alluring.
….’my ten minutes are up’
Payroll Software – How it can change your business
As a firm, our aim is to make the lives of our clients easier whilst at the same time maximising the value of their business or personal assets. To do this more and more we now look at technology to assist us and enhance the service we provide.
A perfect example of this approach is with our Payroll services which manages the payroll of our business clients. The team, led by Elaine Lynch provide the service that includes;
- Process data instructions (Employment and Statutory compliant)
- Produce reports to assist with management accounting or analysis of staff costs
- Administration of Pension Schemes
- Manage bespoke service requests
- Submission of Realtime information (RTI) to HM Revenue & Customs (HMRC)
- Annual (PAYE) Returns
This is only part of our service offering and now our payroll service will be further enhanced as the team will now be working with Paycircle.
Paycircle is a payroll system that puts user experience at the heart of everything they do. From ensuring that people get paid correctly and on time, every time to pulling out all the stops to ensure that everyone who interacts with Paycircle has the best experience.
Having spent many hours looking at different systems before choosing to go with Paycircle, Elaine highlights the following benefits as the most significant:
- Real time transparency of data
- Option to activate automation of the payroll following acceptance of processes
- Dynamic reporting features
- Compliance with the latest HMRC regulations
The concept of Paycircle doesn’t just meet with Charterhouse’s high standards, it also meets with the high demands of the ever changing world of payroll production, enabling us to manage larger and more complex payroll set ups. It has the ability to articulate the ever-increasing urgency of data demands which impact PAYE Tax, National Insurance, Pension and other third-party organisations.
As is now becoming essential with the next generation of software tools, Paycircle is an eco-system cloud-based collaborative payroll platform for modern payroll bureaus.
To summarise, Paycircle is fully automated, with manual intervention if needed, and does all the heavy lifting – enabling us to spend more time delivering the best service to our clients.
To find out more about our Payroll services and how we can help your business please contact us.
David White reaches his 40 years at Charterhouse milestone
In the last 40 years a lot has happened, here are some of the highlights;
- 2008 was the last time Spurs won a cup.
- In 2007 the first iPhone was released
- In 2004 Facebook was founded
- In 2002 I am a Celebrity get me out of here started.
- In 2000 we had the world’s biggest non-event – the Y2K computer bug. What a load of hype!!
- In 1997 Princess Diana was killed in a car crash in Paris
- In 1990
- Bart Simpson first hit our screens
- The cost of a litre of unleaded fuel was 40p now it’s just short of £2.
- Nelson Mandela was released from jail, marking the end of Apartheid
- In 1989 the Berlin Wall came down.
- In 1988 we had the Lockerbie disaster
- In 1986 we had Chernobyl and the space shuttle Challenger exploding shortly after take-off
- In 1985 we had Queen and others performing at Live Aid and EastEnders was on TV for the first time
- In 1983 The Internet was born and Lotus 123 was released
- In 1982 we had several things
- The Falklands War began and ended and
- Michael Jackson released Thriller
Many of you might not remember some of these but the constant factor through all of these changes for us at Charterhouse has been the presence of David White, our joint Managing Director who joined the firm on 15 November 1982.
Much has changed in the world as well as in the world of Charterhouse, with the journey leading us to its current place in Harrow with David and his partner Raj leading the firm. We have all had to adapt during this time and significantly David is finally embracing technology and has cleared his office of paper to move into the digital world.
With David and Raj leading the team, Charterhouse are also evolving, something we are extremely proud off, embracing new technology to help add value to our clients, reduce the burden on them both in terms of cost and time needed. But technology only goes so far and over the past few years our team has evolved and is stronger than ever.
Whilst this is a great opportunity to celebrate David’s time with the business it is also a chance to thank everyone involved in the business, our team, our partners and most importantly our clients.
Whilst we celebrate David’s 40 year milestone we can also look forward to another 40 years of supporting our clients.
To find out more about our services please contact us.
Corporate Social Responsibility – 2022 Update
2022 was another tough year for us all, not just because of COVID, but also due to international issues that are having a huge impact on everyone, especially with the rise in cost of living.
Whilst ESG is now the most common terminology used for social responsibility we have been implementing our own CSR strategy for several years and having achieved CSR Accreditation we have a framework in place to ensure we meet ESG targets in the long term.
With these pressures on us all it is even more important that we all help those around us to get through these tough times. Over the past few years, our CSR strategy has ensured that we support the community and charities around us and 2022 was no different.
We continued to support MIND in Harrow who provide support for those people in the community who need help with mental health issues. But our support of charities has not stopped there and we have continued to support a number of other charities including;
- Wycombe Homeless Connection through David White’s business group and golf day.
- Kids Can Achieve, our previous Charity of the Year who one of our teams helped on our Charity Day
- Lindengate Mental Health Charity who also benefited on our Charity Day with a team helping them out as well as sponsoring Owen Hughes, our Marketing Manager and his wife who rode from London to Paris in June.
Helping out with the community is one area of our CSR strategy but as important if not more so is the support for our team who have continued to benefit from our Super Wellness programme helping them make sure both their physical and mental health are cared for.
We also continue to work on environmental issues, reducing our paper usage and increasing our recycling, working with out landlords to have EV charging points installed and reducing our plastic usage. Like every business we are looking to reduce our carbon footprint and every little helps.
Watch this space for our new CSR initiatives for 2023.
BSU – The latest news from India
In the past few weeks, Business Support Unit Manager, Rob Ward, visited our partners in India to work with them to plan our continuous evolution, but the trip was so much more.
Rob drafted an article for the team to try and explain what the trip had delivered so here is an excerpt:
“Prior to the visit I can admit to some anxieties. Having not been out of the country in over 3 years, I was now having to look up airport and Covid protocols and get in the headspace for world travel and long-haul flights, before heading to the second most populated country on the planet, where temperatures would be above 30c, and where the local cuisine is on the spicy side of life…these facts are all completely at odds with my own personal preferences for comfort. But life is about adventure, right?!
Very quickly after arrival I came to the conclusion that only got stronger as days passed – India is incredible! There is so much going on at all times of the day and night that it’s hard to really comprehend until you’re there experiencing it. During the first day my eyes were out on storks taking in as much as possible and trying to get used to this completely new world I was in.
For anybody who is on the fence about visiting India, I wholeheartedly encourage you to take the chance if it arises. Visiting somewhere that is so vastly different to what I’m used to in my everyday life has been such an eye-opening experience that it can’t fail to have a positive impact broadening the mind and making one realise how much there is to explore beyond our regular surroundings…
In 2020 we started using our partner GI’s Dedicated Resource Model and recruited a new member for our team, Tushar. Tushar is supported internally by our partners GI, along with the support of Charterhouse so really gets the best of both worlds when it comes to guidance, and he has been an invaluable member of the Business Support Unit over the past couple of years. Like with any team member in Charterhouse, considering their development needs as an individual is high on the agenda for us and his hard work and progress has led to him being assigned a portfolio of clients to manage. This is a much deserved expansion to his duties, and one which I know he will excel at.
I was also able to meet some other GI team members who we have recently connected with for some work, and it was a pleasure to meet them and all their colleagues, enabling us to solidify connections that will stand us in good stead in the future…
In between the business and leisure activities was a trip to Sneha Sadan, a local orphanage which houses, educates, and supports local homeless children. It was a pleasure and a privilege to spend time meeting some of the kids there. Despite their circumstances they have such vibrant smiles and lively spirits, and the universal language of sport meant that the debate over who is best between Messi vs Ronaldo was able to be had! The trip came shortly after England men’s cricket team had triumphed in the T20 World Cup, having beaten India convincingly in the semi-final, so that was a good talking point as well (for me, at least!). “
The trip not only enabled Rob to discuss ways we can enhance the services we offer our clients but it also was very in keeping with our values to support local communities and charities, further strengthening the partnership.
To find out more about Rob’s trip, but more importantly how the partnership with GI can help your business please contact Rob.
R&D Tax Relief – How the changes will affect you and your business
As a business we have developed a high level of expertise around R&D Tax relief over the past few years, working with our clients to ensure they are getting the full level of relief and in some circumstances, this has been a significant amount of money.
R&D tax relief can be claimed for work that is part of a specific project to make an advance in science or technology. It cannot be an advance within a social science, like economics, however, with effect from April 2023, R&D in pure mathematics will qualify for relief. Your project may research or develop a new process, product or service or improve on an existing one. To find out full details of what qualifies read the Government website.
During the Chancellor’s Autumn Statement last week, he made significant changes to the scheme citing abuse and fraud in the SME scheme. As a result, he has announced a cut in the enhancement rate to 86% (from 130%) and the tax credit rate to 10% (from 14.5%). For the RDEC (Research and Development Expenditure Credit) scheme, the rate will increase from 13% to 20%.
In addition, restrictions will apply on the costs of EPWs (Externally Provided Workers) that can qualify for R&D tax relief. The costs of EPWs will only qualify for tax relief where the EPWs are taxed through PAYE.
In addition to the above, R&D tax relief could be restricted to activities which are only undertaken in the UK.
He commented “Despite raising revenue, the OBR have confirmed that these measures have no detrimental impact on the level of R&D investment in the economy. Ahead of the next Budget, we will work with industry to understand what further support R&D intensive SMEs may require.”
But what does this mean for our clients and their businesses. There are a number of good points;
- Firstly, Government reaffirms its commitment to R&D and acknowledges a wider need to change how it funds innovation.
- The R&D tax will be simplified in the longer term and is likely to move on from SME and have a single scheme similar to RDEC.
- This would provide the foundations to better target the relief to certain sectors and projects and avoid the scheme being abused.
- For larger businesses, or some smaller businesses which do not qualify under the SME scheme, it is good to see the RDEC rate up to 20%.
However, as always there is also some bad news;
- The SME scheme has effectively had a cut of a third through the reduction to the enhanced rate moving from 130% to 86% and the tax credit reduction to 10% (from 14.5%). This means those companies who do qualify will get less cash back.
- This is a blanket cut and businesses who legitimately claim and rely on it will find this a brutal attack.
- The changes seem to impact SME’s the most and seems to be heading toward larger and London-centred businesses.
- This shift in strategy could damage the government’s levelling up agenda.
If you are already claiming relief, there is time to plan and make contingencies for the changes as these do not come into effect until April 2023.
If you are an SME and are currently claiming a tax credit the reduction could be up to 54%. However, if you are profitable the reduction should be circa 17%.
To find out how these changes will impact you please contact us and our team will help you plan for the changes and the impact on your business.
What impact has the Autumn Statement and the rise in interest rates had on property landlords?
Be under no illusions we are in difficult times, with the economy struggling to recover from Brexit and Covid-19 and the cost of borrowing going through the roof.
Our fourth Chancellor this year, in his Autumn Statement last week is trying to steady the ship but what does this mean for the private property landlord when he/she is being faced with decisions over whether or not to continue renting his/her property or to sell up to simply stay afloat?
At Charterhouse we cannot provide ‘investment advice’ but we can hopefully shed some light on the various tax changes and the impact of taxation on your property business.
Most of what was in the Autumn Statement had been leaked ahead of the day, but nobody was sure of the extent to which things would be changed until the day arrived and the proposed changes were publicly announced.
For private property landlords one of the major changes is to the Capital Gains Tax (CGT) annual exemption. The reduction in the CGT annual exemption brings the taxation of gains on individuals closer in line with the taxation of corporate entities who do not benefit from an annual exemption.
If your property business was operated in a company, the business would obtain Corporation Tax (CT) relief at the prevailing rates on the loan interest paid meaning that you will pay CT on a smaller slice of your business profits. By running your business through a company, you will also enjoy the benefit of paying tax on the rental profit at the lower corporate rates of tax as opposed to personal rates of tax which can mean you will be subjected to effective rates of tax higher than 60%.
To find out more about the changes and how they will impact you and your property business read more here.