Welcome back everybody to our December Newsletter! We’d like to wish everyone a very Merry Christmas and a prosperous New Year. Again we have had new clients joining us this month and we are very grateful for everyone’s continued support. At Obp, our aim is to provide all of our clients with a high quality, personally tailored service. We take pride in helping our clients save tax, whilst also taking the burden of compliance away from them, leaving time for what they know best: their business! As we mentioned in last month’s newsletter, the reviews we are receiving from clients on Google are fantastic, and would like to thank everyone for taking the time to type them up. If you would like to leave us a review, please click here to be taken to our Google Business page.
In Accountancy news, deadlines are fast approaching, so if you do need your tax return completed please don’t hesitate to contact us.
In other exciting news, our very own Jessica Jones will be a guest on Cardiff Radio in the new year to promote Obp and our Financial Lifestyle Blog, which is getting more and more positive and inspiring feedback on our social media platforms. As part of this blog, guest writing is always welcomed, and we are avid believers in supporting local businesses and giving other SMEs more exposure. As well as our blog, we also like to feature our clients in newsletters like these. Further down this email you will find our spotlight of the month on Zoë Binning, who is a client of ours running a fantastic Wedding Consulting business. If you have something to share with our clients and other SMEs in our blog or newsletter, please don’t hesitate to contact our Marketing Director Jessica Jones at .
Tax-free Christmas Parties
Tax-free christmas parties – whilst the tax legislation does not include a specific allowance for an employer providing a Christmas party for employees, HMRC do allow limited tax relief against the cost of holding a social function for employees, providing certain conditions are met.
Broadly, a social event – which of course, includes the annual Christmas party – will qualify as a tax-free benefit if the following conditions are satisfied:
- The total cost must not exceed £150 per head, per year;
- The event must be primarily for entertaining staff; and
- The event must be open to employees generally, or to those at a particular location, if the employer has numerous branches or departments.
The ‘cost per head’ of an event is the total cost (including VAT) of providing:
a) the event, and
b) any transport or accommodation incidentally provided for persons attending it (whether or not they are the employer’s employees), divided by the number of those persons….
To read the rest of this article click here
Zoë Binning – Wedding Business Consultant
This month’s client spotlight is on Zoë Binning, who runs a highly successful wedding consulting business, and has shared with us her biography:
I am Zoë Binning, a business consultant and wedding specialist and I help wedding venues become more successful! I offer expert advice and guidance to wedding venues, to support them in driving their businesses forward, to maximise their profitability and return on their assets.I have been a qualified, professional wedding planner for a number of years and I have helped to organise over 200 weddings since I started my business in 2012. I have a strong commercial background in retail design and project management, considerable experience in creating and planning weddings for couples and also working with wedding venues and wedding supplier businesses across Wales and the South West of England.I provide wedding venues with in-depth consultation, training and support to make lasting improvements and to put those solutions in place, as well as professional freelance wedding planning services to run weddings on behalf of wedding venues.I am cheerful, enthusiastic, extremely organised and highly professional with an excellent eye for detail. I have built up a fantastic reputation with the wedding venues with whom I have worked.
Here is our Q&A instalment for December. We’d like to thank everyone for submitting questions this month, and encourage anyone with financial queries to contact us.
Q. Do all assets qualify for the capital allowances Annual Investment Allowance?
A. Unfortunately not all expenditure on plant and machinery will qualify for annual investment allowances (AIA). The most common examples of assets that are not eligible are cars and assets that have been used for some other purpose before being brought into the business, for example a personally owned computer. These assets should still qualify for capital allowances, but allowances will be given gradually over several years, rather than the full cost being allowed against income all at once, which is what the AIA gives.
The AIA was set at its current level of £200,000 from 1 January 2016, but it was increased to £1,000,000 for a temporary period of two years from 1 January 2019. It is therefore currently expected that the allowances will revert to £200,000 from 1 January 2021.
Q. Due to cash flow difficulties I have not yet paid my self-assessment payment on account, which was due on 31 July 2019. I realise that I will have to pay interest on the amount outstanding, but will I also have to pay penalties?
A. HMRC charge interest on any tax paid late. The current rate in force is 3.25%.
With regards to penalties, you will only be charged if your balancing payment (due 31 January 2020) is late. The penalties for late payment under self-assessment are as follows…
To read the rest of this Q&A click here
Feeling Snowed Under? Spending at Christmas: Our Top Tips
The average household spends a pricey £800 on average over the festive season. With the holidays just around the corner here are some tips to take the edge off when it comes to your spending at christmas.
Every Christmas there will always be those few things that I can’t help putting off till the last minute. Either I find I’m too busy or that I simply can’t think of what to get for someone. By planning beforehand I find that I can avoid panic buying and get it all done before that mega rush right before the big day.
- Figuring out a budget: Spending is always a nightmare at Christmas. To avoid unnecessary expenditures budget your money – remember to include everything that you might need, presents, food, decorations, and of course, plenty of mulled wine.
- Recipe research: Look online or in magazines to gather some of your favourite festive food recipes. You could even prepare and freeze some beforehand.
- Organizing your guests: Decide who’s coming so that you can send out your invitations and plan any bedding or extra seats at the table that you might need to stock up on.
- Getting presents: Even if you’ve missed the Black Friday sales or you still can’t think of what to get someone…
To read the rest of this blog click here.
And that’s it from us at Obp for another month! We’d like to thank again all our clients for our lovely reviews on Google, and to those of you who have recommended us to others.
We also want to stress that deadlines are fast approaching, so if you do need your tax return completed please don’t hesitate to contact us.
Merry Christmas & a Happy New Year to everyone, and we look forward to new and exciting opportunities coming in 2020!