The New Super Deduction Explained

What is the super deduction?

Businesses can claim 130% first year relief on qualifying plant and machinery bought between 1st April 2021 and 31st March 2023. Under the super deduction, for every pound a company invests, their taxes are cut by up to 25p. The government announced this as part of the 2021 Budget in March, in the hope that the scheme will encourage business investment and stimulate economic growth. The super deduction scheme is only available to Limited Companies. Unfortunately sole traders cannot benefit. To give an example of the available savings, if you spend £100,000, the corporation tax deduction will be £130,000. You will save 19% on £130,000, which is £24,700.

5 small business accounting mistakes to avoid if you want to succeed

Mixing personal and business bank accounts: You pop to the shops for office stationery and end up buying a couple of bits for home whilst you are there.
Directors of small businesses are often guilty of mixing their personal finances and business accounts. If you have a limited company, it’s actually a legal requirement to have a separate account, but more than 25% of small businesses don’t have a separate business bank account and this can make it really difficult to track exactly how much money is coming in and out of the business and could result in taxable expenses being omitted or incorrectly categorized. It can also cause issues when applying for a business loan, as lenders will need a detailed and accurate view of the business accounts. If you are someone who blurs the boundaries between personal and business money, break the habit! Get a separate business bank account and you will save hours’ worth of headaches down the line.

CloudAccountant are now Receipt Bank Bronze Partners

Expenses can be a hassle to deal with and they cost time and money to process. To help you with the paper war CloudAccountant are expanding our range of approved providers that integrate with Xero and sort this problem for you. Our latest partnership means that we are now Receipt Bank Bronze Partners.

Receipt Bank provides a receipt and invoice processing service that gathers together your receipts and invoices, scans them, converts the receipts into useful data and then sends them directly into Xero.

Receipt Bank extracts all the relevant information from the receipt/expense but has clever features such as identifying which bank account you have paid from using the 4 digits of your card on the receipt. It then matches that payment to the relevant bank account in Xero. Uploading receipts for processing anywhere in the world is easy via email, the web, or use the Smartphone app to send receipts on the move.

If saving yourself some time and hassle sounds like something you would be interested in please contact your account manager to find out more.

From all the Team at CloudAccountant & AgencyAccountant We would like to wish you a fabulous festive season and a Happy New Year!

This year has been turbulent and challenging for all and we are excited to welcome in the new year and are hopeful that normality is within reach.

In 2020, as well as continuing our market lead in the world of eCommerce accountancy, CloudAccountant launched our specialist recruitment agency brand, AgencyAccountant, and we’re proud to have seen the brand and client base grow during the year.

KPMG Closes Small Business Accounting Division: What to do Next

KPMG has confirmed plans to close its small business accounting division, leaving customers to find a new Xero-ready accountancy practice.

KPMG's Small Business Accounting (SBA) division was an exciting new offering when it launched in 2014, but heavy subscription fees made it difficult for the big four accountancy firm to gain traction in the market.

FreeAgent drop CIS functionality into mobile version

Cloud Accounting software specialists FreeAgent have now pushed out their CIS functionality to the mobile version of the product on both IOS and Android.
The ability to generate and send an invoice from a mobile device while out on site can help contractors to get paid quicker and keep all the paperwork up to date from the relative ease of FreeAgent’s intuitive mobile interface.