June 20 Newsletter

May 31, 2020

We hope that this newsletter finds you and your families well.

In this newsletter we will be looking at the future of the finance function and answering some tax questions about homeworking and Coronavirus. We also have a new team member to introduce to you!

BUSINESS UPDATE

What will my finance department look like in the future?

As with all other aspects of business, the finance skills that we need are also evolving. These are the skills that we think need to be incorporated:

Still need traditional skills

There will remain statutory obligations to HMRC and Companies House that will still need to be fulfilled; bookkeeping, monthly management accounts, budgeting and cash flow planning. But it is the analysis and the ability through technology to provide this information quickly when you need it most which will add the most value.

Agile working

This could involve project management especially in adopting new financial technology. By implementing new software this could help with financial strategy, cutting costs and providing more accurate forecasts. Of course this should be reviewed regularly to ensure your tech stack is as efficient as possible.

Sounding board

It is important that your finance advisor feels invested in the success of your company, this could be emotionally, strategically and commercially aware. Your finance team is often a good place to sound out new ideas/projects, cost them and analyse the potential gains so that a fully informed decision can be made.

The new roles in finance can be better described as; Value Drivers, Problem Solvers and Story Tellers. Do you have these types of people in your future business? If not, maybe we could have a chat to see how we could help you.

TAX Q&A: HOMEWORKING AND CORONAVIRUS

I have been furloughed and I'm now at home. Is there any tax relief for me against my increased home costs?

No, employees are in 'hibernation' rather than being made redundant.

I am working from home as my employer has closed the office, are there any tax reliefs for me?

Employers can pay £6 per week to an employee tax free, and the employer will receive tax relief on these payments.

I am forced to work from home and I need to buy a desk. Can my employer reimburse the cost?

Equipment, services and supplies to an employee paid by an employer is exempt from a benefit in kind charge. If the employee pays for the desk and the employer reimburses the costs, then a taxable benefit in kind arises.

Can my employer pay for my broadband while working from home?

Yes, but it will be taxable on the employee as it was already existing.

My company car is just sitting on my drive. Can I get a reduction in my Company Car Tax?

Only if the car becomes unavailable to the employee, by posting the car keys back to the employer. This would need to be documented and can only be reduced for periods of at least 30 days.

My employer has lent me £2,000 to help me and my family through the emergency. Is this taxable?

HMRC have confirmed that such a loan will be tax-free as it is under the £10,000 limit.

TEAM NEWS

We have a new team member, Kasia Lee!

We're really excited to welcome Kasia to our team, she is already doing some great work, but let's find out some more about Kasia:

Why did you decide to become an accountant?

As a child and a teenager I never wanted to be an accountant, I didn't even like Maths! But I was pushed a little bit by my Mum to go to the Economics and Administration College in Poland. After graduation I came to the UK for a summer adventure, which has now been extended by 16 years! Because my Polish qualifications were not recognisable in the UK, I went back to college and completed AAT L4 qualification. I have been working in the finance industry for 8 years now.

What aspect of business/accounts are you particularly interested in?

I really enjoy meeting new people and building relationships with them. I love the feeling of achievement that I get when I deliver a professional service with a personal touch.

What do you enjoy doing to relax?

I like riding a bike and making macrame decorations.

Until next month,

Stay safe,

Katherine, David and Kasia

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