Moore Accountancy July 2018 Newsletter
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Moore Accountancy Update


For most of us, it probably feels like the summer has been here for the last few months with the gorgeous weather we have had.

For the Moore Accountancy team the coming months create the added challenge of school summer holidays whilst ensuring we can continue with providing a great service for our clients.

We have also had some staff changes which are detailed in our recent post on our website.

In terms of holidays a list of the main ones are below. There will always be staff cover in the office but please bear with us during this time:
Sid is away from 2/8 - 21/8
Katie is away from 20/8 - 29/8

Class 2 NIC changes - what it means for the self employed

There are various classes of NIC paid by employees and self employed. Class 1 is paid by the employed, Class 2 is paid by all self employed who earn above the "small profit threshold", Class 3 is a voluntary top up contribution if you have not made NIC contributions in a certain year, and Class 4 is paid by self employed traders on their total profits.

Class 2 NICs gives entitlement to State Pension, Maternity Allowance, Bereavement Benefits and the Employment & Support Allowance.
From 6/4/19, payment of Class 4 NIC will give entitlement to these benefits.

For 2018/19, Class 2 is payable at £2.95pw (£153.40pa) whereas Class 3 is payable at £14.65pw (£761.80pa).

From 2019/20 it has been announced that Class 2 NIC will be abolished but that for those self-employed persons with profits that fall between a new Class 4 NIC Small Profits Limit and the Class 4 NIC Lower Profits Limit will be deemed to have paid Class 4 NIC thereby giving the person a qualifying year for benefit entitlement purposes


Using 2018/19 rates, as an illustration, this gives the following effects:

Profits below £6,032 No Class 4 NIC Payable
Profits between £6032 and £8,423 Class 4 NIC deemed to have been paid
Profits between £8,424 and £46,350 Class 4 NIC payable @ 9%
Excess of Profits over £46,350 Class 4 NIC payable @ 2%

It will be even more important for low profit or loss making traders to consider their NIC position in the coming years.

Advisory fuel rate for company cars
These are the HMRC suggested reimbursement rates for employees mileage using a company car from 01/06/2018

These are also the rates of fuel component which should be used to base any VAT reclaim on.
So, for a 1600cc petrol car, the VAT reclaim per mile would be 2.3p,


Debit cards now more popular than cash - but Visa to hike fees

A major milestone has been hit with debit card transactions exceeding cash transactions in the UK over the last year. Contactless have also almost doubled over the year to 5.6 billion in total.

The rise of debit cards – particularly contactless - comes with two major risks. Consumers have found a rise in contactless fraud, which has  grown in tandem with the growth in payments,.

Meanwhile, small businesses still not taking card payments could find themselves cut off from the majority of customer transactions. Half of customers say they would walk away from a purchase if cash were the only payment option.

Now Visa, appears to be cashing in on this, by potentially hiking fees; possibly doubling some which will hit all retailers who are no longer allowed to levy fees on card payments.
This particularly affects our cafe and small retail clients who could see card payment bills rise over the course of the year and should now factor this in their budgets and forecasts.


19/07/18 - PAYE & NIC deductions for quarter and month ended 05/07/18 (June payroll)

31/07/18 - 50% POA (payment on account) of 2018/19 tax liability due for Individuals under Self Assessment

31/07/18 - Corporation tax payment for year to 31/10/17

19/08/18 - PAYE & NIC deductions for month ended 05/08/18 (July payroll)
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Moore Accountancy · 1 Northway · Altrincham · Cheshire, WA14 1NN · United Kingdom

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