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SORP 2015 bite size guidance: Impairment of Assets

Posted on: February 26th, 2015 by Claire Thompson No Comments
Claire Thompson, Charities and Not for Profit Assistant Manager, Broomfield & Alexander

Claire Thompson, Charities and Not for Profit Assistant Manager, Broomfield & Alexander

Welcome to our series on SORP 2015 where the specialist charities and not for profit team at Broomfield & Alexander will bring you bite size guidance on the changes that SORP 2015 will bring to your organisation.

An impairment loss occurs when the carrying amount of an asset exceeds its recoverable amount.

At each reporting date the charity must assess whether there is any indication that an asset may be impaired.

The recoverable amount of an asset is the higher if its fair value less costs to sell the asset and its value in use.

Indicators of impairment may include:

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Change to Xero (for free)

Posted on: February 23rd, 2015 by Judith Mallen No Comments
Judith Mallen, Business Services Assistant Manager, Broomfield & Alexander

Judith Mallen, Business Services Assistant Manager, Broomfield & Alexander

As a special promotion until end of March 2015, Xero will cover the cost of a conversion from either Sage or Quickbooks for you. So order now, and convert to Xero while you can do it ​​for FREE.

If you have considered moving from Sage or Quickbooks to Xero then please contact our Xero team now to save yourself the cost of this conversion.

Xero have teamed up with data conversion experts Movemybooks to convert Sage 50 data, including historical transactions, across to Xero completely free.

We can offer a free 30-day trial of Xero, please contact our Xero team for more information.

 

SORP 2015 bite size guidance: Accounting for financial assets and financial liabilities

Posted on: February 23rd, 2015 by Joanne Taylor No Comments
Joanne Taylor, Senior Charities & Not for Profit Manager, Broomfield & Alexander

Joanne Taylor, Senior Charities & Not for Profit Manager, Broomfield & Alexander

Welcome to our series on SORP 2015 where the specialist charities and not for profit team at Broomfield & Alexander will bring you bite size guidance on the changes that SORP 2015 will bring to your organisation.

All charities are likely to have financial assets and financial liabilities, examples include investments in shares, bonds, debtors, cash, loans, overdrafts and creditors.

Charities normally measure a basic financial asset or liability at its initial recognition at the amount receivable or payable including any related transaction costs.  However, if initially measured at fair value, transaction costs are not included and are treated as an expense.

Similarly if an arrangement fee is charged on a loan to the charity and it is material, it must be treated as a deduction from the amount of principal advanced.  The will effect the amount of interest charged over the terms of the loan.

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SORP 2015 bite size guidance: Balance Sheet

Posted on: February 16th, 2015 by Sarah Case No Comments
Sarah Case, Director, Broomfield & Alexander

Sarah Case, Director, Broomfield & Alexander

Welcome to our series on SORP 2015 where the specialist charities and not for profit team at Broomfield & Alexander will bring you bite size guidance on the changes that SORP 2015 will bring to your organisation.

Section 10 of the new SORP sets out the structure of the Balance Sheet and the headings, classifications and disclosures for the fixed assets, current assets, liabilities and funds of the charity.

Very little has changed in the SORP for the balance sheet items although a potentially significant change is that certain assets are now required to be valued at fair value as opposed to market value.

Heritage assets are dealt with in their own separate module and if you don’t have them you are able to customise your SORP to remove that section and therefore some technical reading time.

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Xero going mobile

Posted on: February 12th, 2015 by Judith Mallen No Comments

Xero has a free mobile app which will allow you to do business anywhere – why wait until you are back in the office to do your accounts; simply send an invoice as soon as the job is done.

You can download Xero Touch for free now:

google play app store

 

VAT update: International trading

Posted on: February 12th, 2015 by Liz Mounfield No Comments

Our guest author, Andrew Norris from Centurion VAT, looks at recent changes to VAT for those exporting and undertaking international business activities.

1st January 2015: Significant changes to VAT rules on digital services in the EU but what about Norway and South Africa?

Without any fanfare the significant changes to how VAT is to be accounted for on digital services (broadcasting, telecommunications and e-services) supplied to private consumers in the EU was introduced on 1 January. Just after Christmas HMRC issued guidance see link here and a flowchart to help businesses decide if they are affected by the rule changes.

There has been concern raised by micro-businesses and while HMRC still require a UK VAT registration even if sales are below the UK VAT registration threshold, it has conceded that micro – businesses will not need to account for VAT on UK sales as long as they remain below the threshold. In addition, until 30 June 2015, micro-businesses can base their ‘customer location’ VAT and accounting decisions on information provided to them by their payment service provider. We await to see whether any more concessions will be granted to micro-businesses going forward.

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Year-end tax compliance

Posted on: February 9th, 2015 by Sarah Curzon No Comments

In order to meet your obligations as an employer, all expenses and benefits provided to or reimbursed to employees should strictly be reported on a form P11D or P9d at the year end, unless a dispensation notice has been granted by H M Revenue & Customs. This is the case even where expenditure is incurred wholly for the purposes of the business.

What is a Dispensation?

A Dispensation is an agreement between you as an employer and HM Revenue & Customs which removes the requirement to report certain expenses and benefits on year end forms P11D and P9d. No tax or National Insurance is due on items covered by a dispensation and once granted the dispensation means employees do not need to put the relevant expenses and benefits on their tax returns.

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Auto-enrolment: 10 steps to a stress free transition

Posted on: February 9th, 2015 by Sarah Curzon No Comments
Sarah Curzon, Tax Director, Broomfield & Alexander

Sarah Curzon, Tax Director, Broomfield & Alexander

For the first time since the beginning of the government auto-enrolment initiative, three employers have been issued with penalty fines for non-compliance by The Pensions Regulator (TPR). The three firms that have been hit with penalties are amongst 163 firms that have been issued with notices by TPR between July and September 2014.

Over 33,000 firms have begun the auto-enrolment process so far, with an estimated 1.25 million due to stage over the next 3 years. The latest penalties are just the beginning.  Despite the message to prepare early being hammered forward, TPR expect to see a number of employers failing to prepare themselves, either leaving it too late or simply failing to comply at all.

Every employer has a duty to enrol their employees into a pension scheme and contribute towards it. In preparing for this new law, there are a number of steps organisations can take to ensure a smooth transition.

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Autumn Statement: Payroll update

Posted on: February 9th, 2015 by Clive Headon No Comments

There were plenty of measures in the recent Autumn Statement that will affect payroll.

Personal Allowances

George Osbourne had already announced that the annual Personal Allowance was rising to £10,500 for 2014/15. In the Autumn Statement he increased this to £10,600. This means that the Age Allowance for people aged 65-74 will be overtaken by the Personal Allowance. The Age Allowance for people of 75 and over will remain at £10,600 until the Personal Allowance rises above that.

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RTI Penalties from 6th March 2015

Posted on: February 9th, 2015 by Clive Headon No Comments

HM Revenue and Customs (HMRC) will be introducing penalties for employers who report their payroll information late from:

  • 6 March 2015 for employers with fewer than 50 employees

When penalties are charged

You can get a penalty if:

HMRC won’t charge a penalty if:

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Latest From The Blog


SORP 2015 bite size guidance: Impairment of Assets

Claire Thompson, Charities and Not for Profit Assistant Manager, Broomfield & Alexander

Claire Thompson, Charities and Not for Profit Assistant Manager, Broomfield & Alexander

Welcome to our series on SORP 2015 where the specialist charities and not for profit team at Broomfield & Alexander will bring you bite size guidance on the changes that SORP 2015 will bring to your organisation.

An impairment loss occurs when the carrying amount of an asset exceeds its...

Read more

Change to Xero (for free)

Judith Mallen, Business Services Assistant Manager, Broomfield & Alexander

Judith Mallen, Business Services Assistant Manager, Broomfield & Alexander

As a special promotion until end of March 2015, Xero will cover the cost of a conversion from either Sage or Quickbooks for you. So order now, and convert to Xero while you can do it ​​for FREE.

If you have considered moving from Sage or Quickbooks to Xero then please contact...

Read more