Okay, Hi everybody. Welcome to April’s edition of Ascentis TV. I’m joined as usual by Mark Overend and Lee Kaznowski.
So let’s jump straight in as usual. The big change, I think from last month to this is that we’ve said goodbye to CBILS and BBILS that ended on 31st of March. We’ve got a new scheme that started on the sixth of April. Have you heard of any clients actually getting any money through yet?
No, not that I’ve heard, application stage maybe. But that does depend on the lender as well. Yeah, I jumped into the back of their British business bank’s website just before we started this episode today. And there’s about 20 lenders in there. I mean, it when you look at it, when it was CBILS and BBILS obviously there were dozens and dozens and dozens, but the British business bank has made them all reapply again, to qualify for the new recovery loan scheme. And I guess the main provider, that’s missing from there still surprisingly is funding circle. I spoke to those guys this morning, and they think that they won’t be accredited for another couple of weeks. I’ve spoken to Barclays as well this morning. And they’ve got 1000s of applications in, that they’re actually processing now, but I think a lot of the funds haven’t been transferred simply because of the the size of the backlog from CBILS as people rushed for that 31st of March deadline.
Yeah, people are still still waiting for those applications to go through for the CBILS
That money out. Yeah, you just have to have the applications in there as well. So I’ll just give a quick summary of what the recovery loan scheme looks like. And it’s actually really similar to the CBlLS scheme. It’s 25 grand to 10 million borrowing, there is some borrowing between 1 thousand and 25 grand for asset finance, but the main people who are going to be applying for this are going to be going for a loan, six year term as usual. And the only major difference is that there is no interest free period for the first 12 months and you’ve got to pick the fees up, you’ve got to pay for your own bank arrangement fees. So that’s going to vary from lender to lender. Apart from that the criteria is very much to say maximum of 10 million pounds subject to the 25% of your turnover, or twice your payroll bill. Both of those figures taken from 2019 the last time you had a reasonable set, or normal should I say, set of accounts to look at. So we’ll keep you posted on how things are getting on or going with applications in the upcoming episodes. For now, I think we’re going to jump straight into tech talk and tech talk this month is actually Emma Greensmith, who is interviewing Telleroo. And Emma’s going to be explaining how you can save about 80% of your time in processing supplier payments, and how it can be more secure.
Hello, I’d like to welcome Andrew from Telleroo who’s very kindly agreed to join us today to tell us more about their amazing payment service. So Andrew, would you like to tell us a bit about Telleroo.
Telleroo enables an in house and external finance teams to make payments. Really simply you can connect up to Xero and we can bring in the payments without you having to do any manually keying in or anything or validating payees everything’s handled on behalf of yourself.
Fantastic. That sounds like it can be really efficient and very useful to our clients. What situations might the service be most useful.
If you have a lot of supplier payments or supplier payments that are changing regularly, even when you get to about maybe 10 to 20 payments, a month it’s taking up maybe One or two hours of your month, and that can be reduced straight down to about five minutes, with Telleroo. Which is great. He has added approval processes in there, you have the validations, as well. So you’re really, really confident when you’re making these payments, that they are going out perfectly, and they’re taking you 80% less time
So we’re a Xero gold partner. And it’s really important to us that that Telleroo would work well with Xero. Is that the case?
Yeah, so what we’ve got is we’ve got an app on the Xero marketplace. And we not only are able to pick up your payments, that you mark as paid in zero, and pull it into your account in Telleroo. But also, if you make any changes in Telleroo, let’s say for example, you cancel a payment or you decide you don’t want to pay something, we update Xero. So you’ve got a nice two way link there. And that means you’re not having to repeat any work. And you’re not going to get any suppliers ringing you up going, Hey, I haven’t been paid. And it shows in Xero that they have been paid. We’re avoiding all this. And we’re going to be building on top of this integration and making even better in the coming future as well.
Oh, that sounds fantastic. We were already finding that Telleroo was very time saving, and we enjoy using it. And we were very aware that you made a lot of updates and improvements, which really helps us and we’re always excited to see, see what you’ll be bringing next. Why should our clients choose Telleroo rather than perhaps another method of payment or payments, providers?
its simplicity. And were all about keeping the amount of time you spend in Telleroo to a minimum. So any feature that we released, we’re actually always monitoring, for example, how long someone stays in the app. And if it increases the time, then we know we’ve kind of failed our job. Because we’re always trying to keep it really, really short. We don’t want you sat there for an hour doing payments, keying it all in, we’re all about reducing that time, right down to a minimum. And like I said, it’s about five minutes per pay run. Which is massively down when the average right now I think is like two to three hours when people are just keying in payments for 20 payees or bills, for example.
Exactly, just think of all the things that business owners or the person responsible for making the payment can be doing with that time rather than just making payments.
Yeah, that’s it. And people just expect that. That’s the way it is. When you’re, a business owner or even in the finance department, you just think, oh, okay, I’ve got to make payments, and it’s two hours of my life. And that’s just absolutely expect that. But it’s not the way, there’s a really easy way. And you can automate that all get rid of all pain, anxiety, which is, I mean, any payment that I make, I always feel Oh my god, am I sending to the right bank details. You know, it’s just the right amount. But you don’t have to worry about any of that, because it’s all automated and will flag you know, any of those high risk changes that happen, like a new payee, or an update to payees details as well, this all gets flagged to you in there.
That all sounds really good. So we’ve talked about supplier payments, can any other payments be made through Telleroo?
Yes, so where we’re connected to Xero, mostly at the moment, but we’re also going to be integrating with X0000000000000ero payroll. And that means that you’ll be able to sync the payroll directly into Telleroo without having to use a file export from Xero. Right now, you can actually just export a file from inside zero. But like I said, this payroll sync is coming probably in the next two weeks, which is really good. So by the end of April, that will be out. And then for your expenses, they can be treated like bills in Xero. So again, you can pay them through telephone using that auto sync. And then any other payments, we actually have a custom CSV it is really simple. You’ve just got your amount, count number sort code and reference in the CSV, and you can just import it that way. So this could be HMRC payment, you can set it up on behalf of your client, which is really nice. They don’t have to worry about the reference or the amounts being wrong, which is I mean, I don’t understand HMRC payments, and I’m like, I’m glad I don’t have to handle these anymore, because I always panic whenever I try and send them, so this handles everything. Which is great.
So you’ve alluded to the changes in the payroll payment service that will be coming out, but can you give us any sort of exciting hints? Just for our clients and listeners that might be happening soon.
Yes. So we are looking, and it’s in development right now, a kind of more sophisticated monitoring platform for the accountant after Xero. So that will be looking into more like kind of AI and machine learning into fraud. So even spotting something before it even gets created as a payment, will be able to, for example, validate bank details in Xero before they even get put into Telleroo. So we’re now going from less of a reactive approach to proactive and basically flagging things before they even happen. And that should give you even more confidence when you’re making payments through Telleroo. Because you know, before they’re even in Telleroo, everything should be perfect. And all of these high risk changes will be flagged to you straight away.
That sounds fantastic.
It’ll be good. I don’t want to go into too much detail. But it should see a massive reduction in any time spent, you know, if someone types in the wrong bank details, and it’s a bounce payment, that still costs a lot of money for your firm, and also for the clients as they’re doing it. So we’re all about, you know, reducing the amount of time spent on payments. And that’s our real core goal here. So with that feature, we should be able to really reduce that down. And also get rid of the main thing, which is the payment anxiety that everybody always experiences on sending payments. So if we can get rid of that completely, then I think that’s kind of achieved our, mission, and our goal.
fantastic. It feels like you’re going a long way towards that already. And we can’t wait to see the changes that will come through in the weeks and months to follow.
Yeah, we’re really excited. The whole team is, you know, we’re trying to think outside the box. And we’re not trying to do what everyone else is doing. And we spend maybe a bit longer building stuff. But when we release it, we we really hope with all the testing that we’re doing with different users that it really does make a big difference to the whole finance function. And really reducing all of that time. It really makes us happy when we hear people say, you know, you’ve actually saved us, two hours every week of our lives, which is great.
Fantastic. really making a difference to people.
Yeah, exactly. Exactly. In payments one payment at a time.
Yeah. Great. Well, thank you very much for your time, Andrew today. And we look forward to working with you going forward and introducing more of our clients to you as time goes on.
So Mark, talking about this new upcoming feature to Telleroo, which is the ability to pay your wages straight out of Xero, and expenses. I mean, that’s good. That’s going to be a huge time saving as well.
Yeah, I mean, you know, speaking selfishly from a payroll point of view, one of the biggest bugbears amongst the client bases is having to key wages payments into their bank, at short notice, if they’re up against it’s time consuming. And you know, of course, it’s potentially subject to errors as well, it’s very easy just to miss key a wage, accidentally pay somebody the wrong amount. And then you’ve got to go through, the process of either you know, an employee getting upset at being paid the wrong amount, being paid too little or trying to get them to repay the overpayment. So yeah, to automate those payments in such a way would be fantastic, I think everybody would be delighted to be able to use that piece of software to do that. Changes in employees bank details as well is something that can cause problem. If they’re often there’s a disconnect between that going to the payroll department and quite often the people that actually pay payroll are different to the ones that process it, but they the message doesn’t get transferred, does it. No, exactly so you know, you put the pay details into Xero and then it’s going to be fed through on the feeds basically, if you’re using my payroll as part of the Xero package, the portal where the employees can manage their, information, you can almost make it an automated system.The more it’s automated, the errors are going to be there. Okay, so anybody who wants to explore Telleroo, Emma and Lee, you’ve you’ve got a pretty good handle on that. Happy to do a demo and talk people through how it’ll work. Just get in touch with the office.
Okay, we’re going to jump now into back to basics. Last time, I did a profit and loss account. And I did kind of caveat that by saying how simple it was. And we’re going to do exactly the same thing. With the balance sheet as well. We’ll build up the complexity in future episodes. We’ll keep the consistency until we get Through these three basic statements of profit and loss account, balance sheet and cash flow by having these really simple examples. So here we go.
Hi, everybody, and welcome to back to basics. This month, we are going to be looking at the balance sheet. You can see a profit and loss account in front of you there. That’s my little baked bean factory example that I gave you last time. So if you missed that video, jump back onto the prior episode. So moving on to the balance sheet, I’m going to use the same methology that we used in trying to understand what a balance sheet is by referring to your personal life. Because in the same way that in episode one of back to basics that I described to you that you did a profit loss account by driving home and thinking about the amount of money that you earned that month, and then mentally knocking off all of the costs that you’ve got, to arrive at effectively a personal profit, you would do exactly the same thing when you thought about how much you were worth. So after you’ve done your little profit and loss account about your income and expenditure, probably not as regular, but you would think about what am i worth? What am I assets? What do I own? And what’s owed to me? And what do I owe to other people? What are my debts? And therefore, what am I worth? So here’s a simple example of a personal balance sheet, car, a watch, antique shares, building society bank account all worth money to me in my little example here, and I’ve got 18 just over 18,000 pounds in assets, but I’ve got debts as well, I owe some brands, I’ve got my credit card bill, and I’ve got my HP on my car as well. But the good news is, that I’m still worth just over 10,000 pounds. In fact, I’m worth my VAT liability, should I say I said my debts are less than half of my assets, I’m feeling quite pleased with myself. So what I may also do as well is think what how how much am I worth immediately was readily available to me in terms of cash, you know, if I wanted to buy something right now, and what’s the more longer term stuff that I would have to actually, you know, liquidate my assets for I’d have to sell my assets if I want to get my hands on that. So I’ve split into what’s readily available. And what’s more long term, if I had to probably sell up, you know, completely. So things that are readily available as shares, building socirty, bank I can get my hands on those straightaway. And of course, I’ve also got the short term debts that I’ve got to pay, my rent and my credit card. And the other stuff, my assets, my car , my watch and my antique, and my HP on the car, they’re much more longer term, I don’t have to pay the HP back yet. And it would probably take me quite a while to get rid of those things. So that’s my immediate, if you like solvency to use a business term in the readily available and the longer term stuff, I’m still in the black, I’ve still got my head above water, I’m still worth two and a half grand in the long term. Let’s beef those figures up before we now take this theory about personal assets and liabilities into a business world. And so I added a few notes onto all of the all of those figures. And then what I’m going to do is I’m going to change the format now. I’m going to change how I would do this mental balance sheets into what those figures would look like if they were in a company format. And this is what our company sets it’s balance sheet out. It describes those short and long term items differently. So the assets are described as fixed assets. And they’re fixed because they don’t change on a daily, weekly, often annual basis. And the things that are more short term are called current. So they’re my current assets. That’s things that I own or are owed to me, in my case my shares, building society and bank account. And those that I immediately have to pay out as well my immediate debts, my rent and my credit card. My long term debt, which is my higher purchase is now down in an amount falling due after more than one year. This is exactly how businesses set out a balance sheet. And the reason that we divide the assets and liabilities up into these headings is in the same way that I showed you in the profit and loss accounts. It’s because of the way that they behave. current assets and current liabilities change on a daily basis. And that’s why they’re compact you compare one to another because you want to know how much money have you got to meet the immediate debts in the business. Let’s just jump into a business format as well Shall we so that these descriptions become more meaningful, so I’ve changed it now the figures are the same but I’ve changed it into more business lines. descriptions that you’ll be familiar with from looking at your own balance sheets. So once again, why does the current assets sit next to the current liabilities? Why are the current assets and the fixed assets added together to produce a total assets figure, because that figures, it’s not totally meaningless and I’ll show you why in a moment, but it’s nowhere near as useful for the reader to understand the strength of this balance sheet. Because a major factor or major aspect of understanding that a reader needs to know is how safe is the business. And from a lender’s point of view, from a customer’s point of view, a supplier, a potential employee, the Inland Revenue, the bank or whatever these are all we call stakeholders in your businesses, deciding whether they want to buy from you sell to you lend to you work for you, provide you with finance, those stakeholders, they don’t have an upside in the business if you make 10 million pounds, that’s not going to affect them, if you lose 10,000 pounds, then they are going to be really worried because that presents a risk to them, that either they’re not going to get their money back, you’re not going to fulfil their order. They might not get paid as an employer, they won’t get their loan back if they’re a financier. So that’s why they have a focus when they look at the balance sheet, not on the upside of your profitability. But on the downside, in other words, risk they focus on risk. And one of the key things that they look at straightaway is liquidity of the business. And the solvency if you like is the business solvent, and in its quickest and shortest definition. solvency means can I pay my debts as and when they fall due, that’s why we compare current assets to current liabilities. Because if all of your creditors in the short term, that means the ones that you haven’t got years to repay it, but they’re pretty much repayable on demand. Yes, you’ve got 30 days with the suppliers and you know, you’ve got a month to pay the Pay As You earn and a quarter to pay the VAT, I get that. But the concept is, is they are very short term liabilities. And if all of those liabilities became due, how would you pay them, you would have to obviously pay them from your current assets. That’s why the two are compared next to one another. And the net current assets figure here is presented. You’ll also notice that I’ve put some some comparisons down here just to put it in that familiar business format. The net current assets is the amount of current assets over and above current liabilities or indeed, if you had less assets than liabilities, you have net current liabilities, and technically then that business is insolvent. Now how do we measure this relationship and compare it to other businesses in the same sector or other businesses in different sectors you may prefer to lend to? And how is the business performing year on year? Well, again, I’m going to show you a couple of KPIs relating to risk. And the first one that we’re talking about is the current ratio. The current ratio is really simple to understand, as we’ve described that as your ability to pay all of your liabilities, if they fell due now from your current assets, and it’s really simple, all you do is you take the total current assets, in my case here, this is 10 million, forgive me it’s 1,085,000. And I’ve got 325,000 pounds worth of liabilities, divided one between the two. And you can see that I’ve got 3.34 more times in assets, then I’ve got in liabilities, or I’ve got three pounds 24 for every one pound of liabilities, that’s how simple to calculate the current ratio is. And it is, it probably is the key ratio that people will look at on your balance sheet. And that’s why you need to understand it. Anybody that’s looking at you if you go on to a credit agency reference like credit safe UK or Experian or whatever, the current ratio is front and centre and has a major impact on your credit rating. If that goes down, the risk of dealing with you goes up. So in the prior year I’ve just done the same calculation, 575 grand divided by 230 grand, I had 2.5 the current ratio of 2.5 or two pounds 50 for every pound liabilities. So this looks like a safe business doesn’t it? The baseline is one to one I should have one pound in assets for every one pound in liabilities. That means I basically break even. In terms of assets and liabilities, the further up you go, the better, there may be some suspicion as to why it gets really high. Why on earth would you have lots of current assets in a business, you should be doing something with them, maybe you’ve got too much stock, your debtors are old, you’ve got too much money in the bank, and you should be investing, I will cover these in future back to basics. episodes, but as a minimum, it should be a positive figure.
There’s a second ratio that the stakeholders, these risk-averse stakeholders look at, and that is the overall debt in the business compared to the overall assets. And this is I guess, this is the kind of the worst-case scenario if this business goes into liquidation, will I get my money back? The first one current ratio says can’t answer the question, can I get my money straight away? Am I going to get paid at the end of the month on a regular basis? Does this company have really good, solid working capital to be able to look after me? The second question is, I guess if the company goes into liquidation, will I get my money back? Well, this is where you do bring the fixed assets in. And the easiest way to understand this, this calculation, and it’s called gearing, and the clue is in the word, it’s the relationship between the total liabilities in the business. So that’s going to bring in my higher purchase down here. And the total assets, add in fixed assets and current assets together. As I say, the easiest way to understand this is, imagine you had a house worth 100,000 pounds, and you have a mortgage on it of say 85,000 pounds, that house is 85% geared works exactly the same in a business, we take the total liabilities. And in this case, we’ve got 325 grand here, and 500 grand there. So we’ve got 825 grand, and expresses that against the total assets as well. And doing that calculation says that we’ve got 44%, and then 45% in assets compared to liabilities. That’s a fairly safe space where I always use that 85 grand mortgage on the 100 grand house, because 85% gearing really is the upper level that you would want to see in a business, anything above that you can imagine that a stakeholder may look at your business and think 85% of the assets are already in income, but they’re already represented by liabilities. If I joined the party with another liability, we’re going to be sending the gearing up even further. And it won’t take much for the assets to dip down by 10-15%, particularly in a forced sale, and I’m not going to get my money back. So that’s kind of the sweet spot. That’s the upper end is 85% gearing, By comparison, I think you’d be scratching your head and asking a business why they’ve only got say 20- 25% gearing, because that would use in the house example, you’ve got all that equity, why don’t you borrow it down? Why not invest in the company? Particularly if it’s a profitable business in a scalable industry? Why not borrow money invest it double the turnover? We all know it doesn’t work as easy as that. But those are the questions that may be asked why aren’t you making more use of your assets. So there we are a balance sheet for you. And a couple of KPIs to help you understand the basics of what somebody a stakeholder in the business is looking at when they view your balance sheet. Okay, I’ll see you in the next episode, guys.
loving this bakes beans theme we’ve got going throughout this, john. Now it’s time for Mark’s tax tips. And when is a van not a van?
All right, welcome to this month’s tax planning section of Ascentis TV. We’re going to focus on vehicles this month. First of all, for those of you who got the pleasure of completing P11Ds HMRC some time ago now but fairly recently won a case against Coca Cola. That has probably got quite a big impact for anybody who operates a fleet of vans in their company. For those of us who are familiar with the Volkswagen Kombi I think the immediate image is of a van and the vast majority of us would not even think twice before writing the van benefit onto a p 11. d for such a vehicle but and indeed that is what Coca Cola did. But HMRC decided that they weren’t happy with the treatment of a van benefit going down on a P11D for a VW Kombi and took Coca Cola to court and won and actually have the VW Kombi classified as a car. The mind boggles and the reasoning for this is that in the legislation a van is defined as a vehicle that is predominantly designed to carry goods. Now the VW Kombi in question in the Coca Cola case had been modified to an extent that they had two rows of seats in the front carrying passengers. And then the rear end was designed for the carrying of goods. And as it turned out, the space taken up by the passenger is equal to the space taken up for carrying goods. And because it was equal, it was determined that it wasn’t predominantly for carrying goods it was equal between the split of goods and passengers and therefore, for the P11D purposes, the vehicle was a car and not a van. Now, the impact for the employees in question is that instead of having the van benefit on their P11D, they have a car benefit. The car benefit is of course calculated in a very different way to a van, the van is a flat rate charge, whereas the car charge is based on the list price of the vehicle and the co2 emissions. For VW Kombi, those co2 emissions are quite high. And therefore the taxable benefit for a P11D is much higher if a VW Kombi is classified as a car than it is for a van. The knock on effect for the employer, of course is that they have to pay a lot more employers National Insurance as well. So bad all round if your van is classified as a car, and not a van. Because of this case, the advice is that if you’re preparing P11Ds this year, or indeed, you operate vans in your fleet, you must make sure that you check whether your vehicles would stand up to HMRC inspection. If an inspector had a look inside your vehicles, would they look at it and say this is equally designed to transport passengers as it is designed to transport goods. And therefore we want to classify it as a car. If you think that might be an issue, then potentially you need to look at whether you can redesign the seats or even look at replacing your own fleet. In the short term, you may also have to actually declare these vehicles as a car and not as a van. And if you need any advice on that, of course get in touch. But it’s quite a big case and a bit of a surprise really that a VW Kombi can be a car and not a van. The next thing to talk about in vehicles, bit more positive, is should we be considering buying an electric car. electric cars are becoming a lot more fashionable now. And if you were to buy a brand new fully electric car through your company, then there are some significant tax advantages to be had. First of all, the car would qualify for 100% deduction against your profits in the year that’s purchased. That’s means that whatever you pay for the car, you can write that all off against your your profits for corporation tax purposes. So if you spend 80,000 pounds on a brand new electric car, that’s 80,000 pounds coming off your profit. That’s true if you pay cash, or even if you finance the vehicle through for example, a higher purchase agreement.
The other side of it, of any company car usually these days is if somebody says Should I buy a company car, and they’re looking at something that’s got fossil fuels in it petrol or diesel? The answer is usually no, unfortunately, you shouldn’t buy it as a company car, you should buy personally, because the income tax charges are quite prohibitive to it being advantageous to have through the company. But with a fully electric car, the tax charge on your P11D this year is only 1% of the list price of the car, likely to amount to a tax charge of maybe only a couple of 100 pounds. And next year, it will only be 2% it will be a small rise. But again, you should stay in the hundreds of pounds in terms of tax charge, which is nothing compared to the savings that you would make. For example, if you were to try to finance the purchase of an 80,000 pound car, personally, the potential additional drawings you’d have to take and the income tax on those would far outweigh the benefit in kind charge that you’d have to declare on a P11D and finally, we’re all fairly used to the fact that if you put petrol or diesel into your car through the company at the moment, there’s a very prohibitive tax charge attached to that unless you do some very significant mileage. If you have an electric car, fully electric car and it’s charged at a company charge point or even if the company pays for it to be charged, one of the pay per charge points that you have dotted around the country now, there have been no P11D charge at all arises on that provision of effectively fuel for the vehicle. You can do that without tax charge at all. So very attractive way to finance potentially the purchase of a new car, if that’s something you’re looking into. Finally, this month’s quick tip relates to the 5% VAT rate of hospitality and This reduced rate applies to specific areas, so first of all, it doesn’t apply to alcoholic beverages. So for those of you returning to the pub this week, or future weeks, unfortunately, we won’t be paying any reduced VAT on the beer or wine or whatever we buy. What it does apply to, is hot and cold food or hot and cold, non alcoholic beverages for consumption on premises in which they’re supplied. It also applies to hot takeaway food, hot takeaway non alcoholic beverages for consumption off the premises in which they’re supplied. It doesn’t apply to catering services, they still remain standard rated. But this reduced 5% rate applies until now until the 30th of September 2021, from first of October it is going to go up, but it’s only going to go up to 12 and a half percent. And that’s going to last till 31st Of March 2022. And after that from the first of April 22. As things stand at present, it will revert to 20%. So for those of you supplying in the hospitality industry, very much make sure that you’re only counting for 5% VAT now, make sure your systems are prepared to accept this new 12 and a half percent VAT rate from the first of October. For those of us on the consumer side of things, look out for hopefully some price reductions. That’s it.
Okay, thanks for that, Mark. Is that reduction enough to save the pub industry in the next sort of six to 12 months, I’m not convinced by that, though, we’ve got a handful, of clients in the hospitality industry. But those that we do have taken out, you know, a minimum or a bounce back and a lot of them have taken out CBILS, loans, they’ve deferred their VAT, they’ve not paid their landlords. They’ve got balance sheets, which are loaded with debt. And I really think from a personal point of view that the government could have done more for that particular industry. I know that there’s local grants that have come out, most of them have got the 12,000, which is the startup grant, again, very useful. Is that going to be enough that if you’ve got 100k CBILS on your balance sheets, How many of those businesses are going to be looking at the balance sheet all those debts and thinking, you know, is this sustainable? Can I pay this debt back? And, you know, the obvious choice for them, not choice, I guess, but there’ll be looking at those loans and thinking, is the company sustainable? And therefore, is this going to be counterproductive? I would more generosity in those VAT schemes have resulted in those businesses continuing to try to proceed foreseeable and paying those loans back. It would be interesting to look at the stats, won’t it in the next sort of 12 to 18 months as to how many businesses in the hospitality industry failed and didn’t pay those loans back? A lot of people might not like the sound of that. But you know, that’s that’s just that’s just the way it is. Okay, it’s now time for admin minute with Lee, Lee, take it away.
Hi, everyone, and welcome to the new tax year. So starting on that, we are well beyond the fifth of April 2021 now, so it is open season in terms of getting in your tax return information, Mark will be a much happier guy. The benefits to you will be that you get your tax liability, well in advance of the January 2022 payment deadline. Very quick reminder that it’s the 31st of July year ends it’s their cooperation tax payment due on the first of May, for VAT. The usual is the 31st of March period ends this time they’re due 7 of May. Don’t forget the VAT deferment application deadline that’s the 21st of June. And we’ve also got the partial exemption calculations it’s their annual adjustment. March, April and May. I know a lot of people’s percentages were skewered by COVID, there is a dispensation you can claim for from HMRC. With Companies House, we’ve got this anomaly come to light now. So it’s the 31st of April and the 31st of July year ends that are due by the end of this month. And for payroll don’t forget, it’s the national minimum wage is the first month where that actually gets applied. And those deadlines we’ve previously talked about the P60s are due by the 31st of May, and the P11Ds again, if you can get that information in as soon as possible. The deadline for them is the sixth of July. Thank you and I’ll see you next time.
Okay guys, that’s all for this month’s episode we’ll see you back in May by which time either the weather is going to be nice or on the 17th of may you’ll be able to go inside the pub and enjoy a pint instead of being sat out on this street freezing your whatnots off. Anyway, Until then, bye Bye, everybody. Cheers, guys.