To understand its importance, it is necessary to look at the scale of the matter with regards to small and medium sized businesses (SME’s). 

In the UK, there are some 5.7m SME’s, which account for almost the whole of the private sector firms and 60% of total UK private sector employment. SME’s also account for 73% of all net private sector job creation in the UK. Therefore, SME’s have significant implications for the economy and anything that can effect SME’s is very important.

SME’s need to be proactive and prudent as they prepare for BREXIT – deal or no deal. While some business know how they will be affected, and what will be the consequences. Many do not have the time to spare to look at this and seriously lack any plan of action of how to deal with and overcome weaknesses that may affect their business.

This short article will focus on the most important aspects of leaving the EU without a deal for small businesses.

• With a no deal Brexit, it will affect how businesses buy and sell in EU.  There will be increased port clearance time for goods both in bound and out bound of the UK. This can serious effect supply chains and delivery times, large corporations such have expressed extreme alarm at the possibility of delays and stoppages to their supply chains and as such SME’s need to make serious contingency plans also.
• Businesses will not be able to hire workers that easily or not at all. In the short term it is plausible that all new EU nationals will no longer be allowed to work here in UK. And therefore finding skilled reasonable cost employee may be more difficult. Which means businesses will have to employ locally, that may consequently increase their costs and in wages and or expect more work from fewer staff to cover the costs of higher wages so leading to less job satisfaction in the workplace.
• There may also be non-tariff barriers and we may no longer be allowed to buy or sell goods from EU the same as we have done in the past. Especially when it comes to food business. Old licenses and certificates will not be accepted on both sides. Current VAT regime will no longer be applicable. And these in the interim may cause a lot of financial problems with VAT bills and accounting
• Even if small businesses buy products from local wholesalers, their supply chain and procurement will be severely affected. This will indirectly affect your businesses as well.
• Over all, delays mean increased costs and inefficiency’s which could result in bad customer satisfaction and higher time expended in providing customer satisfaction.
• There may be new tariffs and increase admin costs and it is important for businesses to realise, either they are ready to pass these on customers or will they be sustainable to keep doing business with shrunken profit margin.

 
There are more questions than answers regarding impact of Brexit available yet. Ever lingering uncertainty and heightened anxiety in the business world in awash in the news at the moment. In any case, costs and delays relating to customs and trade are expected to increase in general. And these will affect all businesses and consumers.

Some businesses may see their business grow and will look for new opportunities, but many are likely to lose out, if they do not plan ahead and manage their competitive position.

By Awais at Tax Affinity Accountants in Epsom, Surrey

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

We are proud to announce the opening of our newest office in Epsom, Surrey. Due to contunued success and ever increasing demand from our customers. Coupled with the fact that many clients already lived in the Epsom area. We felt this was a natural additon to our branches.

Our office address is:
Tax Affinity Accountants
27 Waterloo Road
Epsom
Surrey
KT19 8EX.

Come in or Contact us online and we would be happy to help. Use the map below to find your best route to the office. There is free 20 mins parking directly infront of the office and its a 2 minute walk from Epsom mainline rail station.

As of today there are only 16 working days till the 31st January 2018, which is HMRC's online self assessment deadline. Our team of experienced tax accountants, some who have worked in the top 5 accounting firms in the UK, advise everyone to make haste and ensure their tax return is done early to both minimise tax and the chance of late filing penalty.

The submission of the personal income tax return and the payment of any tax and NI due for the period 6/4/16 to 5/4/17 is midnight 31/1/18. And anyone who has not yet had their tax return done should start to worry about the 'up to £1300 fine plus interest on late paid tax' imposed by HMRC for missing the deadline. To put it further in to perspective there is an immediate penalty of £100 if the return even one day late.

The self assessment / personal tax return is required from the following types of people:

1. Self Employed (even partially) during the tax year 16/17 ie 6/4/16 to 5/4/17
2. Employed and earning over 100k for the year ended 5/4/17
3. Director or shareholder of a Company and taking dividends in the period as above
4. If you have received rental income in the period 6/4/16 to 5/4/17
5. You received savings and investments income in the period 6/4/16 to 5/4/17
6. You sold something and made a profit on the item, so are required to pay the Capital Gains Tax (CGT) eg selling shares, a property, an antique, Plant and Machinery etc
7. You have received income over £50,000 and you claimed Child Benefit
8. If you have not notified HMRC that you have left self employment and they have not confirmed that you do not need to do a 16/17 return
9. A letter / email / text from HMRC has been received by the tax payer advising them that they need to submit a tax return for the 16/17 year (note: only new registrants may get a reminder as HMRC expects old registrants to already know the deadlines and protocols required).
10. You received income from overseas including off shore companies (the law has changed)
11. You lived abroad and had income from the UK
12. You are retired and receive more than one type of pension and annual income payment pushing you over the personal income allowance
13. You have had a P800 from HMRC saying you have not paid enough tax in the year
14. You are  minister of religion or and Underwriter
15 Even if a person has died they may still need to submit a tax return to make sure they have paid the correct tax and those that receive an inheritance may need to pay for Inheritance Tax (HMRC will advise further).
16. If you have received a P11d and not paid the correct tax for the benefit in kind eg company car, private medical, gym, travel etc

So if you haven't already had your tax return done and still need to send / drop in your income and expenses information, please take heed of this reminder.

For those that have handed in their information, we will make sure it is done before the deadline and if there is any tax due we will advise you of this well before the deadline. We can even have your deadline extended in some cases as we are a registered authorised agent for HMRC.

And if your thinking of using an accountant - then make sure to note, not all accountants are the same. We recommend you use an expert in tax so he/she saves you far more in tax than you ever have to pay them for their service. A lot of accountants are using out of date knowledge they learned along time ago and never bother to keep up to date with the ever changing landscape of HMRC tax rules and regulations.

With fines up to £1300 plus interest on the amount of tax due. This means for some, the penalties can be much greater than the actual tax that would have been due. So don't delay, as you have little time left. And in the unfortunate even that you do miss the deadline  - most excuses and appeals are rejected by HMRC.

If you would like to contact us about having your tax return done by an experienced tax accountant then go to our contact us page and tell us your requirements today.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.