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May 2014

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May’s Tax Tips & MYOB News
Welcome to our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our Question and Answer Section.

May 2014
· NEW – Easy Upgrade to AccountEdge!
· Second Homes
· Credit Notes in MYOB/ AccountEdge
· Flat Rate VAT
· May Questions and Answers
· May Key Tax Dates
NEW – Easy Upgrade to Acclivity AccountEdge!
We have moved 20 clients from MYOB to Acclivity AccountEdge (AE) over the last three years. Until now this was a difficult process involving creating an entirely new datafile from the closing balances of an old MYOB datafile. However we have now managed to upgrade several MYOB datafiles directly into Acclivity. This means that you can use your current datafile in an up-to-date version of the software.

MYOB users are no longer trapped to their old operating systems and old licences.  Neither are you limited to the Mac-only licence for which the local distributor, Mamut, requires an ongoing fee.

Mac Operating Systems

The latest version of the Mac Operating system is a particular problem.  Mac Mavericks ( Mac OS 10.9) will not install MYOB.  This is a good reason to move. But there is a choice between the Mac licence offered by Mamut and the AccountEdge licence by Acclivity.  The Acclivity licence is not being sold in the UK.  However there is nothing to stop people buying and importing the software privately.

Indeed with the launch of AE 2014 Canada in a few months time, there is every incentive on members to upgrade. 

See the New Functions of Acclivity AccountEdge 

AccountEdge 2013 – Bank Import (You Tube Video)

AccountEdge 2014 Features

AccountEdge 2014 – New Features (You Tube Video)

Cost of Upgrading
Upgrades to Acclivity AccountEdge are free for our Business Companion clients. For other MYOB users it can cost as little as £75. Acclivity AccountEdge software costs $399 for a one user licence. to find out more.

Second Homes top
Credit Notes in MYOB/ AccountEdge top
If you have more than one home, – properties actually used as your home – you can elect for one of those properties to be your tax-exempt main home. Once this election is made, it can be changed at any time, and this allows you to manage the tax you pay when disposing of your properties.

However, from April 2015 the ability to elect for one property or another to be tax-exempt may well be removed. This is because the Government wants to tax overseas residents on the profits they make when they sell their homes in the UK.Read More
How do I raise a credit note in AccountEdge against an invoice that has had a payment made against it?

1. Hit Setup from the top row, Preferences, Security, and tick ‘Transactions can’t be changed’.
2. Go to the sales register and pick up the sale that you want to credit.
3. Hit ‘Edit’ from the very top row of functions, and underneath it, ‘reverse sale’. This will open up a credit note that is a direct reversal of the initial sale. Record this on today’s date.
4. Hit Setup, Preferences, Security, and untick ‘Transactions can’t be changed’.
5. Go to the sales register and hit the credit note tab. Pick up the credit note that you have created. Amend it to reflect the nature of the credit. Send.
6. You then need to apply the credit note to the sale. Go to sales register credit notes. Then hit apply to sale.  If necessary tick include closed sales, and reduce the sale by the value of the credit. Hit record.
7. You should now be able to see a credit balance at the bottom of your revised sales invoice. If you highlight this in the sales register you should be able to see an option to pay refund – which allows you to make a payment to clear any balance due.  Alternatively you can use the net credit against any other invoice that the customer also owes.

Alternatively, rather than entering a credit note and so reducing the invoice correctly, you could just to amend the sale to get the sale value right.  Just amend the coding within the sales invoice, record and send. This may put the sale into credit. Then you can make the refund as above.

For more tips about using MYOB and AccountEdge see our Tricks of the Trade.
Flat Rate VAT top
May Questions and Answers top
The flat rate VAT scheme for small businesses is designed to reduce administration hassle for the businesses that use it, not to reduce the amount of VAT the business pays over to HMRC, but that is often a side effect of using the scheme.
Flat Rate Scheme Helpsheet – note you will have to login to view this helpsheet – try your email address + password, ‘accountant’.

You can use the flat rate VAT scheme if you have an annual turnover up to £150,000 (net of VAT). Once registered to use the scheme, you must apply VAT to your sales at the rates required for the particular product or service (20%, 5% or zero). However, when completing the quarterly VAT returns you ignore any VAT paid on purchases, apart from large assets costing over £2000. You calculate the VAT to be paid over to HMRC as a flat percentage of your gross sales, with the percentage used determined by the trade sector which most of your sales fall into.Read More
Q. If a director takes a £25,000 loan from his company and agrees to pay interest at say 3.5%, does this need to be declared on the company’s tax return or on a form P11D?Answer

Q. If my employer leases a car to me at the fair market value for such a lease, which I pay in full to the employing company, will I be taxed as if I had the use of a company car with no lease? Answer

Q. My husband supports the IT and telecoms systems used by my company, which pays him £150 per week through the payroll for this work. Can the company also pay a small pension contribution on his behalf?Answer
May Key Tax Dates top
02 – Last day for car change notifications in the quarter to 5 April – Use P46 Car

19 – – Deadline for Employers’ 2013/14 end of year PAYE Returns (P35, P14, P38 & P38A). Penalties for non-submission.

19/22 – AYE/NIC, student loan and CIS deductions due for month to 5/5/2014

31 – Deadline for copies of P60 to be issued to employees for 2013/14
Need Help? top
New Clients Welcome top
Please contact us if we can help you with these or any other tax or accounts matters.

In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list.
If you are not already a client and are interested in becoming one, we would love to discuss how we can help and provide you with a competitive quote for our services.

See details of our Business Companion Service.
About Us top
Simple Accounting Limited offers a cost effective Business Companion service to business owners who use MYOB, Acclivity, Mamut, Solar Accounts, Quickbooks or Clearbooks. We offer a range of accountancy services despite being specialists.

‘All clients using these software packages can benefit from our support. Visit our website for a look at the resource on offer.’

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