online accounting services UK
1. Gain unlimited
2. Making tax digital ready
3. We help new customer
4. We handle all payroll digitally
5. Automatic bank feeds
OXON Accountancy online accounting services UK is an industry leader when it comes to cutting edge accountancy services and business growth, we utilise the latest technology to help us achieve both our goals and the goals of our customers. We provide the usual face to face high street accountant and also we offer the best software available and advice available via your own dedicated accountant over the phone. This allows us to offer our services throughout the UK.
The main changes to corporate reporting are as follows:
- All UK incorporated companies that are currently required to use EU-adopted International Financial Reporting Standards (IFRS) will need to use UK-adopted international accounting standards for financial years that begin on or after 1 January 2021. On 1 January 2021, UK-adopted international accounting standards and EU adopted IFRS will be identical.
- Companies with financial years ending on 31 December 2020, can continue to use EU adopted IFRS as it stands at the end of the transition period for the 2020 financial year, and UK-adopted international accounting standards for the next financial year. more https://oxonaccountancy.co.uk/accounting-and-reporting-standards-from-1-january-2021/
Tax and pensions
All pension deductions are tax-free, but there are two ways to set this up in your payroll:
- relief at source online accounting services UK: employers collect 80% of the individual’s pension contributions, eg after income tax of 20% has been deducted, the pension scheme then applies to HMRC to get the additional 20%.
- net-pay: pension contributions are collected before income tax is deducted.
If you were operating a relief-at-source scheme, Joanna would have £59.52 deducted each month and paid to the scheme and then £14.88 added by HMRC.
If you were operating a net-pay arrangement, Joanna would have £74.40 deducted each month and paid over.
The net impact for basic-rate taxpayers like Joanna is the same: the same amount ends up in her pension pot and the amount she takes home is the same. Under a net-pay arrangement, she makes a bigger pension contribution but her income tax deduction is then £14.88 lower.
It does make a difference if your employees are either below the basic-rate threshold – like Sudip – or are higher-rate taxpayers.
Relief-at-source arrangements are better for non-taxpayers, as they get 20% added to their pension, whereas net-pay arrangements are better for higher-rate taxpayers as they automatically get the full amount of tax relief through payroll.
Higher-rate taxpayers in a relief-at-source arrangement can get the tax relief back, or claim it through self-assessment.
Non-taxpayers, however, have no equivalent workaround in a net-pay arrangement. Some pension providers offer employers a choice which method to use, whereas others specify one.
It does not make a difference to your costs as you are still paying 3% in either scenario, but knowing which method you are using enables you to explain it to your employees.
Salary sacrifice – online accounting services UK
Another option is to operate a salary sacrifice scheme, whereby part of the worker’s salary is swapped for pension contributions.
This saves both you and your employee tax, but has potential complications. Seek expert advice before setting this up.
New employers are required to provide certain information to the Pensions Regulator within five months, even if none of your employees are entitled to join a scheme.
At the third anniversary of setting up a workplace pension scheme, you must:
- re-enrol anyone who has opted out but meets the threshold for auto-enrolment
- submit certain data to the Pensions Regulator about your workforce.
You need to tell a new worker about the scheme, how it operates, how they can join and whether you operate any postponements. You also must tell them if you have postponed them. more https://oxonaccountancy.co.uk/employer-issues-with-auto-enrolment/
Outsource your payroll obligations to us.
To discuss how we can help you please call 01235 250011, email firstname.lastname@example.org or visit our office OXON Accountancy, 28 The Quadrant, The Science Park, Abingdon, OX14 3YS
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In case of any online accounting services need then please contact https://oxonaccountancy.co.uk/contact-oxon-accountancy/ to have a detailed discussion.