Receiving a grant can be fantastic forbusinesses and not for profit entities. In order to comply with the requirements of these funding agreements, your spending may be subject to being audited. These audits ensure that every penny is properly managed and utilised.
At Fiander Tovell, we specialise in auditing grants, helping you meet the requirements often stipulated in your grant agreement or contract. With our expertise, you can rest assured that your requirements for funding have been effectively managed, paving the way for your business to succeed. So, let us help you navigate the complexities of grant audits, so you can focus on what you do best.
What is a grant audit?
Audits are typically done on grants during or at the grant period’s end. They are used to ensure compliance, transparency, and the proper use of resources.
It involves an auditor reviewing records to verify:
Allowable costs and the legitimacy of expenses purchased with grant money
Programme income generated by the grant and programme performance
It’s important to note that grant audits are not always needed and will only be required if the benefactor requests it. Usually, government bodies tend to request audits along with their funding programmes.
The procedures of the grant audit can vary based on the funding provided and the requirements inherent in the grant agreement.
Appointing an Auditor
If you’re required to complete a grant audit to secure your external funding, one of the most important steps is to appoint an auditor at the acceptance stage of the grant. By appointing us early, we can gain a comprehensive understanding of your project, allowing us to conduct a more cost-efficient and time-efficient grant audit.
You’ll need to organise the audit and cover any associated fees. However, you may be able to apply to the grant-awarding body to retrospectively cover the cost of the audit, or it might be included within the funding award, so the expense may not be a concern.
Get in touch
If your grant requires an audit, we are happy to assist your business or not for profit entity throughout, to ensure a smooth process. We want to make sure you reap all the possible benefits from the grant.
If you would like to enquire about our services or discuss the process with a member of our audit team, please contact our Client Director, Mark Gregory at markgregory@fiandertovell.co.uk.
Have you heard of the upcoming changes to the company formation process? Companies House is set to introduce new ID verification rules under the Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024. These draft regulations aim to combat fraud and misuse within the company formation process, accompanied by recent increases in company registration fees.
For entrepreneurs and business owners, staying informed about the latest regulatory changes is crucial. That is why Fiander Tovell is committed to providing you with the latest updates and guidance to navigate these changes smoothly.
Here’s a breakdown of the upcoming changes:
New Verification Requirements
Applicants will need to provide:
A valid email address
Current residential address
Unexpired proof of identity, preferably with biometric or photographic evidence
Verification methods include the gov.uk ID Check app, One Login, or in-person at the post office. Acceptable documents include biometric passports, UK driving licences, and biometric residence permits.
If these primary documents are unavailable, alternative options such as IDs listed on the PRADO register or a birth certificate, immigration document, or bank statement may be used. Those using an Authorised Corporate Service Provider (ACSP) will follow separate document lists, requiring either one biometric ID or two forms of supporting evidence.
Failure to meet these new requirements will result in fines, though the specifics of the penalty system are still being finalised.
Prepare in Advance
The introduction date for these changes is yet to be confirmed. We recommend preparing in advance to ensure a smooth company formation process.
For guidance, or to discuss any of the points from this article, please contact your dedicated advisor.
Is your business VAT-registered? Value Added Tax (VAT) is a tax charged on most goods and services provided by registered businesses within the UK and can often be a complicated tax to navigate. All businesses must register for VAT if your taxable supplies for the last 12 months exceed £90,000 (from April 1st, 2024), although businesses who don’t reach the threshold are also able to register. Unfortunately, VAT can be unforgiving, with HMRC having stringent penalties for breaches of the legislation.
At Fiander Tovell, we are well versed in all areas of VAT reporting to keep your business on the straight and narrow. We’re always on hand to help, as we know just how tricky VAT can be – particularly for smaller businesses. So, we’ve highlighted some key areas you need to consider to make sure your business stays compliant with UK VAT regulations.
Administration and Record Keeping
Making Tax Digital (MTD) requires all VAT-registered businesses to keep digital records and submit returns using MTD-compatible software, with limited exemptions.
Once registered for VAT, you must file quarterly returns online. These returns need to include the output tax on sales and the deductible input tax on expenditures. The submission deadline is within one month and seven days from the end of the reporting period, and electronic payment is mandatory.
Maintaining thorough and up-to-date records is crucial for VAT compliance. This involves keeping detailed records of your supplies, purchases, and expenses, along with a VAT account summarising the output and input tax. These records must be kept for six years and should be maintained in software that meets HMRC requirements, as HMRC does not provide free software.
In summary, adhering to filing deadlines, maintaining accurate records, and using compliant software are each essential practices for VAT-registered businesses to ensure your compliant and manage VAT obligations efficiently.
This is one of the many reasons businesses look to outsource their bookkeeping to us. We help businesses maintain all crucial records to ensure you meet HMRC requirements. Our systems will keep your business compliant leaving you to focus on core business activities.
Special Schemes
There are special schemes available to simplify VAT accounting. For example:
The Flat Rate Scheme allows smaller businesses with annual taxable turnover below £150,000 to pay VAT as a percentage of their total business income, reducing record-keeping requirements.
Retail Schemes are tailored for retailers to ease the impracticalities of maintaining extensive records.
Inspection and Penalties
HMRC may conduct control visits to ensure VAT rules are being applied correctly and that returns and records are properly maintained. You should not assume that the absence of errors during a visit means they are fully compliant. HMRC has wide powers to penalise your business for late registration, errors in returns, and other breaches of VAT regulations.
Not to worry though, with our systems, we’ll make sure your business hands in all documents on time with full assistance. If any issues arise, we’ll help you negotiate with HMRC to reach a settlement to keep your business growing.
How we can help
Ensuring VAT compliance is essential, and outsourcing your bookkeeping to specialists is a smart move. At Fiander Tovell we specialise in bookkeeping and can assist you in several ways, from tailoring your accounting systems to gathering VAT information accurately and quickly, to ensuring your business is VAT-efficient. We also provide assistance with VAT return completion and negotiate with HMRC in case of disputes. Our team can advise on suitable schemes and help you comply with the MTD for VAT regime.
By outsourcing your bookkeeping to Fiander Tovell, you can focus on running your business while we handle the complexities of VAT compliance. If you would like to discuss any of these points or seek tailored professional advice, please contact our Commercial Client Director, Fabrice Legris, at fabrice.legris@fiandertovell.co.uk
Starting your own business can be a rewarding venture, whether driven by the desire for independence, or the pursuit of financial rewards. However, it comes with its own set of challenges.
In this blog, we share our guidance on some of the factors that need to be considered before entering the world of entrepreneurship to alleviate any concerns that you may have.
The Business Plan
A solid business plan is vital for success and securing finance. Your plan should cover:
Business description
Product/service details
Market analysis
Operational plan
Capital requirements
Projected financial results
Business Structure
Choose the right structure for your business:
Sole Trader: Simple to set up with no legal distinction between personal and business affairs.
Partnership: Like a sole trader, but with more than one person. A written agreement is advisable. Consider a Limited Liability Partnership (LLP) for some legal separation.
Company: It offers a separation of business and personal affairs but involves more legal regulations.
If you would like more information for deciding on a business structure, take a look at our ‘Trading Options’ blog which takes you through each option in detail.
Legal and Administrative Requirements
Business Stationery: Ensure compliance with legal requirements for business stationery. This can be both paper and electronic, depending on the type of business structure.
Books and Records: Maintain detailed records of all financial transactions, either manually or through computerised systems. Fiander Tovell specialises in maintaining detailed records of all your financial transactions. You can view our outsourced bookkeeping services here, where we let you focus on core business while knowing your financial records are in good hands.
Accounts: Prepare accurate accounts for HMRC and comply with electronic submission requirements (iXBRL) if forming a company. We provide businesses with comprehensive support, from initial set up to ongoing management and submission of financial statements which can be viewed here.
Taxation
Considering the taxation implications is a crucial aspect of business, especially in the beginning. The main three are as follows:
Tax on Profits (Corporation Tax or Income Tax): Varies by business structure; taxable profit differs from accounting profit due to disallowed expenses and timing of allowances.
National Insurance (NI): Rates differ for sole traders and company directors; using dividends can mitigate NI in a company.
Value Added Tax (VAT): Register for VAT if sales exceed the threshold and comply with Making Tax Digital requirements.
Fiander Tovell can advise companies on each of these taxes and more, throughout your business’ journey. We provide tailored guidance and support to ensure compliance and optimise tax efficiency at every stage.
Employing Staff
Every business is different, with each requiring a unique plan tailored for success. However, most businesses need to employ staff at some stage. Here is a breakdown of what hiring employees requires:
Registering with HMRC and managing PAYE for income tax, NI, and student loan deductions.
Compliance with Real Time Information reporting.
Automatic enrolment of eligible employees in a pension scheme, either occupational or through NEST.
Adherence to employment laws.
Our inhouse payroll team, FTPay, can manage the registration of staff and give guidance throughout the process, ensuring accurate and timely processing of all payments and deductions. We handle the registration of new employees with HMRC, ensure compliance with Real Time Information reporting, and manage your pension scheme enrolments.
With Fiander Tovell, you can be confident that all aspects of payroll and employee compliance are expertly managed, allowing you to focus on growing your business. Why not look at our Payroll animation here, summarising FTPay’s service.
Premises and Insurance
There are many pitfalls to be avoided in choosing a property. Consideration should be given to the following:
Purpose and/or suitability
Legal regulations
Local by-laws
Access restrictions
Ensure comprehensive insurance coverage, including business vehicles, employer’s liability, public liability, consequential loss, business assets, Keyman, and bad debt insurance.
Professional Assistance
Tailoring your strategy to fit your specific circumstances and aspirations is crucial. Professional advice can help you navigate potential pitfalls and increase your chances of success. Services such as bookkeeping, management accounts, VAT returns, and payroll preparation are available to support your business from the outset.
If you would like to discuss these services or have any questions about starting up a business, please contact our Commercial Client Director, Fabrice Legris, at fabrice.legris@fiandertovell.co.uk
Is it time for your company pension scheme to be audited? It’s not the first thing to come to mind when operating a business, however in the UK, a pension scheme audit is a yearly requirement. It is vital for ensuring the effective management and compliance of your company’s pension scheme.
Trustees are required to meet regulatory standards set by The Pensions Regulator (TPR) and UK financial reporting standards, and an audit helps confirm the accuracy of financial statements, maintaining the scheme’s integrity and avoiding legal issues.
Some company schemes are exempt, however, which includes small pension schemes and executive pension plans. If these apply to your business, you typically won’t require an audit.
With that said, it may be time to consider an audit if you have not already done so. Let us explain the process and the benefits your business can reap.
Why choose Fiander Tovell to audit a company pension scheme?
Fiander Tovell offers an independent assessment of your scheme’s financial health, providing trustees with clear, actionable insights. Our expertise ensures potential risks are identified and addressed proactively, enhancing transparency and building trust among members regarding the scheme’s stability and reliability.
With Fiander Tovell, you’re not just meeting legal obligations but also leveraging a crucial tool for good governance, risk management, and strategic planning. Our team ensures your pension scheme effectively meets commitments to employees, setting a foundation for long-term success.
How do they work?
A pension scheme audit is a structured process performed to verify the accuracy and compliance of a pension scheme’s financial statements with relevant accounting standards and regulations.
Initially, we plan the audit by understanding your pension scheme’s nature, operational complexity, financial environment, and regulatory framework. This involves gathering all pertinent financial records, such as investment reports, contribution records, and benefit payments, which are essential for verifying financial transactions and balances. We also evaluate the scheme’s internal controls to ensure they effectively prevent and detect errors and fraud.
During the audit, we will test various transactions and balances, including contributions, benefit payments, and investment valuations. For defined benefit schemes, this involves collaborating with actuaries to assess the assumptions and methods used in actuarial valuations, ensuring that the scheme’s liabilities are accurately reported. We also check compliance with relevant regulations, including those set by The Pensions Regulator.
Upon completing the audit, we will prepare a report outlining our findings and any identified issues or discrepancies, which is then presented to your pension scheme’s trustees and may be included in the scheme’s annual report to its members. This process ensures the integrity and transparency of your pension scheme’s operations and financial reporting, safeguarding the interests of your members.
Outcome
The audit process is operated as set out above in order to allow the auditor to issue the audit report and to gather the appropriate supporting evidence for the opinion expressed therein. As with company audits, there are various types of opinion that can be given on a set of pension scheme accounts including unqualified (generally termed “clean”) and qualified.”
Beyond the financial and compliance aspects, the audit can offer valuable insights into your scheme’s operational efficiency and governance practices. Identifying weaknesses and making operational recommendations helps you enhance the scheme’s effectiveness, ensuring long-term security for your members.
The audit outcomes guide your future decisions and actions, providing critical information to you, your members, and other stakeholders about the scheme’s financial health and compliance status.
Get in touch
Our specialist team of experienced auditors are on hand to help your company with minimal disruption. If you would like to discuss our auditing services, please get in contact with our Head of Corporate, Adam Buse, at adam.buse@fiandertovell.co.uk
