Abolition of FHL regime

Abolition of FHL regime

If you own property classed as a furnished holiday let (FHL) for tax purposes, then it’s vital that you’re aware of the planned abolition of its favourable tax treatment from 6th April 2025 (1 April 2025 for companies).  

Although new legislation is yet to be drafted, we can expect short-term and long-term residential lets to receive the same tax treatment, meaning that it will no longer be tax-advantaged to commercially let your property for a series of short periods. This comes as the government plans to ‘level the playing field’ between ownership of short-term and long-term lets, with the overall goal of helping people to live in their local area. 

Reminder of the current regime 

At the moment, your FHL benefits from the following tax treatment: 

  • Being able to fully deduct interest incurred on mortgage borrowings from taxable profits. 
  • The availability of a number of capital gains tax reliefs, including business asset disposal relief, rollover relief and business asset holdover relief.  
  • Capital allowances for items such as furniture, equipment and fixtures. 
  • Classing profits as earnings for pension purposes, allowing tax-advantaged contributions.

Uncertainties regarding the new regime 

Without any legislation regarding the changes, right now we have more questions than answers. Some of the key areas of uncertainty are as follows: 

  • Will there be any transitional provisions regarding capital allowances? Without such provisions there would be a balancing charge giving rise to a tax liability when the current regime ends. 
  • What will happen to existing FHL losses, which under current legislation, can only be used against future FHL profits? 
  • Will HMRC give a clear definition of ‘trading’? Getting rid of FHLs means there’s much more of a gulf between a rental property and a B&B. 
  • In the budget it was announced that anti forestalling rules in relation to capital gains tax relief would apply from 6 March 2024. We do not know yet if this will apply to all or just some of the existing capital gains tax reliefs. 
  • Will the current regime regarding business rates and FHLs remain, or will all FHLs become liable to pay council tax instead? This would have an adverse effect on owners currently liable to business rates but qualify for small business relief.

How can you prepare for the changes? 

Firstly, the key preparation for the abolition of the FHL tax regime, is to understand how owning and letting the property will impact your personal finances without the tax-advantaged rules. Secondly, it would be valuable to consider what options are available to you, for example it may be beneficial to incorporate or perhaps accelerate expenditure on items such as furniture, fixtures or equipment to the 2024/25 tax year. Although when considering any planning it would be necessary to wait for draft legislation before any action is taken. 

How can we support? 

If you own a furnished holiday letting, we want to help you navigate the changes that will arise when the tax regime is abolished on 6th April 2025. In the meantime, as the new legislation is announced, we can help you to weigh up available options and consider the most tax efficient routes to take.

Please don’t hesitate to get in touch for further assistance. 

Navigating business obligations: registering with HMRC

Navigating business obligations: registering with HMRC

If you’re at the beginning of an exciting new business endeavour, there is one key step to take before it’s well and truly underway – registering with HMRC. Every business in the UK must be registered with HMRC; it’s a fundamental step which lays the groundwork for financial compliance and legal legitimacy. 

At Fiander Tovell, we are dedicated to assisting businesses at every stage of their journey, from inception to triumph. While registering with HMRC is relatively simple, there are some key considerations that can impact your business in the long run. That’s why our team is here to guide you through the process seamlessly.  

So, are you ready to make your business official? Learn how to register your new business with our comprehensive guide!

 

1. Choosing your business structure  

If you are one of our avid readers, you may have seen our blog about trading options,which covers the different business structures available to start-ups. Whether you chose to operate as a sole trader, partnership or limited company, it’s important to be aware of what each structure would mean for your operations:

 

Sole trader 

An individual operates as the sole owner and is personally responsible for all aspects of the business, including finances and liabilities.

 

Partnership  

A business structure where two or more individuals share ownership and responsibility for the business, including profits, losses, and liabilities.

 

Limited Company  

A business structure where the company is a distinct legal entity from its owners (shareholders), offering limited liability protection and the potential for growth through the sale of shares. A full rundown on setting up a Limited Company can be found here.
  

2. Registering online  

Once you have decided on a business structure, you’ll have to register your business online. HMRC offers an online registration portal designed to streamline the process. You will need to provide information such as your personal details, business name, address, nature of business activities, and relevant financial details.  

When registered, HMRC will issue you with a Unique Taxpayer Reference (UTR) and may allocate other reference numbers depending on your business structure.   

Once you’ve set up your business tax account, you can use it to: 


3. Ongoing compliance  

Once registered with HMRC, it’s crucial to stay compliant with regulations by filling accurate tax returns on time, making payments promptly, and keeping a detailed record of all business transactions. Failure to comply can result in penalties, fines, or even legal action from HMRC, which can have severe consequences for your business’s reputation and financial stability.  

Our experts are fully aware of compliance with HMRC regulations. With our comprehensive understanding of tax laws and diligent approach, we ensure that your business stays on track with accurate tax returns, timely payments, and meticulous record-keeping. This is why we outsource our bookkeeping services to provide businesses with skilled professionals that can streamline the entire process to avoid costly errors.  

There, you should now be fully registered with HMRC! However, our help doesn’t stop here. We have a wealth of articles covering the different aspects of business growth along with the services we provide to ease your stress. Why not take a look at the next step of starting up your business: ‘Sustaining your start-up‘  

If you want more information on our services, or further guidance, don’t hesitate to contact our Commercial Client Director, Fabrice Legris: fabrice.legris@fiandertovell.co.uk  

Financial Check-ups: How we can improve your businesses’ health

Financial Check-ups: How we can improve your businesses’ health

Running a business is like nurturing a child; it requires constant attention, care, and vigilance to ensure its growth and well-being. Just as a parent takes their children for regular check-ups, a business owner should diligently tend to the financial health of their venture. Neglecting such issues is like turning a blind eye to a child’s needs – leading to unforeseen consequences.  

At Fiander Tovell, we act as the doctors for your business. We provide comprehensive financial check-ups tailored to your unique needs. Our analysis and strategic insights serve as the ‘apple a day’, ensuring your business sustains financial heath and keeping you on an upward trajectory!  

So, how is that important? Let’s delve into some of the key benefits of conducting regular financial health checks for your business! 

Importance of Regular Financial Check-ups  

It’s fairly easy as a business owner to neglect your finances while you focus on core operations. However, check-ups are crucial to sustain success and keep your business alive. If left unattended, your business could experience cash flow issues, tax penalties, and in the worst case – bankruptcy. With our accountancy services, we can help you stay on top of your finances and catch any issues early before they develop into serious problems.  

By conducting financial check-ups, you can:  

  • Keep a keen eye on cash flow, adjusting as you go 
  • Find opportunities, increase revenue, or trim expenses  
  • Keep ahead of tax obligations  
  • Identify areas to streamline operations and improve efficiency 

Our Services  

As part of our service, we can provide tailored reports that allow you to plan and forecast effectively, understanding the financial status of your business. The more information we get from you, the more we help you achieve your financial goals. 

Here’s how we conduct your financial check-ups:  

Organising/reviewing financial documents 

We gather all financial documents – this includes bank statements, credit card statements, invoices, receipts, tax returns etc. Each of these transactions are transferred seamlessly to our bookkeeping services, which provide a clear and accurate snapshot of your business’ financial health. This helps us monitor your overall cash flow, enabling us identify areas of savings or increase revenue. Additionally, this can show whether you have enough liquidity to cover expenses and manage any unexpected downturns in revenue.  

Tax planning and compliance  

Staying compliant with tax laws and regulations is critical for avoiding penalties and maximising tax efficiency. We provide proactive tax planning services, helping you to optimise your tax strategy, take advantage of available deductions and credits, and ensure timely and accurate filing of tax returns. 

Financial forecasting and planning 

Using your management accounts, we assist you in developing comprehensive financial forecasts and strategic plans aligned with your business objectives. Whether you are looking to expand, secure financing, or prepare for unforeseen challenges, our forward-looking approach helps you navigate with confidence.  

At Fiander Tovell, we are committed to helping businesses thrive by providing financial check-up services tailored to your unique needs and goals. With our expertise and dedication, you can trust us to safeguard the financial health of your business and pave the way for long-term success.  

If you require any further advice, or would like to enquire about our services, please do not hesitate to get in contact with our Commercial Client Director, Fabrice Legris at fabrice.legris@fiandertovell.co.uk 

An Audit Career with a Difference

An Audit Career with a Difference

At Team FT, we work with five core values at the forefront of all that we do. This translates to our constantly evolving Corporate Team, where opportunity, fairness, transparency, personal responsibility, and teamwork are at the heartbeat of our success.  

From the rewarding feeling of completing an audit, to establishing mutually beneficial working relationships and discovering a healthy work-life balance – join us as we cast a new light on the industry, revealing what it means to truly excel in the world of audit and redefining standards with every step.  

Finding a rewarding career

When you’re working in a field that you’re passionate about, such as with audit, we understand the joy of seeing a project from start to finish. Project-to-project, each member of the team is an active part of the process, from planning to fieldwork and then final sign-off. Where some firms may leave client-facing tasks solely to senior members of staff, we encourage the development of well-rounded auditors who are equipped to deal with queries and client interactions.  

We carry out audits of a wide range of companies, including charities, large group companies, partnerships and solicitors’ audits – being able to understand the intricacies of our client-base empowers our team to navigate each project with confidence! 

Take Sian, for example, who joined our Training Programme back in 2018. Now one of our Audit Supervisors, she enjoys the varied nature of life on our audit team: 

‘My role has progressed to being extremely varied and allows me to see all aspects of an audit from the preparation before the year end and communication with the client for planning, to the tying up of final queries and finalising the adjustments and disclosures in the accounts so they’re ready for signing. I spend time onsite during the fieldwork to assist the team with queries as they crop up as well as review work completed to date and discuss feedback in person as needed.’

Promoting mutually beneficial relationships 

As our team members develop their expertise, we hope that they not only put it into practice through their own work, but spur on our younger team members to find their feet within auditing. With a team ranging from school-leavers to auditors with 20 years’ experience, a culture of learning and development is at the forefront of our work.  

We constantly have several projects on the go at once, splitting our auditors into several smaller teams. On each individual project, the team is structured to include individuals with differing levels of experience, ensuring that every member of the team feels adequately supported throughout. This inspires our culture of continuous learning and professional development; our trainees are able to learn from qualified auditors, whilst our senior team members receive enough support on the project at hand.  

‘There are various levels [of people] in the team who each have different roles and responsibilities. We work together on audit jobs and provide the support we need to each other.’ – Ciaran, Accounts & Audit Senior 

Discovering healthy work-life balance… 

Many members of our team found their role at Fiander Tovell in search of a firm with a more sustainable work-life balance, allowing them to discover their passion for audit, whilst avoiding burnout. We prioritise the cultivation of an environment that allows our people to thrive and feel at home even when they’re at work. Our down-to-earth, friendly office culture is what we feel makes us different to the rest. It enables our team to work to a standard that they can truly be proud of, whilst avoiding the burnout typically associated with audit. 

…Whether you’re at the beginning of your career… 

‘I first learned about Fiander Tovell at a college careers fair, the two colleagues at the stand were far more approachable than other firms and were happy to answer any questions I had. As soon as I began on my first day, I was made to feel welcome and was provided great support in my learning.’ – Kaitlyn, Audit Supervisor 

… Or looking for a new role to shake up your audit journey! 

‘I was looking for a better work life balance and the right firm to support me in my growth and journey. I felt FT had better support and the directors were being honest in the interview not just telling me what I wanted to hear. The firm also offered far more flexibility in working compared to some of the other places I interviewed.’ – Mike, Audit Manager 

If you’re looking to (re)ignite your passion for audit, then a role on our 24-strong audit team could be what you’re looking for. Our growing Corporate Department is always looking for talented and ambitious professionals to join their renowned audit team.  

Does Fiander Tovell sound like an environment where you’ll thrive? Check out our rolling vacancies here! 

FTPay: Stay Compliant with our Payroll Services

FTPay: Stay Compliant with our Payroll Services

Ensuring compliance with payroll regulations is not just a legal obligation; it’s the cornerstone of a well-functioning business. From tax obligations to employee benefits, the complexities of payroll management can often become overwhelming. However, with the right knowledge and resources, businesses can navigate these challenges effectively, whilst staying compliant.  

At Fiander Tovell, we offer outsourced payroll services that are designed to shoulder this burden for businesses up and down the country. We help to streamline their payroll processes, ensuring that they meet regulatory demands and, most importantly, paying their employees on time!  

Although we take the complexities of payroll compliance away from you, if you choose to outsource to us, there are still a few things you must do to ensure seamless operations on both sides.  

“What do I need to do?”, you might be wondering – we’ve compiled our top tips, so that, together, we can keep your business compliant!  

Accuracy – not approximation 

To process payroll accurately, we heavily rely upon up-to-date employee information. This may seem obvious but it’s very important. As a business, it is your responsibility to maintain all records for the entire duration of each employee’s tenure. This means accurately updating any personal information, which can change regularly – this information is likely to affect your payroll. 

We need to be kept up-to-date throughout the year to ensure all your employees receive the correct wages. This can range from bonuses, salary increases, maternity leave, etc. No matter what the change, you must keep an accurate record. This not only helps us to manage your payroll, but should you be subject to an investigation, you have all the records to prove your compliance.  

Managing Employee Expectations  

As an employer, it’s crucial to ensure that your employees understand what is required from them regarding payroll. This can be a variety of things, but the most common areas are company expenses and overtime. This may involve implementing a process for employees to record expenses and overtime properly. Whether you implement an automated system or explain how to document it, it is essential employees understand the policies and practices that affect their pay.  

Implementing these clear guidelines can deter employees from providing inaccurate information which will reduce errors in additional payments. 

Stay informed 

Legislation is an ever-changing scope, and you need to stay aware of any updates. Following on from the Spring Budget, there were a few changes that will affect payroll. Some of the headlines included a 2p cut to National Insurance and an increase to National Minimum Wage 

These changes will obviously impact your employees’ gross pay, hence why it’s essential you stay on top of any updates from HMRC. If not, you will be at risk of being penalised. We understand that staying up to date with any updates can feel like a juggling act. That’s why our team at FTPay are a great solution for businesses that don’t have a dedicated payroll team. With our expertise, we ensure all updates are implemented, allowing you to focus on core business operations with peace of mind.  

Making FTPay work for your business 

To fully benefit from our services, we conduct a thorough assessment of your payroll processes and requirements. We tailor our services to meet your specific needs, providing customised solutions that align with your business objectives. We have specific deadlines throughout the month for our clients to submit their monthly payroll data, so that we can process payroll with accuracy and compliance. You can find our payroll calendar here, with a full breakdown of dates throughout the tax year.  

Our goal is to simplify payroll compliance for your business, allowing you to focus on core operations, while we handle the complexities of payroll. With FTPay, you can rest easy knowing your payroll is in safe hands. 

If you require any further advice, or would like to enquire about our services, please do not hesitate to get in contact with our Commercial Client Director, Fabrice Legris at fabrice.legris@fiandertovell.co.uk