Accounting & Business Advisor Spotlight: Fabrice Legris

Accounting & Business Advisor Spotlight: Fabrice Legris

by | Oct 28, 2024 | Latest News

With more than 35 years of experience in practice, Fabrice Legris is a seasoned expert in the world of accounting and business advisory. As Commercial Client Director at Fiander Tovell, Fabrice brings a wealth of knowledge and a unique blend of industry and practice experience to his role, having spent significant time advising owner-managed businesses across various sectors. 

“I trained with PWC in London, and for most of my career, I’ve been working closely with business owners, helping them with their accounting, tax affairs, and overall business strategy,” Fabrice explains. “But my time in industry, particularly in the tourism and aviation sectors as Finance Director for a large conglomerate, really helped me gain a deeper appreciation for the financial, operational, and strategic support that businesses need.” 

A Passion for Business Management 

Although Fabrice’s academic background is in Chemical Engineering, his passion for numbers and business management led him to pursue a career in accountancy. “I enjoyed the scientific aspect of engineering, but I soon realised that my real passion lay in finance and working with businesses. I wanted to use my skills to help companies grow and succeed,” Fabrice reflects. This drive has led him to work with clients from industries as diverse as healthcare, property investment, professional services, and marine. 

The Value of Client Interaction 

What Fabrice enjoys most about his work is the tangible difference he can make to his clients’ businesses. “I find it incredibly rewarding to provide guidance that adds value—whether that’s through tax savings, a strategic review, or support during a business sale or purchase. The variety keeps the work interesting, and seeing the positive impact on a business is always gratifying.” 

A recent success story that stands out for Fabrice is helping a long-standing client navigate the due diligence process of selling their multi-million-pound business. “It was a complex process, but it was rewarding to see it through and to have the buyer retain me as their advisor because they appreciated my proactive approach.” 

Staying Ahead in a Changing Landscape 

Like many fields, business advisory and accounting are rapidly evolving, and Fabrice emphasises the importance of staying current. “There’s a growing need for automation and AI in our work, which is reshaping how we operate. While these advancements are crucial, I also see a risk in losing the personal touch, which I believe is still essential when working with clients,” Fabrice notes. 

As the industry continues to change, Fabrice remains committed to professional development, staying updated through continuous learning and regular engagement with industry updates and journals. He believes that the future of his field will see increased reliance on technology, but that human interaction and personalised advice will remain crucial. 

A Client-Centric Approach 

Fabrice’s approach to client service is clear: he prioritises a deep, personal interest in his clients’ business affairs. “What sets my approach apart is my continuous focus on client service. In a world that’s becoming more impersonal, I am keen to make sure my clients get the attention and care they deserve,” he says. His goal is always to exceed client expectations, providing honest, high-quality work that addresses their specific needs, from compliance to growth strategies. 

Personal Life and Achievements 

Outside the office, Fabrice enjoys spending time with his family and engaging in a variety of sports, with a recent passion for golf. He regularly visits Mauritius, his country of birth, to stay connected with his roots and family. 

One of Fabrice’s proudest moments in his career came at the age of 28 when he became a partner in the firm of accountants he worked for after qualifying. “It was a huge milestone for me and really solidified my passion for this career.” 

With his breadth of experience and client-first approach, Fabrice Legris continues to be a trusted advisor, making a significant difference to businesses across multiple sectors. If you would like to contact Fabrice with any queries, please email fabricelegris@fiandertovell.co.uk for more information. 

Understanding Cash Accounting for VAT: What You Need to Know

Understanding Cash Accounting for VAT: What You Need to Know

by | Sep 26, 2024 | Latest News

Cash Accounting for VAT is a scheme that allows businesses to account for VAT based on the cash they receive and pay, rather than on invoices issued and received. This approach can be particularly beneficial for managing cash flow, as you only pay VAT on your sales once you’ve received payment from customers. However, it also comes with certain drawbacks that need careful consideration. 

At Fiander Tovell, we specialise in helping businesses like yours navigate these complexities. Our team can guide you in determining whether the Cash Accounting Scheme is the right fit for your business, ensuring that you maximise its benefits while avoiding potential pitfalls. 

Advantages: 

  • By paying VAT only when you receive payment, you protect your finances from the strain of late customer payments. 
  • If a customer fails to pay, you don’t have to pay the VAT, which automatically reduces the impact of bad debts. 
  • Aligning VAT payments with actual cash flow makes it easier to manage your finances. 

Disadvantages: 

  • You can’t reclaim VAT on purchases until you’ve paid your suppliers, which might negatively impact cash flow. 
  • If your business has significant upfront costs, like a start-up, the delayed VAT recovery could be a disadvantage. 

Eligibility and Implementation 

Our team will assess your eligibility for the Cash Accounting Scheme, considering factors like your taxable turnover, VAT return history, and business activities. We’ll also assist you in implementing the scheme, ensuring that your VAT accounting aligns with HMRC guidelines and that you don’t double-account for VAT on transactions. 

Ongoing Support and Compliance 

We provide ongoing support to help you stay compliant with VAT regulations. If your business grows and your annual turnover exceeds the scheme’s limit, we’ll guide you through the process of exiting the scheme, ensuring that your VAT obligations are met without unnecessary complications. 

How We Can Help 

At Fiander Tovell, we understand that every business has unique needs. Our experts will work with you to evaluate your cash flow, sales patterns, and supplier relationships to determine if the Cash Accounting Scheme aligns with your financial goals. We’ll guide you through the process of implementing the scheme and provide ongoing support to ensure compliance and optimal financial management. 

If you like to learn more, please see our full guide on VAT cash accounting here or contact our Commercial Client Director, Fabrice Legris, at fabrice.legris@fiandertovell.co.uk 

VAT: Annual Accounting Scheme

VAT: Annual Accounting Scheme

by | Sep 11, 2024 | Latest News

HMRC has introduced several VAT schemes to ease the administrative load on small businesses. One such scheme is the Annual Accounting Scheme, designed to make your VAT management simpler and more efficient. 

At Fiander Tovell, we understand that navigating VAT regulations can be challenging. As bookkeeping specialists, we’re here to help you streamline your processes, reduce administrative burdens, and ensure compliance. Our expertise allows you to focus on growing your business while we handle the complexities of VAT management.

What is the Annual Accounting Scheme? 

The Annual Accounting Scheme is tailored for small businesses, allowing you to submit just one VAT return annually instead of the usual four. Throughout the year, you make instalments based on an estimated liability, with a balancing payment due with the return. This scheme helps with budgeting, improves cash flow, and reduces paperwork.

Joining the Scheme  

You can apply to join the scheme if you expect your taxable supplies in the next 12 months to not exceed £1,350,000. To be eligible, you must be up to date with your VAT returns and cannot register as a group of companies. Applications are made using form 600(AA), available on the GOV.UK website or via a link in VAT Notice 732. HMRC will notify you in writing if your application is accepted.

Paying the VAT 

If you’ve been registered for VAT for 12 months or more, you’ll pay your VAT in nine monthly instalments of 10% of the previous year’s liability, due at the end of months 4-12 of the current annual accounting period. Alternatively, you can choose to pay in three quarterly instalments of 25%, due at the end of months 4, 7, and 10. The balance of VAT for the year is then due with your VAT return, two months after the end of the annual accounting period. 

For businesses registered for less than 12 months, instalments are based on an estimate of the VAT liability. HMRC will advise you on the amount of the instalments. Typically, the annual accounting period begins at the start of the quarter in which the application is made, unless submitted late in the quarter, in which case it starts at the next quarter’s beginning. 

If your business changes significantly, you can apply to HMRC to adjust the instalment levels accordingly. 

You can leave the scheme voluntarily at any time by writing to HMRC. You must exit the scheme if your annual taxable turnover exceeds £1,600,000.

Advantages of the Scheme 

  • Reduced VAT Returns: Submit only one return annually instead of four. 
  • Cash Flow Management: Known and certain monthly liabilities help in managing cash flow. 
  • Extended Time: Gain an extra month to complete your VAT return and pay any outstanding tax. 
  • Simplified Calculations: Beneficial if you use a retail scheme or are partly exempt.

Potential Disadvantages 

Interim payments might be higher than necessary since they are based on the previous year’s liability. However, you can request an adjustment from HMRC if the difference is significant. You are also required to notify HMRC if your VAT liability is expected to significantly deviate from the previous year.

How We Can Help 

At Fiander Tovell, we can assist you in planning your VAT administration and help determine if the Annual Accounting Scheme is beneficial for your business. We offer professional advice tailored to your specific needs, ensuring that your VAT management is both efficient and compliant. If you need more information about the Annual Accounting Scheme, please see our full guide here.  

For more detailed information, please contact our Commercial Client Director, Fabrice Legris, at fabrice.legris@fiandertovell.co.uk. We are here to help you navigate these regulations and optimise your bookkeeping processes. 

Changes to FRS102 from FRED82: What does it mean for your business?

Changes to FRS102 from FRED82: What does it mean for your business?

by | Jun 28, 2024 | Latest News

On 27 March 2024, the final version of the amendments to FRS102 were published by the FRC to implement the proposals in their Financial Reporting Exposure Draft 82 (FRED82). 

What was in FRED 82?  

The main goal of FRED 82 is to align FRS 102 with international standards, specifically IFRS 15 and IFRS 16, focusing on revenue from contracts and lease accounting.  

The now implemented final version of the standard is effective for periods starting after 1st January 2026. It’s expected that this will apply to December 2026 year-ends onwards, although some shorter periods may also be caught.  

But what do these changes mean for your reporting obligations?  

Changes to revenue recognition 

FRS102 will adopt a slightly simplified version of the 5-step revenue recognition model from IFRS15. This could change the timing of when revenue can be recognised. 

Changes to lease accounting  

Lease accounting is how we account for any lease transactions you enter into. The new standard sets out that all leases will be included on your business’ balance sheet. At the moment, future operating lease commitments are only disclosed in the notes to the financial statements, but going forward we will be required to recognise liability, right-of-use assets, and profit and loss impact on the balance sheet.   

Preparing for implementation 

As we anticipate the implementation of the revised standard, we want to help you to understand the potential impact on your business, and how we can best manage this change together. Understanding the proposed changes, conducting an impact assessment, and updating accounting systems are crucial steps.    

With the support of our advisers, you’ll be able to navigate this transition smoothly, ensuring compliance and minimising stress. In the build up, we will help you to stay informed and proactive, empowering you to adopt the new standards seamlessly, maintaining efficient business-as-usual processes.   

There is still plenty of time until the changes come into effect, and we will be able to offer the tools and assistance you need to navigate the change as it’s required.  

However, if you have any immediate queries, please contact our Head of Corporate, Adam Buse at Adambuse@fiandertovell.co.uk for more information.   

Basis Period Reform: Key accounting dates and Making Tax Digital

Basis Period Reform: Key accounting dates and Making Tax Digital

by | Jun 13, 2024 | Latest News

Welcome to the final part of our series discussing all things basis period reform. In part 1, we outlined the changes involved and how they affect a business’ chosen accounting date along with their tax obligations. Part 2 delved into overlap relief and how best to utilise it during the transition.  

Now, in this final part, we investigate the finer details of basis period reform coming into force in 2023/24, with information on practicalities and interacting with Making Tax Digital, as well as some important considerations for businesses. 

Practicalities 

Can I change my accounting date to avoid basis period reform? 

Changing accounting date to 31 March or 5 April (or any date in between) will reduce ongoing administrative burdens from April 2024 onwards. In particular, it will remove the need to apportion figures from more than one set of accounts, and the possibility of having to file and correct provisional figures (see pt1).  

However, it will not remove the need to apply the transitional rules in 2023/24, or prevent additional profits being brought into account. 

If the change in accounting date takes effect in 2023/24, the business may however be able to access spreading (see pt2). 

The usual restrictions on changing accounting date are also disapplied from 2023/24. This means that, if it wishes, a business can draw up a set of accounts exceeding 18 months in length to effect the change. For example, if a business has a year-end of 30 April, they could change this by drawing up a single 23-month set of accounts for the period from 1 May 2022 to 31 March 2024. There is also no need to worry about having a commercial reason for the change where there has been a previous change in the last five years. 

However, whether a change in accounting date is suitable or possible is also a commercial decision, and businesses will need to consider the wider pros and cons beyond tax. 

How will basis period reform interact with Making Tax Digital? 

Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) will be introduced from April 2026 for businesses with turnover of £50,000 or more, and from April 2027 for those turning over at least £30,000. 

Taxpayers in scope of MTD ITSA will have to submit quarterly updates of their income and expenses to HMRC. These quarterly updates will align with the tax year, and not the accounting period of the business. 

The introduction of the tax year basis from April 2024 may make alignment with MTD for ITSA quarters easier. However, it should be remembered that, if the business does not have a 31 March or 5 April year-end, then under the tax year basis it is not the transactions actually taking place in the tax year which are subject to tax, but rather the apportioned profits of the relevant accounting periods. 

It is not yet clear exactly how software will handle the transition from quarterly updates to the taxable profit for the year, where a business does not have a 31 March or 5 April year-end. 

And that concludes our three-part series on basis period reform! If you missed any previous installations, please refer to the blog section on our website or the links within the article.  

If you would like to discuss any part with one of our advisors or need help with the transition, please contact our Commercial Client Director, Fabrice Legris, at fabrice.legris@fiandertovell.co.uk.