Get Paid Faster with Xero Add-On’s

Xero is Clay Shaw Thomas’ chosen online accountancy system. Xero is an online accountancy software system that is safe and secure and you can update your accounts anytime, anywhere.

There are over 1,000 Xero Add-On’s that integrate easily with your accounts and make your life a lot easier. Here we look at two of the best payment add on’s  Xero can offer.

  • PayPal (Global)
  • GoCardless (UK) – actually uses a direct debit process rather than credit card payments and you don’t even need a merchant account.

PAYPAL

One of the favorite features in Xero is the bank reconciliation and what makes it so appealing to users is not just the game-like feel to it, but the daily automatic feeds from major banks in the UK.

PayPal users out there will be excited to hear that you can now receive daily automated feeds from your PayPal account into Xero – for free. However there is a cost for your transactions currently at 3.4% +20p per transaction

If you use multiple currencies in PayPal, then you can import each currency separately using Xero’s multi-currency capability. To keep your accounts clean, Xero will only import transactions that change your PayPal balance – so you don’t need to deal with credit card purchases on your PayPal account or with currency conversions.

Cost

3.4% +20p per transaction

GO CARDLESS/DIRECTLI

Take invoice payments online through GoCardless and automatically reconcile them with Xero. Instant, free setup, and low transaction fees

GoCardless makes collecting by Direct Debit easy for everyone from one-man bands to multi-national corporations.

Directli’s role is to manage the payment handshake between Xero and GoCardless—generating invoices remains within Xero. Using Directli enables Xero users to automate the routine of invoice payment processing and settlement to your bank account, using variable amount (pre-auth) Direct Debit.

Payment collections through the system are processed via pre-auth as the process can be automated without your customers having to do anything beyond their initial mandate approval (customers must have an email address).

Cost

£99 per year + 1% transaction fee (capped at £2)

Is it that Simple? 51 sleeps to the Tax Return deadline

It’s just 51 sleeps to the Tax Return deadline. It may seem a long way away but it’s time to dig out the payslips, bank statements, income statements, as well as the expenses receipts you have stored around your home, handbag, wallet, car and in that kitchen drawer that’s never opened.

It is simple – to avoid the late filing penalty your tax return needs to be filed electronically by midnight 31st January 2015 (30 December 2014 if you owe less than £3000 and want HMRC to collect the tax through your tax coding).

However we’ve all been guilty of leaving it to the last minute to provide tax return information to get the tax return prepared  but the late filing penalty is due whether or not you have to pay any tax. So let’s get it done!

There are far more important things to do around this time of the year but making sure your tax return is filed as early as possible allows you to budget for the winter festivities.

Can we make the process easier? You can use our online portal ‘Docsafe’ to send us your information or by all means pop all your information into a bag and drop it to us. Either way we will handle it all for you. Get in touch today if you need assistance and we’ll be more than happy to help!

Autumn Statement

With the General Election looming next year there was always going to be something in this Autumn statement to appeal to the voter. The Chancellor, George Osborne, whilst emphasising the success of his polices and relative strength of the UK economy did make some unexpected giveaways:

– Stamp Duty is to be reformed, with the ‘residential slab system’ being abolished and replaced with a sliding charge: 0% up to £125,000, 2% up to £250,000 and 5% up to £925,000. Whilst this seems a fairer system it means that anyone paying more than £937,000 for a property will be saddled with a bigger stamp duty bill from today. A buyer of a £2.5 million home will have to pay £38,750 extra, while a £10 million mansion will attract £413,750 more tax. Looks like I won’t be putting in an offer on Downton Abbey after all!

– ISAs to retain their tax-free status when inherited by a husband or wife after the death of their spouse or civil partner. Great news for savers allowing them to pass on more of their hard earned cash.

– Increases were also announced to the R&D tax reliefs available for small and large firms

– The personal tax allowance will increase to £10,600 next year, instead of increasing to £10,500. The higher rate tax allowance increases for the first time in five years to £42,385 next year, with a target of reaching £50,000 by 2020. Higher-rate taxpayers will save an average of £172 next year – just enough for my wife to buy another pair of shoes. It’s a shame that they didn’t introduce tax relief on high heels – I would save a fortune! (on my wife’s purchases obviously)

– National Insurance contributions on payments to young apprentices under the age of 25 will be abolished

 

However, it was no surprise that tax evasion and avoidance featured heavily again in this year’s speech. Those using tax avoidance schemes remain firmly in the government’s sights as the statement includes measures to strengthen anti-tax-avoidance legislation and provide additional resources to HMRC to tackle tax avoiders. Measures introduced include:

– Entrepreneurs Relief no longer available on the disposal of goodwill to a close company to which the seller is related. A valuable relief that will impact on incorporation tax planning.

– A 25% tax on profits from activity in the UK for companies that shift profits offshore will raise £1bn over the next five years. That’s another £1 on the price of a coffee…

– Non-domiciled individuals who have been in the UK for 12 of the last 14 years will have to pay an increased charge of £60,000 to retain the status of being tax on a remittance only basis. Those resident in the UK for 17 out of the last 20 years will be charged £90,000.

 

Time will tell whether these measures will appeal to the voters, as always with any budget statement there will be winners and losers.

Contact us today if you wish to receive a full copy of our 2014 Autumn Statement

Employment Allowance

Employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £2,000. This is called the ‘Employment Allowance’.

Employment Allowance can be claimed from 6 April 2014.

You won’t have to pay any employer National Insurance contributions at all if you usually pay less than £2,000 a year.

Up to 1.25 million businesses and charities will benefit from Employment Allowance. Around 450,000 businesses and charities won’t have to pay any employer National Insurance contributions at all.

Eligibility

Employment Allowance is for nearly all employers that pay Class 1 National Insurance contributions on their employees’ and directors’ earnings. This includes:

  • businesses
  • charities
  • community amateur sports clubs

There are a small number of businesses and organisations that can’t claim Employment Allowance.

How to claim

You can claim through your payroll software, or alternatively contact us if you need any assistance and we will be able to guide you through the process.