Personal Self Assessment Deadline - 31st Jan

With Christmas on the horizon, it’s easy to forget that there’s another big day just over a month away – the deadline for filing a personal tax return (online) on 31st January 2012.

This deadline refers to the tax year 2010 – 2011 (ending on 5 April 2011).

You are required to complete a self assessment if, during this period, you were a Director of a company or you received any taxable income outside of a normal PAYE salary.  You also need to complete a self-assessment if you’ve been requested to do so by HMRC for any other reason.

Tempo takes care of your business’ tax affairs, however, if you also need to complete a personal self assessment return, we are always on hand to help – just get in touch and ask us for a quote to get everything sorted for you.

Try not to get caught up in the festive frenzy and leave it to the last minute, as the penalties for filing your return late are even more punitive than the credit card interest charges on your Christmas shopping. One day late and you incur a £100 fixed penalty, followed by £10 a day for the next 9o days, which could work out more than the tax actually owed. After six months and then again at a year you will then be fined a further £300 each time, or 5 per cent of the tax owed, whichever is greater. Ouch.

For full details of the self assessment process visit: http://www.hmrc.gov.uk/sa/deadlines-penalties.htm

How to have a Happy (Tax-Deductible) Christmas

Source: freedigitalphotos.net

Christmas Parties for Employees

The festive season offers an ideal opportunity for you and your staff to get out of your normal workspace for a Christmas party, and it’s a great way to show your appreciation for all their hard work during the year. Even better, providing you stick to the HMRC guidelines, the party expenses are tax deductible too.

The guest list:  Keep in mind that in order for the expenses to be tax deductible, the party must be open to all employees, and each employee can bring one partner/spouse too. As the director of a limited company, you are also considered to be an employee. However, non-employees (including clients or suppliers, for example) are not included in this allowance.

The budget:  You can claim up to £150 for each employee and their non-employee guest per year. This does not have to be at one single event, as long as the total cost per year, per head, does not exceed £150. This also includes all the associated costs of organising the event such as travel to the venue, accommodation, and the food, drink and entertainment during the actual party.

Benefits in Kind:   If you exceed £150 per person in one year, even by £1, there will be a ‘benefits in kind’ charge for each employee and they will have to pay tax and Class 1a NICS on the whole amount spent per head on the function. So it makes sense to organise a modest event rather than blow the budget!  Also remember, the £150 is not an allowance, but a maximum limit for the actual cost, so don’t feel you have to spend the full amount.

A note for Scrooge:   This applies to all expense claims, of course, but remember you can’t simply claim back £150 cash allowance from your business and not hold a party – you can only claim for legitimate expenses incurred for an actual event!

Christmas Lunch for Clients or Suppliers

Freelancers, self-employed individuals and contractors who don’t have staff to celebrate with may consider taking their most valued client out for a Christmas lunch to show their appreciation. However, this is classified as business entertainment and is not tax deductible, and you can’t claim VAT back either. However, treating your best client to lunch has relationship-building potential that may prove well worth the money – and after a glass of mulled wine they might be willing to give you a cheeky heads-up on next year’s projects too…

Finally, don’t forget to keep all your receipts and upload them to your Tempo account as soon as possible to keep your expenses on track.

Enjoy the party!

Highlights from the Autumn Statement

This week’s Autumn Statement from the Chancellor of the Exchequer George Osborne contained a raft of announcements designed to bring security to the economy and stimulate business growth.

Mr Osborne pledged: “We will do whatever it takes to protect Britain from this debt storm, while doing all we can to build the foundations of future growth.”

So, we asked our team which initiatives will have the most impact and benefits for SMEs in the coming year.

Finance for Small Businesses

The Government has announced it is to underwrite at least £20 billion (possibly up to £40 billion) of business loans under the National Loan Guarantee Scheme, set to run for two years from 2012. This could deliver up to a one percentage point reduction in the cost of a business loan, but if credit checks and lending criteria are not relaxed, will this new scheme have a real chance of boosting growth?

We recommend you go back to basics with a solid business plan, backed up by cash flow figures and realistic growth forecasts, and you may have a better chance of getting funding to take your business to the next level.

Changes For Employers

Getting the right team in place is essential to help your business thrive – but dismissing unsuitable staff can be a minefield. The qualifying period for unfair dismissal claims will increase from one year to two from April 2012, making it more tempting for employers to recruit new staff. There are also plans to make the dismissal process simpler and quicker, and fees will be introduced for those who want to bring cases to employment tribunals. The prospect of new Compensated No Fault Dismissals for smaller businesses with fewer than ten staff means employees could be dismissed with no possibility of a tribunal – unless discrimination is involved.

Disputes and tribunals can be costly for small businesses. For a useful guide to your obligations as an employer, visit: http://www.businesslink.gov.uk/employment

Travel Expenses

The planned fuel duty increase of 3 pence per litre due to take effect on 1st January has been dropped, and the 5 pence per litre increase scheduled for 1st August 2012 will go down to 3 pence, giving some relief to commuters and businesses where travel is a necessity.

Don’t forget to keep your petrol receipts and log your business mileage. The Tempo online accounting system means you can upload receipts using our iPhone app and we can help you keep track of your travel expenses.

Business Rate Relief

The holiday on business rates for small companies announced in the Budget has now been extended from October 2012 until April 2013. All businesses, including larger ones, will be able to defer 60% of next year’s rise in business rates to the two following years.

Thinking of opening a new business premises? Find out more about business rates at: www.businesslink.gov.uk/businessrates

For full details of the Autumn Statement visit:  http://www.hm-treasury.gov.uk/as2011_index.htm

Business Link's online support for start-ups

Going freelance or launching a new business may be the most exciting step you’ll ever take in your professional life, but there can be a rather daunting list of issues to consider, from writing your business plan to your legal obligations when becoming an employer. Although we can help our clients manage their tax and accounting, when it comes to other issues, we often recommend they take a look at the excellent information provided by Business Link at www.businesslink.gov.uk.

Since closing all its high street offices, the government’s Business Link service has been reinvented as a useful online resource for advice on everything from finding a professional mentor, to health and safety regulations and even how to market and sell your products or services. Best of all, it’s completely free.

There’s a range of interactive online tools on the site – including how to assess your company’s performance; a recruitment checklist for when you are taking on new staff; and a guide to measuring your sustainability with tips on how to cut your costs by running a greener business.

We particularly like the flash video tutorials and case studies, which provide inspiration and advice through interviews with successful entrepreneurs and Business Link advisors. If you’ve invented a fantastic new product, you might want to find out how to protect your idea with a trademark, for example; or maybe you’d like to discover how to benefit from cloud-based computer systems; or perhaps take your business to the next level and learn more about the challenges of pitching to potential investors.

For the complete start-up directory of online tools, e-learning resources and video case studies and tutorials go to: https://online.businesslink.gov.uk/hub/action/render?pageId=learningdirectory&r.l1=1075193173&r.s

Tempo's iPhone App Launched

We are excited to announce the launch of our iPhone app!

This early version of the app (also available on the Android store) allows users to capture an image of an expense / purchase receipt using their mobile or tablet and upload it directly to Tempo over 3G or wifi.

No more weekends need be spent catching up with expenses.

If you've just bought a train ticket why not take a photo of the receipt, add the details and upload it into your accounting system even before you've even got off the train. Once the receipt is uploaded you'll see the expense details along with a copy of the image when you sign in to Tempo's website.  Tempo stores this image so you don't even need to keep the original.

Search for "Tempo Accounting" in the Apple or Android stores to download our app.

We are looking for feedback from our clients to help us decide which features to include in future versions.

Tempo at Bristol's OnlyConnect Event

Tempo's team had a great evening at an OnlyConnect event in Bristol recently.

It was a great opportunity to get to know our local clients and enjoyed meeting many others from Bristol's business community.

The three cheesy grins below belong to Charlie, Justin and Anna from our office in Bristol.  You've probably spoken to us on the phone already but hopefully we'll meet you in person at another event soon!

Keep track of your costs with this new report.

Ever wondered where your business is spending most money?  Tempo's new "Summary of Costs" lists all purchase categories in order of total spend so that you can quickly see an overview of your costs during a given period.

You can also drill down into a purchase category to view the items included in the total.

Tempo's Android App Released

We are please to say that the first version of our App for Android devices has been released into the Android Market Place.

The app allows you to add expenses via your mobile phone and upload them directly into your Tempo account.

The best feature is the ability to take a photo of your receipt and store it along side your expense claim within Tempo.  We'll look after the receipt image for you!

If you have uploaded an expense claim, the next time you sign in to Tempo you'll see it there ready for your authorisation.

Search for "Tempo Accounting" in the market place.  Or follow this link.

Updates to your Contacts' Profile Page

We've made some changes to the area displaying details of your contact.  You can now view a summary of sales, purchases and any amounts outstanding.

You'll notice a few of the links along the top have been tidied and moved to more relevant positions within the page - for example the Statement of Account link now appears under the Sales summary.

All figures will take you to a breakdown of the relevant invoices.

Emailing a Client's Statement of Account

A "Statement of Account" summarises invoices which have not yet been paid by a client.  It clarifies exactly which invoices are outstanding and the balance due on each.

You can view or send a Statement of Account within Tempo.  Just like an invoice, the statement is PDFed and branded with your logo (assuming you've set your logo up!).

To see this in action, select a contact to view their details and in the menu bar at the top click "Statement of Account".  Clicking the "Email" link will allow you to confirm the required email address before sending.

We will be spicing up the 'contact view' soon with a summery of financial details such as outstanding invoices and total business.  We'll keep you posted!

CRM in Tempo - Recording Contact Notes

Tempo's "Contacts" feature is used to store details of the people you do business with (clients, suppliers and prospects).  We've boosted this with a basic CRM feature (Contact / Customer relationship management).

The new feature enables you to record adhoc notes relating to a contact in chronological order.  So, for example, if you've phoned a client and wanted to record details of the call somewhere - you can now add it to the contact's record within Tempo.

Simple but effective.  If the feature is well used we'l be adding additional CRM features such as 'labels' into Tempo.

Changes to the Add Expense form

Based on valuable feedback we have (hopefully!) improved the interface for adding new expense purchases.

Previously you needed to specify the NET and VAT amount of an expense.  However, given that most receipts have the Gross amount (Net+VAT) as the prominent figure we've updated the entry form to reflect this.

You'll see that the first amount required is the Gross (i.e. total) and then, if there is any VAT to claim, you can specify the VAT amount also.

Let us know what you think...

Automatically get help categorising your purchases

If you can't find a category that is suitable for your purchase item, you can now simply select the top option - '100 - Unknown'.

This will automatically inform Tempo's support team who will code the item for you!

Expenses and Purchase Invoices - Now Merged

In our continuing effort to make Tempo as simple to use and understand as possible we've improved the way Purchase Invoices and Expenses are shown.

Previously these two types of company expenditure have been kept separate and each had their own menu options.  However, the essence of an expense and purchase is the same so we thought we'd bring them under the same roof.  Viewing "purchases" will now list purchase invoices and expenses together.  The only difference is the entry forms which we've not changed.

Hopefully you'll find the system clearer but get in touch with comments.

This is one step towards a much more powerful and graphical reporting interface that we are working on.

Zoom in on your profit and loss report

We've had a live profit and loss statement for a while now but we've recently started jazzing this up to include the ability to drill down into the items on the statement for further analysis.

This extends to Sales, Indirect Costs and Depreciation but will soon be extended to all items.

From the Taxes and Reports section on the main menu select "Profit and Loss".

For advice on how to interpret your P&L feel free to call your Tempo Advisor.

Previewing your current VAT Return

If you've ever wanted to be able to see how things are shaping up for the current VAT period you will be pleased to hear that this is now possible.

The VAT Return figures cannot be finalised until the end of the period but you can now see what your current VAT liability is at the current moment in time.

Use the main menu and click "VAT" in the Taxes section.  From here you can see a list of previous returns and an option to preview the current return.

Note that this preview can only be created once you have closed previous VAT period.

Correcting bank payment entires

If you've added a payment record into Tempo and since realised that the date, amount or even bank account was incorrect, it's now easier to correct.

From your bank statement you'll see the new edit links next to each entry. Click this to adjust the entry or delete it.

Edit links also appear next to the payment details when viewing an invoice or expense.

We are currently implementing tighter controls around editing old entries so look out for improvements in the future.

Account transfer cleared dates

A "Transfer Cleared" date has now been added to the bank transfer page.  This is based on feedback from clients who's bank does not do same-day-transfers.

You can now specify what date the funds left the account and what day it arrived into the new account (cleared date).

Bank transfers should be recorded when, for example, you have multiple business bank accounts (e.g. current & savings) and you move funds between these accounts.

Recording your salary payments to employees

If you are running payroll for employees you can (and should) now update Tempo with the date that you made your salary payments.

When viewing payslips (Menu - Recent Payslips) select the check box to the right of the payslip that you've  paid.  Select the date and bank account used then click Save.  This will mark the payslip as paid and update your bank statement on Tempo.

If you've paid more than one Employee on the same date (and using the same business account) you can select more than one payslip at a time.

If you've not paid the full amount for some reason - you can change the amount in the text box before saving.

Viewing Invoice / Expense Payments

Based on feedback we now show the payments (i.e. bank transactions) associated to an invoice on the Invoice Details page.  The same applies to Expenses.

There used to be a link at the top of the 'Invoice details' page 'View Payments'.  This has been replaced by a new section 'Payment Transactions' at the bottom of the page.  Click the 'Show' link to toggle the view of these details.

Emailing Invoices from Tempo

Your PDF sales invoices now can be emailed to your client  from within Tempo.

When viewing your authorised invoice click the new "Email Invoice" near the top of the page.  A pop-up box will allow you to specify the email address.  By default your clients email address is shown but you can email the invoice to any where required.

Soon you'll be able to edit the content of the email but for now a default message is used.  Try emailing an invoice to you own address to see it in action.

New Dashboard!

Finally - we've jazzed up your dashboard.  Your dashboard is the page you see when you first log in to Tempo (or follow the Dashboard link).  The idea of this area is to provide you with a quick overview of relevant information.  For example - recently raised invoices, imminent company events (from your schedule) and quick links for common actions such as raising invoices.

It's pretty simple at the moment but soon we are releasing the feature for you to be able to choose from a list of "widgets" which will be shown on your dashboard.  Hence, it's totally customisable.

We're keep you posted on these developments but for now let us know what you'd like to see on your dashboard.

Adding Users, Directors and Owners

You can now record individuals related to your organisation on Tempo.  For example, if your company has a new director you can add their details and assign them a user account.

You can also create accounts for other individuals who may need access to your records.  For example, you may employ a book keeper to tap in your expenses and so need to provide them with their own login details for Tempo.

From the main menu look for the "Individuals" section.

You may also have noticed the new 'Account' link (top right) this is where you can change your password etc.

Payroll Settings and Adding Employees

You can now add details of your PAYE scheme to Tempo.  Defaults such as payroll frequency and pay-run date can be set up according to your requirements.  In the main menu look for "Payroll Settings".

From here you can also add 'Individuals' as employees and set their salary levels.  We are still working on areas such as P46 etc but this will be released soon....

Banking and Interest Charges

As well as recording the interest received on a bank account you can now record banking charges taken from your account.

This covers interest charges and transactional charges.  Go to the Banking section on the main menu and select the link "Charges".  From here you choose whether the charge was for interest or a transactional charge.  Provide the amount and date taken and select which account the charge was taken from.

Recording Interest Received

If you are lucky enough to receive interest income into one of you business accounts be sure to record the transaction on Tempo.

Under the banking section of the main menu select "Interest" and provide the amount, date and paid-to account.  Your statement and income records will be updated automatically.

Transferring Funds Between Accounts

We've just released the facility for you to record money transfers between your company accounts.

From the Banking section of the main menu select Transfers.  Choose the account From and To and enter the date and amount of the transfer.  Your statements and balances will then be updated.

Note that both the From and To accounts are updated (you do not need to record the transfer twice!).

This should be used for:

• Recording cash pay-ins and withdrawals
• Recording money moved to and from a savings accounts
• Recording when you paid off some or all of you company credit card
• Recording any transfers between your company accounts

New VAT Wizard

Calculating and filing your VAT returns is now pretty easy.  Your schedule shows when the VAT return is due and when the payment deadline is.

At the end of each period simply follow the VAT return link from your Schedule to see the figures for your latest return.

When you've paid the bill you simply follow the on-line instructions for recording the payment.

Payroll Settings

We've started developing the means for you to control your payroll settings.  You can view your current PAYE scheme details and employee settings under the new "Company Payroll" area of the main menu.

Payroll is now run automatically on the morning of your chosen payroll run date.  This adds a payslip record and an entry in your director's statement.  Soon it'll email over details and a payslip.

If you need to change the amount paid (per month or week) this can now be updated on-line.  Follow the links from the main menu.

Invoice defaults

You can now customise the style of your default invoice numbers.  Possible examples are

• INV12
• INV000012
• ABC000012
• 0012

To access these defaults use the new 'settings' option in the pop-up menu under 'Sales Invoices'.

Other settings include, default payment terms (number of days before the invoice is due) and coming soon is the ability to upload  a new version of your logo for display on the invoice.

Invoicing - Notes for your clients

We've just added the facility for including general notes (for your client) on your sales invoices.

These notes are added to your PDF invoices in a space above the Invoice Items.

Edit these notes when adding invoice items.

We've also been working on the "Account Set-Up" wizard and tweaking the general style of the site...