Real Time Information (RTI) Explained

Real Time Information (RTI) for PAYE

Real Time information will improve the operation of the PAYE system by creating more up-to-date taxpayer records and making the system easier for employers and HMRC to administer.

Why are HMRC changing PAYE

When PAYE was introduced almost 70 years ago, most people held just one job for most of their life and employers sent HMRC pay and tax information annually, but many people change jobs more frequently, or have multiple employments or pensions, making it more difficult for HMRC to keep their data up-to-date.

10 Ways to improve cashflow

Here are some pointers on keeping your business bank balance in the best possible shape:

1. Fast invoicing. It may sound obvious, but the quicker you get bills out to clients, the quicker you will be paid. A lot of companies leave invoicing until the end of the month and post out bills in bulk. Sending out bills as soon as work is completed and using email delivery is far quicker and more reliable. It also cuts out the “I still haven’t received the invoice in the post” excuse when chasing payments.

2. Make it easy for customers to pay you. Direct debits provide advantages for both you and your clients. From your point of view, setting up auto-payments takes away the time and stress of checking to see if people pay when they should, and also saves you chasing them if they are late. The client will also appreciate the convenience as it ensures continuity of service and preserves a good working relationship.

National Insurance

Explanation -National Insurance

You pay National Insurance contributions to build up your entitlement to certain state benefits, including the State Pension.

You pay National Insurance if you’re:

16 or over
an employee earning above £149 a week
self employed making a profit over £5,725 a year (unless you get an exception)

7 Tips to help you with your bookkeeping!

1. Have 12 envelopes or a 12 pocket concertina file to put your purchase invoices in….one for each month
2. Any purchase receipt that is not clear, write a note on it so you don’t forget
3. Keep unpaid sales invoices separate from paid, so you can ensure none get missed
4. Keep a separate bank account for all business transactions
5. Reconcile your bank account on a regular basis
6. If you are a limited company you only need an accountant to sign off the final accounts, a bookkeeper will do the bookkeeping much cheaper (check us out for great rates!!)
7. Complete your bookkeeping regularly (at least monthly if not weekly) to ensure you don’t miss anything