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Parris and McNally : A forward-looking accountancy firm geared up for the digital age.

This Xero Gold Partner Firm is based in Prestwick, with clients across Scotland.

Xero Gold Status is an achievement that reflects Parris & McNally’s level of experience using Xero for our customers. It is an achievement we are intensely proud of and intend to build on.

“Our strapline says accountancy for a digital age,” Joint Owner Colin McNally said  “So we assist businesses to develop their financial management and book keeping reporting to truly deliver a cloud based accounting experience.”

Parris & McNally take pride in their ability to communicate with their clients. They are a company prepared to listen to their customers’ needs, so that they can understand the services required and deliver a second-to-none bespoke experience.

If a company needs that refresher on how to to get the bet out of cloud accounting software “We also do a considerable amount of training on cloud accounting and we make sure clients understand how to best use Xero.”

In these difficult times it has never been more important to get the right people onside. Those with the experience, the know how and the technological insight to help you develop and grow.

To make contact simply go to the website https://parrisandmcnally.co.uk or to make direct contact  you can reach out to lucy@parrisandmcnally.co.uk

Companies like Parris & McNally are not only ready for the challenges of the 21st century but are also equipped – as the strapline says – for the digital age. Simply essential.

When Does A Hobby Become a Business Venture?

With an abundance of spare time over the last couple of years, it’s no surprise there has been a significant shift in perspective of how people want to approach their working lives. Either the perception that “life’s too short” has occurred to many of us, and people are putting their own interests over their primary job role.

Some intrepid individuals have found a winning combination, turning their beloved hobbies into profitable ventures, but when exactly does a hobby become a business?

If you’re thinking of turning your hobby into a source of income, then you’re already part-way there. There are a few giveaway signs that you may already be enjoying more than just a hobby, known as the Badges of Trade. Not all the badges will apply to everyone, and some may point in different directions but they can determine whether or not you’re trading as a business.

The Badges of Trade

• You’ve been selling products or services to make a profit
• You’ve made a number of similar transactions showing buying and selling
• The items you have bought are of a type that can only give an advantage by selling them
• You have repaired, changed or improved items to sell or gain profit
• You carried out the sale in a way that is typical of other trading businesses
• You took out a loan to buy items and can only repay that loan buy selling the items on
• There is usually a short time period between buying and reselling an item
• You haven’t acquired the items by inheritance or as a gift

If any of the above statements apply to you then it may be time to consider registering with HMRC as a business, sole trader or as self-employed but don’t let this administrative side of things put you off. It may seem daunting because it’s new to you, but every new business faces this when they start out. Plus, it’s why friendly accountancy companies like us exist, we’re here to help, and if you feel you have a business idea that is ready to bloom we’re right here to support you.

Turning something that you love doing into a money making venture can be extremely rewarding and it’s important to note that you should not risk trying to keep your profitable hobby as simply that. Should you be caught out by HMRC you will likely be facing fines.

You can find more useful tips about starting a small business on our website: EzycoAccounts.com or just give us a call 0131 510 0002.

Your 2020/21 tax return and Covid Grants – a warning for the self-employed

With HMRC beginning to send out Tax Return requests for 2020/21 you need to be aware of how any grant monies you may have received impacts on your tax bill.

This particularly applies to those of you who are self-employed or in a partnership.

Your business profits are taxed in the year in which your year end falls.

For example, if your year end is 31 May 2020 then those profits are taxed in 2020/21 (because it lands between 6 April 20 and 5 April 2021)

What you may not realise is that not only are the May 20 profits taxed but HMRC have stipulated that you must also include any SEISS grants you may have received up to 5 April 2021 even though most of the grant monies will be included in your May 21 results.

It could mean that May 20 was for the most part a normal year (apart from April and May) and that this year your profits are much lower because of lockdown going on for much of the year.

But if you have to add in to your May 20 profits the SEISS (Self Employed Income Support) grant monies it could possibly put you into the Higher Rate tax bracket when you are not normally in that position.

Then when you submit your May 21 results for 2021/22 and you take out this year’s SEISS monies (even HMRC don’t tax you twice) you have little or no profit left and therefore a much smaller tax bill – if any.

There are two new boxes on returns this year just to record SEISS grants. One to record grant monies received correctly and the other for incorrect claims. You need to exclude your SEISS monies from your accounts schedules and show them instead in the relevant SEISS box.

With one hand the taxman gives and with the other…..