Over the past few years, the shift towards practices now maintaining their financials on a cloud-based accounting platform has been evident, with many accountants demonstrating the significant benefits to be achieved by the efficiencies of practices automating their basic bookkeeping processes. The ability to produce regular detailed reports to deliver key financial indicators of the practice has meant principals have meaningful real-time financials that can help them assess and benchmark their practice’s performance. With technology in both the dental and cloud accounting sectors advancing at faster pace now than ever before, what further benefits can cloud accounting hold.
Where an employer reimburses employees set amounts of cash to pay for business expenses like travel and meals, these are known as scale rate payments. HMRC publish advisory benchmark scale rate payments that can be paid in relation to qualifying travel, tax and NI free, without the requirement to produce receipts. The employer can pay less than these rates if they wish if they pay more, without agreeing a higher bespoke rate with HMRC, the excess is subject to tax and NI.
When contracting for work overseas, ensuring companies are aware of the potential taxes they will be faced with is of critical importance, so they can build a contract price which factors in as much additional tax and compliance costs which the business and its personnel may face in that overseas location, as is possible.
The problem with a classic appraisal is that it can often be backward looking. Let’s say you schedule it every six months. It can be demoralising and time-consuming to go over old ground and then file a report…that in reality might not get looked at again for another 6 months!
Are you a UK business with overseas based directors? Are you aware of the compliance obligations?