The magazine of International Association of Bookkeepers

BOOKKEEPERTHE

October / November / December 2018

MAKING TAX DIGITAL:

AN OVERVIEW OF THE NEW

REQUIREMENTS

IAB Awards: Final chance to get your entries or nominations in

How the IAB works to support you

Word from Sarah: How to become a Finance Director for your clients

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International Association of BookkeepersSuite 5, 20 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU

Phone: +44 (0)1732 897750Email: membership@iab.org.ukWebsite: www.iab.org.uk

Twitter: @IABinfoFacebook: IABBookkeepers

Contents

3 Janet’s welcome A message from the chief executive and information

about our recommendation reward scheme.

4 Enter the IAB Awards Enter by 26th October to take part in this year’s awards.

Find out how you could be a winner by entering or by being nominated.

5 Membership renewals You’ll soon be invited to renew your professional

membership. Find out more about renewing as well as a reminder of the benefits and support available to you.

6 Making Tax Digital: An overview of the new requirements.

Find out about the new mandatory requirements coming into effect from 2019 for Making Tax Digital for VAT.

8 News items A selection of news items including updates from HMRC

and Government measures to boost funding for SMEs.

10 Why bookkeepers need a great website and marketing and a new member benefit from Yell Business

Discover guidance on building a great website and how you can promote your bookkeeping services. Also find out about a special offer for IAB members from Yell Business.

11 The IAB Funder Finder: Access to finance for IAB Members

Introducing a new way to source business funding for you, your clients or your employer using a business finance comparison website.

12 Could you be an IAB Council member?

Find out more about joining the Council and a welcome to the newest member of the Council, Elaine Gibson.

13 IAB London seminar and a campaign being run in response to the floods in Kerala, India.

Last chance to book to attend our London seminar. Also find out about a campaign which has been launched to help with the devastating impact floods have had in the Indian state of Kerala.

14 Are you, your clients or employer missing out on cash for innovation?

Find out about the UK Government’s Research and Development Tax Relief Scheme which rewards and encourages innovative companies.

15 Word from Sarah: How to become a Finance Director for your clients

In her regular feature, Sarah Palmer tackles the issues that matter.

16 How the IAB works to support you An overview of the work we do to support bookkeepers

and SMEs.

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2 | The Bookkeeper

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Bookkeeping is changing: the days of carrier bags full of receipts are disappearing. Businesses are now

photographing their receipts on their phone and it’s in their accounts. The role of bookkeepers is becoming more digital and advisory using tools to help not only your business but your clients or employer as well. That is why the IAB has teamed up with Yell Business and

Funder Finder. If you don’t have a website then get started with a free one with Yell Business. If you, your clients or employer are looking to expand and need funding then take a look at Funder Finder. Funder Finder can also be a new income stream for your business by introducing and helping your clients to get the funding they need to grow.

Recommending them for IAB membership will help them to maintain the highest standards of bookkeeping. They will gain the industry recognition and status they deserve, and £20 off their registration fee. You will be helping someone increase their value as a bookkeeper, and will get a reward too – either £20 off your next membership renewal, or a £20 Amazon voucher. The choice is yours.

As a member of the IAB you already recognise the benefits that membership can bring.

Now we can add one more!If you have a colleague or friend who works as

a bookkeeper or an accountant, and you would like them to join you as part of a professional body for people who make businesses better, then there has never been a more rewarding time to do so.

Are you ready for Making Tax Digital? Make sure you are by reading our article for an overview of the new requirements and information about what you can do to prepare.

Have you entered or nominated a colleague for the IAB awards yet? There are several categories including Bookkeeper, Accountant, Payroll Professional, Small Business Mentor, Student and Tutor of the year. The finalists are invited to the House of Commons to receive their award. It’s a great way to get recognised for the work and commitment that has been put in over the year. I look forward to seeing as many of you as possible at the awards.

Janet JackChief Executive

Please visit the link below for more information and for terms and conditions:

www.iab.org.uk/reward/. If you have any questions you can contact the membership team at membership@iab.org.uk or +44 (0)1732 897750.

Welcome

IAB’s recommendation reward scheme £20

The Bookkeeper | 3

The awards deadline is fast approaching. If you’re dedicated to helping your clients or employer and are passionate about your career, then you could be an IAB award winner. Why not enter

yourself or promote the awards to your clients or employer and suggest they nominate you? Alternatively, if you work alongside a deserving colleague then you could also nominate them.

The IAB Awards are a great opportunity for individuals and businesses in our industry to showcase their achievements. Winning a business award is a great accolade and the perfect way to show your clients or employer that not only do you believe in your business, but our team of independent judges also believe in your qualities and strengths.

This year individuals and businesses can enter themselves or can be nominated by a client, employer, or another professional they work with. There are a number of categories to choose from including:• Bookkeeper of the Year• Accountant of the Year• Payroll Professional of the Year• Small Business Mentor of the Year

So if you want to be in with a chance of winning one of our prestigious awards and celebrate your success at the IAB Awards Ceremony complete an entry form or nominate someone online via the following link: www.iab.org.uk/awards.

Entries will close on Friday 26th October. After this date the shortlisted candidates will be chosen and invited to attend our judging panel which will take place in London on 7th November. The panel can be attended in person or via Skype so please ensure you keep this date free should you be selected.

The IAB Awards Ceremony takes place on 6th December at Westminster Palace and is hosted by IAB President Fabian Hamilton MP.

To find out why entering business awards can be good for business we’ve posted our top 6 reasons here: www.iab.org.uk/blog/the-6-top-reasons-why-business-awards-are-good-for-business. We will also be posting the tips over the next few weeks on our social media channels using the hashtag: #iabawards.

So don’t delay – get your entry in today!

IAB Awards: Get your entries and nominations in by 26th October

4 | The Bookkeeper

For more information about the awards contact Kelly Orford at the IAB on +44 (0)1732 897754 or kellyo@iab.org.uk.

We will soon be inviting members to renew their professional

membership subscription for next year.Renewal notices will be sent out in the

next month, so if you have changed your postal or email address but not notified us please let us know. Your continued membership and support is highly valued and we look forward to you renewing your membership for 2019.

DiariesFollowing on from the annual membership survey we carry out each year, the feedback we have received is the majority of members don’t find value in the diaries which have previously been sent with the October editions of our magazine as increasingly diaries are kept digitally via a phone or email calendar. Therefore, we have made the decision not to send out diaries. Instead we will be sending out IAB notebooks which we feel will be more useful to members. These will be sent to you as you renew your professional membership.

Support provided to membersWe work hard to ensure you have services and support available as part of your membership package that will help you in your business or in your career. In 2018 we have added a number of new services that will support your ongoing success including a new offer with Yell.com, details about which are included on page 10 and Funder Finder, a finance engine that will benefit both you and your clients. For further details about this please see page 11. To bring yourself up to date on all of the support and services of your IAB membership login to the IAB Members’ Area here www.iab.org.uk/login. An overview of some of the benefits available to you can be found above:

Member benefits• Entitlement to use IAB designatory letters

after your name as evidence of the fact that you hold a professional qualification and elevating your status to the most professional level in the industry.

• Regular technical updates – Receive monthly IAB e-newsletters and the printed magazine, The Bookkeeper, keeping you informed of news and information about the IAB, your professional body. You also receive a free monthly technical e-newsletter, called Kestrian Small Practitioner, provided by Croner-i. This provides you with in-depth coverage on all the key UK topics including tax, accounting and auditing.

• Access to technical advice provided by other experienced members, plus a VAT and Tax helpline available to members.

• Opportunities for continuing professional development (CPD), including seminars and webinars enabling you to learn new skills. Online CPD courses are also available at special rates for IAB members.

• Entitlement to register and be supervised as an IAB Member in Practice and thereby comply with the Money Laundering Regulations*.

• Access to AMLCC, an anti-money laundering compliance product that can be used solely online. This product is available free of charge for those members who are supervised by the IAB under the Money Laundering Regulations. (www.amlcc.co.uk).

• Access to best practice advice via your Member’s Handbook, which is packed with invaluable information and sample documents to save you time such as Letters of Engagement, Compliance Checklists, etc.

• Preferential schemes and rates for Professional Indemnity Insurance from Arthur J. Gallagher, Solar Tax, Hensure Business Insurance and Trafalgar Risk Management.

• Preferential rates for personal and business insurance, discounts on business and lifestyle goods and services brought to you by IAB Privileges – a source of genuine savings that can easily exceed the IAB annual subscription.

• IAB Facebook group – Available exclusively for IAB members, the group has been created to provide further support to you and a platform where you can interact with fellow members. The group can be used for discussions relevant to studying or the bookkeeping profession, and can be used to post any queries you may have. To request to join the group visit: www.facebook.com/groups/IABmembersgroup.

* These Regulations require that those who provide accountancy, bookkeeping and payroll services to clients to be registered. This applies to all those who provide such services for payment (however small) on a self-employed or other business basis. Professional members, who are offering services to clients and not currently supervised by another approved body or HMRC, MUST apply for an IAB practising certificate or a Certificate of AML supervision (for an additional fee) which will ensure that they will be registered with and supervised by the IAB. Failure to comply with the Regulations may lead to prosecution. To apply for a certificate please contact the Compliance team via e-mail (compliance@iab.org.uk) or by telephone 01732 897750 to register your interest and an appropriate application form will be sent to you as soon as possible.

The IAB reserves the right, at its full discretion, to remove, add or amend member benefits. Where benefits are discontinued, the IAB will use its best endeavours to replace with others that are comparable or provide alternative value.

The Bookkeeper | 5

Access to technical advice provided by other experienced members, plus a VAT and Tax helpline available to members.

Just one of the benefits‘‘

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Annual membership renewals

Background to MTDHMRC’s ambition is to become one of the most digitally advanced tax administrations in the world and MTD is making fundamental changes to the way the tax system works.

It is anticipated the move to digital integration will eliminate many of the existing paper-based processes, allowing businesses and their agents to devote more time and attention to maximising business opportunities, encouraging growth and fostering good financial planning.

Many businesses use an agent and MTD will allow agents to continue to provide a full service in supporting their clients.

HMRC have consulted with stakeholders throughout the development of MTD, both formally and informally. Having listened to concerns about the pace of change, particularly for small businesses, the government announced in July last year that the pace of mandation would be slowed. VAT registered businesses with a taxable turnover above the VAT threshold (£85,000) are mandated to keep digital VAT records and send returns using MTD-compatible software from 1 April 2019.

HMRC recently published the VAT Notice 700/22: Making Tax Digital for VAT outlining the requirements in further detail.

PilotsMTD for VAT – this is currently a private pilot available to invited volunteer VAT businesses and their agents. This is so HMRC can work with software providers, testing their systems and their products on a small scale before opening it out to a wider audience.

MTD for Income Tax – this pilot is already available for the self-employed with income from one source of self-employment and landlords (except those with furnished holiday lettings).

Who will be affected? With effect from 1 April 2019, if a business’s taxable turnover is above the VAT registration threshold it must follow the rules set out in the VAT Notice. If the taxable turnover subsequently falls below the threshold then the business will need to continue to follow the MTD rules, unless it deregisters from VAT or meets other exemption criteria some of which is listed in the Exemptions section of this article.

Only businesses with taxable turnover that has never exceeded the VAT registration threshold (currently £85,000) will be exempt from MTD. Businesses will therefore need to keep an eye on their taxable turnover, especially if it is close to the VAT registration threshold.

If a business is exempt from MTD then it may still choose to follow the MTD rules. To do this, the business must tell HMRC before the start of the next VAT period that it wants to use the MTD service and also the date its next VAT period begins. It will then be subject to the MTD rules from the start of the next VAT period.

A business may decide, for a later period, that it no longer wishes to follow the MTD rules. If it is still exempt from MTD at that point, the business can tell HMRC it wants to leave the MTD service and submit returns the way it submitted them before choosing to follow the MTD rules. This will be from the start of the next VAT period following the date HMRC were informed.

If a business is exempt and wants to join or leave MTD it must tell HMRC in writing.

ExamplesThe MTD rules apply from the first VAT period starting on or after 1 April 2019. A ‘VAT period’ is the inclusive dates covered by the VAT Return.Example 1 - Existing business with taxable turnover above the VAT registration threshold on 1 April 2019A business submits a quarterly return covering the period 1 March to 31 May 2019. The business taxable turnover exceeds the VAT registration

Making Tax Digital:An overview of the new requirements

6 | The Bookkeeper

threshold and therefore the business will need to comply with MTD rules for the period starting 1 June 2019.Example 2 - Business with a taxable turnover above the MTD threshold at the point they need to register for VATA business that is not registered for VAT is required to register from September 2019 because the taxable turnover over the previous 12 months has exceeded the VAT registration threshold. The business must follow the rules in this notice for all VAT Returns they are subsequently required to make as their taxable turnover was above the VAT threshold when they were required to register.Example 3 - VAT registered business with taxable turnover below MTD threshold until November 2019A business is registered for VAT but its taxable turnover is below the VAT registration threshold until November 2019. The business must follow the rules in the VAT Notice for any VAT period that starts on or after 1 December 2019 as its taxable turnover now exceeds the VAT registration threshold.

ExemptionsA business is not required to follow the MTD rules where HMRC is satisfied that:• the business is run entirely by practising

members of a religious society whose beliefs are incompatible with the requirements of the regulations (for example, those religious beliefs prevent them from using computers)

• it is not reasonably practicable for the business to use digital tools to keep business records or submit returns, for reasons of age, disability, remoteness of location or for any other reason

• the business is subject to an insolvency procedure

If HMRC consider an exemption is not appropriate, digital assistance may be available to help the business get online support.

SoftwareHMRC will not be offering its own software products, but will provide the Application Programming Interfaces (APIs) commercial software developers will use to develop a range of applications that will enable businesses to keep their records digitally and integrate with HMRC systems.

HMRC will list recognised products on the gov.uk website as they become available. An initial list can be found here: www.gov.uk/government/publications/software-suppliers-supporting-making-tax-digital-for-vat.

Under MTD businesses are able to keep digital records in a range of compatible digital formats. Spreadsheets can still be used but in combination with add-on MTD software. However, manual data transfer between the spreadsheet and software is not allowed and this would need to be carried out via a digital link. Section seven of the VAT Notice outlines acceptable digital links.

Soft landing regarding digital links requirementsHMRC will allow a period of time (‘the soft landing period’) for businesses to have in place digital links between all parts of their functional compatible software.

For the first year of mandation (VAT periods commencing between 1 April 2019 and 31 March 2020) businesses will not be required to have digital links between software programs. The one exception to this is where data is transferred, following preparation of the information required for the VAT Return, to another product (for example, a bridging product) that is API-enabled solely for the purpose of submitting the 9 Box VAT Return data to HMRC. The transfer of data to this product must be digital.

For the first year of mandation (VAT periods commencing between 1 April 2019 and 31 March 2020), where a digital link has not been established between software programs, HMRC will accept the use of cut and paste as being a digital link for these VAT periods.

Important information for agentsHMRC are delivering MTD for agents at the same time they are delivering for businesses, so you can see and do what your clients can.

If you have not already done so, you will need to create a new Agent Services account. Find out how to sign up for an Agent Services account here: www.gov.uk/guidance/get-an-hmrc-agent-services-account. You can then link existing agent-client relationship(s) over to it, which will allow those relationships to be recognised by the new digital services.

From 1 April 2019 all your VAT registered clients with a taxable turnover above the VAT threshold will be required to keep digital VAT records and you or they will need to send HMRC their VAT returns using MTD-compatible software.

It’s important that your clients are aware of their obligations if they join MTD for Income Tax or VAT. They must keep digital business records and:• for VAT, submit their returns to HMRC using

MTD-compatible software• for Income Tax, provide summary updates of

income and expenses to HMRC quarterly through MTD-compatible software.

The deadlines for sending VAT returns and making payments are not changing, including for monthly, quarterly and annual VAT return schemes, but businesses will have to keep digital records and send the returns to HMRC using MTD-compatible software for VAT accounting periods that start on or after 1 April 2019. This also applies to businesses that operate the Flat Rate Scheme for VAT.

Agents can sign up clients with income from one business and/or who are landlords (except those with furnished holiday lettings) for MTD for Income Tax and will be able to view and submit MTD updates on their client’s behalf.

It’s easy to sign up a client to MTD with an Agent Services account. You’ll need your client’s VAT Registration Number (VRN), Company Registration Number (CRN) and National Insurance Number (NINO) depending on the circumstances.

If you are already using commercial accounting software, and before you have signed up your clients, you should speak to your software provider to find out when it will be MTD-compatible, either for Income Tax or VAT and what you need to do to enable the new features once you have signed up your clients.

Make sure your clients are planning to keep their business records digitally. If they have not yet started to do this, you will need to think about how and when your clients will need to start the transition to digital records, and the help and support they may need from you.

It may be sensible to start new clients on MTD straight away, so they get off on the right foot and don’t need to make changes later.

If you have a new client who wants you to act for them in MTD you can send them a digital authorisation invitation from your Agent Services account. You can send the link you are provided with to your client, who can then accept by signing in with their own Government Gateway details.

For further information about the VAT Notice please see: www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat

The deadlines for sending VAT returns and making payments are not changing, including for monthly, quarterly and annual VAT return schemes, but businesses will have to keep digital records and send the returns to HMRC using MTD-compatible software for VAT accounting periods that start on or after 1 April 2019

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The Bookkeeper | 7

The UK government is to press ahead with plans to safeguard workers, pensions and

small suppliers when a company goes bust.Under the shake-up bosses will face

investigation if they try to escape paying their own staff and creditors by dissolving the company. The new powers allow the Insolvency Service to fine directors or even have them disqualified.

Business Secretary Greg Clark said struggling companies will be given more time to rescue the business, which will help safeguard jobs. He explained boardrooms will also have to explain to shareholders how they can afford to pay dividends, alongside capital investment, workers’ rewards, and pension schemes.

Government announces new measures to boost funding for SMEs

Apprenticeship levy cuts number of training schemes

New crackdown on reckless directors

The Government is proposing new laws that will arm small businesses against

unfair contracts that stop them raising money from unpaid invoices.

Currently, a small supplier’s contract with a larger company may prevent it from securing invoice finance from providers such as banks and other investors.

Under the new proposed laws, any such contractual restrictions entered into after 31 December 2018, with certain exceptions, would have no effect and could be disregarded by small businesses and finance providers, which will help stop larger businesses from abusing their market position.

The new measures are expected to provide a long-term boost to the UK economy estimated to be worth almost £1bn.

Small Business Minister Kelly Tolhurst said: “The UK’s 5.7 million small businesses are the backbone of our economy and central to our modern industrial strategy. These new laws will give small businesses more access to the finance they need to succeed and will help ensure they have a level playing field from which to set fair contracts with the businesses they supply.”

The proposed laws come as a number of larger businesses stop their suppliers from assigning ‘receivables’ – the right to receive the proceeds from an invoice. This assignment is essential for invoice finance to operate.

Restrictive contract terms are often used by larger businesses to maintain a hold over their suppliers, with small suppliers often unable to negotiate changes to the proposed contract because they do not have enough power in the marketplace.

For the first year since the introduction of the apprenticeship levy, the number of

apprenticeship starters has dropped by 137,000, although Chancellor Philip Hammond said this decline was expected with more businesses choosing to use their funds for higher-level training programmes.

As part of a House of Lords Economic Affairs Committee hearing, Hammond was grilled on the outcome of the apprenticeship levy as well as whether the student loan system is currently fit for purpose.

Prior to the introduction of the apprenticeship levy on 6 April 2017 there were 457,000 individuals starting an apprenticeship. This number dropped to 320,000 in the first year of the levy.

The levy was supposed to increase the number of people training at work by imposing a 0.5% tax on UK employers with payroll costs in excess of £3m. Businesses with 50 or more staff now have to find 10% of the cost of training and also release staff for a day a week of off-site training.

Hammond told the committee that the

Treasury always expected to see an initial drop in starter numbers as the levy took effect.

“It is a concern, but we always expected that there would be a dip in apprenticeship starts after the introduction of the levy. Businesses have two years to spend the money that they are accumulating in their levy accounts and we always expected that it would take some of them some time to work out what their strategies were,” Hammond said.

The trend that the Treasury did not expect to see was a qualitative change in the type of apprenticeships being undertaken. “We are seeing a shift from level two to level three apprenticeships and there has been a 23.7% increase, to date, on the number of apprenticeships starters that are at the higher level of level four plus,” Hammond said.

“To put it in plain English, now that people are using their own money they are choosing higher level apprenticeships. These types of apprenticeships have a significantly higher cost attached to them but in term of skills they deliver to the economy they are significantly higher.”

8 | The Bookkeeper

NEWS ITEMS

HMRC has written to 145,000 VAT-registered businesses across the UK,

including Northern Ireland, which only trade with the EU, explaining changes to customs, excise and VAT in the event of a ‘no deal’ Brexit, which would require them to complete customs declarations for the first time.

While HMRC stresses that it is ‘unlikely’ the UK will leave the EU in March next year without a deal being agreed, the letter points out that this outcome would require immediate changes to the way UK businesses trade with the EU.

This would include UK businesses having to apply customs, excise and VAT procedures to goods traded with the EU, in the same way that already applies for goods traded outside of the EU.

Equally, trading partners in the EU would be required to apply customs, excise and VAT procedures to goods they receive from UK businesses, in the same way that they do for goods received from outside of the EU.

HMRC highlights that if a business currently trades only with the EU, then it would have to

start completing customs declarations from March 2019 and customs checks would apply to the business for the first time.

There is a separate version of the letter for businesses in Northern Ireland, which says that the government is committed to avoiding a hard border between Northern Ireland and Ireland.

It states: ‘If we leave the EU without a deal in March 2019, the UK would stand ready to engage constructively to meet these commitments and act in the best interests of the people of Northern Ireland, recognising the challenges that the lack of a UK-EU legal agreement would pose in this unique context.

‘This would include engagement on arrangements for land border trade. We will update you on the UK’s different customs arrangements and any actions you may need to take in due course.

‘The Irish Government have indicated they would need to discuss arrangements in the event of no deal with the European Commission and EU member states.’

Both letters provide links to sources of government guidance, including the technical notes published over the summer, and state that further advice will be made available in due course.

This week a first economic impact report of a hard Brexit by the Economists for Free Trade (EFT) group suggested a boost to UK revenues of £80bn over 15 years.

However a poll of 100 leading UK business leaders, mostly chairs and chief executives of top FTSE companies including Sainsbury’s, RBS, BT, AON, HSBC, TSB and Dixons Carphone by global executive search firm Odgers Berndtson, found 75%, said they were concerned or very concerned that the UK leaving without a deal would have a significant impact and impose ‘material disruption and cost’ to their businesses.

Only 1% said a hard Brexit would be positive for their business. Over half said their preferred outcome for the negotiations was for Brexit to stop it altogether (53%), while 41% preferred an interim or transition arrangement.

HMRC NEWS

HMRC outlines ‘no deal’ preparations for EU-only UK traders

HMRC updates VAT cash accounting guidance

HMRC has updated its guidance on how the VAT cash accounting scheme works,

to provide information on how businesses should account for VAT if they leave the scheme voluntarily, or if their turnover exceeds the ceiling.

The scheme allows businesses to account for VAT on their sales on the basis of payments they receive, rather than on tax invoices they issue.

It can be used by businesses that expect the value of their taxable supplies in the next year will be £1.35m or less, and can be helpful for cash flow because in general businesses do not have to pay VAT to HMRC until customers have paid them. HMRC say

this may be beneficial for those businesses that give customers extended credit or suffer a lot of bad debts.

Businesses can only leave the scheme at the end of a tax period. They are required to stop using it if they cannot comply with the record keeping requirements; if the value of their taxable supplies in a year exceeds £1.6m; if HMRC withdraws their use; if they are convicted of a VAT offence or accept an offer to compound proceedings in connection with a VAT offence; or if they are assessed to a penalty for VAT evasion involving dishonest conduct.

In its revised guidance, HMRC says that when a business leaves the scheme there

may be supplies that it has made for which it has not been paid and as a result it has not accounted for any VAT.

It advises that the business will need to account for this VAT even if it has not been paid by the customer. There may also be cases where it has not paid suppliers and has not yet claimed input tax. Businesses are entitled to claim this input tax subject to the normal VAT rules and may choose from two options.

One is to account for all the outstanding VAT due in the period in which they stop using the scheme. HMRC warns that while this may be simpler, it could have a serious effect on cash flow if the amounts of unpaid VAT on supplies the business has made is high.

Alternatively, the business can opt for a further six months in which to account for the outstanding VAT.

It is not possible to take the second option of a further six months if HMRC has withdrawn use of the scheme from the business, or if the value of taxable supplies has exceeded £1.6m and the value of supplies made in the previous three months totalled more than £1.35m.

Businesses do not need to notify HMRC which method they have chosen.

The Bookkeeper | 9

In today’s world, a website can be more essential for modern businesses than a physical office. You can often find clients

might never even want to meet you in person. But they will need to see a clear description of the services you offer and find your contact details quickly and easily.

These days, with so much research and discovery taking place online, it’s essential for any bookkeeper to have a good presence on the internet, so when potential customers look for a bookkeeper online, you are a strong consideration for them and stand out from your competition. And that requires a professional-looking website with an effective marketing plan behind it.

It might seem like getting new clients is more competitive than ever. You’re not just up against other bookkeeping firms or freelancers. There’s also a growing list of accounting software packages claiming to solve a lot of business needs. But it’s possible to not just survive as a bookkeeping business, but also grow and thrive online – and potentially reach a global customer base that might never have found you until now.

If you don’t already have a website, the first key step is to decide on your proposition and branding. Are you intending to be the best bookkeeper for businesses in your local area? Or perhaps you want to target a particular industry? Do you have particular experience with specific accounting software? Perhaps you want to focus

purely on managing payrolls, tax documents or reconciliation? This can be the hardest step, but once it’s done, you can create a website and marketing plan that gets you found for the exact service you want to sell.

If you already have a website, after ensuring it focuses on the key points outlined above, you should also check that it’s still performing well technically. There are a number of online tools you can use to do this, such as Yell’s free Website Checker at business.yell.com/websites/website-checker

Creating a great bookkeeping business websiteFocus on creating a small number of high quality pages. That makes it quicker, easier and more effective to get your website published. And clean, simple, efficient design also makes your site more readable, quicker to load, and helps establish trust. And trust is vital when you’ll be dealing with financial records for your customers.

To help establish trust, make sure your website has a security certificate in place, which means all your website addresses will start with https, rather than http. This means the data sent between your website and visitors will be encrypted. And if you don’t have a security certificate in place, major internet browsers like Chrome and Firefox will display a warning that your website is insecure - potentially

undermining trust in you, and your business. In addition to your homepage, services and

contact details, you can also include client reviews and testimonials either directly on your website or collected from anywhere your business is listed online. Also include any useful resources, whether that’s a guide to bookkeeping, tips for particular software, or sample records to demonstrate exactly what you do.

By writing about your bookkeeping business, and the area you focus on, search engines will start to index your website for relevant searches. So someone searching for bookkeepers located in your area, or that specialises in a particular industry will begin to find you. But to rise up in the search results, you will need to do a little more.

Promoting your bookkeeping services:After creating a website for your bookkeeping business, you will want to attract more people to visit it. And then convert them into new clients.

The content on your website will help you to be found for relevant searches on Google and other search engines. It also provides something that can be shared on social media. That can be by you, or by your satisfied customers.

But how do you get higher in search results? There are lots of factors which contribute, but links to your website from quality, relevant sources still have a major impact.

Many businesses and freelancers don’t spend time optimising their presence on third party

Why bookkeepers need a great website and marketing

10 | The Bookkeeper

NEW MEMBER BENEFIT – YELL BUSINESS

The IAB Funder Finder engine is simple and free, using straightforward information to match SMEs with an

impressive selection of finance market leaders within minutes, with funds available from £500 up to £50 million. It is a business finance comparison engine, provided by Alternative Business Funding (ABF).

It can open new conversations and ways for you to engage your clients by offering access to a fair and safe web engine that revolutionises the way professionals can offer their clients’ access to a whole-of-market solution, in a fully compliant way. If you work in an employed position, then your employer may be interested in using the platform too.

websites for local and industry searches. Or they don’t update the listings, which means potential customers are phoning the wrong number, or even turning up to the wrong address in some cases.

Any bookkeeper or financial service provider should have a regularly updated listing on high quality online directories that potential customers may be searching. For example, Accountants and Bookkeepers are popular search terms on Yell.com, which is the UK’s No.1 online business directory. If your business isn’t listed, potential customers searching there won’t find you. It’s free to register, so make sure you’re listed there today: www.yell.com/free-listing

You can then add relevant, trusted local directories such as local business organisations as well as industry-specific bodies and listings, such as the IAB www.iab.org.uk.

What are some of the benefits to you as an IAB member using this tool?• Access to a compliant, whole-of-market

finance solution• Start new conversations with clients and add

value to your services• Additional revenue stream for your business• A back-end portal to manage and review your

referred clients, account and content• Access to engaging content, guides and videos • Approved as a designated referral platform

by HM Treasury and the British Business Bank

By asking some simple questions about the business and funding needs, the engine searches through 150 different funders and products, ensuring the solution is both suitable and appropriate by putting the business owner at the heart of the process.

To find out more about how the IAB Funder Finder can benefit you and your clients’ businesses watch a short video

www.youtube.com/watch?v=4RGEqLWFW o8&feature=youtu.be or visit the demo site to find out how it works: www.demo.funderfinder.co.uk. The video is great tool to market the IAB Funder Finder to your clients too.

To use the service and enhance your business services and client support please contact India Lewis: india.lewis@alternativebusinessfunding.co.uk who can guide you through the quick and easy process by phone.

The solution is fair to the SME as funders cannot buy the way to the top of the rankings and your clients or employer would pay no more by using the engine than going to a funder direct.

To view the terms and conditions for using the platform for your clients please visit: www.iab.org.uk/iab-funder-finder-referring-clients.

If you have your own practice and are looking for funding options, then you may wish to use the platform yourself. To discover the options available to you visit: iab.funderfinder.co.uk

That sounds like it will take a lot of work, but there are various free tools online e.g. www.yell.com/connectscan which will check hundreds of online directories in a single scan to report on where your information should be listed online, and whether it is correct and up-to-date where it is already listed.

Managing your bookkeeping website and marketing:Break it down into manageable steps and you’ll soon start making progress. The logical processes of bookkeeping and financial management work equally well for planning and promoting your business.

Fortunately, there are also plenty of helpful free tools which will save you time and effort. Yell doesn’t just offer a free listing on Yell.com.

You can also get a FREE securely-hosted DIY website with domain name & matching email address, plus a mobile app to manage your Yell listing, and more. You can then build on that as your bookkeeping business grows. Sign up for your free website here: business.yell.com/websites/free-website-builder.

Yell is also offering members of the IAB an exclusive deal on their Starter Pack. This comprises a designed-for-you 5-page website, a sponsored listing on Yell.com, and its Connect service which ensures your accurate business details are distributed across of hundreds of relevant sites. Just £20 a month – sign up here today http://bit.ly/IAB-offer or log into the Members’ Area of the IAB website and visit the member benefits page.

The Bookkeeper | 11

Introducing a new way to source business funding for you, your clients or your employer using our business finance comparison website

The IAB Funder Finder: Access to finance for IAB Members

NEW MEMBER BENEFIT – FUNDER FINDER

The IAB is now accepting applications and enquiries from members who are interested in joining the IAB Council. The IAB is a Company Limited by Guarantee and the Council is our Board of Directors. They

are involved in key decisions about the future of the IAB and how we work to provide the best support to bookkeepers and continue to raise awareness and raise the standards of the bookkeeping profession. Elections take place at the AGM in June each year.

Under the application process, members will be invited to attend a meeting with the Appointments Committee, where they will be able to quiz current members of Council and the IAB Executive about what it is like to be a Council member and what the role entails.

Juan Carlos Venegas MIAB FIAAP joined Council in June 2017. Speaking about why he decided to apply for Council he said: “I always wanted to be part of a committee or some other form of a board where I could be part of the decision making and the discussion of the relevant issues of the organisation, and I felt that IAB could be one of those organisations I could contribute to as a Council member.

“It is an opportunity to be challenged and to be part of a group with different points of view where there are other opinions and other voices and where you make your voice heard by presenting your case and the critical points to the group. I saw it as an opportunity to learn from others, to share with others and to connect and network with others.”

He added: “Anyone interested in applying should not be afraid as the group is open and welcoming. You will not feel isolated or be seen as a stranger. It is a good experience for anyone who may be interested in getting involved in challenging the decision makers of the organisation and be challenged on sharing their views and making their points.”

If you are interested in applying or would like further information about being a Council member contact Kelly Orford on kellyo@iab.org.uk or call 01732 897754.The IAB is committed to equal opportunities and diversity and welcomes all applications.

Elaine GibsonEducation Director at the Chartered Institute of Payroll Professionals (CIPP) joins the IAB Council

Could you be an IAB Council member?

12 | The Bookkeeper

We are delighted to welcome Elaine Gibson MSc, ChFCIPPdip, MCMI, FHEA, who has been co-opted onto the Council. She brings a wealth of knowledge and experience with her.

Elaine has worked with the CIPP for 14 years plus, both as a Payroll Trainer for IPP Education and as a Senior Policy and Research Officer for the Policy Team, Associate Director Policy and Professional Education before moving to her current role as Education Director. Elaine has also been a Tutor for over 15 years. Elaine was one of the first CIPP members to achieve Chartered Membership of the CIPP in 2017 and is now an assessor for those aspiring to become full, fellow and chartered members of the CIPP.

Elaine is responsible for the commercial arm of the CIPP, IPP Education Ltd, and includes responsibility for:• Policy • Membership• Sales and marketing• Qualifications• Training• Online development

Elaine is also the CIPP programme leader for all professional courses, is a qualified lecturer in work-based learning and is also a fellow member of the Higher Education Academy supporting her role as both program lead and MSc tutor.

The varied role also means that Elaine is a public speaker and has written numerous articles for professional trade magazines.

Elaine said: “The Chartered Institute of Payroll Professionals (CIPP) and the IAB have worked together for a number of years, and I am delighted to be joining the IAB council. We recognise that many bookkeepers provide payroll services and that is why we have forged a close working relationship with the IAB to support them in providing expert payroll advice and knowledge to their members. I am looking forward to bringing my experience in payroll education to the IAB council.”

A campaign has been launched to help with the devastating impact floods have had in the Indian state of Kerala. The

floods have destroyed over 90,000 km of roads, devastating and flattening homes, rendering almost 1.5 million people homeless and having to live in make-shift camps and over 400 people have so far lost their lives with many still missing.

Many voluntary organisations have deployed teams to provide day-to-day survival kits at the relief camps. One of the worst-affected victims have been children. In addition to going through the trauma of loss and death, their education has also been impacted with almost 350,000 school children below the age of 15, having lost their textbooks, notebooks, certificates, bags and pens. The Government has already started the process of cleaning and repairing the schools.

The IAB and IAAP has several accredited training providers and students studying our qualifications in the area and our representative

there, Ranjit Srivenkatesh is currently running the Back to School with a Smile after Floods campaign to raise vital funds for children. The campaign is being run through the largest business daily newspaper in the state, Future Kerala, which Ranjit is Managing Editor of and it aims to raise financial support from corporates and individuals to provide at least 35,000 ‘Back to School’ packs which will include textbooks, notebooks, bags and pens, with a target of 100,000.

50% of the requirements have already been met. The affected schools are also in need of laptops, computers, science lab equipment and library books.

The campaign is also being run in association with AAAOE (Association of Accredited Advisors on Overseas Education) which is a 16-year-old association for overseas student recruitment advisors from all Indian cities and Childline India, which is the largest child protection and child rights foundation in India, a UNICEF partner.

If you are able to support the campaign then your donations would be greatly appreciated and you can send your donations using the information below. Bank A/C Name: FUTURE KERALA BACK TO SCHOOLBank A/C NO: 005500100138273Bank Name: DHANLAXMI BANKSWIFT Code: DLXBINBBIFSC Code: DLXB0000055Bank Branch: ERNAKULAM - HOSPITAL ROAD Bank Address: P.B.NO:1150, XL/252 HOSPITAL ROAD, ERNAKULAM

Kerala flood relief: Back to School with a Smile after Floods Campaign

The Bookkeeper | 13

IAB EVENT

Final chance to book to attend our London seminar

We have arranged a further seminar covering a range of topics including: Making Tax Digital, payroll updates, automatic enrolment and much more!

The seminar will take place in London on Thursday 1st November 2018 and is an excellent way to get updates for your own business and your clients or the business you are employed by.

Reasons to attend:1. Keepup-to-dateandfindoutmoreaboutkeylegislationand

developments affecting you, your clients or your employer. This includes an update on Making Tax Digital.

2. Continuing Professional Development (CPD) points3. Network with fellow IAB members4. If you have your own bookkeeping practice or are thinking of

becoming self-employed, then gain guidance on how to price your services and earn what you’re worth.

Date: Thursday 1st November / Time: 9:30am – 4:15pmVenue: The Montague on the Gardens, 15 Montague St, Bloomsbury, London WC1B 5BJ.

A summary of the programme can be found below:• Automatic enrolment• Payroll update• Making Tax Digital• Tax update• How to price your services if you have your own bookkeeping

practice

To book and for further details about the programme please visit: www.iab.org.uk/event/iab-london-seminar-2/. This also has the costs for attending.

Please note there is no parking available at this venue and the nearest underground station is Russell Square.

For further details about the seminar please contact the membership team: membership@iab.org.uk or 01732 897750.

The UK Government’s Research and Development Tax Relief Scheme (R&D) rewards and encourages innovative companies, the purpose being to stimulate innovation and growth in the UK economy.

The scheme is applicable to any UK Limited Company seeking to improve or develop new products, processes or services. There are no industry or sector specific qualification criteria other than it must make or be intending to make an “advance in science or technology”. However it can’t be an advance within a social science like economics or a theoretical field like pure maths.

The scheme works by reducing a company’s corporation tax liability by the ‘qualifying’ amount in addition to the company’s previous tax position. This can sometimes bring the tax bill down to zero or it may mean a company makes a ‘loss’ for tax purposes. If a company is making a loss you can probably claim a cash payment back from HMRC, even if the company has never made a profit! Therefore this is a huge boost for eligible new companies too.

Sadly, the scheme is poorly understood and many companies don’t recognise that their activities qualify as R&D. Additionally, a good deal of professional advisors such as accountants are also unsure about the requirements, so many potential beneficiaries of the scheme are missing this opportunity or ‘under-claiming’ and missing out on areas that can be claimed.

Generally, the qualifying project can research or develop a new process, product or service or improve an existing one.

The questions to ask first are: • Were there technological uncertainties at the start of the project?• From the outset was a particular technological goal envisaged?• Does the project go beyond applying existing technologies and ‘break-

new-ground’, through for example specific testing processes? If so, there is a good chance R&D tax relief can be claimed.

Project examples are: • reformulating ice cream to reduce the sugar and fat content and ensure

that it still appeals to its target market• creating a new manufacturing process for pvc doors• developing a new or improved hardware control systems for a printing

device• developing a software tool to manage a new service.

Claims can’t be made for existing tools such as using “WordPress” alone to develop a new website, however if specific ‘code’ is written and tested to make a website work as needed then this may qualify.

The first step is to identify what qualifying activities have been undertaken and how much they have cost. A large portion is likely to be internal labour costs, including a support and management time, other costs such as pension and NI. Claims can also be made for the relevant portion of energy, consumables, wasted material or ingredients consumed in the R&D process. It is also possible to claim a portion of other costs from external organisations such as hiring contractors, agency staff and test facilities. However, capital equipment costs are not included.

When making the first claim it’s also possible to claim for the previous two tax years and you do not have to wait until you have an outcome for the work being undertaken. The claim is for the effort at the end of each accounting year, meaning a tax rebate within as little as 5 weeks of the claim being submitted.

For more information or a free ‘Can I Claim?’ consultation on whether you are likely to be able to claim R&D tax relief contact David Terry or Tim Cobley at Think Strategy Ltd – enquires@think-strategy.co.uk or go to www.r-and-d-taxrelief.com for more information. We are here to help you.

Are you, your clients or employer missing out on cash for innovation?

14 | The Bookkeeper

This article has been provided by David Terry at Think Strategy Ltd

So, you’ve taken the step towards running a complete cloud practice. You’ve moved to fixed/value-based fee structure and all

your systems for your clients are now moved to the cloud, or on their way. Are you wondering what your next level of change is? Or, how to build unique value-add service for your clients? Or, how to build a high-value niche advisory group for your practice?

Start by having your first conversation with your clients about the future of their business and what it is that they want to achieve. This should be a free conversation, with no strings attached.• Why did you start your business?• What’s your goal for the business in 5/10/20

years?• What steps have you put in place to achieve

this?• When are you looking to take a step back to

being an owner?

You need to take notes of this and ask them what they’d like to achieve in a perfect world. Come away from the meeting, make a list of what data would be interesting or valuable for a client as they want to grow and improve their business to be industry leading.

Then think of questions to ask such as:Is my gross profit £ or % in line with industry high performers?

You should be able to gain access to industry data for your clients state/national industry to prepare this report and sit down and analyse the drivers of Gross Profit and set some GP target goals for future bodies of work.

For instance, if GP target is 50%, then there are a few key things you can look at:• Ensure your clients’ quoting process is

detailed enough and weighting in all job costs with a margin minimum of say 60% to allow for a buffer;

• Review how alterations are dealt with in the contract, so your client doesn’t wear the cost without the revenue;

• Look at suppliers and terms, people costs, storage costs and anything else that sits above the GP line.

So, whether or not you realise it, your clients want more from you! They want your help as they are usually stuck in the day to day of their business.

Your job is to help your clients become an owner, not, a manager. Every business owner, every entrepreneur wants to be made obsolete.

Love to know your thoughtsSarah Palmer, FIAB, owner of Women Who Count

The Bookkeeper | 15

Sarah Palmer

Word from Sarah

FDHow to become a

for your clients

“Help me, to help you” Jerry Maguire‘‘

‘‘

The IAB is a leading UK and international professional and awarding body for bookkeepers. Professional members join us to benefit from:• Enhanced professional status• Supervision under the Money Laundering Regulations• Opportunities for continuing professional development (CPD)• Regular technical updates • A range of professional and lifestyle benefits

Additional information about professional membership can be found here: www.iab.org.uk/join-the-iab.

We offer a range of Ofqual regulated qualifications, covering bookkeeping and payroll. Our qualifications enable individuals to learn in-demand and highly sought after skills, to use either within their own business or improve their job prospects and open the door to a range of career opportunities. Further information about our qualifications can be found via the following links:Bookkeeping qualifications: www.iab.org.uk/bookkeeping-qualifications Payroll qualifications: www.iab.org.uk/payroll-careers-qualifications

Supporting the UK’s growing economy Small or Medium-sized Enterprises (SMEs) are the engine room of the UK economy. Figures from the Department for Business Innovation and Skills in their annual business population report are shown above.

The Confederation of British Industry (CBI) has previously estimated by 2020, SMEs could be injecting as much as £20 billion of value added into the economy.

Bookkeepers play a vital and often unsung role in supporting these small enterprises that are so vital to the country’s economic health. A good bookkeeper relieves the small business owner of much of the day-to-day admin involved in running a business, allowing them to concentrate on growth. What’s more, the majority of bookkeepers in practice are running small or micro businesses themselves, advising clients from a position of experience and understanding. Bookkeepers have a varied demographic profile from start-ups, those returning to work after raising a family or a period of unemployment, to young people entering the world of employment for the first time.

Our work and achievements We are dedicated to supporting bookkeepers and SMEs. We do this by: • Ensuring you are kept up-to-date with the latest news and changes

relating to the bookkeeping sector through the IAB’s own magazines and e-newsletters, and also the exclusive newsletter from Croner-i, which you receive if you are a professional member. This offers new ways to run your business efficiently and provides information to help you keep up-to-date with bookkeeping, accounting and payroll-related matters.

• Working to raise the profile of bookkeepers and the vital support that our members provide to businesses around the world, by attending business shows where we represent and promote the services of our members and also through local and national press coverage.

• Representing your views to government departments and agencies on a range of areas. This also enables us to keep you updated in relation to changes which will have an impact on bookkeepers and SMEs. Some of the meetings we have attended in the past year are: - HMRC working group meetings which are attended by other

professional bodies. The main topic raised at these meetings is Making Tax Digital for VAT which comes into effect from April 2019. Further information about this can be found on pages 6 and 7.

- The Pensions Regulator professional body working groups in relation to automatic enrolment and the changes taking place over the next year including further increases to contribution rates from April 2019.

- Meetings in relation to the changes to the Money Laundering Regulations which took place in 2017 and guidance on how to comply. We regularly meet with other supervisors and are also involved in Flag It Up which is a campaign run by the UK Government and supported by professional bodies to raise awareness of the warning signs of money laundering, promote best practice in due diligence and encourage the high-quality reporting of suspicious activity. Further information about the campaign can be found here: flagitup.campaign.gov.uk.

- Meetings with Companies House providing updates in relation to the work they do and changes taking place.

• Upskilling individuals around the world through our bookkeeping and payroll qualifications. This equips people with the knowledge required to either run their own business or to progress or begin their careers as a bookkeeper or in a related role, enabling them to excel and hit the ground running to provide vital support to businesses.

If you have any questions about the IAB, our work and the support we can provide please contact us: mail@iab.org.uk or +44 (0)1732 897750.

16 | The Bookkeeper

support youHow the IAB works to

SMALL BUSINESSES ACCOUNTED FOR 99.3% OF ALL PRIVATE SECTOR BUSINESSES AT THE START OF 2017 AND 99.9% WERE SMES.

SMES EMPLOYED A TOTAL OF 16.1 MILLION WITH 60% OF ALL PRIVATE SECTOR EMPLOYMENT IN THE UK.

THE COMBINED ANNUAL TURNOVER

OF SMES WAS £1.9 TRILLION, 51% OF

ALL PRIVATE SECTOR TURNOVER IN THE UK.

Figures from the Department for Business Innovation and Skills