The problem facing your clients
Many sole traders and partnerships will have traded successfully until March 2020, when we first entered lockdown, but have since experienced a dramatic reduction in their trading and profits.
There have been several Covid-19 business support schemes to help businesses stay afloat during the lockdown periods. However, the timing of receiving this financial support may have coincided with the business’s last profitable period and not the slump period. As these grants and support measures are taxable, the payment of such support could see businesses having to pay higher rates of tax, just because of poor timing. Furthermore, having to report higher taxable profits because of these Covid-19 support payments could trigger high income child benefit charges. In turn this could have a disastrous affect on cash flow.
Tim Good, Managing Director of Absolute Accounting Software, identified the above issues and has created a new App which helps accountants show their clients how they can reduce their tax bills.
The Taxpert Change of Accounting Date App is designed to help accountants and tax advisers with sole trader and partnership clients who could benefit from changing their accounting date.
Whilst these complex calculations can be done manually, they can take up a lot of time and the accuracy of the calculations will need checking. However, with just the click of a few buttons and uploading your client’s key data, our App does all this for you. Plus, you can have total confidence that the figures are correct when you present them to your clients.
Here’s how the App works:
- simply input the current accounting date and the profits for each period based on that date;
- then input any small business or retail, hospitality and leisure fund grants and any SEISS grants;
- add in any other income and any child benefit payments.
The Taxpert Change of Accounting Date App immediately shows if there could be cash flow benefits from changing the accounting date and even calculates the optimal new date to use.
Overlap relief is fully accounted for and the user can play around with different dates and profit forecasts to see the cash flow impact on individual tax years.
As with all our other Taxpert Planning Apps, the Change of Accounting Date App is quick and easy to use. It helps you to give your clients the very best advice and saves you time and money in trying to perform the same calculations yourself.
It’s an overused term, but 2020 really has been an unprecedented year. In many cases your clients have had to make big changes to how they run their businesses. As their tax adviser, you can help relieve some of your clients’ stress by helping them reduce their tax liabilities where possible. We strongly advise that you take a look at our Taxpert Change of Accounting Date App before you file any tax returns, as it could save your clients a lot of money and in some cases make the difference between their business surviving or not.
Pricing and Special Offer
The Taxpert Change of Accounting Date App costs just £99 + VAT for a single user licence. However, if you have already bought, or you intend to buy, any of the following Apps you will pay £99+VAT for the first App and only £50+VAT for any subsequent Apps you purchase, based on a single user licence. There is no time limit as to when you buy the additional Apps in order to qualify for this special offer. Our other easy to use Apps are:
> Download a free trial of Taxpert Change of Accounting Date
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