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Xero

ALL YOU NEED TO RUN YOUR BUSINESS

At Fawcetts, we only recommend accounting software that’s right for our clients.

That’s why we’re happy to recommend Xero Online Accounting.

Xero Certified Advisor

Our Xero Online Accounting clients are among the 200,000 users in 100 countries worldwide, who find this secure, online accounting system makes managing their business finances much easier.

Benefits of Xero Online Accounting include:

  • it is cloud-based, with secure, easy access via the internet
  • Xero Online Accounting is simple to use
  • it directly feeds from online banking, reducing the amount of time you spend on data entry and reconciliations
  • Xero Online Accounting provides a view of cash within the business that is always up-to-date
  • we can log in whenever clients need us to check or review accounts, answer questions, give proactive advice and run reports, all in real time.

We are Silver Partners with Xero Online Accounting, which means we can pass on Xero Online Accounting discounts to our clients.

We don’t charge clients for setting them up on Xero Online Accounting and because our staff are accredited Xero Online Accounting trainers, clients can be sure they are in safe hands.

For more information about our Xero Online Accounting services, please click here to contact James Hayes or Nick Jones.

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Latest News

Small businesses see changes to the VAT Flat Rate Scheme

Small business users of the VAT Flat Rate Scheme who have low costs may see the rate they pay drastically increase under new changes, which came into effect at the beginning of this month.

The Flat Rate Scheme was created to simplify businesses’ record keeping, by making it easier for smaller companies to figure out their bill.

VAT is usually calculated using a two stage process, where VAT registered businesses are required to deduct the VAT on their inputs, from their outputs. Meanwhile, the Flat Rate Scheme uses a simplified single step process, whereby they only pay VAT on the sale at a rate determined upon their business type.

Whilst this system is simpler for small business it can also lead to some businesses effectively paying less or more than they would do under the ‘typical’ two stage VAT regime.

HM Revenue & Customs has been aware of this inconsistency for some time and has long suspected some businesses of using the rules to their advantage.

With this in mind, the Chancellor Philip Hammond announced changes to the Scheme at the last Autumn Statement in November 2016, which now see the rates of low cost businesses, referred to as ‘limited cost traders’, increase.

Limited cost traders are one of the groups accused of unfairly benefiting from the system. They can still use the Flat Rate Scheme, but their percentage now increases to 16.5 per cent. So if they sell £240 of work, including £40 of VAT, the flat rate amount payable is £39.60 or £240 x 16.5 per cent.

Businesses that spend less than two per cent of sales on goods (not services) in an accounting period are considered limited cost traders. A company is also considered a limited cost trader if it spends less than £1,000 a year, even if this is more than two per cent of the firm’s turnover on goods.

When working out the amount spent on goods, firms cannot include purchases of capital goods, food and drink or vehicles or parts for vehicles.

IT contractors, consultants, hairdressers and accountancy firms, which heavily rely on labour, with very little other costs, are most likely to be affected. Whilst construction workers who supply their labour, but are provided with the raw materials by the main contractor, are also likely to be caught up in the new changes.

The new rules came into effect on 1 April 2017, and HMRC has warned that it may also affect invoices issued, and goods bought, from the date of the Statement onwards.

Link: Flat Rate Scheme for small businesses

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G Blamire - Salisbury
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Lou Whiting - Salisbury
"James has always gone beyond the traditional approach of just accounting for what we have already done and continues to help us develop our company in testing times."
Steve Rawlins - Gosport
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Brian Keane - Stockbridge
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Claire Riches - New Forest
"We have been very impressed with the excellent high level of professional service and care that Custom Property Care Ltd have received from Fawcetts Accountants. They have dealt with all our needs efficiently and to a very high standard"
Kelly B - Salisbury
"A breath of fresh air' - Straight forward, understandable, approachable, informative, good value accounting. Xero accounting is so quick & simple to use!! Thank you. I enjoy my side of the deal now!"
Sue S. Devizes
"They are a modern and forward thinking company who love working with small businesses and start-ups; helping them grow online by offering relevant services along with pro-active advice."
Jack McConnell - Bath
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Miles Murray - Salisbury
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Mrs Zanne St John Marchmont
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Andy Leppard - Somerset
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Jeremy Chalke - Salisbury
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