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Those using GoCardless will soon start to see VAT applied on their charges.


From 1st September 2020 GoCardless will start to charge VAT on all their fees that they charge for services.


The change has come after HMRC updated their guidance in April, stating that the fees GoCardless charge will no longer fall within the scope of VAT exemption.

Although the change was made in April, GoCardless are absorbing the VAT costs for any of their existing customers until September because of the impact of Covid-19.

VAT will be charged at the UK Standard Rate, which is currently 20%.


Impact for VAT Registered Businesses

If you are VAT registered, GoCardless need you to provide them with your VAT number. The changes will have minimal impact to you, as you will be able to reclaim the added VAT cost in your VAT returns.

The VAT that you can claim will include the period from when the change came into effect, which means that you can claim from 14th April to 31st August, as well as the periods following 1st September when the charges come into full effect.


Impact for Exempt Goods/Services or Non-Registered Businesses

If you are not VAT registered, or supply goods/services which are VAT exempt, you will not be able to reclaim the VAT costs from the GoCardless fee.

Because of the impact this could have on businesses which have already been affected by Covid-19, GoCardless are setting up a VAT relief fund which will help to offset the impact of these changes.

This relief fund is something that you need to apply for if you wish to take advantage of it. Please click here to go to the GoCardless website and find out more about applying for this relief fund.

If you are defined as a Micro-Enterprise in your agreement with GoCardless, you can terminate this agreement immediately without any charges.

Alternatively, if you continue to use GoCardless after 15th August 2020, this will be counted as acceptance of the changes.

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When you run a business, it’s essential that you make everything as transparent and traceable as possible. This is something that many business owners fail to understand, as they think that it’s better to sweep little issues under the rug, hoping that everything will blow over. In reality, doing things by the book is an integral part of having a sustainable and long-lasting business that will thrive in the future.

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If you are an owner of a small business, it's important to keep track of your finances. The smallest mistake can lead to significant issues. Larger companies and corporations can cover these small mistakes, but if you are smaller, you will need to be more careful.

As you grow, you want to save where you can and what better way to do that than with keeping track of your accounts? You want to avoid financial damage in any way possible in order to prepare for the future of your business.

This is why bookkeeping is crucial and should be done by a professional. A bookkeeper will help you build a foundation with solid accounting support.


Business decisions

If you do not keep up with your finances or don't hire someone to do so for you, there are many accounting tasks that won't be addressed, but that will need to be. Any business decisions you make will affect your profitability and will also affect the cash flow of the company. Too many bad decisions can lead to the downfall of your company if you are not careful. This is why you need to make sure that you are being responsible with your money. The only way to know if you are is by having a professional watch your finances for you. They will be able to provide you with daily, weekly, monthly financial reports that will detail your revenue, help you consider loans or payments, calculate taxes, whether or not you can buy new equipment or hire more people, and many other business decisions that you will want to check finances for before making a decision.


With a professional bookkeeper, they will be able to give you the information you need to figure out whether or not you can take these actions, allowing you to make a smarter decision. These reports are not just for fun things like buying a new piece of equipment for your shop, but you will need them for important things like upcoming payments and taxes. Bad bookkeeping practices will leave you in debt and with overdrawn accounts because you spent money that you didn't have.


Bookkeeping issues

If your company is not serious about engaging in good bookkeeping practices and is procrastinating financial tasks, leaving your accounting to an inexperienced accountant in order to avoid paying too much, you could be creating extra time intensive tasks unnecessarily. With efficient, effective bookkeeping practices, this could be minimised so you want to make sure that you are managing your staff well. Any staff handling transactions should be taught good techniques and make sure that everyone is following the same practices to ensure consistency.


Long-term implications

Smaller issues might not be a big deal in the beginning, but in the long run, it can really mount up and lead to major problems that will affect you in some way or another. If you want to be successful in the future, financial tracking is crucial and planning is a critical part of the long-term success of your business. Failing to keep up with your financial issues will be something you will end up having to pay for in the future. Find yourself an experienced professional that will be able to help you with the financial side of your business.


If you’re looking for a Bookkeeper or accounting professional in Cambridgeshire or Cornwall, Fordham Finance is your best option. Get in touch with us today to see how we can help.

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It’s imperative for each of us to closely monitor our financial status and ensure that we can put ourselves in a financially sound position, regardless of what happens to our lives. For this reason, having a financial adviser on your side can be the best thing that you could do. Many people are put off by the idea of hiring a financial adviser as they believe the payoff may not be worth the cost. Therefore, you need to understand what exactly you need an adviser to help you with so that you can choose one with the right payment plan for whatever you’re trying to achieve.


Listed below are the typical payment plans that most financial advisers will follow:

Commission-based fee

From 2013 onwards, financial advisers cannot receive a commission on pensions, investments or retirement income products such as annuities.

However, on certain products such as mortgages or Insurance, commissions may still be used.

The charging structure should be given upfront in an initial disclosure document and be agreed in advance. Where not paid through commission and the adviser is paid directly by the client this can take several different forms:

An initial fee

When undertaking work on pensions, investments or retirement income products advisers will usually charge an initial fee which can be derided either as a percentage on the value of funds to be advised on or by hourly rate.

An ongoing fee

Many advisers will offer ongoing review services on investments. This typically includes at a minimum an annual review to ensure that you’re on track to meet your financial goals. This is typically done on a percentage basis of your overall portfolio but can be done as an hourly rate if preferred.


Now that you understand the payment types, the next thing you need to think about is how to choose one that fits your needs. With that said, here are six things you need to keep in mind when looking for a financial adviser:


1. Their philosophy / culture

You need to know everything there is to know about the adviser’s culture, as that will make a massive difference in the working relationship. If your adviser’s goals and philosophy don’t match yours, how do you expect to make the most out of your arrangement? Therefore, you need to understand and agree with the adviser that you’re closely aligned to


2. Their location

You typically want your adviser to be as close to you as possible, as that will allow you to contact them whenever you need their service.


3. Their service delivery

Some financial advisers will only give you consultations over the phone while others offer all-inclusive services. In general, the more they do, the more they will charge. Therefore, you need to make sure that you know what you need so that you don’t go overboard with the budget.


4. The person doing the work

Some financial advisers work as part of a team to provide their services. This could involve para-planners undertaking admin work, or specialists on particular topics becoming involved in a case where necessary. This is taken into account when providing a quote as to what level of skills will be needed to offer you the right advice.


5. Their qualifications

Each financial adviser will charge different rates based on the demand for their skills, so you will need to look for the qualifications to see if they’re the best fit for you.

5. Their specialism

Different firms excel at different types of work You should always check with your adviser that your case is something their firm has the skills to cover. For example, later life / care fee planning, school fee advice, or complex tax planning.


If you’re looking for a fixed fee financial adviser in Cambridgeshire, Fordham Investment Services is your best option. Get in touch with us today to see how we can help.

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When you start a business, it can very quickly become your whole life. However, if you don’t manage it well, it may not last as long as you’d like it to. Many companies fail due to insufficient financial management.

Failing to have a proper bookkeeping system can result in major losses and perhaps even penalties. This can be easily avoided by making sure that your business has a good financial management system.


Not Keeping Up With Accounting 

Since you have other things to worry about as a business owner, it is wise for you to hire someone to take care of your bookkeeping, keep up with your daily transactions, create your financial statements, and handle your taxes. Having a professional do it for you will allow you to focus on the management aspect of your business while your accountant focuses on the financial side. An accountant will also be able to help you to make sound financial decisions and warn you about possible issues.


Forgetting to Factor in Hidden Costs 

Sometimes there are costs that business owners tend to forget about completely when looking over their budget and adding transactions. There are some liabilities that might sneak out of your budgets by the end of the year - employee turnover, payroll taxes, Corporation tax, benefits, insurance, inventory reduction, bank or credit fees, among others. These fees can often go overlooked, but they can put a huge hole in your cash flow.


Failing to Plan Ahead 

Launching a business will take a lot of consideration and planning. Since you might be busy working on your products and services, you might forget that the financial side of your business needs plenty of attention as well. It's good to have a plan so that you can make predictions far out into the future and be prepared for any financial issues that might come up. You will want to carefully consider and plan for debt, what to do if the business isn't working out as planned, how you will raise money for monthly operations, how to prepare for cash flow fluctuations, how to account for miscalculations, and more. You’ll also have to consider the annual budget, profitable markets, and marketing campaigns that might cost even more money than you planned.


It’s important to make sure that all these things are taken into account when your budgets and financial strategy is determined. After all, in order to successfully stick to the budget, you must have one in the first place.


Neglecting to Use Accounting and Bookkeeping Software

Accounting software can be every business owner’s best friend. Failing to learn how to use it properly or neglecting to hire someone who has experience using this software can lead to many problems. Just having the software isn’t enough. If you don’t know how to use it to its fullest, chances are that you're missing out on some features and tools that could save you a considerable amount of time and energy. When used properly, accounting software can bring some huge positives to your business.


Fordham Finance Group provides bookkeeping & Accountancy services in Ely and Truro as well as Independent Financial Advice through our sister company. Get in touch today to see how we can help.


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At some point, small business owners will have to encounter the question of whether or not they should hire an accountant. The most common reason for most business owners to have an accountant or a bookkeeper on board is so that they don’t have to deal with cumbersome tasks themselves - tax preparation, in particular. However, an accountant is capable of more than just assisting you with statutory reporting. This article will tell you what hiring an accountant will mean for your business so that you can come to the conclusion of whether or not you should take the plunge and employ one.

The Main Accounting Tasks

Having a good accounting and bookkeeping system in place is imperative for the effective management of your company’s cash. When it comes to finances, all areas of your business operation are affected. Therefore, you have to make sure that all the core accounting tasks are being carried out properly. These main tasks include:

 Setting Up the System

There needs to be a system in place to ensure that all transactions are being tracked. Depending on your business, you can choose between spreadsheets, a notebook, or accounting software.


Recording Transaction Data

Having all the transaction data recorded in the system is required for all businesses. Transactions may include expenses on materials, office supplies, insurance, rental, employee compensation and benefits, and so on.


Reporting Results

Financial reports that cover actual results and the forecast for future results need to be taken into account as well. For example, reports may cover total sales, financial statements, and tax reports, among others.


So, Do I Need An Accountant?

After considering these essential accounting tasks, you should be able to come to a conclusion whether you can manage these tasks on your own. Keep in mind that every business is different, and what works for other companies might not work for you. If you have just started your company and have a pretty good idea of the basic accounting tasks, then you might be able to handle these things on your own. However, if your company starts to expand and you find that you don’t have enough time to juggle your finances and run a business, then hiring an accountant is a good idea.

When it comes to making a decision of hiring an accountant, it all boils down to your company’s needs and the type of your business. An accountant may be suitable for growing companies that have over six-figure sales while a bookkeeper is more suitable for small companies that only need help with basic accounting tasks.

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& International Association of Bookkeepers No. 2075.

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