10 Reasons why we love Xero

Xero Silver Partners

With a huge number of cloud-based accounting software on the market, we have compiled a list of the top ten reasons why Xero is the best choice for your business:

  • Automatic bank feeds – This allows you to update your bank quickly, easily and regularly. Xero will even help you to match your invoices to your bank statement lines.
  • The app is free – Xero Touch can be downloaded from the App Store or Google Play and makes keeping up to date with your finances easy wherever you are.
  • Customisable invoices – Using Xero’s template you can create great looking invoices complete with your organisation’s logo.
  • Safety and Security – Your organisation’s data is stored safely in the cloud and maintenance is carried out automatically.
  • Collaborate with your accountant – The single ledger means that you or your accountant can log in and view your data 24/7.
  • Full support provided – Online help-guides and videos are provided to help you use Xero effectively, as well as email support with any queries.
  • Cost-effective for small businesses – Xero is paid for via monthly subscription so no there are no up-front costs. Multiple users can also be added at no extra cost.
  • Tracking – Tracking Categories can be used to create meaningful management information and reporting at the click of a button.
  • Discount for charities – Charitable organisations love Xero as it enables multiple stakeholders to view data from various geographical locations. There is also a discount to the monthly subscription charge.
  • VAT filing online – You can file your VAT online and track transactions using the Audit Report function to ensure everything is in the correct place on the VAT return.

If you would like to find out more about Xero, please get in touch by emailing Stuart Moody at stuart.moody@taitwalker.co.uk or call 0191 285 0321.


What do workplace pension changes really mean for your business? Why not ask the Pensions Regulator…

What do workplace pension changes really mean for your business? Why not ask the Pensions Regulator…

We are delighted to welcome The Pensions Regulator to the North East and invite you to join us at our free auto enrolment seminars, taking place on Thursday 2nd October at Newcastle Racecourse and The Wynyard Rooms.

Together with The Pensions Regulator we will guide you through the maze of workplace pensions and share our experiences of dealing with Auto Enrolment and the challenges businesses face.

Whether you’re approaching your staging date and need to understand the best way to comply, or you’re already in the process and want to know how to make cost efficient decisions going forward, these seminars are for you.

We’ll be sharing best practice and will answer some of the key questions:

  • What is Auto Enrolment all about and how do I comply? The Pensions Regulator
  • How do I mitigate the cost of Auto Enrolment and how can I save money through salary sacrifice for an existing scheme? Tait Walker
  • What are the legal implications of automatic enrolment and what are worker rights? – Ward Hadaway (Newcastle Event) and Endeavour Partnership (Teesside Event)
  • What have you learned from helping others through the process and how can I do things differently? Tait Walker
  • As rates increase what can I do to make sure my scheme is as efficient as possible? Tait Walker

We’ll end the sessions with some questions and answers for the panel, so come along and don’t miss out on this unique opportunity to ask The Pensions Regulator your questions.

Locations Details

2nd October – Newcastle Event – Newcastle Racecourse

  • Registration and Breakfast – 8.30am
  • Presentations – 9.00am
  • Roundup and Questions for the panel – 11.00am


2nd October – Teesside Event – The Wynyard Rooms

  • Registration and Lunch – 1.00pm
  • Presentations – 1.30pm
  • Roundup and Questions for the panel – 3.30pm


To find out more or reserve you place please contact Claire Blake on 0191 285 0321 or email Claire.blake@taitwalker.co.uk

Connecting businesses with the alternative finance sector

Reports in last week’s press highlighted the issue of businesses who are unable to obtain banking finance and discussed how they could be connected with the alternative finance sector, which includes crowd funding. We asked Norm Peterson of North East based Growth Funders to comment on the proposals.

Proposal: Small businesses that are rejected for bank funding are to be offered access to an “SME dating agency” that will connect them with independent lenders who are willing to back them.

Norm’s Response: It makes sense to signpost rejected applications to alternative finance providers.   We are already receiving introductions from traditional banks.   However, there is a more fundamental change emerging in the market.   The early alternative finance players are developing what’s being referred to as an “online marketplace”.   By creating an online marketplace structure where borrowers and lenders can connect, marketplace lending makes it possible for lenders to achieve higher rates of return on their “deposits” and for borrowers to gain access to capital at lower rates, in far less time, than they would with retail banks.   These marketplaces are experiencing exponential growth which is now being fuelled by institutional money.   Indeed, some banks are now using these marketplaces to lend their own money into the market.


Proposal: The plans are being drawn up by the UK’s alternative finance sector after confirmation from the government last week that banks which turn small and medium-sized companies away would be forced to refer them online to other sources of funding. George Osborne said on Wednesday that legislation would be implemented to force banks to “signpost” unsuccessful applicants for bank loans to other providers.

Norm’s Response: Rather than force banks to refer SMEs to the alternative finance sector, we feel that the banks will see this as the route to market for better deals.   Instead of playing the role of intermediary, retail banks can become borrower lead generation sources and institutional investors.   Other banks are already starting to bring their own borrowers and capital to the likes of Funding Circle’s marketplaces to more profitably facilitate loans to their own customers.


Proposal: Alternative Business Funding, which represents non-bank finance firms, is in advanced talks with the Treasury about how the measures would be implemented. Adam Tavener, of ABF, a group whose members lend to about 40,000 small businesses, said: “What we are seeing is the first steps of a journey which will permanently change the way small business owners access finance for growth.”

Norm’s Response: The forecast is that this market can be a £1TRN market by 2025.   As the marketplaces grow, the SMEs will use these as their preferred choice.   Marketplace lending’s potential doesn’t mean that retail banks will be pushed out of business.   Instead, retail banks that choose to participate in the marketplace revolution will use their capital to fund loans on marketplace platforms.  


Proposal: ABF wants banks to capture key information about businesses who are rejected for finance, before passing them on to alternatives ranging from online lenders to local community-based backers and equity finance platforms. He said that the approach his group was proposing had the advantage of not requiring companies to contact the appropriate alternative. “This will see lenders reach out to borrowers rather than the other way around.”

Non-bank lenders would be passed key information, about each business, but not the names of the company, directors or other sensitive details. The system would remain anonymous until a small business decided it wanted to speak to an alternative funder that had indicated interest in backing them, in an approach Mr Tavener said would be similar to that of a dating website.

Norm’s Response: The savvy marketplace operators are already capturing this data and introducing credit and risk scoring methods which are more advanced than the retail banks, so we would not be concerned about banks capturing information and passing this over to marketplace operators.   The operators can capture this information online and through external agencies with a much more streamlined process and user experience.   In addition, these marketplaces offer “tiered risk opportunities” for lenders to match the more riskier loans using sophisticated risk scorecards.   This would provide lenders with the opportunity to develop their own portfolios with low, medium and higher risk loans, something the banks would not develop.


Proposal: The British Bankers’ Association said it supported the idea “in principle”. Irene Graham, the BBA’s executive director, said: “Any new process should give customers as many options as possible so that they can get the right finance. It is equally important that the customer’s consent and choice is kept at the centre of any scheme.”

Norm’s Response: We feel that banks will embrace the alternative finance sector and start to work in partnerships to offer a better service and wider choice to customers. Marketplace lending is not a radical concept – it’s a more efficient one.   As new companies and marketplaces form, we expect options for marketplace lending will develop for all manner of consumer and business loans, including consumer unsecured, real estate, education, purchase finance, business loans, and business working capital. And this transformation is only beginning.

How Xero can help start-ups to prosper

Xero Silver Partners

Funding, marketing and hiring staff are just a few of the issues that new businesses face.

The aim of small business accounting software is to alleviate some of the stress of these challenges and to ultimately ensure that they are conquered as easily and as quickly as possible.

Recently, a multitude of accounting software products has hit the market, with a particularly large jump in the number of start-up businesses using cloud-based products and utilising add-ons. These provide all-encompassing solutions that help such businesses take some of the more mundane bookkeeping functions in house to reduce costs.

Some of the major problems that businesses face can include:

  • Cash Flow – There are enough good ideas and leads for the business to launch, but sometimes a shortage of cash to see these ideas through to fruition.
  • Time – With so many tasks to complete and not enough hours in the day, prioritising is key. Bookkeeping and finances should fit around the business owner without necessarily dictating how they spend their time.
  • Geography – New businessmen and women often need to follow where the work is and cannot always be chained to a desktop computer with software installed on the hard drive.

Xero is designed to look great and to, more importantly, save time and money.

So, looking at each of these issues in turn, how exactly does Xero alleviate these problems and allow the business owner to concentrate on running their company?

  • Cash Flow – Xero’s prices start from £9 per month for businesses with fewer than 20 bank statement lines and five invoices per month. Exceeding these limits for one month will mean a price increase only for that month; the price will fall again once the transactions reduce back below the limit. Xero employs a monthly subscription model, therefore costs can be managed with no unexpected or hidden price hikes. The pricing compares favourably against competitors, both cloud and desktop based.
  • Time – Their design ensures that many of its functions are available at the click of a button. For example, Xero’s automatic bank feeds can be set up in a matter of minutes and can be refreshed in an instant to allow bank transactions to flow into the account. Xero then helpfully suggests invoices to match the bank statement line. Finally, bank rules can be set up to deal with recurring items quickly on the bank statement.
  • Geography – The Xero Touch app is available from the app store and allows the business owner to view invoices, bank balances and expense claims on their mobile devices wherever they are. These cloud-based products have progressed with the modern world and are largely available on multiple platforms. This massively relieves the pressure in regards to working from different locations when starting up a new business, particularly if you’re a Freelancer or Contractor.

As soon as Xero is set up and implemented within a business, the efficiency savings can be seen almost immediately.

For more information on how Tait Walker can help you implement Xero within your business, contact Stuart Moody on 0191 285 0321 or stuart.moody@taitwalker.co.uk.

Have you considered a Relevant Life Policy?

Following the changes to the pensions system in April 2006, also known as “A-day”, the way that death in service benefits are received and dealt with has changed. Previous to A-day, death in service provided four times salary at death, plus a widows pension, with the salary for post-1989 employees subject to the earnings cap. However, now any lump sum payments on death through a registered scheme will form part of the lifetime allowance (£1.25million for the 2014/15 tax year) with anything above that value subject to a 55% tax rate. This could cause big problems, particularly for high earners who are likely to exceed the lifetime allowance.

A solution to this is in the form of non-registered schemes referred to as ‘Relevant Life Policies’ (RLPs). These schemes have a much more generous tax treatment and aren’t taxed under P11D. The benefits are paid through a discretionary trust, and are free of income tax, as well as usually being free of inheritance tax too.

The good news for higher earners is that the benefits/premiums don’t count towards the annual or lifetime pension allowances.

A further benefit of RLPs is that they can be written on a single life basis, whereas most group providers are reluctant to cover less than five lives. This can be particularly useful for smaller companies who may not have enough employees to warrant a group scheme, or companies who may only want to cover one or two directors and not every member of staff.

There is no statutory limit to the amount of benefit that can be provided, but providers will set their own limits. There are however some restrictions on the form of the policy laid down in the legislation. These are:

  • Benefits are payable as a lump sum, no dependant’s pension can be provided.
  • Only life cover can be provided, no other benefits can be included.
  • Benefits must cease at age 75.
  • There can be no significant surrender value
  • Benefits must be payable to an individual or a charity, and as indicated above this can be through a trust. Most providers will probably insist on there being a trust set up
  • The main purpose of the policy must not be tax avoidance. Assuming the policy is set up for the benefit of genuine dependant or family beneficiaries this is unlikely to be a problem.

For more information on Relevant Life Policies, and whether they would be suitable for you, please contact one of our advisors on 0191 285 0321, or email phil.griffin@taitwalker.co.uk.

Tait Walker Wealth Management is a trading style of Tait Walker Financial Services Ltd who are authorised and regulated by the Financial Conduct Authority.

If you have clients providing management services you may wish to review their contracts

The African Consolidated Resources (ACR) decision could have implications for UK holding companies.

The facts of the case are familiar where one group company supplies management services to another, the twist comes in the tribunal’s line of reasoning that neither ACR or HMRC appeared to propose. Their interpretation of “consideration” was the point that gave rise to this note. The tribunal concluded that “the flat fee of £10,000 a year payable to ACR by its subsidiary was not consideration for the management services provided because there was insufficient evidence of an economic link between the value of the management services provided by ACR and the price paid by the subsidiary”.

This rather unexpected conclusion raises a number of interesting and potentially wide-ranging points, which may well give HMRC further ammunition in their long-running fight against VAT recovery by holding companies. Management services are often calculated on a flat rate basis or a proportion of a subsidiary’s profit and if HMRC run with the ACR decision these will potentially come under fire.

If you wish to strengthen your clients position when drafting or reviewing management service agreements then careful thought needs to be given as to how the consideration is calculated, and to evidencing that there is a direct economic link between the value of the services and the charge. A potential solution is to look to VAT group the respective parties but this should be considered in the round as this route has other issues that should be considered.

If you have any queries please call Nigel Smith on 0191 285 0321.

Have you used a tax avoidance scheme? If you have, you should seek independent advice about the new APN rules…

There has been significant press coverage about a recent change in UK tax legislation which will impact upon most individuals or companies who have entered into “tax avoidance” schemes.

In July the 2014 Finance Act received Royal Assent and came into force. This introduced new powers for HMRC to collect tax they consider due from any user of a tax avoidance scheme which had been given a “scheme number” under the UK’s Disclosure of Tax Avoidance Schemes rules. For people who have entered into a tax scheme which had been disclosed to HMRC, it is now likely that they will receive a tax demand at some time over the next 20 months, which is known as an Advance Payment Notice (APN).

More than 800 schemes which HMRC consider “tax avoidance” are covered by these new rules and, for example, the new rules will affect users of Employee Benefit Trusts, Contractor Loan Schemes and many Film Investment schemes.

Where an APN is issued to a person (and that person can be an individual or company) the tax will be payable within 90 days of the date of the notice and there will be very little room for challenge or appeal.  However guidance from HMRC has confirmed that it may be possible for an affected taxpayer to be able to enter into a time to pay arrangement so that the tax is paid over a longer period of time. It is likely that HMRC would want to see cash flow information to support the proposal for payment of tax to be deferred.

If the tax is not paid within the 90 days or if any time to pay arrangement is breached, a penalty of between 5% and 15% of the unpaid tax will be added to the amount payable.

The APN is no more than a payment on account of the tax and the taxpayer is at liberty to continue any appeal that is ongoing with HMRC.

In addition if HMRC consider that a judicial ruling means that they will win a hearing, they will have the power to issue a Follower Notice. The notice means that if the taxpayer chooses not to settle any appeal within 90 days of receipt, then if any tax is ultimately payable, a penalty of between 10% and 50% of the tax will be added to the amount payable.

If you have entered into a “tax avoidance scheme” what should you do next? 

Many of the promoters of the schemes covered by these new rules are either suggesting the answer is “wait and see what happens” or are trying to challenge the new rules.  There is still a lot of uncertainty as to the timing of the issue of the APNs, the amount of tax that will be demanded under APNs and the extent to which Follower Notices will be issued. However what we now know is that if a person has entered into a tax scheme, it is when not if a tax demand will be issued.

That change is vitally important because, for companies who could receive an APN in particular, that change of emphasis needs to be properly considered for the potential impact on the individual or business.

And that is why we believe that advice which is independent of the promoter (or any person who referred the individual or company to the promoter) is essential. It is widely expected that in the worst case scenarios these new rules may cause bankruptcies of some of the persons who receive the APNs.

For example, annual accounts may need to include amounts which are subject to an APN as either liabilities where an APN has been received, or contingent liabilities where one is expected.   The companies bankers, or investors, may need to be made aware that a cashflow impact is expected.   If the company is to be sold, a purchaser will want to understand (and probably discount the price by) any potential liability.

If you are likely to be affected by these new rules, you need to understand the impact on you or your business and plan now for what is to come.


Do you want to understand the cost of settlement of any outstanding “tax avoidance” schemes which may be subject to an APN?  Do you want to understand and mitigate the potential impact on your business?

If you would like a free consultation on how to minimise the impact of receipt of an APN on you or your business, please contact Alastair Wilson or Chris Hodgson at Tait Walker on 0191 285 0321.

New Sage 50 Accounts launched today

The new Sage 50 Accounts software is available from today, with some key updates to give you more flexibility in how you access and share your data.

The latest upgrade gives you the best of both worlds, with the benefits of stable, reliable desktop software and the choice to also link your data in the cloud, to give you greater flexibility and security.

Some of the key new features include:

  • Share your clients data in real time – no more waiting for files to be transferred
  • Automatic backups protect data and make it easy to restore should the need arise
  • New mobile apps help your clients business managers and sales teams understand performance on the go
  • Streamlined navigation helps you work more efficiently. And it’s been tested to deal with up to 1.5 million transactions and 20 concurrent users.

To find out more about the new Sage 50, or any other Sage products, please don’t hesitate to get in touch with Claire Richardson on 0191 285 0321 or email her at claire.richardson@taitwalker.co.uk.

57% of women have no income protection cover…

Worryingly, that’s the result of a recent survey carried out by Aegon UK. According to the survey, the majority of women have little or no protection cover in place. 1 in 3 working mums have no savings at all, while many overestimate the amount of State support they’d receive if they were to fall ill.

Women are becoming increasingly important economically, in public life and in the workplace. Forty years ago, just over half of UK women were in work. Now that figure has risen to over two thirds. Although some women choose to stay at home and look after their children, or decide to do so because of high childcare costs, almost three quarters of all mothers are in work. Women have traditionally looked after the day-to-day money in many households, but research shows they’re taking an increasingly important role in managing the long-term finances, such as savings and pensions, as well.

However, there’s one area where women are falling behind; and that’s thinking about what would happen to their finances if they couldn’t work or couldn’t take care of their children, despite 71% of mums surveyed saying that the financial security of their children is one of their top priorities. Given that more than two in five mothers of children over 18 have no protection whatsoever, there is a serious imbalance between priority and protection.

Top 5 priorities for womenSource: Aegon UK, June 2014

A final interesting finding from the report shows that women are underestimating how heavily they will need to rely on family, friends and the State in the event that they become ill or unable to work, and even with State support there is likely to be a serious shortfall. With the current average annual income at £23,589 (ONS, 2013), and the current statutory sick pay set at £2,451.50 for the 2014/15 tax year, there is a pre-tax shortfall of £21,137.50, which would have to be met using savings and family support, as well as most likely requiring some cutbacks.

Deborah Trelease is a financial adviser with Tait Walker Wealth Management. Contact deborah.trelease@taitwalker.co.uk or phone 0191 2850321 to discuss your options when planning for the future.


Tait Walker Wealth Management is a trading style of Tait Walker Financial Services Ltd who are authorised and regulated by the Financial Conduct Authority.

The purpose of this blog is to inform and should not be interpreted as a personal recommendation or advice.

My Xero Journey

It’s fair to say that my Xero journey has taken many a twist and turn over the last couple of years.

When starting out running my own practice, it was decided to focus on cloud accounting software to appeal to the small-business owners and start-ups that we were attempting to engage with.

This type of software seemed to work on so many levels for our new clients, with low set-up costs, the ability to add multiple users at no extra cost and being able to view data from any location, so long as you have an internet connection.

After an eventful 18 months working for myself I transferred to another practice, and thankfully my clients showed faith in me (not to mention loyalty). The practice I moved to was also primarily cloud-based, meaning it was a great fit. However, they mainly used Xero whereas I’d decided on a competitor cloud product.

Through working with a new range of clients my exposure to Xero increased, and the design seemed cleaner, brighter and much more appealing. Once I started using it more I realised it was much more intuitive and the idea should be that clients can save money and time by using it effectively. I realised that this was one of the main benefits of Xero – to a certain extent clients were sold on the design of the interface and the way that the Dashboard had been formulated, only showing the financials that were particularly important to the business. Xero also spoke in layman’s terms (Money In-Money Out); the language was jargon-free, giving it a wide appeal.

The functionality of the software was on a different level to anything I’d used previously, and it was very easy to demonstrate how Xero would make the lives of business owners easier.

  • It could spell the end of keeping records and receipts in shoe-boxes. Instead, why not take a picture of your receipt with your smartphone, and in the process upload this directly to your Xero account.
  • It could spell the end of keeping papers and bank statements piled high in the box-room. Instead, why not set up a bank feed directly from your online banking to bring through your bank statement lines to your Xero account.
  • It could spell the end of ‘who-sent-what-and-when’ conversations. Instead, why not email online invoices directly to customers. Xero can allow you to personalise and customise invoices, it can highlight when an invoice has been opened and read by a customer and you can even insert a link on your invoice that connects directly with online payment services to allow your customers to pay you easily and quickly.

Having now been at Tait Walker for three months, I’m excited at the prospect of being in a position to present this software to clients and business owners.

My major hope for the future is to work with businesses who share the vision I have in wanting to utilise new technologies to bring business owners closer to their advisors and to increase transparency and accountability in the accounting process.

From my own point of view, I’m passionate about learning about businesses and particularly what motivates businesses owners and how I can provide a solution that will make a real, tangible difference to them.

Xero can have a place in most businesses, small and large, and I’d love to talk further to anyone who feels it can make a difference to them. If you’d like to find out more then please get in touch by emailing chris.smith@taitwalker.co.uk or call 0191 285 0321.

Xero Silver Partners


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