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All posts by Mark Nesbitt

Updating Bank Feeds

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Updating bank feeds every 90 days

Please log into Xero and renew any bank feeds you have set up. You should see the option to update the feed on any accounts that need it. 

Please note, if you use Starling bank, you’ll need to update the bank feed in the Starling App, not in Xero! 

Why do I need to do this? 

As part of new rules around open banking, you will have to log into Xero and update your bank feeds every 90 days. Depending on the bank you use, you may get a reminder to do this (Starling for example will notify you in App, which is where you can make the update). 

If we spot that you need to update your feeds, we’ll notify you by SMS (text message). Please act on this quickly. 

If you don’t update the feed before the feed is severed, then bank transactions will be missed and this can cause issues further down the line, with missed transactions and or the need to request bank statements for the whole year. 

 

Here is the text from Xero about why you need to renew every 90 days: 

Authenticating your bank feed

When you connect a new bank feed or change your existing bank feed connection, as part of the new requirements, your consent will last for 90 days. After 90 days, you’ll need to re-authenticate your bank connection. Xero will remind you when you need to do this – it’s as simple as re-entering your online banking credentials. Whilst it’s a little extra admin, this is a new standard under Open Banking.

If you don’t re-authenticate my bank feed after 90 days, you can re-authenticate your bank feed at a later date. You’ll just need to make sure you import historical transactions back to the date your bank feed stopped importing transactions so there isn’t a gap. You can only import 90 days of historical transactions when re-authenticating your bank feed. If you need more historic data you’ll need to manually import transactions into Xero.

100% Electric Company Cars

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In simple terms, buying an 100% electric car through the company has the following tax advantages:
  1. The full purchase amount can be written off against tax:
    1. Only if the car is bought by the company and is new (so, not leased or second hand).
      1. Financed purchases are OK, so long as the company owns the vehicle on their balance sheet.
    2. If the car cost £50,000 – this would be written off against tax, saving approx. £9,500
    3. Although, if the car is sold at a later date, tax on the sale value will be due
  2. Benefit in Kind charge is 1% for 2021/22, 2% for 2022/23 and so on
    1. On a £50,000 car this would be £500
    2. Tax charge would therefore be:
      1. Basic rate tax rate: £100
      2. Higher rate tax rate: £200
A lease would have the same BIK benefits, but you don’t get the first year allowance tax write off. However, if you’re VAT registered, you can reclaim some of the VAT.

Lock down 2 – what support is there?

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Further reading and source: https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced

Businesses required to close:

Restaurants, bars and pubs will be required to close but can continue to offer takeaway services. In addition, the following businesses will be required to close:

  1. all non-essential retail (clothing, electronics, betting, tobacco and vape shops, betting shops, tailors, car washes, vehicle showrooms and travel agents)
  2. indoor and outdoor leisure facilities (gyms, swimming pools, gold courses, dance studios, shooting ranges and stables/riding centres)
  3. entertainment venues (theatres, cinemas, bingo halls, casinos, zoos and animal attractions)
  4. personal care facilities (hair, beauty and nail salons, tattoo parlours, spas, massage parlours, non-medical acupuncture and tanning salons)

Non-essential businesses can continue to offer delivery and click and collect services.

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Job Retention Bonus

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A Job Retention Bonus of £1,000 will be paid where:

  • An employee was previously furloughed.
  • An eligible furlough claim was made for that employee.
  • The employee remains continuously employed from 1st November 2020 to 31 January 2021.
  • The employee is not serving notice
  • The employee must have been paid at least £520 a month average for the 3 months preceding 5th February 2021
  • Taxable income must have been paid in the 3 months preceding 5th February 2021

Claims will be made after 15th February 2021 and must be made by 31 March 2021

Employees claimed on the Job Support Scheme from 1st November 2020, will also be eligible.

Directors are also eligible for the bonus, if all the above are met.

Love Accountancy are planning to file these claims for our clients.

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