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Ember Digital Limited is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 919397) for the provision of account information services.

Registered in England and Wales no. 11822163 - 160 Kemp House, City Road, London, England, EC1V 2NX.

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The Ember Blog

We pride ourselves on ease of use and fast paced development to stay ahead of the curve. Join us for beautiful tech and reliable accounting support.

From dividends to dashboards and personal tax to payroll, we've got an exciting list of new product updates this month – take a look.

Ember Product Update August 2020

August may not have been filled with European beaches and sunshine, but it's definitely been a busy month at Ember HQ. From dividends to dashboards and personal tax to payroll, we've got an exciting list of new product updates this month – take a look. 

Dividend payments are now possible, straight from within the app.

You can now pay yourself dividends without ever having to leave the platform. No more toggling between your banking apps and accounting system; just one smooth and frictionless flow. Make sure to add your personal bank details into Settings before giving it a try. You can access the new payments function from Dividends > Pay Now.

Alongside the payments initiation functionality, we've also built a nice new Dividends menu option, so you can easily understand the tax implications of the dividends being paid, and also how much you can actually withdraw without surpassing your company profits.

The business dashboard is up and running.

Our users have asked for a central place to manage all their business needs, and we've listened. Your centralised business dashboard is now here, smarter and more colourful than ever. From here, you can finalise payroll setups, see reminders for client and supplier invoices that are nearing due, and be notified of any errors (if they occur) when submitting your RTI.

This is just the beginning of an intuitive, stress-free way to manage your entire business, in just a couple of clicks – much more to come.

The 'Personal Tax Owed' report is now here.

Off the back of user requests, we've built the Personal Tax Owed report: a real time guide as to how much tax to keep aside for your director self assessment, based on the wages and dividends you pay yourself from the company. This is only available for single director companies at the moment. 

You'll now be prompted to set up payroll automation after processing your first pay run through Ember. With this switched on, your pay run will be automatically processed each month, accounting journals posted and your Real Time Information (RTI) submitted to HMRC. Less time spent on admin = more time spent on building your business. 🚀

If the user hasn't processed a pay run through Ember yet, payroll automation will be hidden.

We've added two separate buttons for Log In vs. Sign Up on mobile, to improve the mobile login and registration processes.

You can now de-register your company for VAT in the app if you are no longer registered, and we also now support the switching of VAT schemes in-app.

We've completed background work on centralising all Marked as Deleted transactions.

You can now make a bank connection inactive as a Super Admin, meaning the bank will be removed from 'Manage' without deleting the transactions that exist for it.

We're taking steps towards being able to support businesses with foreign currency transactions. You can now do the following in the app:

Raise USD or EUR sales invoices to your clients.

Input USD or EUR currency supplier invoices.

Default currency has been added to client and supplier records.

See your converted foreign currency bank balance on the balance sheet in base currency.

FX transactions will now be represented in the foreign currency on the feed.

If you have any questions, queries, thoughts or ideas, drop us a line at support@ember.co. We'd love to hear feedback on what's working, what's not, and what you'd like to come next. 

Dividends to dashboards and personal tax to payroll automation.

As we barrel (disbelievingly) into the second half of the year, we've been working on some exciting product updates which we wanted to share.

Ember Product Update: July 2020

As we barrel into the second half of the year, we've been working on some exciting product updates which we wanted to share. If you're keen on knowing more about our development progress as it happens, our release notes are always available during the month.

Payroll functionality is now live, meaning that you can file all of your upcoming pay runs with HMRC, via RTI, from straight within the app. Some other cool stuff you can do:

See your monthly split between Gross Salary, PAYE, NIC, Pensions etc. with our colour-coded dashboard view.

Keep all of your Employer and Employee details up to date, adding or editing information where necessary.

View all employee pay slips, and switch easily between years with a new toggle bar.

And finally, your wage payments will automatically post into the necessary categories, so you don't have to worry about the accounting, just about paying yourself and your team.

More payroll improvements to come in the following months!

You can now hook up your Amex business credit card to your Ember account, and manage all of your expenses through the app with no friction or fuss. It works exactly like any other business bank account.

And whilst we're on the topic of banks, we've ensured that bank logos appear on each of your transactions so that you can more easily identify which account the payment is coming from or going to.

Manual journals and adjustments are here. 

Whilst our aim is automation, we understand that there'll sometimes be a need to tweak your accounts manually. You can now make any accounting adjustments or manual movements between categories that weren't possible previously. This not only gives you complete control, but also enables support for more complex accounting cases.

You can start adjusting if needed by heading to Manage > Manual Journals.

We've made some updates to our pricing and packages – check them out here, to see if this could benefit you.

We've switched the terminology used for transfers to be more in line with how the categories are named, ensuring a seamless user experience across the board.

We fixed up some issues with mobile push notifications; now, they should only come through when you have new transactions to review.

A sneak peak in to the not too distant future... 🔮

We're busy at work building an integration with Companies House, so you can file your FRS105 compliant accounts direct from the platform when they're due.

The tax on Dividends calculator is almost here. With this, you'll have a clear idea of how much you should be setting aside each month in order to meet you personal tax bill at the end of the year.

Payroll in your hands, Amex availability & more.

If you're currently between contracts or struggling to find work, switch your accounting over to Ember and we won't charge any fees until you land that next role.

As the country returns to a sense of 'cautious optimism,' we take a look at what the post-Covid economy looks like in the UK and, most importantly, what it means for contractors and self-employed people.

How Coronavirus will change the contractor landscape

Lockdowns are easing and businesses are reopening (bring on the weekend with its hairdressers and beer gardens!). However, there is no denying the damage that lockdown has wreaked – first and foremost on the families of those directly affected, but also on the economy, both globally and at home.

As we return to a sense of 'cautious optimism,' we take a look at what the post-Covid economy looks like in the UK and, most importantly, what it means for contractors and self-employed people.

The UK economy was already experiencing a turbulent time before the coronavirus hit (thanks to Brexit), but the picture is in many ways very different today. Predicted to suffer a 10% contraction this year, the UK economy – like most in Europe – is suffering from a slowdown in demand thanks to social distancing and reduced spending, as well as the broader 'economic scarring' of many businesses closing their doors for good.

As a result, the outlook is fragile. Despite reopening, companies will be finding it difficult to plan ahead with so much of their day-to-day functioning still in flux. The outlook is also increasingly competitive: with such a significant portion of the workforce enduring furlough or having lost their jobs, the number of applicants per position (as opportunities and contracts open up) will be knocked right out of whack.

Finally, the economy we face is a conservative one, with a reduced appetite for investment. With typical hubs of collaboration and conversation (co-working spaces, industry events, places of personal and professional mingling) still on the back-burner, we'll see innovation and the socialisation of new ideas decline. And, whilst the coronavirus has no doubt opened up many opportunities for innovation that weren't in the spotlight before, whether or not those ideas will find their feet (and funding) remains uncertain.

It can't all be doom and gloom, though. Whilst contractors have undoubtedly been thrown into an unsettling state of limbo, we believe a lot of what makes up this new picture could work in their favour. Here are a couple of reasons why.

Firstly, there is no doubt that lockdown has opened the business community's eyes to the benefits of working from home. From reduced overheads to increased productivity, we're seeing numerous firms embrace and embed remote working for good moving forward. This 'virtualisation' of the workday is nothing new for contractors, who already know that a laptop and strong internet connection is all you need to sustain a healthy, flexible career.

For the wider workforce, however, this represents a reduced barrier to entry when it comes to setting up a new venture or making the jump from full-time to freelance. Whilst the 'home office' may have presented an initial challenge to adapt to for most, the work-life balance experienced by many may accelerate the shift towards a fully freelance economy.

Secondly, increased uncertainty may cause the nature of career aspirations to change. Having grown up through the 2008 financial crash and now Covid-19, the younger generation will become even more distrustful of the job security offered by 'big business.' As a result, we may see a resurgence of graduates entering the trades – from carpentry to craftsmanship – compelled by the promise of a steady 9-5 with sturdy earning potential. Entrepreneurialism amongst the youth (whilst already on the rise before the pandemic) may become even more appealing at a time where the institutions seem to have no more control than us.

Opportunities may open up from the supply side, too. As the wealth gap widens, companies that have fared well through the crisis will continue to do so, whilst those that have laid off staff will be much more open to the idea of engaging short-term talent, as and when they need it. We're already seeing an increase in redundancies coming out of lockdown as the Coronavirus Job Retention Scheme (CJRS) starts to cost businesses more to keep their employees on furlough than to lay them off. This increase in unemployment should give rise to a skills shortage, meaning greater opportunity for short term contracts to plug the gaps.

Ultimately, as the landscape shifts, both existing contractors and newly freelance workers will need to be on top of their game. In an increased competitive space, marketing yourself well will be key to standing out, securing work and building sustainable contact networks.

Contractors will also need to be increasingly strategic in their approach, opting to diversify their skillset for the sake of agility or, conversely, become even more specialised in their chosen field.

It's a lot to think about, especially for anyone new to independent or contract work. More than anything, it will help to have the 'basics' sorted – your limited company set up and ready to go, a finance and business management system in place so that the stress of accounting won't slow you down. That's where Ember comes in.

We're automating accounting for contractors, which means you'll never need to know the word 'ledger' to use our software, or pay £150 to an accountant every month to take care of it for you. Ember gives you more control with less manual graft. It's your basics covered, plus access to a host of start-up and contractor resources – from discounts on complementary services to blog posts that keep you informed on the latest legislation.

Ember Product Update: May 2020

We've been hard at work gathering your feedback and improving the product. Check out our latest updates below. 

💸  The Dividends Available to Withdraw report is now up and running. This gives you a real-time estimation of how much money you can take out of the business, given all the variables that need to be considered.

🕵️‍♀️  Our 'drill down' functionality is now live from both the P&L and Balance Sheet. This gives you a deeper understanding of what makes up each of your tax categories; simply tap on the category you wish to see and all the transactions will appear.

👬  We've separated out-of-pocket expenses into its own menu option. This means that OOP's added by you now sit separately from your bank transactions, making them easier to find and keep track of.

⬇️  You now have the choice to download and send invoices separately, or to send them directly through the app with easy mobile sharing available.

🔥  We've redesigned the sales invoice template to look slicker, neater and more professional.

🍔  We've also added a menu bar to the invoice template, making it easier to navigate the extra actions you can complete when raising invoices to your clients.

🔍 Searching for transactions is now easy than ever. We've added a search bar that covers your main feed, 'transactions requiring review' and expenses screens. Watch this space for enhancements to the search capabilities in the future.

A sneak peak at what's coming next month...

💰  Payroll is on a roll! This month we built the ability to add or edit employees on your payroll list and created a basic payroll schedule. We also made it possible to list employer pay runs and block a pay run if details are incomplete.

💭  Still to come is the addition of the payroll dashboard, slicker employer information capture and processing a pay run.

Invoicing additions, shiny new reports and better search.

Download Ember on your mobile from the Apple App store, the Google Play store, or sign up for a free trial right here.

After a seed round of fundraising and months of development, Ember is live! While we hatched the idea for Ember before any sign of Covid-19, we're hoping our platform will give contractors one less thing to worry about – their dreaded admin – in such uncertain times.

Ember is open for business.

After a seed round of fundraising and months of development, Ember is live!

The world's a strange place right now, and any kind of contractor or small business owner will no doubt be feeling the effects of lockdown. While we hatched the idea for Ember before any sign of Covid-19, we're hoping our platform will give contractors one less thing to worry about – their dreaded admin – in such uncertain times.

It's a simple solution to what is a surprisingly complex world. Without the support of a big company, staying on top of your finances as a UK contractor or small business owner is a manual and time-consuming task. Clunky spreadsheets, indecipherable jargon and headaches resulting from staring at HMRC's website for hours on end, are all part of the struggle.

Ember is built to change that. Powered by open banking and a nifty machine-learning model, Ember shows you only what you need to see, and does all the complicated stuff (tracking and managing expenses, calculating and submitting tax) in the background. So, no more time consuming, cumbersome spreadsheets, missing tax deadlines or paying upwards of £150 a month for an accountant to take it off your hands. For just £39 a month, Ember puts you in complete control of your company finances – without even needing to know the meaning of 'general ledger'.

Ember was born out of first-hand frustration with being self-employed and having no financial training. After setting up my own company as an IT contractor, I was struck by how onerous it was to stay on top of my books and taxes. When I eventually buckled and paid an accountant, I felt constantly in the dark about what he was lodging on my behalf. It became painfully obvious to me throughout the whole experience that so much of the accounting function could be automated. I did some digging and discovered that the vast majority of contractors in the market felt the same.

We're all about making your life as a contractor less stressful and more seamless, so we've addressed the real pain points, with software as slick as social media. Here's what you can do with Ember, as of today:

- Link up your bank account so that all of your transactions appear in one centralised feed.

- Forget about classifying your expenses manually; we do that for you, as you spend.

- See your financial position and how much tax you owe in real time, all the time, with constant updates to your P&L and Balance Sheet.

- Avoid nasty surprises when the taxman comes knocking.

- Get paid quicker with beautiful invoices that you can create and send in a couple of clicks.

- File your taxes, also in a couple of clicks, and in keeping with the recently introduced 'Making Tax Digital.'

- Use Ember on the go, as our app works across any device: desktop and mobile.

- Never feel in the dark (until dark mode comes) with trained accountants always on hand to answer curly questions and provide in-app support.

We believe in an economy powered by small business, where everyone is able to work freely and flexibly with no barriers to contracting or starting your own thing. With progressive tech, delivered in language everyone understands, our vision is to automate the entirety of the business admin process – from starting a company to closing it down, and everything in between.

We don’t take accounting lightly, but what matters to us is that you can.

The next phase of IR35 was due to come into force just a few weeks ago, but as a result of coronavirus, it's been postponed by a year. Check out our latest blog post to learn more about what might happen next.

IR35 - What' next?

The next phase of IR35 was due to come into force just a few weeks ago, but as a result of coronavirus, it's been postponed by a year. With the situation in flux, we're keeping a close eye on developments. Read on to learn more about what might happen next with regards to this pivotal piece of legislation.

IR35 is a piece of legislation that has existed since 2000. It requires contractors and companies providing ‘personal services’ to determine whether or not they are a ‘deemed employee’ and therefore if PAYE should be applied to their remuneration or not.

What was going to change a few weeks ago? 

Essentially, the responsibility of assessing your employment status was going to be passed from contractor to end client. This change was made to contracts within the public sector in 2017, and – until a few weeks ago – was going to apply to private sector contracts as well.

Yes, but a year later than planned. The government has announced that the change will now take place on 1st April 2021.

It will mean that for every contract you (as a contractor) enter into, your end client (the company or person you work for) will be required to perform a ‘status determination statement’, evaluating whether or not your services qualify you as a 'deemed employee.' Where that proves to be the case, your employer will need to deduct PAYE and NI, for tax purposes, from your pay. This SDS always has to be shared with you. More details are here.

It will look like the HMRC’s CEST tool (Check Employment Status for Tax), which personal service contractors/companies are already expected to abide by. Where the CEST tool is ‘unable to determine’ a contractors status, the end client will need to do extra work to meet the legal obligations of completing the SDS.

HMRC expects the SDS to be regularly reviewed by employers. It's recommended that you, as a contractor, start using this tool ahead of April 2021 so you're prepared for potential changes in advance of your end client requiring them from you.

It's hard to say. The Chancellor has noted in one of his Downing Street briefings that this emergency response has shed increased light on the inequities in the different systems and rules. For now, the government will focus on the emergency measures, but it is definitely a space to watch.

I’m struggling at the moment. What financial support is the government providing to contractors and personal service companies in this period? 

The support you're able to access right now depends on how you've reported your taxable income: under self-assessment as 'self-employed', or as PAYE income via your personal service company.

In the first instance, the government will assess the grant available to you based on the last 3 self assessment returns you've filed in tax periods up to 2019. You also need to provide evidence you've been trading in the 2019/20 tax year. More details can be found here.

What if you haven’t filed your self assessment tax return for 2018/19 yet? 

If you were a contractor in 2019 and have not yet filed your tax return, you have until 23 April 2020 to do so in order to qualify for this scheme. That's only 18 days away – so let us know if you need help!

What support can I receive as a contractor operating a 'personal service' company? 

At present, the only support available is through the Job Protection Scheme, and this only applies to companies that operated a payroll on 28 February 2020 (dividend payments do not qualify as self-employed income under this scheme, only salaries do).

Additionally, as the scheme requires you to not be working at all – which is at odds with the legal duties of a director under the Companies Act – this scheme is not offering much support to people in this category at present.

Check out our earlier post on COVID-19 tax relief for small businesses & self-employed people.

Some highlights: You won't have to pay VAT due for the period 20 March 2020 to June 2020 until March 2021. Coronavirus Business Interruption Loans may be available. You can also contact HMRC to agree payment deferral of other tax bills such as corporation tax (although interest will arise on these deferrals). If you have business rates to pay, your local council should be in contact with you in the coming days if they have not been already.

We hope that helps clear up some uncertainty. It can seem like complicated stuff but we're always here to clarify, and speak in real terms so please reach out if you want to discuss your situation further.

Reach out to us today if you need help understanding whether you qualify for any of the available relief schemes that the UK government is providing during the coronavirus pandemic.

As the world temporarily transforms, it's useful to know how the UK tax system is adapting and what that might mean for you as a small business owner or self-employed person.

Coronavirus tax breaks for small businesses & self-employed people.

We're wary of adding another coronavirus-related article to your feed, but as the world temporarily transforms, it's useful to know how the UK tax system is adapting and what that might mean for you as a small business owner or self-employed person.

The situation is obviously fast-moving, so always consult Gov.uk for the latest updates but here's what we know so far...

Newly available options to help with cashflow for small businesses:

– Business loans: If you bank with one of the banks on this list, go ahead and chat to them as they've been allocated money to help small businesses struggling during lockdown. If your bank's not on there, pick another one from the list to see what level of loan support you may be able to access. As always, you'll need a business plan to support any applications.

– Extensions on time to pay: All companies will get an automatic VAT payment deferral from now until the end of June 2020. This will not be payable until 2021. You can also speak to HMRC about other tax payment deferrals on their dedicated helpline if required.

– Job retention scheme: Where you have employees who cannot work, you can agree with them to be put on temporary leave for a minimum of 3 weeks. You might then be able to apply to HMRC to cover 80% of their salary costs. (Normal tax will be collected from the employee in this period). Care needs to be taken where the Director is the sole employee of the business, so reach out if you have any questions on this.

– Statutory sick pay compensation scheme: Where you have employees who are absent due to COVID-19, the government will support with up to two weeks payment of sick pay.

– Business rates: If you qualify for any business rates relief (tax on the occupation of your non-domestic property), your local council will be in touch with you to arrange this.

– Deferral of income tax: There is now an automatic deferral of payments on account until 31 July 2020 and 31 January 2021. This means that if you had any upcoming tax payments based on your self assessment bill last year, you don't have to worry about paying them now until July.

– Self-employed income support scheme: For self-employed people with trading profits up to £50,000 where a tax return has been filed in the last 3 years, the HMRC will issue a grant based on the average of the last 3 returns. If you've only submitted one or two returns, it will be based on the average of those returns. A 4-week extension has been granted to allow self employed people who still need to file their tax return to be considered for the scheme. Grant payments will be issued in June.

– Universal Credit: If you don't fall into any of the above categories and have lost work due to COVID-19, it's recommended that you apply for UC: a monthly payment from the Government to help you get by with living costs if you're currently out of work.

This will be a challenging and difficult time, and as always, Ember is hard at work to help you manage your finances in the simplest, most affordable and understandable way.

COVID-19 tax relief for small businesses & self-employed people: Everything you need to know.

The government has announced a 12-month delay to the IR35 regulations, which were due to come into force next month.

Some good news amongst the Coronavirus chaos: IR35 has been delayed.

As the UK enters a period of lockdown due to Covid-19, the government has announced a 12-month delay to the IR35 regulations, which were due to come into force next month. All across the UK, contractors are breathing a slight sigh of relief.

In a nutshell, IR35 is legislation that aims to clamp down on tax avoidance by contractors 'disguised' as employees, ie. working in organisations on a long-term basis and essentially providing an equal service to permanent staff. By forcing companies to pay NI and PAYE for contractors, the legislation will make it far more costly for companies to keep self-employed people on their books, resulting in a massive reduction of contracts available for the freelance population.

As businesses brace for the storm of uncertainty coming down the track, this is a much needed win for the self-employed. It will allow contractors to focus their energy on the wider challenges set to impact society, without having the extra burden of these rules hanging over their heads.

Although the Government has insisted that this is very much a delay and not a cancellation, we are excited by the prospect that contractors can continue to earn good day rates without falling inside the rules. As the economic situation becomes increasingly precarious in the midst of coronavirus, this gives contractors room to breathe and time to properly prepare for the IR35 changes now due in April 2021. It also gives affected firms time to initiate reform in ways that work for them and the freelancers they hire.

As ever, we're here to support your needs as a contractor. As you look ahead to another year of contracting, think about making the switch from your expensive accountant (or the trials and tribulations of managing your books yourself) to a system that automates your accounting and tax. Or if you're now in the position where you're thinking of making the plunge in to accepting a contract, we can help you set up your business.

Ember is a software that makes running a business easy and intuitive for anyone: we automatically categorise your transactions, bringing them into one central feed and show you your real-time tax position at all times so that you're never surprised when the taxman comes knocking.

IR35 has been delayed; Some respite amongst the Coronavirus chaos.

Simple language, simple software, so that you can spend less time dealing with admin and more time focusing on what really matters.

There are lots of benefits to contracting – a wide variety of work, no bosses to answer to, and infinite opportunity to work from home – but it can also be a complex world to navigate. We've clarified some of the important things you need to know.

All the confusing contractor terms explained

There are lots of benefits to contracting – a wide variety of work, no bosses to answer to, and infinite opportunity to work from home – but it can also be a complex world to navigate.

If you're thinking of making the jump to self-employment, or if you're already freelancing but finding the jargon intimidating, we've clarified some of the important things you need to know when it comes to contracting in the UK.

Company structure – Refers to the way you decide to set up your business. You can opt to set up as a Limited Company, be a Sole Trader or enter in to a Partnership, all of which have different advantages and disadvantages.

Limited Company – A company that is its own legal entity. As an owner, you will be legally responsible for a Limited Company's debts only to the extent of the amount of capital you invested upfront.

Sole Trader – A structure that is inextricably linked to you as the owner. So, you keep all profits (ie. no shareholders involved), but you are also personally responsible for any losses the business might incur.

Partnership - Similar rules to that of a sole trader, however the responsibility for your business is shared between you and your partner (or partners).

IR35 – A piece of tax legislation coming into effect on April 6th 2020, which aims to identify and limit the number of people acting as employees, but benefiting from being paid as contractors. To learn more about what IR35 has in store and how it could affect you, feel free to reach out to one of our accountants for a chat.

Payroll – Payroll is a list of a company's employees and the amount of money they are to be paid. As a contractor or a limited company director, you need to run payroll every month in order to be compliant with PAYE.

PAYE – 'Pay As You Earn' refers to the income tax system in the UK, where employers make income tax and national insurance payments on behalf of themselves and their employees, deducting the necessary amount from their monthly salary. As a contractor, you will have to submit this yourself every month when you complete payroll through RTI.

RTI – RTI, or Real-Time Information, was introduced in 2013 to make PAYE submissions more efficient. Instead of submitting PAYE taxes (national insurance and income tax) at the end of the year, RTI requires information to be submitted in real time, every time you pay yourself (or your employees).

Dividends – As the owner of a limited company, you have the ability to declare dividends: profit (after corporation tax) which gets paid out to shareholders (ie. you). Because dividends are typically taxed at a lower rate than a salary, it may be more tax beneficial to work out an optimum balance of the two. Partnerships and sole traders cannot pay dividends. Make sure to reach out to us, so we can help you pay yourself in the most tax effective way.

Making Tax Digital – In an effort to make it easier for businesses and individuals to "get their tax right and keep on top of their affairs," HMRC has gone paperless. Currently only applicable to VAT and self-assessment, MTD involves keeping digital records and using software to complete tax returns.

Tax return – Your tax return is a document declaring your liability to be taxed and your claims to tax relief, lodged yearly with HMRC. Filing a tax return as an individual is also called self-assessment, and for an organisation, it is referred to as Corporation Tax. As an individual, you won't need to send a return if your only income is from your wages or pension, but you may need to if you have any other untaxed income, such as property rental income, tips and commission, income from savings, investments and dividends, or foreign income.

Tax rebate – This is money you'll get back from HMRC if you have overpaid in tax during the tax year, or over a period of a few years. HMRC will send you a P800 letter informing you if you're due a rebate, but you will still need to claim it yourself.

Expense categorisation – When you lodge your corporation tax at the end of the financial year, you need to categorise every expense you've incurred – from phone bills to travel costs to food and drink, etc – into a category. This is traditionally a very time-consuming and laborious process, which is why we're allowing you to keep up to date straight from your bank feed. Head to the understanding our categories guide to see a description of each category, and what you can and can't claim.

As 2010 and beyond saw the advent of Open Banking, 2020 will be the decade for sustained and conscious maturation of the digital banking world.

What does 2020 hold for Open Banking?

Traditional banking has been in need of a shake-up for years, and 2019 was the year Open Banking found its feet, ushering in a whole new era of digital disruption.

As we wrap up the first month of 2020, we thought we'd assess how the phenomenon of Open Banking will impact us in the coming years. There's no doubt that it will completely revolutionise the financial industry: it's only a matter of time, and a question of how.

1. What we know for sure: Open Banking is changing everything.

By shifting ownership of financial data from banks to consumers, Open Banking is bringing an entire industry up to speed with the connected world. Within a year, it has already given rise to a host of new players and propositions that are bringing transparency, simplicity and control to the consumers' banking experience.

So far, the influence of Open Banking has been most materially felt through the introduction of neo-banks like Monzo, Mettle and Revolut, and the alternative financial reality they are enabling. Starling Bank was built with Open Banking in mind from day one, and has set its sights on democratising access to all sorts of financial services. CEO Anne Boden believes that the future value of banks lies in their role as marketplaces, "connecting people to providers of everything from student loans to pensions based on your personal and business profile." Starling's vision is to become the first holistic one-stop-shop for your financial life – exciting news for us, as a direct integration that would simplify tax and accounting even further.

2. The big opportunities: Finding the white space

Beyond neo-banks, Open Banking is facilitating innovation in the FinTech space that simply wasn't possible before. With third-party access to consumer's financial information comes endless ways to enhance their financial autonomy and decision-making power: Klarna is enabling delayed payments, Tully is tackling tailored debt management, Emma is helping people budget better, and Ember is automating the accounting and tax process for single-person businesses.

However, success remains a challenge, not least due to the abundance of startups in the space. Those with a clear and robust path to profitability – no matter how early stage they are – will find themselves in a stronger position than those without. And according to Ross Sleight, Chief Strategy Officer at digital product accelerator, Somo Global, product differentiation will be more important than ever. "Rather than focusing simply on being the easiest to use, stop and interrogate where the left-of-centre needs really lie," was his sound advice at this year's FinTech Connect event in London, the largest gathering of industry leaders and game-changers. In other words, zig when everyone else is zagging; focus less on customer experience and more on solving an unresolved need. That might sound easier said than done but the white space is definitely there: as Sleight points out, "47% of the UK population don't feel confident in making a financial decision, and 27% don't use any form of online banking." People are looking for simpler more reassuring ways to manage their money, and the opportunities to create this may lie outside services traditionally offered by banks.

3. The biggest challenge: Data protection & misuse

But with high potential for reward comes potential for risk, too. In today's climate of data watchfulness, the key challenge for Open Banking lies in protecting the integrity of its data practices – and in reassuring consumers that their data remains their own. Startups with unclear paths to profitability will inevitably end up exploiting users information for cross- and up-sell opportunities, simply to please investors. Even established players are struggling with the issue: Revolut's recent privacy policy update (which requires users to opt out of data sharing, rather than opting in) caused a stir, raising concerns around best practice.

When it comes to Open Banking, what we find most interesting is the potential for disruption in the accounting space. Whilst there has been much talk of incumbent banks having to adapt to modern times, we've seen far less evolution from traditional accounting platforms. Everyone is neglecting one of the most important FinTech verticals: the automation of tax – and that's where we come in.

Ember is the future of small business accounting and tax management – a progressive system purpose-built for owners rather than accountants. In the way that Starling and Atom have stripped away the complexity of traditional banks, we lighten the load of accounting and tax for contractors and small business owners everywhere. Powered by Open Banking and machine learning, Ember offers the full spectrum of accounting services for the cheapest price in the industry.

Open Banking is at the start of its journey towards increased simplicity and transparency for users – and so are we.

So that you can spend less time number-crunching and more time Christmas-lunching.

Few contractors are aware that it actually PAYS to throw your own Christmas bash, even if that's just you cosying up to a roast and bottle of red in your favourite pub.

Last minute Christmas Party ideas for contractors

It's that time of year again, and let me guess...

As a contractor, you're looking on at your employer's Christmas party plans, nonchalantly laughing off the 'full-time employees only' rule whilst secretly lamenting the missed opportunity to get festive for free?

No need! Few contractors are aware that it actually PAYS to throw your own Christmas bash, even if that's just you cosying up to a roast and bottle of red in your favourite pub. Provided that your 'per-head spend' doesn't exceed £150, an annual work event is totally tax-deductible. Even better, that counts for your taking a partner or friend as well.

Read on for five ways to stretch a pp budget of £150 into some epic Christmas party ideas for contractors and small-business owners.

It's an obvious choice, but why not treat yourself to a swanky meal at one of London's finest establishments? You could opt for a classic: the champagne pairing menu at The Savoy Grill comes in at £140 per person and Heston Blumenthals' dinner menu at Dinner and dinner at £105 each. Or, you could be a true baller and order every small plate on the menu at one of London's trendiest new hotspots, like Flor for a seasonal British feast, Caractère for stylish 'mood food' or Silo for zero-waste indulgence.

Immersive entertainment at its best, a Secret Cinema ticket will cost you around £65-85, leaving a healthy budget for pre-game nibbles and a steady flow of drinks whilst there. For anyone unfamiliar with the concept, think cult film classics brought to life at fantastic scale, inviting you in to participate in the plot before the opening credits roll. It makes an epic activity for a small team, or a great Christmas-party-meets-date-night for those flying solo.

If London's good for anything, it's an ever-expanding list of places attaching activities to alcohol. Take your team to any of Swingers' underground mini-golf locations for a guaranteed laugh, or play pastis-fuelled pétanque at Baranis in Holborn. Electric Shuffle does for shuffleboard what Flight Club did for darts, whilst Skate Dine Bowl in Queensway takes it all to a new level: if ice skating, curling, bowling lanes and arcade games all wrapped into one doesn't shout 'Christmas party extravaganza', we're not sure what does.

Celebrating Christmas whilst sharpening your cooking and cocktail-making skills = seriously good bang for you buck. There are some excellent once-off cooking classes in London: Wright Brothers does an oyster masterclass for £65 per person, and E5 Bakehouse's sourdough bread-making costs £150. There's also nothing quite like making a meal together to encourage team bonding. If you'd rather try your hand at mixology, book yourself in at TT Liquor in Shoreditch is fantastic for two hours of making (and drinking) cocktails.

And if you're still lost for ideas (or can't be bothered to plan), there's always the trusty fallback of a good old night on the town. Be it a pub crawl, Christmas karaoke or a sticky dance floor special,  you can't go wrong, as long as you keep those receipts safe (which could become trickier as the night progresses). We'd recommend Brilliant Corners for London's sweetest sound system, Piano Works for a crowd-pleaser and Ridley Road Market Bar for gloriously grungy old-school beats and ginger mojitos.

The Ember Blog

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IR35 has been delayed; Some respite amongst the Coronavirus chaos.

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What does 2020 hold for Open Banking?

Last minute Christmas Party ideas for contractors

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Ember accepted on Pre-Accelerator programme