HJP

Changing Bookkeepers - Protecting your Business

2011-10-25T11:13:00.001+01:00

Bookkeepers are naturally helpful, compliant and honest people however you should not rely on this personality trait when it comes to safeguarding your business.

Bank account access, HMRC online access and payroll access are just a small example of permissions granted to many bookkeepers. When you change bookkeepers for whatever reason we recommend you take certain steps to protect both yourself and the departing bookkeeper.

To Do list:

1 Change your government gateway authentication code/password

2 Change your Companies House authentication code/password

3 Change your online banking password

4 Cancel any banking permissions the bookkeeper may have had

5 Change the computer login password for the departing bookkeeper

6 Re-direct their incoming email to relevant personnel

7 Put on an out of office to inform incoming email that the address is no longer in use

8 Change your sage password

9 Ensure return of system backups, keys to the premises and any other business items

10 Change the burglar alarm code

This list is by no means exhaustive and its relevance to you depends on the access you have granted to the departing bookkeeper.

By adhering to the above you are protecting not only your business but also the departing bookkeeper. If there was a security breach at your company it is better to be able to rule someone out by the fact that they no longer have access to confidential business matters.

If you need a professional, qualified bookkeeper that comes with guarantees and recommendations please visit http://www.therightbookkeeper.co.uk/ or call 01442 291663

HMRC Email Scam Time Again

2011-10-25T11:04:00.000+01:00

With only 98 days till the self assessment deadline many of us have already completed and submitted our 2010/11 Tax Returns.

This in turn has given rise to the fake HMRC emails doing the rounds again.

HJP received this one today:

From: hmrc@paymant.co.uk

Subject: We have reviewed your tax return

Attachment: refund_form.html

Dear Applicant

We have reviewed your tax return and our calculations of your last years accounts a tax refund of 178.25 is due. Please submit the tax refund request and allow us 3-6 days in order to process it.

A refund can be delayed for a variety of reasons.

For example submitting invalid records or applying after the deadline.

Submit the form attached to your email in order to verify your card.

Best Regards

HM Revenue & Customs

TAX REFUND ID: A29R119

Submit the tax refund request

HMRC@service.co.uk HMRC

Hopefully the spelling, grammar, content and email addresses given are enough indication that the email is a scam. Just in case remember:

HMRC will NEVER contact you by email to give you a tax rebate

HMRC will NEVER ask you to disclose personal or payment information by email

Please NEVER visit the site or open the attachment given in such emails

For more information visit:

http://www.hmrc.gov.uk/security/examples.htm

Up to £50,000 for new businesses

2011-09-21T16:18:00.000+01:00

For new businesses starting up before 22 June 2013, employers in qualifying regions could save £50,000 in employer’s national insurance contributions,

A list of the qualifying regions can be found at: http://www.hmrc.gov.uk/thelibrary/tax-paye/nics-holiday/regions.htm#2

(Regions not listed are excluded)

Employers may not have to pay the £5,000 for each of the first ten employees hired in the first year of business. This means a maximum saving on NIC payments of up to £50,000. Some new businesses may also be eligible for a refund for NIC already paid.

For more information, go to: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1085763708&type=ONEOFFPAGE

Need a factoring company? Why not choose an online market place?

2011-09-20T09:57:00.001+01:00

For companies who find that their existing factoring company is tightening up on amounts percentages and specific customers, a new factoring company has emerged, MarketInvoice.

MarketInvoice is a company who exist to act like a middle man to create a market place where companies could to sell their single invoices to buyers. The benefit of this is that buyers could then select the invoice they want to buy while offering a better rate than the traditional methods of using a factoring company or a bank. Founders of MarketInvoice, Anil Stocker and Charles Delingpole who only launched their site 3 months ago said; “We never planned for such large companies to wanting to use us. It shows that traditional sources of finance are being scaled down," said Mr Stocker (telegraph.co.uk). The have had large companies wanting to use their service including one with sales of over £70m

What are your views? Is this ‘eBay’ approach to factoring the way forward?

Businesses forced to pay more for the same output?

2011-09-19T10:09:00.001+01:00

So what does this mean for employers?

As employers face the national minimum wage 2.5% increase for the low paid employees, they face an increase in labour costs without any increase in productivity. In addition with another bank holiday being given for the Queens diamond jubilee in June 2012 employers will still be forced to pay workers more. Somehow employers are going to have to find a way to increase productivity in order to be able to cope with the increasing costs. Or else they may have to let staff go which will increase unemployment in the UK which is already on the increase.

What can businesses do?

As there is no way around the wage increase, businesses will have to find other ways of either increasing productivity or saving on costs. Businesses should try to work smarter not harder; try to reduce costs such as utilities; use more advance technology which may be costly but could save time on tasks and produce more output.

If you have any queries get in touch

For more information read more at:

The Queens diamond jubilee: http://news.bbc.co.uk/1/hi/8441972.stm

The national minimum wage increase: http://www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_10027201

The new rates

As of 1^st October the increases are as follows;

The main rate for 21 and over will increase from £5.93 to £6.08 (+2.5%)
The 18 – 20 rate will increase from £4.92 to £4.98 (1.2%)
The 16 – 17 rate will increase from £3.64 to £3.68 (1.1%)
The apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprentice will increase from £2.50 to £2.60 (4%)

Urgent bulletin – VAT Office no longer sending reminders for VAT Returns

2011-09-14T14:45:00.000+01:00

Compulsory online filing for VAT returns is here. The VAT office will no longer issue paper reminders and you will not necessarily receive an email reminder.

We strongly recommend you have your own reminder system in place, as penalties are charged for late VAT Returns and late payment. Some clients have already been presented with surcharges because they have previously relied on the VAT office reminder. Make sure you do not fall victim to this.

It is 100% your responsibility to know when your VAT Return is due and to ensure you file online. Paying electronically is also compulsory for most businesses.

Can HJP help? Our new division The Right Bookkeeper can take care of your bookkeeping and VAT. Either onsite or remotely we will tailor a package to suit you. Get in touch on 01442 291663 or email info@therightbookkeeper.co.uk

Still filing paper returns? A select group of companies (VAT turnover less than £100k who registered before 1 April 2010) will move to electronic filing in April 2012. All other VAT registered companies must file online already.

What if the VAT due is nil? You must still file electronically and do so on time.

Confused or need further help? Get in touch with Catharine or Angela on 01442 872878.

Changing a company year end saved over £4,000 in tax!

2011-09-07T15:03:00.012+01:00

At the moment, small companies can claim 100% tax allowances (AIA) on most equipment, up to the value of £100,000pa. But this £100,000 reduces to £25,000 pa from 1 April 2012.

Tax is never simple, and for companies whose year ends are not 31 March, the year that straddles 31 March 2012 attracts the time apportioned elements of the AIA. So a company with its year end on 30 September 2012 would be able to claim 100% allowances on up to £62,500 (6 months within the £100k allowance and 6 months within the £25k allowance, (£100k/2) + (£25k/2) =£62.5k)

HJP Case Study
A transport company client spent £65,000 on a new lorry in February 2011, and knew that it intended to spend about £80,000 on another lorry in February 2012. Their year end was 31 October.

HJP realised that this was not maximising the potential tax allowances for the client. If we left the company year end as 31 October, the company tax bill on the second lorry would have been £4,275. HJP recommended they move their year end to 30 June 2011, the result being that the whole of the cost of both lorries was covered by the 100% tax allowance.

This is how we did it

Year end stays at 31 Oct 2011 - calculations as follows;

— Year ending 31 Oct 2011, the tax allowance is £100k based on the old rules of tax allowance. The company’s first lorry cost £65,000 and therefore as it is under the £100k tax allowance, no tax is paid.

— Year ending 31 Oct 2012, the AIA tax allowance rule changed as of 1 April 2012. Therefore the company would have a tax allowance based on 5 months under the old rule and 7 months under the new rule. This now gives the company a tax allowance of £56,250 for the year end 2012. As their second lorry costs £80k it exceeds their tax free allowance and therefore tax is due on the remaining £23,750, costing our client £4275.

HJP recommended changing the year end to 30 June 2011 - calculations now:

— For the reduced year to 30 June 2011 the company would have an AIA tax allowance of £66,666, this is based on a reduced year of 8 months under the old rule. As the company’s first lorry cost £65,000 it is within the tax allowance and no tax is due on its purchase.

— For the full year to 30 June 2012, the tax calculation would be based on 9 months under the old rule and 3 months under the new rule, therefore giving the company a tax allowance of £81,250. As their second lorry costs £80,000 no tax is paid on the lorry.

Result - £4275 saving, thank you very much!