Practice news

April 2011 Newsletter

 ·          More payment options:          In addition to taking payment via cheque, BACS and cash we’re now able to take payment via debit and credit card, and we have a Standing Order Mandate.  These options should give you more control over the method and timescale for repayments.

 ·          Staff time:                               The addition of Holly as our in-house Bookkeeper / Accounts Assistant will enable us to improve response times and allocate work more effectively across the practice.          

 ·          Freeze on charge-out rates:  The hourly rates on which we base our fees have been frozen for the third consecutive year. 

 We know that times are difficult and that HMRC appear to be “in meltdown” but please remember WE ARE ON YOUR SIDE! 

 Lastly, I thank you for placing your business with us – it is much appreciated.”

Nick Belton FCCA MA (Hons), Managing Director, Beltons

It is with the greatest sadness we have to tell you that Hugh Belton, the founder of this firm,  died at 11.55am on Wednesday 2^nd March 2011 in St Richard's Hospital in Chichester after losing his fight with a bad chest infection and a weakened heart. 

Hugh was diagnosed with lung cancer last November and was undergoing chemotherapy.  We learned that his lung cancer couldn't have been cured and that the chemo treatment would merely have extended his life expectancy, so it is a great relief that he won't now have to face further medical appointments, tests, uncomfortable treatment and another battle for his life in the weeks and months ahead.

Hugh will be sadly missed by all who knew him.

A reminder to our personal tax clients that we require your information in before 31^st October 2011 otherwise we cannot guarantee that we will complete the tax return before 31^st January 2012.

We have recently taken possession of a credit and debit card transaction terminal and, in addition to existing methods of payment, we are now able to take payment of our invoices by either credit or debit card – if you want to use a card to make your payment simply telephone or visit the office.

In addition to taking payment by credit and debit card we are also able to set up monthly standing order arrangements if you are keen to spread your payments over the course of the year.  We have a number of clients who already take advantage of this arrangement and who receive an invoice once their work has been completed with a balance for the final amount due, less the payments made throughout the year.

If you feel you would prefer this method of payment please contact Julie so we can get the ball rolling.

As with other small businesses we rely on our invoices being paid in a timely fashion and the majority of our bills are settled within 30 days.  Our terms and conditions for bill payment form part of our Contract of Engagement and these terms can also be found on the reverse of our Invoices and Statements.

Beltons reserves the right to charge interest on overdue Invoices.

If you are unable to make payment of one of our Invoices please contact us as soon as possible and we shall attempt to arrive at a mutually acceptable payment arrangement.

We were delighted to welcome Nicolette Anscombe FCCA to Beltons in May 2010.

Nicolette has been a Certified Chartered Accountant with the Association of Chartered Accountants (ACCA) since 1993, is a Fellow, and holds a Practising Certificate with that professional body.

Nicolette brings to Beltons a wealth of experience in both public practice and commercial roles.  She also has valuable experience of setting up and successfully running her own business.

In addition to providing businesses and personal clients with traditional accounting and tax services - such as the preparation of Accounts and Tax Returns - Nicolette will pro-actively work closely with you in order to help your business become more successful and ultimately more profitable.

Holly Pipe joined us as a Bookkeeper and Accounts Assistant in January 2011.  Holly has two and a half years experience in a similar role within public practice and is in her final year of her AAT studies (Association of Accounting Technicians)

Holly will be responsible for the preparation of accounts to trial balance and will be available to provide bookkeeping services to our clients.

Holly can also assist clients to set up a system with which to keep their own financial records.

As Beltons uses the accountancy versions of both Sage and Quickbooks we are able to purchase software from these companies, at discounted rates, for our clients.

If you are interested in using either of these systems please contact us.

We feel there’s enough upheaval at HMRC to warrant a whole page of this Newsletter, and whilst we don’t wish to scaremonger we feel it’s important for clients to be aware of the present climate and some important changes.

HMRC announced in September that, as part of their drive to save costs, they planned to stop issuing tax agents copies of some documents they automatically send to taxpayers.  Tax and accountancy professional bodies complained and, as a result, HMRC have issued the following statement:

·         For the time being at least, agent copies of Forms P800 (Tax Calculation), SA250 (Entry to Self-Assessment letter) and SA251 (Exit from Self-Assessment letter) ARE to be retained;

·         Agent copies of P2s (PAYE Coding Notices) will still be withdrawn with immediate effect, but the Form sent to taxpayers will include a message suggesting that they show it to their tax agent or adviser;

·         HMRC will reinvest some of the savings from withdrawing agent copies of P2s towards an IT solution which will allow e-enabled agents to view P2s for their Self-Assessment clients online; and

·         Procedures for two other Forms - P810 (Targeted review Form) and SA 252 (Letter to customers who do not submit an SA return but are liable to Income Tax at the higher rate) are still being reviewed.

At the time of writing we don’t receive copy PAYE Coding Notices, yet we can’t view these online, so we’re presently in an “information vacuum”.  Therefore, we request that our Self-Assessment clients keep ALL HMRC correspondence and provide this to us along with their 2010/11 personal tax records.

Another unpopular HMRC change is the introduction of £100 Late Filing Penalties on ALL Self-Assessment Tax Returns not filed by 31^st January 2012 including (for the first time) those Return where the tax liability is £NIL / less than £100.

Additionally, we need to remind taxpayers that there's an earlier deadline of 30^th December if you want HMRC to collect any tax due through your PAYE tax code. You can only ask for this if you owe less than £2,000. Although HMRC will try to collect the tax due through your code, it can't be done in every case.

For some taxpayers, HMRC are routinely reviewing earlier years’ tax calculations to see whether there’s any PAYE’d tax due that they’ve failed to collect.  We’re also seeing the reinstatement back into Self-Assessment of some clients that HMRC have previously removed, and a resulting issue of assessments for tax arrears, or requests to file Returns for missing prior years.  In these cases we, the agent, are rarely sent any copy correspondence. 

Lastly, we’re seeing that tax refunds are taking longer to be repaid.  We’re finding the entry of bank details on the Tax Returns is no guarantee of swift payment and we have to chase about half of all refunds directly with HMRC before money is released. 

Moreover, we’re finding that the cause of the hold-up is usually down to HMRC having left historic “signals” on their database related to previous years’ action that they’ve forgotten to clear.  Therefore, while we’re now wise to the imperfections of the system we ask all tax refund clients to be patient and to be aware that all refund cases remain on our Job List until the refunds have been made.

IS YOUR JOINT VENTURE CAPABLE OF WITHSTANDING MAJOR UNFORESEEABLE EVENTS?  When making arrangements to form a jointly owned company or a partnership it is advisable to properly consider whether you have all of the following documentation:

·          Shareholders’ or Partners’ Agreements

·          Company Constitutional Documents

·          Service Agreements - agreements between the Company and individuals who are to be employed by or provide services to the Company

·          Ancillary documentation such as loan agreements, conditions of employment, standard trading terms and so forth

These documents can enable your business to survive catastrophic and unplanned events such as death, divorce and ill health. They clarify the processes to be followed in such situations and formulate resolutions, they protect against legal disputes and where members of a joint venture are in deadlock they provide remedies.

They can protect your investment if you are not involved in the day to day decision making and they can shape how the business is to be run. They can even prevent against a profitable business from having to be wound up.

If you set up a company using our incorporation services, the company constitutional documents are automatically provided. Worryingly, we have noticed that many of our joint venture clients do not consider any of the other documentation.

If you would like to talk to us about whether your business has adequate documentation or if you would like to obtain a quote for preparing these agreements please speak to either Nick or Nicolette.

Beltons has implemented a practice wide Fee Protection Scheme whereby we have insured our practice to cover any additional fees incurred as a result of an HMRC enquiry or investigation and this scheme is offered to all clients at an affordable fixed annual fee. 

We strongly recommend that you protect your business and/or yourself from any additional fees that would be incurred should you be the subject of an HMRC visit or enquiry by participating in this scheme.

In the new tax year HMRC will have new powers regarding ‘information requests’ and are able to visit business premises to inspect records in connection with ALL aspects of your tax affairs, and in recent times there has been an increase in the number of clients whose tax returns are investigated or disputed, regardless of their size or income status.

Anyone who pays tax can come under scrutiny and every year HMRC starts enquiries into thousands or personal and business tax returns and accounts.  VAT and PAYE payments are also thoroughly checked.

For full details of cover please contact Beltons.

Includes cover for:

·          Corporation Tax Self Assessment Full & Aspect Enquiries 

·          Income Tax Self Assessment Full & Aspect Enquiries

·          Business Inspection Notices under Schedule 36 (Interventions)

·          PAYE/NIC Employer Compliance Visits and Disputes

·          IR35 Disputes & CIS Disputes

·          VAT Visits and Disputes

·          Business Record Checks (BRC’s) Visits and Resulting Correspondence                                        

·          Repayment Claims

·          Special Civil Investigations and Judicial Review (£5,000 indemnity)

·          Any written enquiry from HMRC

The questions asked by HMRC are usually very detailed and time-consuming to answer.  The costs of defending you can be expensive, even if little or no extra tax is paid at the end of the enquiry.  Our Fee Protection Scheme covers our costs incurred defending you in the event of an enquiry so you don’t have to pay us yourself.

How much will it cost?

Active Limited Company/Partnership           £75.00 – Directors and their spouses Tax Returns are also covered under this Fee providing Beltons completes the Tax Returns. 

In addition, even if you complete your own VAT returns or PAYE this Fee will cover those aspects if enquired into.

Dormant Limited Company/Partnership       £25.00 – includes Director and their spouses Tax Returns providing Beltons completes the Tax Returns.

Sole Trader                                                     £25.00

Personal Tax/Private                                     £20.00

*All prices include 6% Insurance Protection Tax but exclude VAT.

Throughout the course of the year, as your next invoice is raised, we shall simply add the cost of the Fee Protection to that invoice.