Solid Accounting,Bookkeeping, Consultancy...

This week's round up of accountancy and business news

Payment on account letters delayed

Letters normally issued at the end of July advising self assessment taxpayers of the amount due have been delayed by a month due to increased demand.

http://www.accountancyage.com/aa/news/2096175/payment-account-letters-delayed#

 

Tax credits – one week left to claim

HMRC has issued a reminder that the deadline for renewing tax credit claims is the 31 July and that failure to renew by that date will result in payments being stopped.

http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=420507&SubjectId=36

 

Cutting down on financial reporting

The Institute of Chartered Accountants of Scotland has called for financial statements to be cut by at least 30%.

http://www.icas.org.uk/site/cms/contentviewarticle.asp?article=7615&_s=jf

 

Finance Bill receives Royal Assent

The Finance Bill received Royal Assent on 19 July.  It contains the provisions brought in during the 2011 Budget including a change in lifetime allowances for pensions.

http://www.professionalpensions.com/professional-pensions/news/2095463/lifetime-annual-allowance-changes-law-finance-act-2011-reaches-statute-book

 

Tackling fraud

The Chartered Institute of taxation has welcomed a consultation on tax evasion – noting that anyone who is uncertain about their tax position should get professional help.

http://www.tax.org.uk/media_centre/LatestNews-migrated/Institute_welcomes_tax_fraud_condoc

 

Caution over HMRC cost savings

The National Audit Office (NAO) has raised concerns over HMRC’s plans to save costs lead by IT and staff changes.

http://www.accountingweb.co.uk/topic/tax/uncertainties-dog-hmrc-savings-plan/514017

 

This week's round up of accountancy and business news

Joining NI and Income tax

As promised in the 2011 Budget the government has now started its consultation on the proposed merger of NI and tax.  It is inviting comments from business on the problems experienced in administering the PAYE system.

http://www.contractoraccountants.com/2011/07/14/income-tax-and-ni-merger-moves-a-step-closer/

 

Consultation on relief for income tax losses

The Chartered Institute of Tax has called for comments on the latest HMRC consultation on income tax losses incurred in business or employment – something which can affect all businesses from time to time.

http://www.tax.org.uk/media_centre/LatestNews-migrated/High-risk_code-relief_ITlosses

 

Guide to importing and exporting

HMRC have reissued their guide to importing and exporting covering basic procedures for those getting started in international trade.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_PROD_008051

 

PWC warns of company failure

Although corporate failures fell in the second quarter of 2011, PWC warns that with public spending cuts yet to kick in and consumer spending remaining weak we are not in the clear yet.

http://www.accountancyage.com/aa/news/2094258/company-collapses-rise

 

Cheques to stay

The announcement by the Payments Council that cheques are to stay for as long as customers need them is welcomed by business, and charities

http://www.fundraising.co.uk/news/2011/07/12/cheques-will-stay-says-payments-council

 

Beware of copycat websites

The Office of Fair Trading is warning us to be on the look out for copycat websites which charge for providing advice which is available for free on government sites.

http://www.moneysavingexpert.com/news/protect/2011/07/oft-targets-copycat-websites

 

Relying on credit

A survey by Moneysupermarket.com has revealed that a quarter of us rely on credit cards to tide us over from one pay day to the next with the majority doing so after 21 days.

http://www.totallymoney.com/news/index.php/2011/07/brits-fall-back-on-credit-cards-21-days-after-being-paid/

 

HMRC joins YouTube

HMRC have started posting videos on YouTube to help agents and tax payers in understanding matters of policy and procedures.

http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=420410&SubjectId=36

This week's round up of accountancy and business news

HMRC VAT initiative

HMRC have issued further guidance for those who have failed to register for VAT including a reduced penalty if you register by 30 September.

http://www.hmrc.gov.uk/ris/vat/index.htm

 

ICAS condemns HMRC service for smaller businesses

Whilst service to larger organisations is considered good, ICAS say many smaller businesses are suffering from poor efficiency and effectiveness provided by HMRC.

http://www.contractoraccountants.com/2011/07/06/customer-service-at-hmrc-is-inadequate-says-icas/

 

HMRC update on PAYE penalties

HMRC have produced an update on PAYE matters including penalties for late submission of P11ds

http://www.tax.org.uk/media_centre/LatestNews-migrated/HMRC_weekly_PAY_Update_71

 

Soaring cost of holidays

The increase in fuel costs combined with the falling value of the £ means that holidays in Europe are much more expensive than a year ago.

http://www.thisismoney.co.uk/news/article-2013234/Millions-sunshine-holidays-hard-times-exchange-rate-makes-Europe-expensive.html

 

One third of Company Finance Officers (CFOs) are braced for double dip

A survey by Deloitte reveals that confidence amongst CFOs is at its lowest level since September 2008.

http://realbusiness.co.uk/news/third-of-cfos-expect-double-dip-recession

 

Higher Fuel price means we are cutting journeys

Figures from the AA reveal we bought a billion less litres of fuel in the first 12 weeks of 2011.  Whilst this is good news for the environment it won’t help the treasury to balance its books.

http://www.totallymoney.com/news/index.php/2011/07/fuel-sales-drop-by-one-billion-litres/

 

HMRC employees on trial

A whistleblower has claimed that HMRC staff deliberately inflated business tax bills to increase bonuses.

http://www.accountancyage.com/aa/news/2086496/whistleblower-claims-hmrc-staff-ripped-businesses

 

Switching bank accounts to get easier

The payments council has announced new measures to be phased in over the next 2 years to make it easier to switch banks

http://www.moneysavingexpert.com/news/banking/2011/07/switching-bank-accounts-to-be-made-easier

Your Accountant – Interested partner or impersonal tool

Being in business means making decisions.  Whether it is the exact shade of paint to add a touch of gloss to a product or the need to purchase equipment or sadly make someone redundant, business life is full of choices and the need to be decisive. 

 

Sometimes we are so bound up in the need to make decisions that the important choices can be swept aside, taking the easy and quick over the slightly more time consuming.  Unfortunately one such choice often revolves around appointing a business accountant.  Over a period of time the choice of accountant can make a huge difference to your business success.  So when looking for an accountant here are a few points that you might want to consider:

 

• How important it is that your accountant is local to your business (within 10miles)?  Does it really matter whether your accountant is local to you or hundreds of miles away?  We believe that it does.  Having a local accountant means that they are more likely to understand your client base, your business culture and the challenges that you face on a daily basis.   Local accountants are more likely to act as a source of introductions to potential clients or suppliers as well as having a rapport with the local bank manager which may help when finance is required.
  
  
• How important is to actually meet you accountant regularly?  Is an accountant just for number crunching time or for life?  This is another benefit of having a local accountant as you can use them as a quasi-partner in the business.  Impartial and yet committed to your success you can bounce ideas off your accountant, ask for guidance and use your accountant to help in the long term planning of the business.  Often your accountant will be able to suggest cost savings or smoother processes which save time.
  
  
• Are London accountants affordable and competitive enough with accountants outside London?  Many people believe that an accountant with a London postcode will be expensive.  This is simply not true.  Whilst there are some very expensive accountants around they tend to deal with the larger PLCs.  In general accountants in London specialising in smaller businesses are fully aware of the costs and challenges of operating a business in London and therefore tend to keep prices as low as possible.
  
  
• Why shouldn’t I just use an online company?  Whilst there are a number of accounting services available, some with telephone or online advice attached, they are successful because they rely on having a large turnover of fairly simple accounting processes.  We believe that your accountant should be so much more than that.  They should understand your business, be involved with your business and constantly be on the look out for ways to improve the long term growth and success of your business.  However, we also recognise that the availability of an accounting package is a help and we provide our clients with free access to a good accounting package that will help with day to day tasks as well as keeping end of year costs down.

 

• Nationwide or chain accountant firms, do they provide a personalised service or do they treat clients like numbers?  No matter how good the intent, the larger the firm the higher the turnover.  This means that you have just got your accountant trained in fully understanding your business and they move on.  At Solid Ltd we pride ourselves in providing a personal and friendly service on a long term basis for our clients. 

This week's round up of accountancy and business news

Farwell to the cheque guarantee card

From 1 July the cheque guarantee card has ended its over forty year reign over our cheque payment system.  Although cheques can still be used without a cheque card it is expected that many retailers will refuse to accept them and ask for alternative forms of payment.

http://www.moneysavingexpert.com/news/shopping/2011/06/cheque-guarantee-cards-to-be-abolished-tomorrow-

 

HMRC admits that one in six still pay incorrect tax

The Revenue have admitted that one in six of us still pay the wrong amount of tax as they prepare to send out demands to 1.2million people.  On the plus side 3.5 million are due to receive rebates.

http://www.thisismoney.co.uk/money/news/article-2009220/One-STILL-pays-wrong-tax-admits-H-amp-M-Customs.html

 

National Insurance Cards fall to cost saving measure

From July HMRC will be sending out a letter confirming NI numbers rather than issuing a plastic card.

http://www.totallymoney.com/news/index.php/2011/06/ni-cards-bite-the-dust/

 

Unemployment down as private firms start hiring

The latest unemployment figures show private firms are hiring at the rate of 1,100 per day.  If you are considering taking on more staff but want to reduce the salary calculation burden consider asking your accountant to take on the payroll calculations.

http://www.thisismoney.co.uk/news/article-2003714/Private-firms-hiring-1-100-workers-day-Biggest-jobless-fall-decade-brings-ray-hope.html

 

Keeping an eye on fraud

Research by KPMG has revealed that the fraud against a company is most likely to be carried out by a 36-45 year old senior finance person.

http://www.contractoraccountants.com/2011/06/29/is-your-40-year-old-finance-manager-a-typical-fraudster/

 

HMRC toolkit launched

HMRC have launched the 20^th toolkit in their series designed to help agents and taxpayers in completion of assessments and returns.  This final one focuses on business profits.

http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=420189&SubjectId=36

 

HMRC compliance centres

A reminder from the Chartered Institute of taxation about the HMRC compliance centres and their function.

http://www.tax.org.uk/media_centre/LatestNews-migrated/HMRC_Compliance_Centres