Top 10 Quotes I Hear From My Clients

This is a light hearted blog on the top 10 things I hear from clients.Its abit of fun - well mostly.

1. "But I've given you everything" - When asked for missing paperwork, typically missing bank statements- no you haven't, if you had we wouldn't need to ask for it!

2. "My mate pay less tax/fees/" It seems everyone is an accountant . I never knew there were so many around, willing to give oodles of advice for the price of a pint!

3. "Deadline-what deadline?" - The deadline we reminded you of numerous times, along with HMRC, and Companies House, by text, email, letter!

4. "My accounts are simple" - Ahh, my heart fills with dread everytime I hear this as it usually means nothing of the sort!

5. "I just want a quote on the phone" - Bad luck because we dont do them. Firstly you may be a competitor fishing for our charges. Secondly we never get a full picture of the work involved and you as a client, so cannot give an accurate quote. Thirdly we waste alot of time giving free advice on the phone, as you ring several accountants, getting non like-for-like quotes which are meaningless in comparison because the service levels are different. Fourthly, I could go on but you get the picture!

6. "How much tax do I have to pay?, but I haven't got the money to pay it."- maybe not now, but you did, unfortunately you've spent it!

7. "I need my accounts done quickly because I'm going on holiday, so want to get them signed off before I go"- Well if you'd let us have the information when requested, some 3 months ago, instead of 2 weeks before your holiday they'd be done by now.

8. "When will I get my tax refund?" - We are not HMRC, once we submit we have no idea, it maybe 2 weeks or 2 months.

9. "Why cant I claim my mortgage/rent/utility bills/food as expenses?" - because they aren't business expenses!

10. "Its not fair-Starbucks, Amazon, Facebook don't pay any tax." -Write to your MP.

They think its all over...Football & Business Parallels

My son plays for a local football team. In this particular match he was asked to play upfront, when he's more used to playing in central midfield. He didn't have a very good game, and he seemed to lose heart.

After the game I asked him why he didn't have a good game.

Firstly he complained that he was played out of position, so was less comfortable. Also when  he was in good positions the ball wasn't played to him, which left him isolated.

It seemed that there are many parallels between football and business.

Too many businesses/clients are waiting for the ball to come to them. They get in the right positions - but are then waiting for things to happen. If they don't, then they lose heart.

So I asked my son what could he have done differently?

He said he should have dropped deeper- to try and get more involved in the game and find space. 

"Good-what else?". He pondered. So I said "What about shouting you want the ball?, letting your teammates know you are available and you want the ball?

That way you could have linked up and get more service from your team."

In the same way if in business things aren't going your way-your not getting the sales you want -what do you do? Stay where you are in your comfort zone and blame and complain?, or do you change strategy and try alternative marketing strategies?

Do you drop deep and go to the ball-be more proactive-could you increase your marketing-do more networking-communicate you want more business?

Could you let existing clients know you want more business-working on referrals-let them know you want the ball?

Could you link up with other non-competing businesses and create joint ventures/marketing -linking up the play?

Of course you could stay where you are in the hope you get a lucky break-but do you want to rely on that?

When things aren't going your way-its hard, and its not easy to keep positive. But I'm reminded of a Winston Churchill quote "If your going through hell-keep going"

Business is about calculated risks. If you do all the right things then you increase the odds you succeed.

In order to succeed you need to push yourself, Get out of your comfort zone -and if things aren't going your way-adapt and change your approach.

My son took this and board and played much better in his next game.

Could you play better in yours?

The Winner Of The Apprentice 2015 is......

I'm going to put my neck on the chopping block and try to predict the winner of The Apprentice 2015, so here goes.

What is apparent from previous series, is that  like any good entrepreneur Lord Sugar likes to manage his risk.

1. People - He likes people who stick to what they know. An area in which they have a track record in and knowledge of. He doesn't want an accountant who wants to become a chef! Previous winners had business plans which were closely associated with their backgrounds. Obviously this is hard to predict without knowing the candidates business plans, but hopefully candidates will have gathered this from previous series. 

2. Finance & Scaleability- Again he wants plans that are going to be low risk in terms of finance required. Where the initial £250k is going to be more that enough to start and run the business and is scaleable. Previous businesses backed included a recruitment agency, and website/SEO business, where all you need is a phone, computer, and a desk!

Gary- its been mentioned he wants to start an event management business. this would seem to fit the profile on both counts.

Vana - she has a background in social media business, and her plan may be along these lines. Scaleability is not an issue, but they do  have a habit of burning money, so may not be attractive.

Richard - runs a digital media agency, if his plan is along these lines, this would fit the profile, in terms of experience and a scaleable financial model.

Joseph- runs a plumbing business- not so attractive in terms of scaleability.

Charleine - runs a hairdressing/beauty business - again if related then scaleability might be an issue.

3. Product/Service

Lord Sugar is a product man, he likes something he can understand, and something that has a clear revenue stream. All the businesses seem to be services. Here Vanas business if based on social networks could be the weak one.

4.Synergy and leverage

Like all investors Lord Sugar would look to see how he could add value, leverage his contacts and experience to make the business a success. On the other hand, he requires someone who will be self sufficient and not require alot of hand holding. 

Joseph and Charleine would probably need that. Richards and Gary would be the most attractive under this criteria.

So taking into account the above, I predict a Gary and Richard final with the winner being.....Gary.

He is mature, stable, gets along with people and  his business would seem to fit the risk profile.

But then what do I know, I thought Reggie N Bollie would never get to the final of X Factor!

Pricing Products & Services- Or how to price for Fat People!

I've been running TaxAssist in Leicester for about 3 years now, and have been  thinking about how we price our services going forward. When you start a business, initially there's alot of flexibility in pricing- its the advantage a small business has- they can customise their services, to suit the client and therefore price their fee accordingly.
There comes a point where the service you offer leads to a  natural process to become more standardised, for a number of reasons.

1. You gain a clientele that can be analysed and classified, and a more standardised service can be marketed to future clients.

2. You employ staff. Initially all pricing is done by the principle of the business, but there comes a point where you want staff to deal with prospective clients, and be able to quote a fee, The only way to do this is to have a standardised fee for services. The other advantage of this is that there is no temptation to lower the price, as the staff member doesn't control the price, and therefore cant lower it -without your say so.

3. The initial customisation that you can offer, - once you grow to a certain level, becomes a constraint on growth and profitability of your business, as customisation adds costs. Standardisation should streamline processes and services and lead to greater efficiency and profitability.

3. You can offer differing levels of service according to what clients are willing to pay. Accountants commonly offer a Gold, Silver, Bronze, service. Starting with a bronze service as a minimum and Silver and Gold adding extra services and service levels.

For example if a restaurant only offers 3 types of red wine at 3 different price points its likely to sell more then if they only offered one. The idea being that a large percentage will chose the middle option as they don't want to be seen as a cheap skate, but don't want to pay the for the highest price one- the middle is the compromise choice between quality and price-its probably the one that makes the restaurant the greatest margin as well!

You see an  extreme form of pricing with companies like RyanAir - who charge a basic but then add extras, so the price you pay maybe quite different from what you thought you were going to pay. Even charging you to choose to sit together rather then a random allocation-crazy! Cinemas are also pricing this way to charge for so called "premium seats" and standard seats- it could take this further and charge a lower price for tickets on the front row as the view isn't as good or comfortable.

At the moment we offer a highly personalised service with unlimited meetings, flexibility and often don't charge for little extras requested from clients. We don't vary the level of service offered. We offer an all inclusive service that is sustainable for the near future, but as we grow this may change.

Hang on a minute I hear you say whats the title about fat people got to do this?, well how about applying pricing principles to clothes? In theory why should a garment that is XXL be priced the same as XXS, the smaller one uses less material, probably is quicker to make, takes less packaging, and maybe storage. You could therefore argue fat people should have to pay more for their clothes. Obviously its controversial, but you can see the logic behind it, and if used cleverly could be marketed as an incentive to lose weight.
Social media campaigns could be run encouraging people to show before and after pictures in the said company's clothes, free clothes to those who lose the most, etc
Think about how you price your products or services, and the levels of service you could offer, to maximise sales. Could you apply theses principles to your business?

Attention Directors - How And What To Pay Yourselves for 2014/15

Salary

If you have other income from outside the company, your monthly standing order in respect of your salary should be increased to £663 in line with the increase in the Primary Threshold for 2014/15.

If you have no other income, then the monthly salary amount should remain at £663, but include a bonus of £2,044 in March 2015- meaning a total salary of £10,000 for the year; equivalent to the personal allowance.

At £10,000 per annum, National Insurance for the company and you will be triggered. But the company’s National Insurance bill will be offset by the Employment Allowance. The Employment Allowance is a new relief available from 6^th April 2014 which can reduce an employer’s National Insurance bill by up to £2,000 each tax year. So only your employee’s National Insurance of £245.28 will be due, (which should not be payable until 19^th April 2015). This salary offers the potential for an additional £1,799 in your back pocket.

In either instance, the salary is a tax deductible expense for the company, should not trigger any PAYE and preserves your entitlement to state benefits.

The payments should occur on the last day of every month in order to correspond with the payroll records we are maintaining for you.

Or

Please ensure the date of the standing order corresponds with the date you are running your own payroll.

 Dividends

Any surplus funds can be drawn as dividends, but these can only be paid from profits after corporation tax, so you do need to have reasonable interim management accounts/ bookkeeping to hand.

Assuming you have no other taxable income other than the salary above, £28,678.50 can be paid be paid to you during 2014/15; without incurring any additional tax liability.

To summarise your company remuneration package could look something like this:

Salary	£10,000.00
Dividends	£28,678.50
Employee’s National Insurance	(£245.28)
Income after tax	£38,433.22

This remuneration package keeps you in the 20% band and ensures there is no further tax to pay. Dividends above this level will attract an extra tax charge of 25% of the net amount you receive, payable through your self assessment tax return.

Due to Real Time Information, we would again recommend that you pay your dividends with a separate standing order/ cheque etc. This should help to distinguish your dividends from your salary in the event of an enquiry from HMRC and therefore minimise the risk of say, underpayment or inaccuracy penalties.

Should you have any queries regarding the above or any other matter, please do not hesitate to contact me. Otherwise, I trust you will deal with my recommendations accordingly.

For further info regarding the Employment Allowance, see link

http://www.taxassist.co.uk/leicester/resources/show-question-and-answer/id/523

FAQS for February 2014

February 2014

What can nurses claim for?
Q: I am a nurse and work for the NHS. What expenses am I able to claim for?

A: As a nurse you should be entitled to claim:

• £100 per annum for laundering your uniform (assuming you are responsible for cleaning your uniform)
• £12 per year for shoes where the wearing of a prescribed style is obligatory 
• £6 per year for stockings or tights, where the wearing of a prescribed style or colour is obligatory

You may claim a higher deduction for laundry expenses, but this will need to be supported by receipts.
For male nurses the reference to stockings and tights should be treated as including socks.
You should also be able to claim for any professional fees or subscriptions, such as to the Royal College of Nursing or the Nursing and Midwifery Council, but you should check these against HMRC’s list of approved organisations. 
To claim the expenses, you can use form P87 if they amount to less than £2,500 per annum (which is available on HMRC’s website) or alternatively, submit a tax return. You may also find that the professional bodies you have subscribed to have their own form to recover the expenses. 
Category: General Business

What happens to penalties when you cancel a tax return?
Q: HMRC issued a tax return for me but my circumstances have changed so I didn’t think it was required. I successfully asked for it to be cancelled, but what happens to the accompanying penalties?

A: In the past, HMRC was required to raise a penalty for a late tax return- although the taxpayer was able to appeal if they felt they had grounds.
However, from April 2012 taxpayers have been able to ask HMRC to cancel a return where they felt it was not required. Where HMRC are agree, any penalties linked to the return, were also cancelled.
But please note that this change only applies to tax returns for 2012/13 and onwards. However, it can apply to individual, partnership or trust returns.
Category: Tax Returns

Growth Vouchers - what is business advice?
Q: I have just started running my own business and I have been reading about these Growth Vouchers. I think my business meets all of the criteria- apart from I’m not sure what qualifies as "business advice". I used an accountant to prepare my accounts and tax return last year- does that mean I am not eligible?

A: At the end of January, the government will launch a £30 million research programme to test the value to small businesses of accessing professional advice. The subsidised business support will be delivered in the form of ‘Growth Vouchers’, enabling businesses to receive a 50% subsidy towards the cost of obtaining advice on 5 key topics that help businesses to grow.
As you quite-rightly stated, one of the criteria for the business is that they must not have had “business advice” in the last 3 years.
The Marketplace who is responsible for administering the Programme, also refer to “business advice” as “strategic advice”. If you have received day-to-day advice from an accountant, bookkeeper or solicitor on completing your annual business accounts, or understanding the legal/ regulatory requirements of running your business, you should still be eligible for the Programme.

Category: General Business

CIS tax refund for companies
Q: I own a small company in construction and some of our customers have been deducting CIS tax from our payments. How do I go about reclaiming this?


A: When a contractor pays your company “under deduction” (i.e. net of tax) for work, it must give your company a statement showing the full amount of the payment and the deduction that it has made from that payment.
You will need to enter these on your company's Employer Payment Summary (EPS) returns. The CIS deductions you have suffered will then be offset against the company’s PAYE liabilities for the year to date.
Limited companies that have an excess of CIS deductions, will not be able to claim a repayment of these until:

• The final Full Payment Submission (FPS) for the year has been submitted (due by 19 April each year where payments to employees are made in the period 6 March to 5 April)
• The company has paid all amounts due to HMRC for the tax year in their capacity as an employer/contractor
• The tax year in which the CIS deductions were made from the company has ended

Please note, you should not attempt to claim any CIS credits on the company's Corporation Tax return as you may incur a penalty.
Category: CIS

Consequences of late tax payments
Q: I am newly self-employed and have been rather unorganised this year. I just managed to get my 2012/13 tax return filed online on 31st January 2014, but I didn’t have enough cash put aside to settle my tax bill. What are the implications of late payment?

A: You will have interest to pay on anything you owe until HM Revenue & Customs (HMRC) receives your payment).
Furthermore, after a delay of 30 days, late payment penalties at 5% of the tax you owe will begin to apply. Additional late payment penalties will be added if the delay exceeds 6 months.
Please note, if you also registered for self assessment late (i.e. after 5th October 2013), you may also incur a Failue to Notify penalty. This will be 5% of any tax outstanding on 31st January 2014
Category: Tax Returns

Disclaimer – advice shared in this column is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this column, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

FAQS for November 2013

November 2013

Staff travel expenses
Q: My business is growing and as a result, my staff have started incurring travel expenses. Is there anything I should be aware of?
A: Normally where an employee incurs business-related expenses, the reimbursement of them should be rported on a P11D but the employee can claim a deduction for them. Therefore, there is no impact on the employee’s tax liability but there is some paperwork to be completed.
As an alternative, you could pay the HMRC benchmark travel and subsistence payments, which are:

• 45p per mile for the first 10,000 miles; 25p per mile thereafter
• £5 for breakfast if the business journey starts before 6am
• £5 if the employee spends more than five hours away and buys one meal
• £10 if they’re out for more than ten hours and they buy two meals
• £15 if they are out beyond 8pm, and buy an evening meal

Your staff must purchase some food and with the benchmark subsistence payments, but it could be just a sandwich and anything they don’t spend is theirs to keep tax and NI-free.

Category: PAYE, NIC & Benefits In Kind

VAT on staff Christmas presents
Q: I’ve just purchased a bulk load of chocolates and bottles of wine for staff Christmas presents. Can I reclaim the VAT on them?
A: If you give away goods and are entitled to recover VAT on them, you must account for VAT on their cost value. So I’m afraid this means the VAT position is neutral.
However, you do not have to account for VAT on ‘business gifts’ made to the same person so long as the total cost of all the gifts does not exceed £50 (excluding VAT) in any 12-month period. A ‘business gift’ is simply a gift of goods that is made in the course of your business.
Gifts and entertaining is a complex area, as it can have a multitude of tax, National Insurance and VAT implications.
Category: Value Added Tax (VAT)

Received a P800
Q: I have received a P800 from HMRC saying I have underpaid tax for 2012/13. What should I do?
A: Most people should have paid the right amount of tax through the Pay As You Earn (PAYE) system and there is nothing more for employers, employees or HMRC to do - so you do not need to be concerned if you do not get a P800 Tax Calculation. However, if you have been sent a P800 tax calculation by HMRC, it either means you’re getting a tax refund or you need to pay more tax.
If you receive a P800 Tax Calculation, it's important you check it to make sure you agree with the information included as HMRC have been known to make errors. The calculation will show your total taxable income, the allowances that are due to you and the amount of tax paid for each of the relevant tax years. It will also show the amount of over or underpaid tax.
Where your P800 shows non-PAYE income such as bank interest or other investment income, the figures will be estimated as HMRC doesn’t have direct access to these details and relies on you to provide them. So make sure you compare these figures in particular to your own records.
If you agree with the tax calculation you do not need to do anything but keep it safe. If you don't agree with the P800 Tax Calculation, you should call HMRC as soon as possible.
If the P800 shows you owe tax of £3,000 or less, where possible will HMRC aim to collect it by adjusting your code for 2014/15 so you’ll pay the extra tax through your earnings for that year.
Where the P800 shows you’ve overpaid tax, you’ll receive a cheque, usually within 14 days.

Category: Income Tax

Tax on Staff Christmas Gifts
Q: I’m looking at what to order for my employees for their Christmas presents. Is there any advice you have for me? I don’t want my employees to pay tax or National Insurance on their gifts- or the hassle of any extra admin!
A: If you buy your employees a seasonal gift such as a joint of meat or a box of chocolates, then this would be deemed ‘trivial’ and therefore, there are no reporting requirements and nor would any tax or National Insurance be triggered.
However, if your gifts are more lavish than the examples above- say a hamper, case of wine or vouchers - then the cash equivalent must be taxed via the payroll, form P11D or a Pay As You Earn Settlement Agreement (PSA). With the first two options, tax and National Insurance will be triggered and will be deducted from the employee. However, with a PSA the employer agrees to settle their liability.
Gifts and entertaining is a complex area, as it can have multitude of tax, National Insurance and VAT implications.
Category: PAYE, NIC & Benefits In Kind

Missed the tax return deadline
Q: I received my paper tax return earlier this year and totally forgot to complete and send it to HMRC. Will I now get fined £100?
A: No, because you still have the option to file your return online with HM Revenue & Customs (HMRC) and as an incentive to go paperless, HMRC allow until 31st January 2014 for submission. Provided you successfully file your return online with HMRC by this date, you will not be charged the £100 penalty.
However, if HMRC receive a paper 2012/13 tax return from you now the 31st October deadline has elapsed, you will be charged the £100 penalty automatically.
And remember, a late return will cost you a £100 penalty; even if there is no tax to pay or you pay the tax due on time. Furthermore, the penalties will increase the longer the delay in filing.

Category: Tax Returns

Lost receipts
Q: I have lost some of the receipts for my business. Where do I stand on recovering the VAT on them?
A: In order to exercise your basic right to recover the VAT on them, you must hold a valid VAT invoice.
However, in the absence of such an invoice, you may still be able to make a claim for the VAT, but these claims are at HMRC’s discretion. According to a HMRC Statement of Practice, they will look for alternative evidence where there is no valid VAT invoice, such as:

• Alternative documents, such as a supplier’s statement, purchase orders, etc
• Evidence of the receipt of the goods/ services, such as delivery notes
• Payment records
• Records of onward sales or consumption of the goods/ services

You should also be able to prove the existence of the supplier, by say having their VAT number.
The above list is not exhaustive and just to reiterate, accepting a claim for VAT where there is no valid VAT invoice is at HMRC’s discretion.

Category: Value Added Tax (VAT)

Disclaimer – advice shared in this column is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this column, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Q&As Accounts & Tax October 2013

New business registration with HMRC
Q: I have just started my own business. When do I need to register with HM Revenue & Customs?
A: Firstly, you need to work out which tax year your start date falls into. The tax year runs from 6th April to 5th April, so your start date falls into the tax year ended 5th April 2014. You must therefore register by the following 5th October, i.e. 5th October 2014. As you are registering as self employed, the form you need to complete is HM Revenue & Customs (HMRC) form CWF1 or you can register with HMRC online at www.hmrc.gov.uk.
You will also need to pay Class 2 National Insurance which is only £2.70 per week for 2013/14 so most people choose to pay for these contributions via Direct Debit. You will need to complete HM Revenue & Customs form CA5601 if you would like to pay via this method.
Although you have some time before you need to register, avoid leaving it too long as you may face penalties for late registration. 
Please note, this is merely with regards to self assessment, and does not include VAT or employer matters for example.

Category: Starting a Business

October Tax Return Filing Deadline
Q: I have received a letter from HM Revenue & Customs reminding me that I need to file my tax return by 31st October 2013.  I do not have all of the information together yet so I cannot complete it. Is there a way I can avoid a late filing penalty?
A: The filing deadline of 31st October 2013 only applies to those taxpayers wishing to complete and submit a paper 2013 tax return. But taxpayers also have the alternative to file the tax returns online. The online filing procedure allows taxpayers to submit 2013 returns up until 31st January 2014.
But it is a good practice to complete your tax return well ahead of the deadline. Doing it early should avoid mistakes being made and allow you time to consider any tax planning opportunities available. Furthermore, you will know what your tax liability is ahead of the due date of 31st January 2014 and therefore, have more time to put some money aside and manage your cashflow better.
Filing your tax return ahead of 31st January 2014, whether you file it electronically or in hardcopy, does not accelerate the due date for the tax either.

Category: Tax Returns

Use of home - repairs
Q: I am self employed but I operate from home at the moment. I’ve just had to make some repairs to the roof. Am I able to claim any of this as a business expense?
A: For the self-employed, their home has a dual purpose- you live there and you carry on some or all of your trade from there. As a result, many of the household expenses cover both business and private use.
The element attributable to the business will depend on the facts; including the extent and nature of the work undertaken from home. The part attributable to the business use should be allowable.
A proportion of the cost of general household repairs and maintenance is allowable in line with the proportion that the house is used solely for the business. For example, redecorating the exterior or repairing the roof.
Repairs that relate solely to part of the house that is not used for the business, such as decorating a room not used for the business, are not allowable. Equally if a room is used solely for business purposes then the cost of redecorating that room is wholly allowable.
Capital expenditure (for example on “improvements” to the property) is not allowable expenditure; though plant and machinery allowances may be appropriate for certain qualifying expenditure.

Category: Sole Traders

Separation and the High Income Child Benefit Charge
Q: My partner and I are separated and don’t live together anymore. I earn £60k a year and my wife has been receiving Child Benefit for our two daughters- who live with her. Will I still be subject to the High Income Child Benefit Charge?
A: Essentially, you may be liable to the High Income Child Benefit Charge (HICBC) if you, or your partner, have an individual income of more than £50,000 and one of you gets Child Benefit or contributions towards the upkeep of a child.
If you are liable and have received a Child Benefit payment since 7^th January then you must register for Self Assessment by 5^th October 2013 to pay the charge.
For the purpose of the HICBC, your “partner” is your husband or wife or civil partner, unless you are permanently separated from them, or the person you are living with as if they were your husband, wife or civil partner. The partner you are living with does not have to be the mother or father of the child.
If the separation occurred during the tax year, you may have to pay the charge for the period that you were living together, but your income for the whole year is taken into account and not just for the period you were living together.

Category: Income Tax

Can I reduce my NI?
Q: I am employed and earning £60,000 plus I have self employment income of £50,000. I am aware that I am now paying rather a large amount of National Insurance. Is there anything I can do about this?
A: The general principle of tax is the more you earn; the more tax you pay. However, there is an annual maximum amount of National Insurance contributions that are payable.
If you only had employment income, your employer would ensure that no more than the maximum annual amount was paid via the PAYE system.
However, where there is more than one employment or where there is a mixture of employment and self employment, there could be Class 1 contributions or Class 1, 2 and 4 Contributions respectively that exceed this maximum annual amount.
Excess payments can be repaid after the actual position has been calculated after the tax year end (5^th April). Alternatively, you may make a claim that National Insurance contributions are deferred; any shortfall being paid once the correct position has been calculated after the tax year end.

Category: PAYE, NIC & Benefits In Kind

Disclaimer – advice shared in this column is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this column, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Review Of Networking Groups

Networking Groups:
This is not a definitive list, but they are groups that I have personal experience of. They are low cost or FREE!
Other networking groups are available!!

1.    Meet & Mingle
Venue: LCB Depot, 31 Rutland Street, LE1 1RE
Frequency: Monthly 6-8pm
Website: http://www.eventbrite.co.uk/event/7428036457/eorg
Cost: N/A
Good: FREE – free refreshments, so a big turnout 40+ people especially start-ups, and speed networking.
Bad: Maybe to many people, speed networking can be a bit chaotic and noisy. Not everyones cup of tea.


2.    Pickle & Paratha Breakfast Networking
Venue: Observatory Meridian
Frequency: Thursday every 2 weeks, 7.30-9.00am
Website:  www.pickleandparatha.co.uk
Cost: £50 one off joining fee, then £10 for full breakfast/ £6 for continental for each meet. Introduce 3 members and you get a FREE i-pad mini.
Good: Parathas!!! Low cost and i-pad incentive. One business from each trade.
Bad: Needs more members and a bit more structure in meetings.


3.    Enterprise Club/Friendly Friday
Venue: Coffee Rupublic, Granby Street
Frequency: 2nd Friday of every month: 10.00-12.30pm
Cost: FREE
Good: FREE!, Friendly and informal, good speakers, good mix of start-ups, established businesses , and pre-start-ups.
Bad: A lot of micro businesses, or those just thinking of starting, so may not be attractive to certain businesses.
Website:  http://engage-multimedia.co.uk/events/friendly-fridays/


4.    Business Biscotti
Venue: Observatory Meridian
Frequency: Every 2 Weeks 10.00am-12pm
Cost: FREE
Good: Very informal, come and go when you like.
Bad: Pot luck –you never know whos going to turn up, no commitment required so lots of one off attendees.
Website:  http://www.businessbiscotti.co.uk



 
5.    BOB- Business Over Beer
Venue: Various
Frequency: Monthly in city pubs
Cost: FREE
Good: Beer!!! Very informal, come and go when you like.
Bad: Pot luck –you never know who’s going to turn up, no commitment required so lots of one off attendees. Better organisation at event to identify whos there for the meeting, and who’s a pub customer!
Website: http://www.creativedirection.info/blog/
STOP PRESS: Have recently launched Business Over Biriyani, so we’ll see how this develops.

September 2013 - FAQS Accounts & Tax

Q: I am a high earner and my wife is in receipt of the Child Benefit for our children. We intend to keep receiving Child Benefit in spite of the High Income Child Benefit Charge. How do I go about getting a tax return and when do I need to file it by?
A: From 7^th January 2013, you may be liable to a new tax charge if you, or your partner, have an individual income of more than £50,000 and one of you is receiving Child Benefit. It may also apply if someone else receives Child Benefit for a child that lives with you.
If you intend to keep receiving the Child Benefit, you need to register with HM Revenue & Customs (HMRC) for Self Assessment by 5^th October 2013. The easiest way to do this is online at HMRC’s website www.hmrc.gov.uk but there is still a paper form to use if you’d prefer.
Your tax return will cover the year ended 5^th April 2013 but you only need to declare the amount of Child Benefit you, or your partner, are entitled to receive for the period 7^th January 2013 to 5^th April 2013.
This tax return needs to be submitted to HMRC by 31^st October 2013 if you file it on paper; or 31^st January 2014 if you file it online. Any tax arising must be settled by 31^st January 2014.
If you would like any assistance in dealing with your tax affairs, please do not hesitate to contact us.
Category: Tax credits

National Minimum Wage: increase?
Q: I believe in the past, the National Minimum Wage normally changes about this time this year. Is there an increase soon?
A: You’re absolutely right; there is typically a change to the National Minimum Wages (NMW) annually on 1st October.
The rates are due to on 1st October 2013 to:

• £6.31 – the main rate for workers aged 21 and over
• £5.03 – 18-20 year old rate
• £3.72 – the 16-17 year old rate for workers above school leaving age but under 18
• £2.68 – the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

Last year, only the over 21s and Apprentices saw an increase in the NMW. But this year, all of the rates have increased.
Category: PAYE, NIC & Benefits In Kind

Private mileage in company cars
Q: My employee has a company car, and historically, he has always had a benefit for the car itself and the fuel- because he doesn’t reimburse me for any fuel he uses for private journeys. Is there any way we can reduce his benefits in kind, because they’re costing him a lot on tax now.
A: This may sound a bit extreme, but you could discuss the company no longer paying for his fuel. Whilst this may sound expensive for him, if you sit down and do the calculations, you may actually find he is better off this way- particularly if you intend to increase his salary as a result of him losing his fuel benefit.
He could then charge the company for any business mileage he does, using the advisory fuel rates.
The other alternative is that the company continues to pay for all of his fuel, but the company charges the employee for all of his private mileage- again using the advisory fuel rates.
In either case, the fuel benefit could be reduced down to nil if you can meet all of the requirements.
Please note that due to the frequently changing fuel prices, HM Revenue & Customs regularly updates the advisory fuel rates, so always check their website for the latest figures here:
http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm
Your local TaxAssist Accountant would be happy to discuss this in more detail and calculate the differences between each option for you.
Category: PAYE, NIC & Benefits In Kind

Invoices and late VAT registration
Q: I registered for VAT a bit late and must now go back and invoice my customers for VAT. Do I have to charge VAT on top of the invoices I originally issued; or is it already included?
A: Assuming you have already received your VAT registration details from HMRC, you may now begin to issue your customers with proper VAT invoices.
But it is actually up to you whether you charge the VAT on top of the original invoice you’ve already issued; or choose to suffer the VAT yourselves by deeming it to have been included in the original invoice.
However, there is something you should bear in mind. If you are dealing with other VAT-registered businesses, they won’t mind you charging them for the additional VAT because they’ll be able to get it back from HMRC on their next VAT return. But if your customers are members of the public or someone else that can’t recover the VAT, they won’t be too happy to receive this unforeseen bill.
Your local TaxAssist Accountant would be happy to manage your VAT affairs and returns for you. Contact us for more information and to be put in touch with your local office.
Category: Value Added Tax (VAT)

Offsetting trading losses
Q: If, whilst employed and paying tax, I set up as a sole trader as well, can I offset any trading losses against the PAYE I pay?
A: As long as you are genuinely in business to earn a profit then yes, you can offset your losses against current year income or against past or future profits of the trade itself.
You should only claim relief for your loss if you ran your trade commercially for profit. If it was more of a hobby, you should only use the losses against future profits from your self-employment; HMRC will not like you to use to loss against your employment income.
Assuming your business was run on a commercial basis, you can offset your losses in several ways:

• other income for the same year or the previous year
• gains for the same year or the previous year - if your other income is used up
• other income in the previous three years if your business started within the past four years
• profits from the business in later years
• profits for the business in the previous three years if your business has ceased

In order to declare the loss and subsequently make use of it, you will need to register for Self Assessment with HMRC and complete a tax return.
Utilising losses is a complex area. I would encourage you to approach a professional for advice, such as your local TaxAssist Accountant. Please contact us if you would be like to put in touch with your local office to discuss this further.
Category: Starting a Business

Ceased employment and student loans
Q: I recently received a letter from the Student Loans Company querying my employment status. But my circumstances have not changes- I am still employed. What should I do?
A: This sounds like a known issue with HMRC’s systems; a very small number of students' employments have been incorrectly ceased.
This has prompted HMRC's systems to automatically inform the Student Loans Company (SLC) that those individuals had left their employment. As a result, SLC have issued letters to these borrowers, querying their employment status.
HMRC’s advice is to respond to the SLC saying you have not ceased employment or changed employer.
HMRC are now in the process of correcting their systems and are due to complete this within the next few weeks.
Category: PAYE, NIC & Benefits In Kind

Disclaimer – advice shared in this column is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this column, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.