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HMRC now have powers to name and shame individuals and companies who deliberately evade taxes, by publishing their names, address and details of their evasion on the HMRC website.

New Powers

The law that provides HMRC with the power to disclose is included at Section 94 of the Finance Act 2009.  This ruling can be used by HMRC for accounting periods starting 1 April 2010, it therefore may take a little time before anything ‘juicy’ is made public.

Deminimus

To be named and shamed the evasion must be deemed to be deliberate and involve tax of £25,000.

Preventing the embarrassment

A full voluntary disclosure of tax wrong doings without undue delay may help avoid the detail being published.

My thoughts

Once again HMRC have been given more opportunity to burden taxpayers with the subjective views of individual inspectors.

• deliberate
• undue delay and
• ‘full’ disclosure

are all terms that I consider could be misconstrued or misrepresented and this allows different cases to be dealt with in different ways dependant on the mood, attitude or experience of the inspector.

If you are exposed to this new HMRC power, defending your position by challenging the inspectors opinion of your guilt may well be expensive and stressful.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

If you have discovered that you have underpaid VAT  to HM Revenue & Customs and are concerned what action you should take, read on. 

When did the error occur?

HMRC are now able to look back at the previous four years records should they chose to carry out an inspection whereas previously they were only able to look at the previous three years.

The extra year is not all bad news it also means should you have made an error in your favour you now have an extra year to rectify it.

Declaring errors

For accounting errors beginning on or after 1 July 2008, businesses can adjust past errors on the next VAT return they submit providing the error is less than £10,000 or one per cent of the Box 6 turnover figure up to a maximum of £50,000. Any errors above these amounts must be notified to HMRC on a separate form.

Penalties

A new penalty system was introduced for VAT returns due to be submitted after 1 April 2009.  Penalties are now charged based on a percentage of the VAT payable.

If an error has been made but reasonable care has been taken then no penalty is applicable, but deliberate or concealed errors are dealt with more seriously and can attract a penalty equal to 200% of the VAT undeclared.

Honesty is always the best policy

Should you have made a mistake and are likely to incur a penalty then honesty is your best policy, as this can lead to a reduction in the penalty charged. But beware if you have already been notified of a visit by HMRC voluntary disclosure before they carry out their inspection will not reduce your penalty.

Evading VAT registration

Failing to register your business for VAT when it should have been can be costly.  Now that HM Revenue & Customs  manage direct and indirect taxes it is easy for them carry out checks with regards to business turnover.

The annual registration limit increased to £70,000 from 1 April 2010.

And finally,

Don’t forget, all new businesses and those with a turnover over £100,000 must now submit their VAT Return electronically. If you have not already registered make sure you do as soon as possible. Do not leave it until the day your return is due it will be too late. For more information click here

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

I am regularly contacted by people who are new to business, or at least considering starting their own business.

Excited

Naturally, they are all really excited about the prospect of working for themselves, being their own boss, making the decisions and being able to directly enjoy the results of their efforts.

Apprehensive

However, I find that when I start to talk them through the statutory accounting and taxation requirements, it becomes obvious that they are worried and some even start to question if they are doing the right thing.  Despite assuring them that my team will handle 

• Companies House administration anc correspondence,
• Preparation and submission of statutory accounts,
• Corporation Tax computations and returns,
• PAYE administration and National Insurance,
• VAT reporting,
• Returns of benefits and expenses and other HMRC returns,
• Construction industry scheme online monthly filing
• Potential HMRC visits

and provide ongoing bookkeeping support, it is understandable that the overwhelming sense of responsibility causes concern for those who have been in the relative ’safety’ of employment or education.

Discouraged?

I think it is a shame that budding entrepreneurs can be stopped in their tracks by all the bureaucracy that surrounds a business, and I would urge any aspiring business owners not to be discouraged, it sounds a lot worse than it really is.

Get support

If you are thinking about starting up your own business, you should really go and talk to an accountant who can explain what is required, help you understand your duties and responsibilities and then take away as much of the fear and worry from you so that you can get on with the exciting bit!

It is also a good idea to join a networking group.  They not only provide you with valuable contacts, they are full of potential friends and peers who can guide and support you with first hand experience.

Find someone you can trust

For some people starting up their own business isn’t a big deal, but remember that the best entrepreneurs are surrounded by the best people for each and every part of their business, so do your new business a favour and find someone who can be the best for you.

Outsource

Delegate the ‘red tape’ of administering your business, and non-essential or non-profit making tasks to a team of carefully selected professionals so that you can make the most of your time and  simply…

…..enjoy running your own business!

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

I tweet  and network with many different people working in the charity sector and find that many of them have their ‘Broadcast’ button stuck on.  “Help us…”, ‘Donate here…”, “We need more followers..”   There are a few exceptions to this of course, such as @eczemasupport  and @freshties  who are real people taking the time to support others, and you will see me regularly conversing with them online

Personal and ‘to the point’

So, when I received this message from a charity connection of mine via Linked In, I could not help but be touched.  The author had taken the time to tell a ‘real’ story, with a compelling message that gave me reason to revisit their website to refresh my mind regarding their objectives.  The message was personal and did not overwhelm me with facts and did not feel intrusive.

Focus on IMPACT

It simply focussed on an example of the IMPACT the Charity’s objectives were  having on real people – not the brand, not statistics and not how desperate they are for your money. 

And of course, I clicked the giving page and donated: Perfect charity PR with intended result achieved. 

My opinion

My only comment would be (because I always have to have my ‘two pennies worth’) to take the time to personalise the message, so it was even less of a broadcast and more of a friendly communication and perhaps leave the fundraising link until after the ‘real’ story.

Gabby’s Message

Dear Friend

I doubt if you know how flat footed I am, so this personal challenge [5k run] is not an easy one for me! It is also for an extremely worthy cause and I would be really grateful if you would do your bit to support me!

Please visit my fundraising page: http://uk.virginmoneygiving.com/GabriellaBeddows

27 of the children that we support, spent this weekend at the Malvern Hills Outdoor Centre as part of our Noah’s Ark Activity Weekend. It is a very difficult time for the young people, helping them to discover and understand their feelings.  One of the young ladies wrote on our facebook wall:

“Thank you so much for such a brilliant and life changing weekend! I’ve met such kind, lovely people, and made some beautiful new friends including all the staff that were on camp!  Words cannot explain how grateful I am for everything you have done for me and how it’s helped me!  I didn’t know that I could ever move on after my Grandma’s death and you’ve helped me to achieve that so I honestly can’t thank you enough! “

With many thanks x

Gabby Beddows
Noah’s Ark Trust
Chief Executive

T: 01905 340019
F: 01905 745121
M: 07967 467958
E: gbeddows@noahsarktrust.co.uk
W: http://www.noahsarktrust.co.uk

If you are not aware of the work of this organisation, please take a moment to look at their website.

Working hard…..

Gabby says “Coming to terms with the death of a loved one is difficult enough for an adult, but for a child or young person it can be overwhelming.  Children regularly tell us that they feel isolated, misunderstood, to blame, angry, sad and struggle to cope with the finality of it all.  

At Noah’s Ark Trust  we help them through their bereavement, offering one-to-one support and guidance along with activity weekends where they can meet other bereaved children.  The service is offered free of charge to families in Herefordshire & Worcestershire and there lies our biggest challenge during this current economic climate. Last year we supported over 800 children and raised over £450,000. We are working hard to raise the essential funds we need to help these children towards a brighter future.

Your ‘two pennies worth’

Of course, I am an accountant working in the Charity Sector, not a marketing/PR professional.  If you are experienced in dealing with the 3rd sector, both Gabby and I would be pleased to hear your views on this type of PR activity, please leave a comment.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

I am delighted to announce that George Hay are now using revolutionary online accounting software in order to help our clients more easily manage their bookkeeping and keep a better track of their financial position.

New Service

We believe we have future-proofed our bookkeeping offering for clients by moving to an award winning online accounting software package.  The company will now be using KashFlow, which enables accountants and their clients to easily access their own financial records at any time, whenever they have access to the internet. 

Online accounting software is considered by many to be the way that the industry is heading because it enables businesses to keep a constant eye on their company’s financial position without having to install and regularly update costly and bulky software direct onto their computers.  This recent additon to our service portfolio is further evidence that George Hay is a forward thinking and dynamic organisation that puts it’s clients’ needs first.  We are very aware that accountants are generally Sage lovers, and Quickbooks has tried to make bookkeeping more exciting and user friendly, but neither are considered easy or ‘beneficial’ to small business owners who have no bookeeping experience.

Kashflow is extremely easy to use, with continuous functionality development led by user feedback.  We can now talk to clients and update records in real time without having to wait for them to send in reams of paper-work or email back-ups.  This also means we can be even more proactive with our traditional advice and support.

All the records held on the system are stored behind a state of the art encryption system that prevents data from being accessed or passed on without the user’s permission.

The options

I researched the market intently, including taking time to demo Xero and FreeAgent and speaking with representatives from all three.

My brief was clear, I wanted a solution that filled the gap for clients who were outgrowing their spreadsheets but didn’t really have the inclination to learn to use Sage.  I strongly believe Sage is a great package if used properly, but in the hands of an inexperienced, busy business owner, it can be a devil.  Many clients in the past have started using Sage or Quickbooks believing it will save them and us time, thus reducing fees, to be disappointed when I show them the amount of ‘unpicking’ and reconciling we have had to do.

Kashflow won my vote with unprecedented numbers of great testimonials from end users and practicing accountants.  Their helpline and support offering appeared to be excellent and the MD‘s constant involvement with social media platforms such as Twitter gave me confidence that he cares very much about his brand and his customers’ thoughts.

A new beginning

Managing Director of KashFlow, Duane Jackson said, “George Hay Chartered Accountants have shown that they’re forward-thinking by being early adopters of online software. We’re looking forward to working with them the help small business and start ups in Huntingdon and the surrounding areas.” Jackson continues, “Our software is going to help George Hay to deliver on their aims of offering a high-level of service to all of their clients.”

KashFlow launched its flagship product, an online tool specifically designed to help owner-managers in small businesses manage their accounts, in mid 2005.  Since that time it has quickly won a significant share of the valuable accounting software market along with launching a new direct-to-accountant division in late 2006.  In late 2007 KashFlow won a Business Software Satisfaction Award, judged entirely by customer feedback, for the category of web-based accounting, beating the likes of Sage and Netsuite.

Free, No obligation trial

If you would like to discuss this offering or register for a completely free 30-day trial of the software please email toni.hunter@georgehay.co.uk or call me on 01480 426500 and I will send you a link by return.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

are you sure?

Lots of small business owners seem shocked that anyone would suggest they outsource any of their work.  “I don’t outsource”, “I don’t need to outsource” are just some of the responses (the polite ones anyway!).

But were you to look at your every day circumstances I am sure you would be surprised to know that you do outsource already.

So what is outsourcing?

I perceive outsourcing to be: a system where you pass on to someone else work, projects or tasks that you are unskilled for, doing tasks that don’t move your company forward or bring in more money. 

Are you outsourcing?

Have you ever ordered your grocery shopping online? Given someone else your ironing to do? Gone to the dentist for a filling? Paid a hairdresser? Used a cleaner?  These are all examples of outsourcing.

I practice what I preach; I do my weekly shop online. It saves me an awful lot of time and it saves me money, no more temptations from those ends of aisle offers. I also use an ironing lady, she does a better job than I would, in less time than I would, and I make more money using my time elsewhere than the cost of the ironing. It just makes sense to me. It also saves me the stress of performing a task I abhor.

Value yourself and your time

What value is there in you doing the task yourself?  Because you feel you have to, because you feel you can’t afford not to, or because you don’t like to let go.  Look at things a different way.  If you concentrate on your core business how much can you earn in an hour?  If you do certain tasks yourself is that common sense?  Should you do your own admin or accounts?  If bookkeeping takes you an hour then it has cost you your hourly rate.  However, should you outsource, it could cost you a lot less, it could take a lot less time than it would have taken you, and in that time you could have won a new contract or client.

Buying expertise

There are many experts out there who can make a huge difference to your business, you can outsource your bookkeeping, admin, website design and management, SEO, social media marketing, telemarketing, IT management and even personal tasks such as managing your diary or email, answering your calls, doing your shopping, or even walking your dog.  Remember, it’s all about outsourcing tasks that someone else can do in less time, to a higher level or just tasks you don’t enjoy or have the time for.  It could also enable you to move your business forward.  Working as one man you can only ever achieve a certain amount of work.  By working with an outsourced team or individual you can accomplish so much more.

Leverage

Maximise your potential, by leveraging time and opportunity.

Open yourself up to the possibilities of outsourcing, and move your business on to the next level.

Guest author:   Helen Stothard is a valuable Twitterbuddy of mine who is successfully growing her outsourcing business while raising a family.

For more information about the services offered by Helen and her team please visit HLS Business Solutions

Multi-millionaire and CEO of ActionCoach  Bradley J Sugars says  

“STOP IT … stop doing things like cleaning the house, washing the car, mowing the lawn … pay someone to do it and put that time into planning your business … remember, poor people spend time to save money, rich people spend money to save time …”

Whilst there exists a myriad of qualifications that can prove technical competence across most areas of the IT industry, how do you know that the person advising you has the skills to do so?

You can trust ‘Chartered’…..

Many professions such as mine rely on their Chartered  status to build trust with consumers.  Well, there now exists a Chartered status within the IT industry that is aimed at providing proof of experience, ability and breadth of knowledge.

It carries the post nominal letters CITP and is the Chartered IT Professional status which is administered by the British Computer Society.

The CITP  has been setup to be the benchmark of IT excellence, it is a rigorously assessed employer led standard, and it sets out to provide all those who need IT support that the person they are dealing with has the highest standards backed up by a professional body.

If you are used to the various Microsoft Accreditations, such as the “Microsoft Certified Professional Developer” (MCPD) these are designed to show that the engineer, who is installing and configuring your equipment, has all the Microsoft skills to do it.  Think of the CITP as more like being an independent project manager who would look at your whole current and future IT usage, to come up with the best solution and plan.

A holistic approach to IT solutions

Many issues with IT are caused by looking at specific parts of a system in isolation, and creating a separate solution, and for too long it has not been possible to independently ascertain if the person giving you advice has the “right” to do so – the CITP gives you that security. The Daily/Sunday Telegraph formally lists those achieving the CITP, and names of individuals are held on a detailed register.

If you are familiar with the level of professionalism and integrity that the Chartered Status provides Accountants and Architects – then you can now expect the same from the IT world.

Need advice?

So if you are looking to get some IT advice what should you look out for? Well the best advice is always to get some recommendations, ask those that you trust and see who they use. But now you can also check the integrity of anyone by seeing if they are Chartered – after all you would not trust your accounts to just anyone.

The information published in this blog was kindly supplied by David Kilpatrick of iTEXS in Cambridge.

I started using A-Beta-CarE from Forever Living Products to help my poor skin condition.  Since then I have discovered that it has so many benefits including helping me to manage the symptoms of PCOS.  It is a perfect supplement to drinking Aloe.

Key Benefits

• Helps with skin disorders such as eczema, psoriasis and acne
• Can reduce menopausal hot flushes
• Powerful antioxidant 
• Promotes healthy skin, hair, eyes and heart
• Can help manage the symptoms of Crohns, Lupus, ME, MS and gout
• Contains selenium which has been medically linked to promoting men’s health/fertility

Beta Carotene

Vitamin A is a powerful nutrient for skin and eyesight, however in large doses it can be toxic.  A-Beta-CarE delivers vitamin A in the form of Beta Carotene which the small intestine can convert in to Vitamin A as it is needed, taking away the possibility of overdose.

Beta Carotene is a highly effective antioxidant, which helps fight free-radical damage and therefore improves general skin health and combatting skin aging.

Vitamin E

Vitamin E is an essential nutrient for good skin health.  It is also known to encourage effective regulation of body temperature and is therefore useful to menopausal women.

It has many other benefits such as acting as an anti-clotting agent for the blood and assisting sufferers of osteo-arthritis.

Selenium

Selenium is a trace mineral found in brazil nuts amongst other things.  It too is a powerful antioxidant and therefore a promoter of great skin and hair.

Research has shown that selenium is important in maintaining men’s health.  In particular a deficiency has been linked to prostate cancer and low sperm counts.

And…

wait for it girls, there’s more good news!  A-Beta-CarE can help to combat cellulite

Purchase online or send me an email

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.  Forever supply health and nutrition products that promote health and wellbeing.  They do not make medical claims and suggest that you advise your GP if you are planning to take supplements.

The Finance Act 2010 introduced a new definition which Charities (and Community Amateur Sports Clubs) will need to adopt in order to ensure it remains entitled to tax relief.

Management Condition

The new definition introduces the term ‘management condition’ and states that managers must be deemed to be fit and proper persons to manage the charity.  The term manager is deemed to relate to any person who has day to day control over the running of the charity and any persons who can assert influence over its running. 

Fit and Proper Declaration

An individual is considered ‘fit and proper’ if they ensure that charity funds and tax reliefs are used only for charitable purposes.  HMRC have advised that all managers should sign a declaration as to whether they are ‘fit and proper’ they suggest a person declares the following:

1. I am not disqualified from acting as a charity trustee
2. I have not been convicted of an offence involving deception or dishonesty
3. I have not been involved in tax fraud
4. I am not an undischarged bankrupt
5. I have not made compositions or arrangements with my creditors from which I have not been discharged
6. I have not been removed from serving as a charity trustee or been stopped from acting in a management position within a charity
7. I have not been disqualified from serving as a Company Director
8. I will at all times ensure the charity’s funds and charity tax reliefs received by this organisation are used only for charitable purposes

More paperwork….

For most people this will be no too onerous a declaration and will only be a question of form filling to ensure you have the paperwork in place should it ever be requested. Red tape that could prevent your charitable status from being challenged, which could have catastrophic tax consequences.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

Along with the England flags and hopes of World Cup success the emergency budget is becoming a distant memory, but if you are in business you shouldn’t be so hasty.

Here at George Hay, we regularly advise on the advantages of incorporation and strongly believe that for the majority of small businesses it is the most tax efficient structure, as remuneration (profit distribution) for the owners/directors can be carefully planned to benefit their personal tax circumstances.  These savings can be particularly advantageous if you are operating as a family business.

Corporation Tax reduction

One of the main headlines of the budget was the reduction in the Corporation Tax rate by 1% making the Small Companies rate 20% from April 2011. This was good news for business owners but of course it only applies to those which are incorporated. Those who operate their business as either a sole trader or partnership are subject to Income Tax and National Insurance on their business profits so will instead be hit by the rise in National Insurance rates from April 2011.

The changes in the Corporation Tax rate and National Insurance rate along with forecast reductions in the basic rate threshold for individuals poses the usual question of should those in business consider incorporating and is it beneficial for everyone to do so?

Indicators do strongly suggest that it is widely beneficial for most owner managed businesses to incorporate and when doing the sums at the new rates from April 2011 the tax savings as a result of incorporation increase even more.

Risky Strategy?

There have been many attempts to try to curb the incorporation trend in the past due to the significant tax savings that can be achieved.  Gordon Brown aired his view that business owners are not paying the ‘right amount of tax’,  and we are sure HMRC will continue their expensive and difficult case in the courts.   But I personally have been advising on incorporation for over 10 years and it continues to be a successful strategy, so why not take advantage whilst the regulations allow it?  It is not something that can not be withdrawn from if circumstances change.

Real life example

In 2007 I was recommended to a small business that was earning very handsome profits due the unique nature of its trading activity.  On engagement I quickly did some sums (good old Excel!) and explained the value of Incorporating.  The owner immediately understood and asked me to incoporate the business without delay.  By involving his wife in the business strategy, she was able to take a ‘very nice’ Company Car and between them they saved and continue to save over £15,000 per annum in Tax and National Insurance.  If only they had sought advice years before…..

It’s not all about tax

Careful consideration should be given to incorporation and expert advice sought. It is not always the right choice for everyone and other factors come into play such as legal liability, increased regulation and therefore costs, disclosure of financial information and future business plans such as sale of the business but it is always worth thinking about.

For further details on the key announcements in the ‘Emergency Budget’ download a copy of our budget summary.

Disclaimer: This article is for general guidance only.  All taxation planning should only be undertaken after appropriate professional advice.  George Hay Chartered Accountants are registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.