Walker Thompson

Online VAT Returns

2012-01-26T17:30:00.000Z

From April 2012, businesses (with very few exceptions) will have to file their VAT Returns online and pay their liability electronically. If you are not already online, now is the time to set it up.

HMRC strongly recommends you sign up to using the online service before April 2012, so that you have time to get familiar with the new service. It has also proved useful to set up online filing, and the associated direct debit mandate, some time before the first return needs to be submitted, to avoid delays in either the submission or payment of your first return.

When you submit your VAT Returns online, you must also pay any VAT due electronically. Paying electronically will normally give you to up to seven extra calendar days to submit your return and pay your VAT, unless you make annual returns or payments on account. The extended due date will be shown on your online return and you must ensure that cleared funds reach HMRC's bank account by this date. If your payment clears later than this, you may be liable to a surcharge for late payment.

Moving to online filing

T-7 and counting ...

2012-01-24T17:30:00.000Z

Time is ticking away and with only 7 calender days left, the 31st January will be here before we know it.

All Self Assessment Tax Returns for the year ended 5th April 2011 must be filed online by 31st January 2012. (The deadline for most paper returns is long gone.)

If you have received a notification from HMRC that they are expecting a self assessment return from your, or you have had any assessable income during the tax year, you need to file a tax return by the deadline date.

More on PAYE Filing Penalties

2012-01-20T09:00:00.000Z

Recent Tribunal decisions on penalties for PAYE returns that are filed late are inconsistent, and the taxman should issue penalty notices to taxpayers more promptly after a deadline is missed, a senior tax accountant said.

As HMRC prepares to challenge a tribunal ruling that criticized its practice of allowing fines to accumulate before issuing penalty notices, recent tribunals have reached different verdicts on the increasingly controversial subject.

Chas Roy-Chowdhury, head of taxation at the ACCA accountancy institute, said tribunal decisions on penalties were "all over the place".

The taxman should be more understanding if businesses make an honest mistake when submitting end-of-year P35 returns - which show employees' income tax and national insurance contributions - Roy-Chowdhury added.

For example, some businesses, or their tax advisers, may mistakenly send a "test version" of their P35, wrongly believing that they have completed the return.

In Croydon North Conservative Association v commissioners for HMRC - heard in the first-tier tribunal last November - the association appealed against an "unfair" £800 penalty for a P35 return that was filed late.

The employer filed their P35 online on 30 March 2011 - more than ten months after the 19 May 2010 deadline for sending the return.

The association appealed against the fine, arguing that its treasurer had no experience of PAYE. It also said that HMRC had taken eight months to notify it about the fine and that an earlier call or letter explaining that the P35 was late would have solved the problem.

The tribunal ruled in favour of the taxman, concluding that penalty notices were not intended to serve as reminders and that burden was on the taxpayer to establish a reasonable excuse for late returns.

In another case about tax penalties - Global Legalisation Services Limited v the commissioners for HMRC - heard in the first-tier tribunal last August - a company successfully appealed against a £800 penalty for a P35 form that was sent late.

The company's tax adviser said that it believed it had filed the return successfully.

After sending the the P35 return online the agent received an email from HMRC confirming receipt but warning that if the submission was a "test submission" the form should be resent using the "live transmission" in order to be processed.

HMRC said that sending a "test submission" requires the employer to "actively access test mode on the system" - meaning that the employer does not have a reasonable excuse for sending the form late.

Roy-Chowdhury said that the taxman should be prepared to reduce tax penalties to encourage people to file late returns quickly.

"When HMRC issues penalties [for late filing of a P35 form] it could say there is a £500 penalty but if you file within 30 days you will pay £100," he said.

A plan to collect income tax and national insurance contributions from employees' pay packets in "real time" rather than annually should make it easier for HMRC officials to send tax reminders and penalties quicker. The new system is due to start from April 2013.

Under real-time PAYE, employers will send HMRC information about tax and other deductions from employees' pay when, or before they make the salary or wage payment to the employee, rather than sending returns at the end of the year under the current system.

HMRC missing a deadline - surely not?

2012-01-19T10:57:00.001Z

HM Revenue and Customs has missed a key deadline which required it to create teams of cyber crime investigators and launch initiatives to counter the increased threat of web attacks on the authority's system and customers.

In its structural reform plan progress report for December 2011, HMRC said that work on the project should have been completed by November 2011, but recruitment activity is still ongoing and the scheme will now not be completed until February.

This serves to prove that despite unemployment rates spiralling, the country does not have the appropriate people trained and capable of fulfilling this vitally important role in protecting taxpayers data. Perhaps they will impose financial penalties on themselves as they do so readily with taxpayers who miss deadlines or do HMRC believe that they have a "reasonable excuse"?

The rules on being late with PAYE & NIC payments

2012-01-18T09:00:00.000Z

We have become aware that some businesses are wrongly interpreting the rules regarding late settlement of monthly or quarterly PAYE payments. HMRC expect that deductions made from employees for tax and NI in one month should be correctly accounted for and paid over by 22nd of the subsequent month. The penalties regime was extended to include late PAYE returns in 2009/10 and many late penalties of up to £400 were publicised in the press recently.

There does however seem to be some confusion regarding an HMRC concession which states that for one payment only each year, if it is made late, they will not seek to impose a penalty. This means that HMRC still expect the payment to be made within reasonable time NOT as some people seem to believe, that a whole month's payment can be deferred until month 12 without a penalty as long as all other payments are made on time.

HMRC deadlines contains further details.

Self Assessment Returns

2012-01-17T09:00:00.000Z

More than 1,000 taxpayers submitted their self assessment returns on Christmas Day, HMRC figures have revealed.

The figures also show that 102 people saw in the new year at their computer completing their tax returns. In total, 11,648 filed on New Year's Eve, while 8,935 people battled hangovers to submit on New Year's Day.

It is no surprise that HMRC can collect this type of data yet cannot spend the necessary time to get basic PAYE codes correct or indeed many of the other processes which create worry and concern for taxpayers.

Walker Thompson Newsletter 51

2012-01-16T09:49:00.000Z

WELCOME TO 2012

On 15 December 2011 Walker Thompson were successfully re-assessed against the Investors in Excellence Standard, first achieved by the firm in 2007 and again two years later.
PENSIONS AUTO ENROLMENT

The Government has confirmed that pensions auto enrolment will commence in Autumn 2012 and all employers will remain within the scope of the rules.

ADVISORY FUEL RATES FOR COMPANY CARS

New company car advisory fuel rates have been published to take effect from 1 December 2011.

CAPITAL ALLOWANCES IN ENTERPRISE ZONES

Following the Autumn Statement at the end of November 2011, more information is now available in respect of the proposal to give 100% first year allowances on plant and machinery expenditure for use in some Enterprise Zone areas.

SEED ENTERPRISE INVESTMENT SCHEME

The government has released more information on the new Seed Enterprise Investment Scheme (SEIS) aimed at smaller companies.

STATUTORY RESIDENCE TEST

The government has been consulting on introducing a Statutory Residence Test (SRT). The test which was expected to be introduced from 2012 has been delayed until 6 April 2013. More details are expected to be announced in the 2012 Budget.

SELF ASSESSMENT DEADLINE FAST APPROACHING

HMRC are reminding taxpayers that the deadline for filing self assessment tax returns is fast approaching.

THE PORTAS REVIEW

The CBI commented on a report by Mary Portas on the future of the high street.

HMRC TO ACCEPT FASTER PAYMENTS

HMRC have announced that they will now accept payments made using the Faster Payments Service. This will allow taxpayers to make faster electronic payments, typically via internet or telephone banking, enabling them to be processed on the same or next day.

2012/13 STATUTORY PAYMENTS

HMRC have announced the following statutory payment rates which are due to take affect for 2012/13. These rates are still subject to Parliamentary approval and HMRC will confirm the rates before 1 April 2012.

Welcome to the Great New Year NIC Giveaway

2012-01-16T09:00:00.000Z

The take up of the National Insurance Holiday scheme that formed a key part of Chancellor George Osborne's first Budget is still way below the Treasury's initial estimates, the government has confirmed.

Exchequer secretary to the Treasury David Gauke released figures about the scheme to Parliament recently. Just over 10,000 companies have taken up the scheme since June 2010. The government had hoped for a take-up of 132,000 a year when it was announced by Osborne.

The holiday exempts qualifying new businesses in eligible regions from up to £5,000 of employer national insurance contributions for each of the first ten employees hired in the first 12 months of business.

It has received criticism because it is only available in certain regions.

Professionals have call for the scheme to be rolled out across the country. HM Revenue & Customs say that they have sent around 140,000 personalised letters to all businesses that have registered for a PAYE scheme since June 2010 at a cost of around £90,000 in October.

The Exempted areas are:
Greater London (all)
The Eastern Region comprising:
The counties of Bedford, Cambridgeshire, Central Bedfordshire, Essex, Hertfordshire, Norfolk and Suffolk.
Luton, Peterborough, Southend-on-Sea and Thurrock.
The South East Region comprising:
The counties of Buckinghamshire, East Sussex, Hampshire, the Isle of Wight, Kent, Oxfordshire, Surrey and West Sussex.
Bracknell Forest, Brighton and Hove, Medway, Milton Keynes, Portsmouth, Reading, Slough, Southampton, West Berkshire, Windsor and Maidenhead and Wokingham.

Self-employment National Insurance Contributions

2012-01-02T13:00:00.000Z

Making sure you don't overpay self-employment National Insurance contributions.

If you expect to be both employed and self-employed you may be able to 'defer' some of your Class 2 and/or Class 4 National Insurance contributions. You'll pay what's due after the end of the tax year when the actual amount has been worked out. Doing this will make sure you don't pay too much National Insurance on any self-employment income.

Go to form CA72B Application for deferment of payment of Class 2 and/or Class 4 National Insurance contributions.

Walker Thompson's view: It is advisable to check and if in doubt apply as soon as possible. Deferment cannot be made retrospectively.

HMRC Launches new Tax Task Forces

2011-12-30T09:00:00.000Z

HMRC have followed a recognisable strategy in building specialist teams or "Task Forces" to tackle tax avoidance and evasion in key areas of the country and certain trade sectors.

This month, HMRC have announced the creation of Task Forces to deal with

Tax avoidance in the Construction Industry
Tax evasion by property landlords in north west England and north Wales
Tax avoidance generally in Scotland
Tax avoidance in the south east of England due to non submission of Self Assessment Returns

Walker Thompson's View: This is the tip of a very large iceberg whereby greater rewards can be obtained through the penalties arrangement than might be gathered in tax in the first place.

Special Notice about Electronic PAYE payment dates

2011-12-28T09:00:00.000Z

To avoid paying late you must make sure HM Revenue & Customs (HMRC) have cleared funds by the due date. If you pay electronically this is the 22nd of each month. However, when the 22nd falls on a non banking day, (weekend or bank holiday), HMRC must have cleared funds by the last bank working day before the 22nd.

For example: 2011-12 PAYE month 6 for the period ended 5 October 2011.

The due date of 22 October 2011 fell on a Saturday - a non banking day - if paying electronically, your PAYE payment must have cleared HMRC's bank account by Friday 21 October 2011.

You may therefore need to change any automatic payment dates to ensure you pay on time. If you do not do so, you will be noted by HMRC as paying late, and late payments for this tax year may result in a penalty being charged.

For further details go to: Late Payments

Construction Industry Returns & Penalties

2011-12-23T09:00:00.000Z

If you're a contractor under the Construction Industry Scheme (CIS) you'll need to send HM Revenue & Customs (HMRC) a return each month. Your monthly returns tell them about any payments you've made to your subcontractors during the last tax month.

HMRC have prepared a new guide explaining what will happen if you send a return in late. The guide is available here. Follow link

In short the penalties are as follows

Length of delay	Penalty you will have to pay
1 day late	A fixed penalty of £100. This applies even if your return has no subcontractors on it - a nil return.
2 months late	A fixed penalty of £200. This applies even if your return has no subcontractors on it - a nil return.
6 months late	£300 or 5% of the CIS deductions shown on the return, whichever is the higher. This is as well as the penalties above.
12 months late	£300 or 5% of the CIS deductions shown on the return, whichever is the higher.

In serious cases you may be asked to pay up to £3,000 or 100% of the CIS deductions shown on the return, whichever is the higher.

These are as well as the penalties above.

The advice from Walker Thompson is to diarise forward all due dates and to use online facilities to complete the returns. A Nil Return still has to be sent when nothing is due otherwise the penalties will still apply.

Investor in Excellence

2011-12-22T13:00:00.000Z

On 15 December 2011 Walker Thompson were successfully re-assessed against the 9 principles and 31 indicators within the IIE Standard which we first achieved in 2007 and again in 2009.

The process covers a rigorous process consisting of a documentary submission, desktop review and an on site assessment by external assessors.

The IIE Standard applies to the practice as a whole business and includes areas such as policy and management, people and processes and most importantly results. Working within the IIE framework has become an invisible part of the way we work at Walker Thompson and we are delighted with the outcome from this latest assessment.

The assessment highlighted the following within the firm:

"A genuine commitment to quality and high standards of performance"
"People development has a high profile"
The firm welcomes external perspectives and is committed to continuous improvement"

Winding up a Small Company

2011-12-21T09:00:00.000Z

In the case of small companies, it is often the case that without any family succession in place and with no prospect of sale to someone, the only thing left is for the shareholders to stop trading, collect in any debts, pay off all creditors and end up with money in the bank account. Of course, the shareholders then need to extract this cash in a tax efficient manner. Historically HMRC have provided a route for taking any cash as a capital distribution rather than a dividend thereby providing, by an Extra Statutory Concession ESC-C16, an opportunity to extract cash tax free up to £10,600 this year and then at 10% rather than taking a dividend subject to tax, probably at 40%.

Revisions in tax law to remove the ESC's, of which there were many, and embody them into tax law, led HMRC to consider the potential tax loss to the Treasury of C16 concession and it was argued that because very small companies could be dissolved rather than appointing a liquidator costing say £4,000, that the capital distribution should be restricted to this sum.

After much debate on the topic HMRC have announced that a limit of £25,000 in total will apply from 1 March 2012. Any excess over £25,000 will be treated as dividends in the hands of the recipients.

Walker Thompson's view: In managing a wind down of a small company try to keep the final cash sum left below the £25,000 level. Consider lump sum payments to say a small pension scheme for the benefit of Director Shareholders especially where they may be 40% tax payers. For further advice call us on 024 7663 5522.

Goldman Sachs deal costs the Exchequer

2011-12-16T09:00:00.000Z

The Goldman Sachs deal cost the Exchequer £20m, twice the amount previously estimated, a former HM Revenue & Customs solicitor has claimed.

The Public Accounts Committee, which is investigating the deal was told, that the interest payments unpaid to HMRC were "£20m in rough figures". It is claimed that evidence submitted to the committee was "significant, inaccurate and misleading". The committee has repeatedly questioned Dave Hartnett, permanent secretary for tax, about the deal.

The deal concerned National Insurance contributions on employees' bonuses. In 2005, 21 companies paid the full amount owed from the use of employee benefit trusts, offshore vehicles designed to avoid NI contributions, but Goldman Sachs refused. The bank was warned that it would have to pay interest when the bill was finally settled, but when Goldman Sachs paid up in 2011, no interest was charged.

Richard Bacon, a member of the PAC, apparently was quoted as saying: "Given that Hartnett did not even know, until I told him, that HMRC had warned Goldman it would be liable for interest accruing if it refused to settle, I am not prepared to say Hartnett deliberately misled the committee. It seems to me just as likely he did not know what was going on." Is this therefore someone extremely competent at deception or someone totally incompetent at their job?

Question – will it result in a nice pension & an invitation to the palace to collect an honour for public service?

HMRC wired up for an Electricians Amnesty

2011-12-14T09:00:00.000Z

HM Revenue & Customs has announced that electricians will be the next group of trades targeted as part of its crackdown on tax evasion.

The Electrician's Tax Safe Plan will be launched in February 2012 and will offer favourable terms for electricians to come forward and declare any unpaid tax. Following this, HM Revenue & Customs will target those in the trade who have not come forward.

This campaign follows the Plumber's Tax Safe Plan launched this year. Around 600 voluntary disclosures during the campaign brought in £328,000 to the Treasury. That must be considered a nice little earner for HMRC who had little to do except wait for the disclosures to come in, assess the tax & send out the bill. The second stage of the campaign involving targetting those who did not voluntarily come forward resulted in five arrests and investigations opened into a further 600 people.

Our view : If you are an Electrician and believe that you have underpaid tax by not fully declaring income then use the amnesty opportunity: we will see the Revenue making greater use of Section 16 notices over the coming months, to obtain third party information before the amnesty begins in February.

Newsletter 50

2011-12-12T15:43:00.000Z

Please follow the links below for more information about each topic.

AUTUMN STATEMENT

On Tuesday 29 November the Office for Budget Responsibility (OBR) published its updated forecast for the UK economy.

NEW HMRC TASKFORCES

Five new taskforces have been set up to tackle tax evasion in different areas of the country.

VAT AND DUTY ON SHOPPING

Angela Shephard, Head of Customs Policy, HMRC is warning individuals not to get caught out by 'unexpected charges when you are shopping for Christmas bargains this year'.

PARTIES FOR EMPLOYEES

With the season for office parties fast approaching we thought it would be a good idea to remind you of the tax implications.

CONSULTATION - HAVE YOUR SAY

The government has launched a consultation, 'Modernising the administration of the personal tax system'.

FIGHTING CUSTOMS AND EXCISE FRAUD AND TAX EVASION

HMRC are asking for information to help them tackle Customs and Excise fraud and tax evasion.

UNEMPLOYMENT RISES TO 2.62 MILLION

The CBI commented on official data showing unemployment rose by 129,000 to 2.62 million in the three months to September 2011, including a rise in youth unemployment to over a million.

EU VAT REGISTRATION LETTER SCAM

HMRC are warning of a new scam letter which is being sent to businesses.

Autumn Statement - What's up?

2011-11-30T14:04:00.001Z

GEORGE OSBORNE has announced plans to expand the government's Enterprise Finance Guarantee (EFG) scheme in a bid to get credit flowing to Britain's smaller businesses – Let’s hope the banks understand what this is meant to be and not just another excuse to ratchet up security on existing lending.

He also said that capital allowances of 100% will be rolled out in areas of Liverpool, Sheffield, the Black Country, Humber Valley, North East and maybe Blythe- Is the latter because he is unsure of his geography and needs to double check on Google?

But the good news is that business rates will be held over until April 2013

NEW HMRC VAT GUIDANCE ISSUED ON LAND, BUILDINGS & CONSTRUCTION

2011-11-24T13:00:00.000Z

This month, HMRC have issued a consolidated VAT Notice relating to the treatment of VAT in respect of this somewhat thorny & extremely technical topic.

It is slightly fascinating that they have chosen a time in the economic cycle when construction other than for the 2012 Olympics is fairly much flat lining to issue the technical note.

The guidance (VAT Notice 708) is 120 pages long but may affect anyone involved in construction & building generally..

The guidance can be found here

HMRC turn their attention to Colleges & Lecturers

2011-11-18T13:00:00.000Z

HMRC has now issued Section 16 notices to colleges and education providers to request disclosure of all tutors and lecturers who are paid off the main payroll. It is without doubt time to consider if a disclosure under the Tax Catch Up Plan is worthwhile.

Section 16 notices force the recipient, in this case a college, to provide information to HMRC. In this instance they are using them to obtain the details of all private tutors and coaches that are being used by colleges. This is already causing concern with the colleges as they are being asked for three years information and will face penalties if they do not provide it within a specified period. There is an expectation that HMRC will inevitably raise status enquiries from this and again colleges may face penalties if they have not undertaken sufficient work to establish correct status.

Whilst Stage One is aimed at the education providers, there is inevitably a trawl of tutors and lecturers to follow which will no doubt identify unpaid tax and National Insurance.

Our View:
If you are a lecturer or tutor working in a college and being treated as Self Employed or you are a session lecturer working restricted hours but not paying tax through the payroll then now is the time to consider disclosure to HMRC before they knock on the door. Seek advice early.

The Winner Takes it All - Well Almost

2011-11-16T13:00:00.000Z

Claimants who successfully won their cases for mis-sold payment protection insurance (PPI) will now have to pay tax on any part of the cash which represents interest earned, according to HM Revenue & Customs.

Billions of pounds have been set aside by banks after the FSA won a judicial review forcing them to pay out on mis-sold PPI claims. HMRC have said that any repayments constitute a compensation element and interest. The latter would normally be taxed at 20% before crediting an individual.

Individuals need to check whether the banks had automatically deducted tax on interest. In most cases interest will have been paid gross leaving a liability.

Walker Thompson’s view:
Now that HMRC are aware of the issue it would not be a surprise for HMRC to ask banks for lists of recipients in order to assess tax due.

It's no longer just good to talk, but critical for survival

2011-11-11T12:51:00.001Z

The continuing economic environment, coupled with some high-profile companies being put into administration has thrown the concept of business turnaround into the spotlight. Clearly some "good" companies were in face far from that and insolvency was absolutely the right thing.

This comes at a time when the Government is talking about entrepreneurship and growth. It is argued however that, in many situations, insolvency is happening because stakeholders are not finding ways to work together quickly enough to save a business before a Winding Up petition lands on the mat.

Therein lies the problem of directors trying to firefight the ongoing problems whilst finding the time to talk to suppliers, banks, customers and other key stakeholders.

Statistics show that since 2006 almost 100,000 businesses have found themselves in insolvency in England and Wales. How many more will become insolvent in the next five years?

Commonly, there is a real lack of skill and understanding of communication between stakeholders. Essentially it is not just restructuring the balance sheet, but a change of working practices. Therein perhaps lies the issue? Before problems escalate, it is necessary to communicate with as many possible parties. Without communication early on, businesses will quickly fall by the wayside.

At Walker Thompson, we aim to work with clients to find solutions in a more innovative way than simply recommending Insolvency.

Group Payrolls

2011-11-09T09:00:00.000Z

It is not uncommon in the UK for a collection of companies within a group, formal or informal, to have a separate payroll in each company.

Some group structures of course operate a central payroll through one company and recharge costs to the others as appropriate.

HM Revenue and Customs have gone out to consultation regarding a proposal to allow companies in a group to "pool" their payrolls such that all forms can be delivered under one tax reference, meaning that there would be less overall administration.

HMRC are considering this against a background of tax simplification but the cynical ones amongst us may well be asking, "What benefits might there be for HMRC?".

Clearly there would be a lesser burden for HMRC checking fewer schemes at a time when resources are being thinned down. Control visits on a scheme would be more cost effective and whilst the monthly PAYE & NI payment would be the same overall, the law may provide for greater prospect of recovery of monies when there is a possibility of insolvency.

This is a consultation at the moment, but very much "Watch this space.".

Another Attempt at Simplification for businesses

2011-11-07T09:00:00.000Z

The Deputy Prime Minister Nick Clegg has spoken out with regard to the burden of legislation and regulation in respect of SME businesses.

In a recent interview he was quoted as saying "One Government after another has made it worse - which rules do SME's think get in the way of business? - Tell us what's wrong with Tax compliance - we will listen and we will help.". Mr Clegg went on to say, "The need for a measured approach is essential.". He suggests that SME's use the Office for Tax Simplification as a reporting point.

Our View:
SME's are already circularised by numerous bodies such as the Institute of Directors, Chambers of Commerce, Federation of Small Businesses etc and the results of their surveys are already known. Perhaps the answer lies not in Mr Clegg saying what he would like and how it might be best achieved via another Quango but that he opens his eyes to what is already known, after all in his own words he wants to reduce a burden not add to it.

Walker Thompson Newsletter 49

2011-11-04T11:26:00.003Z

The latest Walker Thompson Newsletter has been released. Please follow any of the headings below for more information.

HMRC LAUNCH THE TAX CATCH UP PLAN

HMRC have launched a campaign to target private tutors and coaches who have undeclared tax liabilities.

PLAN TO BOOST THE ECONOMY

The Institute of Directors (IoD) has proposed a new economic growth plan which aims to improve business investment and development.

HMRC EXTEND BUSINESS RECORDS CHECKS

HMRC have announced that they are extending their Business Records Checks programme.

MAKE SURE YOUR EMPLOYEE INFORMATION IS CORRECT

HMRC are reminding employers of the importance of correct employee information and have updated the questions on the introduction of Real Time Information (RTI).

NATIONAL INSURANCE NUMBERS - BY LETTER

HMRC have for many years notified individuals of their National Insurance number (NI No) for the first time by sending them a plastic NI No card.

HMRC ISSUE UPDATED GUIDANCE FOR EMPLOYEES ON CHILDCARE

HMRC have updated their guidance on employers helping with childcare costs.

IMPORTING AND EXPORTING GUIDE

HMRC have issued a 'Guide to Importing & Exporting - Breaking down the Barriers'.
Keep in touch on:
Facebook: Walker Thompson Ltd
Twitter: @WalkerThompsonL

Upgrading Sage

2011-11-02T13:00:00.000Z

For those of you thinking of upgrading your Sage package, or purchasing Sage here are some of the basic technical requirements for running the latest version of Sage.

General Technical requirements
10Gb free disk
2Ghz processor or higher
1Gbps network (minimum 100Mbps)

Memory (RAM)
1Gb RAM – Windows XP
2Gb RAM – Windows Vista, 7, Server 2003, Server 2008, Small Business Server 2011
4Gb RAM – For all PCs running a 64-bit operating system

Operating System
All 32-bit and 64-bit variants of the below operating systems with the latest Microsoft Updates and Service Packs.
Windows XP
Windows Vista
Windows 7
Windows Server 2003 *
Windows Server 2008 *
Windows Small Business Server 2011 *

* Running software like Microsoft Exchange or Microsoft SQL Server on a Small Business Server will reduce the performance of Sage 50 Accounts

Annual PAYE reconciliation process causes another media storm

2011-10-31T13:00:00.000Z

The current news headlines are once again full of horror stories claiming millions of people have underpaid tax through the Pay As You Earn (PAYE) system, while others are due repayments. The real issue relates to how many of these under and over payments have been caused by errors and glitches in HMRC’s new computer system, rather than the tax system operating as intended with HMRC undertaking reconciliations of taxpayer’s positions after the end of the tax year?

The 2010/11 PAYE reconciliation process is currently underway. We understand that all 2010/11 repayments have been dealt with; there were 2.3m of them and the average tax repaid to taxpayers was £297.

HMRC is now concentrating on the underpayments. 1.2m of these have been identified and the average tax underpaid is £512, about half of the underpaid tax identified in the 2009/10 process. For 2010/11, HMRC is using a de minimis of £50, below which it will not reclaim underpaid tax shown up by the reconciliation process. The de minimis for 2009/10 was £300.

HMRC has always endeavoured to reconcile individual taxpayers’ PAYE records, comparing the tax deducted under PAYE with other data which HMRC holds about that person’s income. Some years ago, before everything was computerised, this was done manually and was extremely labour intensive, taking many months. HMRC inevitably struggled to keep up and fell behind as the organisation was downsized.

HMRC finally installed its new NPS (National Insurance and PAYE service) computer system in summer 2009, with the aim of improving the operation of PAYE. The PAYE system has never catered well for people with more than one employment or pension, and this was not helped by having different employments/pensions dealt with by different tax offices which did not always communicate. The NPS brings together all a taxpayer’s records and so makes sure that allowances and tax rates are operated correctly across all employment or pension income sources.

The NPS has the ability to perform automated end-of-year reconciliations and send out calculation forms, P800, to those taxpayers who have under or over payments of tax for that year.

How can you afford a house like that?

2011-10-27T13:00:00.000+01:00

Ever wondered how business people can afford large mortgages when their business results are not, on the face of it, able to support the repayments let alone other general living costs. Well now HM Revenue & Customs are starting to ask the same question.

From 1 September 2011, HMRC have joined with mortgage lenders in a new Mortgage Verification Scheme. They say that this is all about combating fraud. HMRC will be able to comment if asked to on the income figures declared on mortgage applications.

People who have self certified their income for mortgages may well find themselves facing HMRC questions such as: "You disclosed your income under Self Assessment as £12,000, but put £52,000 on your mortgage application - why should we not tax you on £52,000?".

Of course, the alternative is for a taxpayer to admit to a fraudulent mortgage application!

Our tip -
"Think carefully about what you disclose to a mortgage provider. Try to cheat the system and it is likely to come at the price of a tax enquiry."

Latest Newsletter

2011-09-30T17:08:00.000+01:00

Walker Thompson Newsletter 48

Walker Thompson's Monthly Newsletter is now available. There are as usual a number of interesting points to consider, and keep in mind. Especially pertinent is the increase in the National Minimum Wage which comes in in October 2011.

Follow the links below for more information, as well as links to the relevant government website.
NATIONAL MINIMUM WAGE RATES
ADVISORY FUEL RATES FOR COMPANY CARS
AGREEMENT WITH SWITZERLAND TO SECURE BILLIONS IN UNPAID TAX
UNEMPLOYMENT FIGURES
HMRC REMINDER ON NEW TAX RETURN PENALTIES
SCHOOL CHARITIES - GIFT AID AND PAYROLL GIVING GUIDE
REVISED CONSTRUCTION INDUSTRY PENALTIES
HMRC REPORT INCREASE IN PHISHING SCAMS
INSOLVENCY UPDATE

HMRC Announce Latest Campaigns and Targets

2011-09-22T17:03:00.010+01:00

Some advance notice of HMRC's latest campaigns.

Professionals - Private Tuition
(starting Autumn 2011)

This looks at professionals who are able to profit from providing tuition or coaching as either a main or secondary income, but have chosen not to tell HMRC about it. This can include those providing private lessons, whether they have a teaching qualification or not, and could include fitness / dance / lifestyle coaches as well as national curriculum subject tutors, for example.

Organisations/individuals wishing to contribute to the PT&C voluntary disclosure campaign design, please follow link to HMRC Campaigns.

E Marketplaces
(starting 2012)

This aims to find those who are using e-marketplaces to buy and sell goods as a trade or business, and fail to pay the tax owed. It will not be targeting people who sell a few items, and who are not traders, as they are unlikely to be liable to pay tax.

Organisations / individuals wishing to contribute to the campaign design please follow this link to HMRC Campaigns.

Trades - 2nd Campaign
(starting 2012)

Following on from the plumbers' campaign, HMRC will be looking to give an opportunity to another group of tradespeople to come forward and declare unpaid tax.

Organisations / individuals wishing to contribute to the campaign design please follow this link to the HMRC Campaigns.

New Bribery Laws to start - Begin planning NOW!

2011-04-19T12:42:00.003+01:00

After much delay and heavy international criticism, the UK Government has at last confirmed that the Bribery Act 2010 will commence on 1st July 2011.

The start date was delayed to await the publication of guidance by the Ministry of Justice. The guidance was published on Wednesday 30th March and can be found on their website at www.justice.gov.uk/guidance/bribery.htm.

The Act is aimed at modernising outdated anti-corruption laws. One highlight is the new corporate offence of failing to prevent bribery by persons working on behalf of a business. As well as employees, this may extend to agents both in the UK and overseas. This will cause a degree of concern for those organisations seeking to develop their business in expanding economies, such as those in the Far East where use of Agents is normal practice.

The corporate offence carries potential penalties of unlimited fines and possible exclusion from any public contract works for any convicted organisation. Companies will also of course be concerned at the damage to their reputations, if they do find themselves appearing in court.

Any company will have a defence if it can prove that it had in place 'adequate procedures' to prevent bribery taking place. This will include suitable and adequate policies and procedures to deter employees or agents from paying bribes to improperly influence others, such as customers or potential clients.

Companies are advised within the guidance to undertake due diligence when dealing with other businesses to ensure they are not exposed to the corporate offence by association. This will include requesting a copy of the anti-bribery policies of those organisations with which they have a business relationship or are looking to enter into such agreements with. It is expected that a request for such policies will become the norm in tendering processes, particularly but not exclusively those in the public sector.

The Act also creates personal criminal liability for the directors or senior management. They could face up to 10 years in prison if their business becomes involved in bribery with their consent, or where they have turned a blind eye to its existence.

2011 Budget Highlights

2011-03-23T14:15:00.003Z

The facts below are extracts from the Budget Speech delivered by Chancellor George Osborne. No responsibility can be accepted for anyone taking or refraining from taking actions based upon the notes below. The Budget will be ratified later in the year through the Finance Act.

The Chancellor promised not to rattle through growth figures - he said average quarterly growth will be higher than forecast - but the annual forecast will be revised down to 1.7%.

Going through the new forecasts from the Office for Budget Responsibility, he said growth is predicted to be 1.7% for 2011, 2.5% next year, 2.9% in 2013, 2.9% in 2014 and 2.8% in 2015.

Mr Osborne said inflation is expected to be between 4% and 5% this year - dropping to 2.5% next year and 2% in two years' time.

Borrowing is expected to fall to £122bn next year, the Chancellor reported, and will continue to fall until it reaches £29bn in 2015/6.

Mr Osborne says the government will consult on merging National Insurance and Income Tax. The goal, he says, is to simplify them - not to increase taxes. It will make the tax system "fit for the modern age", he said, but it will take years to implement.

Corporation Tax is to be cut by 2% - more than the 1% previously announced. It will be the lowest in the G7.

Income Tax relief on the Enterprise Investment Scheme will increase from 20% to 30% in April 2011. The clear aim seeming to be reinforcing the UK as a centre for entrepreneurial investment.

The top 50% tax rate was regarded as a "temporary measure" but it is to remain for the time being. "We are all in this together." said Mr Osborne.

The "non-domiciled" charge is being increased to £50,000 for those who have been in the country 12 years - raising more than £200m.

Profits from the bank levy will fund a new £250m shared equity scheme for first-time buyers - which will help 10,000 families get onto the housing ladder for the first time.

To support the construction industry further and reinforce the culture of enterprise, there will be 21 "enterprise zones".

The small business rate relief holiday is being extended by one year to October 2012, at a cost of £370m, the Chancellor said.

To assist the young unemployed, 40,000 extra apprenticeships will be funded by Government.

Tax avoidance has been addressed whereby three forms of stamp duty land tax avoidance will be shut down.

There'll be help for families "who do pay their taxes but who struggle with the daily cost of living", Mr Osborne said - outlining measures such as the council tax freeze and more child tax credit for lower income families and a "pay lift" for public servants on less than £21,000.

In an attempt to help charities who have suffered lower donations during the last two years, it was announced that if people leave 10% of their Estate to charities then the rate of Inheritance Tax will be reduced by 10%.

The Chancellor confirms a rise in the personal tax allowance, which had been widely discussed. A two year staged rise will take the personal allowance first to £7475 and then to £8105 for 2012/13.

Finally, the Chancellor turned to Fuel Duties - it had been due to go up by 1p a litre above inflation next week, but Mr Osborne said a government has to "listen and respond" when oil prices rise. While revenues go up when the oil price rises, other tax intake falls, he says. He dismissed a proposal to cut the VAT rise on fuel - which went down well with his colleagues. He said a "fair fuel stabiliser" will be introduced from Thursday, which will raise an extra £2bn. The money will be used to delay the duty rise until next year.

A more detailed summary along with tax rates will be available shortly through our website www.walkerthompson.co.uk.

Midlands Excellence Awards

2011-02-04T14:20:00.003Z

We are delighted to announce that Walker Thompson were presented with a Highly Commended award at the annual Midlands Excellence Awards held on the evening of the 3rd February 2011 at the International Convention Centre, Birmingham.

The award, presented by Sir Ranulph Fiennes OBE in front of over 1100 guests, recognises the significant attainment of quality which our business has achieved.

Photographs of the event will appear on our website in the next few days.

Walker Thompson website

Midlands Excellence Awards Finalist

2010-12-23T15:22:00.006Z

We are pleased to announce that for the second year running the firm has succeeded in reaching the finals at the Midlands Excellence Awards.

The firm will be attending a prestigious awards ceremony to be held at the International Conference Centre Birmingham on 3 February 2011 where the key speaker will be Sir Ranulph Fiennes.

Walker Thompson are currently the only firm of Accountants in Coventry & Warwickshire who have been accredited against the IIE Standard of Excellence which is based upon the EFQM Quality Model.

“Clients can be assured of a high quality service by our dedicated team of accountants and support staff”

NIC Holiday for New Businesses

2010-09-17T15:47:00.004+01:00

Further to the announcement in the June 2010 Coalition Budget, we now have more details regarding the NIC holiday for new businesses.

Subject to meeting the conditions, new businesses qualify for a deduction of up to £5000 on Employers NIC contributions, for each of the first ten employees taken on in the first year of trading. Each holiday will last for the first 52 week of employment.

Main Conditions:

Start up date: From 22 June 2010 to 5 September 2013. (But you can only deduct employers NIC due on earnings paid after 6 September 2010.)

Location: Northern Ireland, Scotland, Wales, East Midlands, North East, North West, South West, West Midlands, Yorkshire and Humber.
Some businesses located within the EU will be eligible where they are paying UK NICs.
This is based on your principal place of business.

Business Type: Managed Service Companies do not qualify.
IR35 – only salary or wage payments qualify, not ‘deemed earnings’.
Has to qualify for de minimis State Aid.

Start Date: Earlier of trading date and date first employee hired.

‘New’ Business: There are anti avoidance rules regarding what is considered a new business.

Points to bear in mind:

This legislation is expected to receive Royal Assent in early 2011. Therefore, if for any reason it does not become law, any relief already deducted will have to be repaid by 19 April 2011.

In the case of a limited company, directors count towards the first ten employees.

If an employee leaves, the replacement employee does not qualify if there are already ten employees in place.

Records of employees, earnings and contributions will need to be kept.

There will be a separate NIC holiday end of year return at 5th April.

Businesses need to apply for the scheme, the application form is available on the Business Link website.

2010 Coalition Budget

2010-08-06T14:41:00.005+01:00

Here are a few of the changes brought in by Chancellor George Osborne's 2010 Coalition Budget.

Personal Tax Allowances
An increase of £1000 in allowances for 2011/12 for those <65 years old.

Tax Rates
The Basic Rate limit and the Upper Earnings & Profit limits for NIC have been reduced for 2011/12.

National Insurance
NIC Primary Threshold to increase from April 2011 plus a 1% increase in Employer Costs and Self Employed contribution.

Corporation Tax
Main Rate down by 1%.

Capital Gains Tax
Higher Rate Taxpayers to pay CGT at 28% after 23 June 2010.

VAT
Standard Rate of VAT increases to 20% from 4 January 2011.

If considering tax planning measures based upon the above we would encourage you to talk to us about the implications before making decisions.

For more information, please follow the links below
Walker Thompson
HM Treasury

Employment Law – A couple of interesting results

2010-07-29T12:50:00.004+01:00

Some recent cases have interesting points to bear in mind when dealing with or thinking about employment tribunals and claims.

For example –

Sweeney v DLA Piper Solicitors

The Judge commented that, regarding an incident of claimed sexual harassment, that she had “‘laughed it off’ at the time”.

This was not, and should not be, a justification for harassment, but should help the employer in situations where an employee claims harassment concerning an incident which at the time had not created “an intimidating, hostile, degrading, humiliating or offensive environment”.

Your responsibility

If you become aware of any incident that could be considered to be harassment, it is important that you take action quickly to avoid claims against you. Possible actions to consider:

• Initiating grievance procedures on behalf of the victim,
• Initiating disciplinary procedures against those responsible
• Arranging additional training for managers / staff

County Court

An employee can take you to an employment tribunal for unfair or wrongful dismissal. If there is a breach of contract, they also have the option to sue before the County Court. This route is normally used when the value of the notice period is higher than the statutory cap applied in the Employment Tribunal, or where there is no claim for unfair dismissal.

The value of this claim has been limited to the expiry of the notice period, and/or where there are “stigma” damages.

However, the case of Edwards v Chesterfield Royal Hospital NHS Foundation Trust extended this rule to include not only the time a disciplinary procedure would have taken if done properly, but also covering losses sustained as a result of the breach of contract i.e. damage to the person’s career.

In this case, the employer failed to follow their own disciplinary procedure.

Your responsibility

• Follow your contractual disciplinary procedure
• If unsure, seek legal advice before embarking on the procedure

Reasonable Responses

The employment tribunal must look at any decision to dismiss within the context of the circumstances surrounding the action, including the conduct of the employee, and must satisfy itself as to whether the decision was within the range of reasonable responses.

Employment law is designed to prevent unreasonable action by employers, not to restrain employers from legitimate action.

Solutions for Clients: Insolvency

2010-07-29T12:13:00.011+01:00

As part of Walker Thompson’s commitment to find effective solutions for clients, a relationship has been developed with The P&A Partnership who are specialists in the field of insolvency, an area of work which we do not undertake ourselves.

In these times of economic hardship, companies of all sizes have been going into liquidation including well known household names. However we appreciate that the impact of this and the impact of finance being restricted is causing financial hardship for individuals. Therefore we are offering individuals the opportunity to consider a planned settlement of debts through a Voluntary Arrangement which will be organised by P&A and which can avoid the necessity of personal bankruptcy.

The circumstances might be such as a buy to let mortgage which can no longer be funded from lower rental incomes, credit card rollovers, personal guarantees given to support a failed business or simply losing a previously well paid employment.

The first step is to complete a Financial Information form which can be found here. P&A will then assess fully the situation and advise on the options available.

Obviously we can assist in the completion of the form if asked.

The key message is “Do Something rather than Do Nothing”

WORLD CUP FEVER

2010-06-08T14:43:00.002+01:00

The World Cup is upon us and with it the potential HR nightmare of sick days, hangovers and flimsy excuses. How can employers handle World Cup Fever without it becoming an issue.

Make sure employees are aware of your holiday rules (contracts and written policies).

Talk to your staff, maybe you can come up with a sensible compromise.

The Law
A few points to keep in mind:

• All employees are entitled to a minimum of 28 days paid holiday (for a full time worker), including bank holidays. This right accrues from the first day of work.

• Contracts and policies can restrict when holiday may be taken and length of holiday.

• Notice should be given of twice the length of the holiday requested.

As with all things ‘fairness’ is the most important rule to follow, thus avoiding discrimination claims

Day Out

2010-05-28T15:44:00.005+01:00

After the rush of the Payroll Year End and preparations for the P11d returns, the Brecon Beacons countryside was a haven of quiet for those staff who went on the ponytrekking day. One of the most beautiful days in May started early as the minibus taking us to Wales left at 7am from Coventry.

We made our way up into the hillside, under a practically cloud free sky, with only the gentle baa-ing of sheep to break the quiet. Several hours of riding was rewarded by a stop at the pub for rest and refreshment (a well earned lager!). We somewhat warily mounted up again for the afternoons ride, but enjoyed our return to the hills.

In spite of various aches and pains on the following days, a great day out was had by all!

A trip well worth repeating.

BUDGET DAY ANNOUNCED

2010-05-18T14:12:00.002+01:00

Tuesday 22 June 2010 will see the first Budget of the newly elected (or perhaps not elected as such) Coalition Government.

George Osborne will deliver his Emergency Budget to the nation with explanations as to how the Government will address the £6billion hole in the year one forecasts.

It is interesting to observe that the Chancellor has delegated responsibility for budgetary forecasts to a new "Quango" - "The Office for Budgetary Responsibility". It is less than 12 months since David Cameron stated that vast numbers of Quangos needed to be cut back in order to direct money to front line services.

We can expect austerity measures to be implemented which could bring higher taxes on some sectors with the potential for lower level earners to gain more from increased personal allowances.

It will be an interesting period leading up to the Budget given that the Lib Dems will be seeking to assert a level of influence over Mr Osborne.

On a side note:

HM Revenue and Customs have now introduced a scheme for those taxed under Self Assessment to pay their tax early by direct debit. This must be seen as a desperation measure and something designed to prop up the Payment Support Office which is extending credit to taxpayers worth millions of pounds. Given the choice, would you pay tax sooner than necessary? That we suggest would take all of one second to contemplate.

Stress At Work – Who are you kidding?

2010-05-04T16:21:00.002+01:00

At this time of the year, employers of all sizes are engaged in the annual process of completing End of Year payroll returns as well as the normal day to day management of the business.

Compliance with the regulations is a stressful task, particularly given that we are in a period of transition between manual & electronic filing with HMRC.

The principal form P35 together with P14’s for each employee on the payroll and a form P38a for those on the payroll but where no Tax or NIC falls due, must be filed before 19 May 2010.

Soon after that filing deadline comes the deadline for forms P11d and P11d (b) relating to any Benefits in Kind met on behalf of employees.

As if this was not enough of course, Self Assessment Tax Returns have effectively been issued with effect from 6 April 2010 with yet more stringent deadline filing dates.

The key to dealing with all of these issues with the minimum of stress lies in being well prepared and methodical in approach; allowing sufficient time & especially having a back up plan in the event of unforeseen circumstances.

Stress Management is itself not a legally enforceable requirement placed upon companies but it is an increasing issue within the Health & Safety at Work legislation. Good practice will inevitably mean less possibility of claims.

Health and Safety Executive
National Stress Awareness Day

Due Diligence

2010-04-15T09:10:00.003+01:00

Throughout January to March this year, Walker Thompson has been assisting in the acquisition of Ray Owen Plating Ltd, a specialist metal plating business based in Telford. We were instructed jointly by Newmax Precision Engineering Holdings Ltd and HSBC Bank plc to carry out a detailed Due Diligence Report on the target company. The Report was delivered ahead of schedule enabling the respective lawyers to continue with the negotiation of an extremely complex deal which included property issues and employment matters in addition to the usual warranties & indemnities required of the vendors. The transaction was finally completed on 9 April 2010 and we look forward to working with the company in the future.

Redundancies - Re-employing ex-employees

2010-03-29T15:54:00.000+01:00

Sometimes in the current economic climate, despite your best efforts, redundancies are unavoidable. What happens though when business takes an upturn again? What if you are not sure if the upturn is temporary or permanent?

Fixed Term contracts

One option might be to offer a previously redundant employee a fixed term contract. These contracts specify either an end date, or a particular period of time, e.g. three months.

An FTC can be renewed as necessary, and to suit you, and the notice period can be made as short as possible, e.g. one week, giving you the option to terminate early without breaching the contract.

Note: If an employee remains on a fixed term contract, or a series of FTC’s for a period exceeding four years, the FTC automatically converts to a permanent contract.

It is possible that the redundant employee will then question the validity of the redundancy, i.e. whether it was simply a way to reemploy them on an FTC.

Unfair Dismissal

An ex-employee would have three months from the date of their employment being terminated to bring an unfair dismissal claim.

Therefore, to be on the safe side, don’t offer an ex-employee an FTC until a minimum of three months has passed.

Also, make it clear that the FTC is a new period of employment, preventing any continuity of employment questions.

Note: If an employee has worked on a FTC (or a series of them) for over one year, they then have the same protection as a permanent employee from unfair dismissal.

SNAPSHOT OF THE 2010 BUDGET

2010-03-25T13:58:00.000Z

So now we've heard it - Alistair Darling's third Budget speech. With a General Election looming and the country's dire economic position, what did the Chancellor say, and more importantly, what did it actually mean for you and I?

A few of the highlights:

Income Tax and VAT
The Chancellor announced that there would be no changes in VAT, income tax or National Insurance rates.

Corporation Tax
The main rate of Corporation Tax remains unchanged at 28%.
The Small Company Rate of Corporation Tax remains at 21%. (The previously announced rise to 22% announced in the 2009 Pre-Budget Report has been deferred until 2011-12.)

Capital Allowances
Small businesses can claim a higher annual investment allowance of £100,000.

Business Rates
Business rates will be cut for one year. This will take effect from October 2010.

Entrepreneurs Relief for Capital Gains Tax
The lifetime limit is to be doubled to £2m on which the lower 10% rate will apply.

Inheritance Tax
The threshold for inheritance tax is frozen for a further four years

Child Benefit
Child benefit will rise to £20.30 a week from April 2010.

Individual Savings Accounts
The annual ISA limits are to rise to £10,200 overall and will in future increase annually by inflation.

Pensioners / Older Workers
The higher Winter Fuel Payment of £250 and £400 for over 80s is guaranteed for a further year.

Stamp Duty
The Stamp Duty limit for first-time buyers is doubled from 25 March 2010 to £250,000 for this year and next. Stamp Duty will increase to 5% for houses valued over £1m from April 2011.

Fuel Price increases
Fuel duty rises will be staged. They rise by 1p in April, followed by a further 1p rise in October and the balance rising in January 2011.
Alcohol duties on beer, wine and spirits are to rise by 2% above inflation from 29 March 2010. Duty on cider is to increase by 10% above inflation at the same time. Tobacco duty rises immediately by 1% above inflation and will increase by 2% above inflation each year until 2014.

For a more indepth look at the Budget please follow the link here 2010 Budget Summary.

For any queries, please feel free to contact us by email or telephone.

Payroll Year End and The Taxman Phones

2010-03-22T15:22:00.000Z

Payroll Year End

With the tax year drawing to a close, employers will shortly be required to start preparing Employers’ Annual Returns (P35s) and P14s/P60s for all payroll schemes, in order to submit these by 19th May 2010.

These involve collating the date from monthly/weekly payroll runs into a summary per employee, as well as checking that all payments of liability have been made to HMRC. Personally, I have always found it useful to do a number of the checks and reconciliations for the Annual Return prior to running the March payroll, because then if you find any errors or discrepancies, these can be fixed within the payroll year. These issues could include: liabilities underpaid or overpaid to the Revenue; employees PAYE under or overdeducted; credit balances or online filing incentive still to be deducted from liability.

Remember that if you had less than 50 employees and filed your 08/09 return online by 19th May 2009, you will have been entitled to an incentive of £75 to be deducted from any liability due to the Revenue in 09/10.

HMRC’s online filing system is actually reasonably user friendly and takes you through all the information that is required to produce P14/P60s for each individual employee and P35 for the company. It is also possible to input the information, save, and make amendments to it, before submission.

Of course, payroll software packages such as Sage have a year end ‘wizard’ to lead you through the process.

The filing deadline is 19th May 2010, and barring a few exceptions, all employers will have to file these returns online.

If you have not yet registered for online filing, it is important to do so immediately in preparation for the 5th April 2010 year end. HMRC suggests allowing at least one week, as you need to wait for them to send out passwords. The link below gives HMRC instructions for registering.

File Online

If you would like us to prepare and submit these returns for you, or if you require any advice, please feel free to contact us.

Email

The Taxman Phones

HMRC ran over 200 staff training courses last summer relating to cold calling.

Currently, the most likely reasons for calls from HMRC would be Tax Credit claims and overdue tax payments. However, it would appear that this may be expanded to include questions about tax returns and general tax issues.

Genuine or Scam?

HMRC do not work 9-5, therefore they could be calling on evenings or weekends. How do you know if it really is HMRC?

Don’t give out your tax reference or NI number. Ask the caller to confirm at least the first few digits of either of these. If they refuse, or they get them wrong, discontinue the call.

Once you are convinced that the caller is genuine, you are still not obliged to talk to them if it is not convenient to do so. If you are not sure of the answer, simply say you will find out and get back to them.

You are within your rights to refer them to your accountant for any correspondence on the matter.

Registered Office Address

2010-03-15T16:08:00.000Z

We are please to be able to offer our clients an additional valuable service.

Walker Thompson’s offices can now be used as their Company Registered Office address.

Benefits:

The advantage of utilising a separate registered office address is that your private address will remain confidential on future Companies House records. In addition we will be able to filter junk mail for you and ensure that important post is given prompt attention by ourselves if necessary or forwarded to you.

Other independent companies offer a similar service but our investigations show that their charges are considerable for both the registered office and Director’s service address facility and may also incur additional transactional administration and postage costs for dealing with each individual item.

Costs:

We charge an annual fee for the Registered Office and Directors Service address of £80 + VAT per limited company. This will cover our costs for dealing with all post and forwarding this to a designated address as necessary.

Next step:

If you wish to use our address as registered office and directors’ service address or require any further information please email us on clientcare@walkerthompson.co.uk or call us on 024 7663 5522.

INTRODUCING OUR MANAGERS
Roger Allmark - Manager

Roger started his accountancy career with Francis Webb & Son in 1971, where he was joined some five years later by Sherod Williams. Roger left Francis Webb & Son in 1981, to pursue his career at two other accountancy practices, along with a three year spell in industry as the internal accountant for a Plant Hire company.
In 1992 Roger took the opportunity of joining Walker Thompson, rekindling working relationships established during his time at Francis Webb & Son.
Roger has responsibility for a portfolio of clients, handling their general accountancy and taxation requirements.
Roger's interests include photography, walking and travel.
Email Roger

Faye Davis - Manager

Faye began her accountancy career at Walker Thompson in 2000. After completing her AAT qualification Faye went on to study with ACCA and qualified as a Certified Accountant in 2005.

Faye is responsible for working with a large range of SMEs on all aspects of accountancy including taxation & auditing.
Away from the office Faye enjoys spending time with friends & family, running & travelling.
Email Faye

On a more personal note:
We are pleased to announce that on 25 January 2010, Faye Davis gave birth to baby Abby (8lbs 12ozs). Mother & baby are both doing extremely well. Faye is keen for us to point out that she was back into her jeans within a week! Last week we had a visit by them to the office which provided an opportunity for everyone to stop for a “my turn to hold the baby”

On Friday 5 March, Roger Allmark went into hospital for a hip replacement operation and whilst it is still very early days in terms of a full recovery and back to work, we can say that at this stage he is now at home & we wish him well over the coming weeks of physiotherapy and various tortures.

Welcome to Walker Thompson

2010-03-05T16:50:00.000Z

Our Vision
“To be the best provider of solutions for business in Coventry & Warwickshire”

Walker Thompson are one of Coventry’s leading accountants, offering a wide range of advice on business matters including accounts, tax, audit and planning for acquisitions and disposals.

We are a three partner accountancy practice with over 75 years combined experience within the profession. As a recognised Investor in People, a National Standard representing excellence in development and training, clients can be assured that all work carried out by the practice is by competent staff at cost effective fee rates. The practice is also committed to Investors in Excellence to further improve its service to clients. We have recently received IIE reaccreditation for a further two years.

We can assist all sizes of business from sole traders to corporate groups across a wide range of business sectors. From book-keeping, payroll, VAT, self assessment, audits of companies, charities & other organisation, preparation of accounts for all business types, strategic planning & corporate finance, Walker Thompson works with its clients to find the right solutions.

INTRODUCING OUR PARTNERS

Sherod Williams - Partner
Sherod is a born and bred Coventrian who attended King Henry VIII School Coventry until starting his training with Francis Webb & Son in 1976. After nine years with the firm, he left to join the newly created firm of Walker Thompson and in 1989 became Staff Partner and from 1994 has been Managing Partner.
Sherod deals with Management Buy Outs, Buy Ins, Acquisitions, business sales and other areas of Corporate Finance. He also oversees general accounts & taxation work for a wide range of client types. He works closely with banks and lawyers to achieve the best outcome for clients.
Sherod has worked with the Investors in People standard since 1994 both as a recognition panel member and advocate to other businesses. In 2003 he was made an ambassador for the standard.
Sherod has worked on a voluntary basis across a number of organisations including QCS Ltd and the Connexions Service in the region. He has worked with George Eliot NHS Trust as a Non Executive Director and currently sits as a trustee on the hospitals Charitable Funds Committee. He is Vice Chair of the Coventry Foyer Trust and a member of The Institute of Directors where he is Vice Chair of the Coventry and Warwickshire Branch.
Sherod's main interests away from the office are all things Greek.
Sherod.Williams@Walkerthompson.co.uk

Kim Knowles - Partner
Kim started her accountancy career in industry and joined Walker Thompson as a trainee accountant in 1989 studying for the AAT qualification. She continued studying and qualified as a Certified Accountant in 1997 and was promoted to partner in 2002.
Kim is responsible for dealing with statutory audits, overseeing payroll and book-keeping assignments and deals with accounting and taxation matters for a portfolio of SME clients. She is also actively involved with our commitment to Investors In Excellence.
Outside of the office Kim has a young family who she enjoys spending time with and is treasurer for a local playgroup which is a registered charity.
Kim.Knowles@Walkerthompson.co.uk

Chris Irvine - Partner
Chris started his accountancy career at McCranors after leaving The Woodlands School Coventry in 1984. After spending time with several local accountancy firms he joined us in 1999 as a manager, having studied for and qualifying as a Certified Accountant.
Chris became a partner of Walker Thompson in 2005. He deals with statutory audits of companies, charities and other bodies, as well as overseeing general accounts and tax assignments for a wide portfolio of clients.
Chris' main interests away from the office are walking and circuit training workouts.
Chris.Irvine@Walkerthompson.co.uk