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
Wednesday 30 November 2011
Thursday 24 November 2011
NEW HMRC VAT GUIDANCE ISSUED ON LAND, BUILDINGS & CONSTRUCTION
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
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
Friday 18 November 2011
HMRC turn their attention to Colleges & Lecturers
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.
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.
Wednesday 16 November 2011
The Winner Takes it All - Well Almost
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.
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.
Friday 11 November 2011
It's no longer just good to talk, but critical for survival
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.
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.
Wednesday 9 November 2011
Group Payrolls
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.".
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.".
Monday 7 November 2011
Another Attempt at Simplification for businesses
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.
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.
Friday 4 November 2011
Walker Thompson Newsletter 49
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
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
Wednesday 2 November 2011
Upgrading Sage
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
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
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