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.
Monday, 29 March 2010
Thursday, 25 March 2010
SNAPSHOT OF THE 2010 BUDGET
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.
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.
Monday, 22 March 2010
Payroll Year End and The Taxman Phones
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.
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.
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.
Monday, 15 March 2010
Registered Office Address
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.
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 - ManagerRoger 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 - ManagerFaye 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.
Friday, 5 March 2010
Welcome to Walker Thompson
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
“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 - PartnerSherod 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 - PartnerKim 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 - PartnerChris 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
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