September 2005

Points to Ponder

This is now our tenth newsletter – produced during September 2005, (sorry we missed August, but see our Office News Update in September’s bits) to keep you up to date with some of the changes in Income tax, National Insurance and VAT along with compliance regulations for businesses. As we don’t write to all of you each month, we shall run the notes on a rolling three or four month basis, so if you think you have missed a month, just call and we can tell what points were covered. Don’t forget to keep us updated with any changes of address, including e-mail addresses. Please note our change of e-mail address above.

November 2004 – May 2005 – notes closed

June 2005 Newsletter

1.Changes to the CIS Scheme (Call Angela or Sue)

2. Limited Liability Status (Call Sue or Angela)

Time to think seriously about changing.

July 2005 Newsletter

1.CIS Update (Call Sue)

We plan to arrange a date for a Revenue officer to visit our office to give a talk and answer contractor’s questions about the new CIS rules, including status of workers.

2. Revenue “Enabling” Letters (Call Sue or Angela)

The Revenue has adopted a policy of sending deliberately frightening letters to taxpayers. These are known as Enabling Letters as they can lead the way to letting the Revenue open an enquiry. As we receive a copy, we shall respond to the Revenue and send a copy to you. If you have received one of these, please see the fee protection section in September.

3. Payroll Giving (Call Sue)

With so many charities chasing your money, the Government made it easier to give via your payroll, making sure the tax was properly calculated and that the Charities chosen would receive the money. To encourage setting up the payroll giving schemes, there is a tax-free incentive to employers to set up the scheme. This is £300 but the catch is that the scheme must be in place before the end of December 2005.

End of July Newsletter

September 2005 Newsletter

1.Office changes!

We have recently tried to buy the empty office next door to us, as we are running out of space. Due to a twist in the Landlord and Tennant Act, after agreeing a price with us, the owner had to offer it to the lessees of the flats above the office. They are granted first refusal and have taken up the option. (Learn by our experience and if you are buying part of a property and the sale includes the freehold, ensure your solicitor is aware of this clause). We have now decided to completely refurbish our current premises, which will give us some extra room, and see how things go. We are currently trying to work out the logistics of this exercise but it will mean at least a week’s disruption. Someone will be here during working hours and will be able to answer the telephone but the computer system will be down for a few days. We shall try and keep this disruption to a minimum and ensure that payrolls at least can still be run on time. Hopefully we shall soon be able to announce our “new look” office and hope you will drop in and take a look.

2.Fee Protection Insurance (Call Sue or Angela)

As we have said many times before, the Revenue is checking tax returns in great depth. The time taken up on enquiries is usually at least ten times that it takes to prepare the accounts in the first place! We have previously offered you cover direct but, as there have been changes in the Financial Services Act, we are no longer able to either sell or even recommend insurance. However, we have arranged for this cover to be made available to you, by allowing an insurance company to write to you all. As stated above, if you have received one of the Revenue’s Enabling Letters, you are more at risk than others of having an investigation in to your affairs. In addition, Construction Industry Contractors are at risk – please see the following note. May we please request that you read what the insurance company sends you and consider this cover.

3.CIS Scheme (Call Sue)

The Construction Industry is about to be hit again by added bureaucracy, disguised, like Self Assessment, with the promise that it will “simplify procedures”. What the new scheme will do is make it easier for HM Revenue & Customs to impose fines and penalties. The new regulations comprise a two-pronged attack on Contractors. First is the need to establish the status of the work force and second to submit signed returns on time each month. Failure to keep up with either part will result in fines. The late submission of the monthly return will be a minimum of £100 each month, but the status aspect will result in much higher and as yet unspecified, penalties. So that we can help you avoid either problem, we shall need your full co-operation. During January and February 2006, please liase with Dave over the new procedures, so that a safe routine is in place when the scheme starts in April. In the meantime, we do hope to set up a meeting with a Revenue officer that all Contractors can come along to.

4. Age Discrimination (Call Sue)

This is the latest anti-discriminatory legislation to come in. From next year, you can no longer advertise for someone with x number of years’ experience, or an employee to join a “young and dynamic” team. On the other hand, the supermarket chains will have to stop advertising for older people. You will not be allowed to move the over 60’s on to lighter duties, apparently, even if they request it! We hope that using the word “mature” will be sufficient.

5. Poor Dress Sense

An Evening Standard survey has just decided that your choice of clothing may affect your business results. We should dress in accordance with the image we want to project for our business – I’m not sure we are actually inviting feedback on this one!

6. Web Sites (Call Sue)

We haven’t got a web site, but are considering setting one up. We are not entirely sure how effective it would be and would welcome comments from our clients who have a website as to how helpful they feel it has been to their business.