December 2005

Points to Ponder

Happy New Year to everyone.

This is now our thirteenth newsletter – produced during December 2005 and issued in January 2006, 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 – October 2005 – notes closed

November 2005 Newsletter

1.Revenue Seminar Booked (Call Sue, Angela or Dave to book your place)

We have arranged for a Revenue officer to come and present the details of the new Construction Industry Scheme regulations on Tuesday 7^th February 2006 at 7.30pm. Because of the number of you who have expressed an interest in attending, we shall probably hire a local school or church hall. Please do let us know if you want to come so that we can make the necessary arrangements. Chris Montgomery, the lady from the Revenue, says the basic presentation is about an hour and a half, with as long as you like for questions afterwards. We shall provide refreshments to keep us all going! The is the best way to find out exactly what the new scheme involves but also reinforce the question of your worker’s status. Please don’t miss this opportunity.

2.Self Assessment deadlines (Call Angela or Sue)

Last chance to beat the fines

3.Pension regulations (Call Angela)

A new report is due out about proposed changes in pension regulations.

4.Office refurbishment

This has now been completed and we can almost find everything again.

December Newsletter

1.Stress at Work

After the annual festivities, beware of stress at work! This is now officially the greatest cause of lost working time. To add to the employer’s stress, there are moves to legislate for stress management programmes in the workplace!

2.New Year’s Resolutions

How about setting some realistic goals for your business as your New Year’s Resolutions? Keep a note of what you want to achieve and a deadline for carrying it out. Check your notes regularly and, if you are achieving your aims within your projected time allowance, then up the anti! We’ve made our list with the first target due at the end of January – let’s see how we do.

3.Ebay trading – the Revenue steps up the pace (Call Sue)

Revenue officers are now officially targeting e-bay to hunt out undeclared income. Over the Christmas period, the intention was to check sellers of this season’s most popular gifts, especially toys. If the seller has other items for sale, or a lengthy feedback record, they will be investigated. You may think your buying and selling is just a hobby, but the Inland Revenue has reserved the right to decide – if they think you are trading, you have no appeal. If you do use e-bay, please make sure you keep very full records of what you are buying, what you sell and where the items you are selling came from and how long you have owned them.

4.Corporation Tax changes (Call Angela or Sue)

As expected, the Chancellor has ended the Corporation Tax holiday for small companies, by taking away the nil tax on company profits of less than £10,000. Many traders who incorporated to take advantage of this tax position, may now find it is not such a saving. However, ceasing a company could give additional problems, especially if Goodwill was sold in to the new trading entity.

5.Health & Safety Policies and Risk Assessment (Call Sue)

Have you remembered this extra length of red tape? All businesses should have a written Health and Safety policy and carry out regular Risk Assessments. We’re back to point 1 – stress at work! With the amount of legislation in force, it is becoming harder to find time to get on with your own business.

6.Age Discrimination (Call Sue)

This legislation is now in force, so you can now advertise for an employee with a “mature” attitude to work, but not a “mature” worker! No applicant can be deemed unsuitable for a post because of his or her age, so if Granny is the only one chasing the job in the Baby Boutique, you can’t refuse to employ her.

7.Making a will (Call Sue)

Not a subject you may want to think about, especially at this time of year, but you have a business to protect, so do make a will. Once you have made a will, make sure the executor and all other interested parties know where it is.

8.Revenue Seminar (Call Dave)

Although this seminar will be covering the new arrangements for the Construction Industry Scheme, now deferred until April 2007, it will include an update on Workers Status and how the Revenue defines employed or self-employed. This question doesn’t just apply to Construction, so if you are currently using any self-employed workers or services, you may want to come along for clarification of your position. Again, if the Revenue decides that you have treated someone as self-employed that the Revenue thinks is employed, all payments made to that worker will be grossed up for tax and National Insurance, which you will have to pay. Add interest and penalties to that and remember that everything can be backdated for six years, and you may like to come along.

We have provisionally booked the school hall in St. Mary’s School, Church Lane for the evening.