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Newsletter
July 2008 |
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The
newsletter this month includes an update on the new H M Revenue &
Customs powers; the effect of charging rents and claiming the new CGT
entrepreneurs' relief; new filing details for limited companies and
limited liability partnerships, and finally new mileage rates effective
from 1 July 2008. Our
next newsletter will be published 5th August
2008. |
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Introduction |
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As
always TurnerWarran are dedicated to providing our clients with the finest
level of service possible. We are totally committed to the success of our
client's businesses and regard their success as the measure of our own
accomplishment. Our
services include Auditing, Accounting, Business Planning, Consultancy
Services, Company Secretarial, Payroll and Taxation Advice. We cater for
all sizes of businesses from a start up business to a larger company.
We are
teamed up with a number of reputable local businesses to provide our
clients with the best possible service for all their business
needs. Should
you require any of the following services then please give us a
call. Insurance
Quotes Commercial or
Personal IT
Services Computer
Installation, Networks or Software Supply Mortgages Commercial or
Residential Websites We
would be delighted to meet you to discuss any of the above or any queries
you have regarding financial or business matters, consultations are free
and we are always happy to help. Just call the number below and a meeting
can be arranged straightaway. As a
service business, a high number of our clients are from referrals from
clients and from other businesses. If you know of anyone else who
might benefit from our services, please let us know -we are always looking
for new clients. You
will find us conveniently located at Glanford House, Bridge Street, Brigg
with plenty of free parking. We offer complete tax and accounting
services and very friendly and efficient staff. If you
would like any further details regarding TurnerWarran and the ways we can
help your business then please get in touch. Back to
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Be
part of the WWW |
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We are
proud to announce an additional service offered to clients and non
clients. For £199 for
the first year you can have your very own website and domain name.
£99 for each
year afterwards will help to maintain the site and update it when
required. This will allow us to keep you on our hosting and keep your
domain name and email forwarding. You have 8 templates to choose from with
3 pages with each. These consist of a ‘Home’ page to include what you do
as a company/individual and the products/services you sell. An ‘About Us’
page where you include information about yourself and who you are, for
example your qualifications, work experience etc. The third page is a
‘Contact Us’ page where you will include your address, email address,
telephone number etc. The set up
price of £199 includes an exclusive domain name for your company including
an email address that will direct all your company emails to your outlook
or other email account. This can really give your website that unique edge
and looks extremely impressive compared to having another
servers email address. This is an
amazing opportunity for start up and existing businesses, for more
information please contact Sophie Cook on 01652 650112 or email sophie.cook@turnerwarran.co.uk Back to
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Networking
Events! |
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The
next networking seminar/lunch will be at the Foundation of
Wellbeing in Scunthorpe (10-12 Shelford Street, Scunthorpe, DN15 6NU)
on: Tuesday 15th
July 12-2pm We
have joined together with Andy Beale, a Partner in Business
Banking at Yorkshire Bank and Sarah Middleton, a Solicitor at Andrew
Jackson Solicitors. Networking
Seminars provide both the opportunity to learn and also to
network with like-minded business professionals. This would be a
great opportunity for all and is an effective and efficient way to build
strategic alliances. If
you are interested in attending then please call Sophie Cook on 01652
650112. Back to
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Links
to our clients! |
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As part
of our effort to help our clients grow their business, we have
launched a page on our website for any client to list their service
including a link to their own site, although we are happy to list you
even if you don't have a website. If you
wish to make any special offers to our other clients to encourage them to
use you, please do so. There is no requirement to link back to us,
although if you do it is always very much
appreciated. To have
your link added please log in to your client area on the website and
complete the link request form or contact Sophie Cook on 01652 650112 for
more information. Back to
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Northern
Lincolnshire Business Awards 2008 |
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Congratulations
to everyone who won or was nominated for an award, at this years Northern
Lincolnshire Business Awards. We
would like to congratulate our clients Nicky Keller of Education
Resourcing for being nominated for The Wilkin Chapman Business Person of
the Year and Colin Johnson of JPS Resources Ltd nominated for The
North Lincolnshire Enterprise Award for New Business.
This
years competition was of a very high standard and to be nominated was
quite an achievement. Thanks to everyone involved with the organisation of
the event...a great time was had by all! Well
done everyone! Back to
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HM
Revenue & Customs' new powers! |
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The
Finance Act 2008 brings together a number of issues that are going to
affect your future relationship with H M Revenue &
Customs. In the
past regular visits have been restricted to a VAT audit and possibly a
payroll check. Additionally inspectors may have picked up on areas of
concern in your annual tax return and launched a formal aspect, or full
enquiry into your affairs. The
Finance Act 2008 takes this whole process to a new level!
In
future you will be penalised if HMR&C believe you have not taken
reasonable care in preparing any information (accounting or otherwise)
that underpins any return made to them. It is likely that any
under-declared tax that is discovered will be subject to a penalty
approaching 30%, and if HMR&C can prove negligence or fraud this could
rise to 100%. The way
in which these errors will be discovered are set out in changes to
HMR&C's legal powers to investigate your returns. It is envisaged that
an officer of HMR&C might begin a compliance check in respect of any
of the relevant taxes for one or more of a number of purposes. These
include checking that:
Accordingly you
can expect that future visits by tax officers will take an interest in the
care that has been taken to keep proper accounting records. In particular
how these records affect your VAT and payroll
returns. Access to
information. HMRC
have included changes to the law in the Finance Bill 2008 that would give
them rights regarding access to records that underpin your
returns. Accordingly
there is to be no right to appeal against HMRC seeing
records. Another
interesting development recognises the use of computers in storing
relevant data. HMRC are quoted as saying: "An
authorised person may, at any reasonable time, obtain access to, and
inspect and check the operation of, any computer and any associated
apparatus or material which is or has been used in connection with a
relevant document." This
would provide officers of HMRC access to any computer which has been used
in connection with the accounting records (including supporting documents)
required of the taxpayer. This is a new development, as normally taxpayers
would expect HMRC to have access to the records themselves, but not the
computers on which the records have been prepared or maintained. The
practical implications of this are significant. You may
want to ensure that no critical business information is kept on the same
computer as the accounting records, so that risk of breach of
confidentiality, or even business disruption, is kept to a minimum should
HMRC require access to the computer during the course of an
enquiry. Visits
will be made in-year to check that the record keeping provisions are being
complied with during the accounting period, and given the significant
concern expressed about the quality of accounting records by HMRC and the
impact on tax take, this is likely to be the main HMRC compliance contact
that small businesses will have in the coming years. What to
do? For
most businesses the new rules will have effect for accounting years ending
31 March 2009. Therefore the records that you are presently updating for
this period of account may be open to inspection. Can we suggest you
contact us if you are interested in a formal review of your accounting and
related administration systems, in order to minimise any possible
financial consequences of future HMR&C visits. Click here for a
call back from our office regarding this
article. |
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Selling
business property previously rented |
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Many
business owners have bought commercial property that has been fully or
partly occupied at various times by their trading concerns, and rent may
have been charged for the use of the property; either the property owner
has been paid rent by his business, or by other third parties.
This
article discusses the way in which the new capital gains tax rules apply
to the disposal of these properties on or after 6 April
2008. As you
may remember, all taxable capital gains are now subject to a flat 18% tax
charge. There is one notable exception. If a disposal qualifies as the
sale of a business asset you may be able to claim entrepreneurs' relief.
If you can claim, the first £1m of qualifying lifetime disposals are
subject to tax at the reduced rate of 10%. Generally speaking the disposal
of a business property should qualify for entrepreneurs' relief as long as
it is sold in conjunction with the sale or cessation of the business, or
within 3 years of that date. Obviously, if
you have purchased a property for the purposes of running your business
you may feel that this relief will be available to you when you sell the
property. Unfortunately the position of certain property owners,
particularly those who have charged rent to their business, may not be so
straightforward. The
issues that affect the availability of entrepreneurs' relief when
commercial property has been rented to a business, are complex and
certainly beyond the scope of this article to fully explore. However, we
have highlighted below the fundamental difference between a disposal by a
sole trader and a disposal by a partner or company
shareholder. 1.
Sole
traders are treated
differently to partners and owners of limited companies. If you are a sole
trader there would be no commercial or tax purpose in charging your
business rent for the use of your property - both property and business
are in your name. There could be circumstances where part of the property
has been let to a third party. However as long as part of the property is
in use by the owner's business when the property is sold, a claim to
entrepreneurs' relief should be effective; at least to some extent.
2.
Partnerships and
limited companies. If a partner or
shareholder has purchased a property and made this available to the
business for a rental payment, the CGT position on disposal is more
complex. If rent has been charged by the owner to the partnership or
company, a claim for entrepreneurs' relief on sale may be
precluded. A final
point. Relevant legislation has not yet completed its passage through
Parliament. The Treasury are aware that a sale of a business property
prior to 6 April 2008, that would have qualified for taper relief, may not
now qualify for entrepreneurs' relief; purely due to the rental payments
issue. There is therefore a possibility that there may be some relaxation
of the rules in any amended legislation. If you
are contemplating a sale of this type of property please contact us before
completing the sale in order that we can help you organise contracts in
the most tax efficient way. Click here for a
call back from our office regarding this
article. |
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Companies
House filing and other changes |
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Filing
deadlines: Companies with
accounting periods beginning on or after the 6 April 2008 should note the
following changes to the filing deadlines with Companies
House. 1.
Private
companies and LLPs - the delivery
deadline has been reduced by one month from 10 to 9
months. 2.
Public
companies - the delivery
deadline has been reduced by one month from 7 to 6
months. Consequential
changes include:
The
penalties shown below apply to late filing of accounts on or after 1
February 2009.
If
company fails to file on time for two successive years, the penalties are
doubled in the second year. Company
secretary From 6
April 2008 private companies can chose whether they wish to have a company
secretary or not. If you
decide to dispense with a company secretary's appointment you will need
to:
A
company can now have a sole director and no company
secretary. Please
note that from 1 October 2008, if you do keep your company secretary, they
will be able to file a service address for the public
record. Click here for a
call back from our office regarding this
article. |
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Changes
to Fuel Rates from 1 July 2008 |
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From 1
July 2008 the Revenue have published new mileage rates that company car
users can use to calculate the fuel cost of running their vehicles for
private purposes. If this private element is repaid to employers the
employees will avoid the penal car fuel benefit charge. The new rates
are: Engine
size:
Employers can
also use these rates to calculate the VAT input tax on fuel included in
staff mileage claims - employers will need to retain fuel receipts from
staff to prove the fuel was purchased. (Obviously, it is unlikely that
staff will have receipts that exactly match the fuel element on their
claim forms. Receipts should cover the same time period and be sufficient
to cover the VAT claimed.) Click here for a
call back from our office regarding this
article. |
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Tax
Diary July/August 2008 |
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1 July
2008 - Due date for
corporation tax due for the year ended 30 September
2007. 6 July
2008 - Complete and
submit forms P11D return of benefits and expenses and P11D(b) return of
Class 1A NIC's. 6 July
2008 - Deadline for
submission of new Tax Credit application for 2008-2009, if you want to
secure a full years claim. 19 July
2008 - Pay Class 1A
NIC's (by 22 July 2008 if paid electronically). 19 July
2008 - PAYE and NIC
deductions due for month ended 5 July 2008. (If you pay your tax
electronically the due date is 22 July 2008) 19 July
2008 - Filing
deadline for the CIS300 monthly return for the month ended 5 July 2008.
19 July
2008 - CIS tax
deducted for the month ended 5 July 2008 is payable by
today. 1 August
2008 - Due date for
corporation tax due for the year ended 31 October
2007. 19 August
2008 - PAYE and NIC
deductions due for month ended 5 August 2008. (If you pay your tax
electronically the due date is 22 August 2008) 19 August
2008 - Filing
deadline for the CIS300 monthly return for the month ended 5 August 2008.
19 August
2008 - CIS tax
deducted for the month ended 5 August 2008 is payable by
today. Click here for a
call back from our office regarding this
article. |
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DISCLAIMER -
PLEASE NOTE: The ideas
shared with you in this email are intended to inform rather than advise.
Taxpayers circumstances do vary and if you feel that tax strategies we
have outlined may be beneficial it is important that you contact us before
implementation. If you do or do not take action as a result of reading
this newsletter, before receiving our written endorsement, we will accept
no responsibility for any financial loss
incurred. |
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TurnerWarran Glanford House,
Bridge Street, Brigg, North Lincolnshire, DN20 8NF Tel:
01652 650112 Fax: 01652 652212 26-28
Laneham Street, Scunthorpe, North Lincolnshire DN15
6PB Tel:
01724 842448 Fax: 01724 845185 TurnerWarran is
a limited liability company registered for VAT under reference
737862984 Partners of the
firm are members of the Institute of Chartered Accountants of England and
Wales (ICAEW) and the Association of Chartered Certified Accountants
(ACCA). This body has its headquarters in the UK and its rules of
professional conduct can be obtained from their web
site. TurnerWarran(Scunthorpe)
Ltd is authorised to act as statutory by
ICAEW/ACCA. |
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