2010Registering for online filingDecember 21, 2010 Have you registered to file your tax return online through the HMRC website? The deadline for filing your 2009/10 tax return online is 31 January 2011, but can take up to seven working days to complete the registration process before you can start to file online. First you need your UTR number and your NI number or UK postcode. The HMRC website will generate a user ID which you must note down and keep it safe. You must then wait for an activation code, which is sent by post to your registered address. Once this arrives go back to the HMRC website and login with your user ID and the activation code, within 28 days of the activation code being issued. You don’t have to repeat the registration process every year. You can avoid this hassle by asking us to submit your tax return on your behalf. How to register as a new online filing user Leaving the UKDecember 16, 2010 If you are planning to emigrate, allow lots of time to organise the move. The most tax efficient time to leave the UK is generally just around the end of March, but this will depend on your individual circumstances, and your final destination. HMRC advice on income tax when leaving the UK http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm Form P85 http://www.hmrc.gov.uk/cnr/p85.pdf
CKLG Accountants winter warmer fund raiser!December 14, 2010
We would like to take this opportunity to thank everyone who supported us through the year in our fund raising for Arthur Rank House, now it just remains for us to tot up the total and present a handsome cheque to Arthur Rank House! Advisory fuel rates and VATDecember 13, 2010 New advisory fuel rates (AFRs) apply from 1 December 2010. Employers should use the AFR to reimburse the cost of fuel paid for by employees, which is used in company cars for business journeys. The AFRs can also be used to calculate the amount an employee should reimburse his employer in respect of road fuel paid for by the employer, which is used for private journeys. Advisory fuel rates from 1 December 2010
Tax owing lettersDecember 10, 2010 If you expected your self-employed profits for 2009/10 to be low, you may have reduced your tax payments on account for 2009/10. Once your 2009/10 tax return is completed you may find you owe extra tax for 2009/10. In this case The Tax Office will send you a tax demand for tax due on 31 January 2010 and 31 July 2010. Please don’t be offended by the tone of this letter, it is not very tactful. How to pay self-employed tax Amending your tax returnDecember 8, 2010 You have the right to amend your self-assessment tax return any number of times within 12 months of the final filing date. If you have filed your return online, you can amend it online, otherwise you must write to the Tax Office. Where you used the HMRC free software to file your tax return you may be locked out of the HMRC online system if you attempt to file a second amendment to your tax return online. Talk to us if you are uncertain about how to correct your tax return. How to correct or amend your tax return Can you prove you lived there?December 6, 2010 If you want to claim exemption from Capital Gains Tax on the sale of your main home, the property concerned must actually be your home for a time. You don’t have to live there full-time, but some occupation is required. Where this tax exemption has been claimed, HMRC may ask for documentary evidence of your occupation, such as utility bills, bank statements, and council tax demands. Occupation is required for CGT relief
CKLG Accountants client City Care Services opens new head officeDecember 2, 2010
Time to pay restrictionsDecember 2, 2010 If you need to ask HMRC for extra time to pay your company’s tax liabilities, you may have to forego your dividends. Where the company has paid out dividends, instead of paying its tax bills, HMRC are not inclined to grant a time to pay agreement. This block on dividends could cause extra tax liabilities to arise where you have an overdrawn loan account with your company. Talk to us to help sort out the mess. Guidance on time to pay conditions http://www.hmrc.gov.uk/payinghmrc/problems/bpps.htm
Incorrect forms P45November 29, 2010 When the Tax Office receives a form P45 that indicates an employee has died, it will pass the date of death details on to the Tax Credits department and the DWP for State Pension purposes. This creates huge problems for the individual where the employer has entered a date of death on the P45 form in error. Please take extra care when completing forms P45, and remember all employers will have to file all their forms P45 and P46 online from 6 April 2011. Filing P45s online http://www.hmrc.gov.uk/paye/employees/start-leave/notify-online.htm Expenses when travelling overseasNovember 25, 2010 When you or your employees travel abroad on business, processing the resulting expense claims can be a real pain. Too ease this problem you can use the HMRC approved scale rates to reimburse costs of accommodation, meals, and local travel, which have been set for most countries and regions. If you pay expenses at or below these scale rates, the amounts paid are free of tax and NICs, and don’t have to be included on the employees’ forms P11D. New benchmark scale rates for travelling outside the UK CIS penalties for late returnsNovember 24, 2010 All contractors in the Construction Industry Scheme (CIS) must send a form CIS300 to the Tax Office by 19th of each month, to report payments made to subcontractors. If you haven’t paid subcontractors in a particular month you must still submit a form CIS300 showing nil payments, or ring the CIS helpline on 0845 366 7899. If you fail to submit the CIS300 on time you will get fined £100 for each and every month (or part month) the form is late. We can help you appeal against these fines if you had a reasonable excuse for being late. Guidance for contractors on monthly return penalties Employer CD-romNovember 23, 2010 If you use the Employer CD-rom to run your payroll you need to install the November 2010 update through the HMRC website. To avoid all this hassle ask us to run your payroll for you. November update for Employer CD-rom
CKLG staff help raise over £3000 at Handelsbanken Charity BowlNovember 19, 2010
The two CKLG teams were made up of Anne, Faye and Katie and Helen, Chloe and Hannah, both each won a game! With all 28 lanes taken up by attendees it was a competitive night and the overall winner was Handelsbanken St Albans. The bowling was followed by a hot and cold buffet and a raffle draw with fantastic prizes donated by Cambridge businesses. With a total raised of £3.040 this was a very successful evening! help@cklg Winter IssueNovember 18, 2010 help@cklg November 2010 This month’s newsletter looks at a variety of topics of interest to business owners and private individuals – be assured, it’s not all bad news. If you would like further information or advice on any aspect of your financial life, call us on 01223 810100 or email help@cklg.co.uk CLOUD COMPUTING Cloud computing seems to be a business buzzword at the moment. But what does it mean for businesses? Simply put, it helps save time and money while providing firms with greater flexibility. Cloud computing results in cost savings because it uses shared IT resources located in data centres to provide services. This means that users benefit from economies of scale since the service provider purchases servers and storage in bulk. These cost savings are then passed on to the end users. The biggest saving for businesses comes from the fact that they no longer need to invest as much capital in hugely expensive servers and storage as this is all provided by the cloud computing service provider. Most cloud computing service providers operate on a per-user per-month payment model which means that a business only pays for the resources it actually needs. This compares favourably to investing in servers where you generally buy a higher specification system than you need so that you have extra capacity for extra users in the future (at extra cost). Until you have the extra staff, this spare capacity is simply wasted. Another reason to consider the cloud is to reduce or remove the need to become caught up in operating and maintaining technology. The service provider maintains their servers (and looks after software upgrades) at their own cost. Cloud computing also makes working remotely easier. In this day and age where many of us work from home from time to time, we can now do so efficiently and effectively. ANTI-VIRUS FOR FREE! As business people, we are all aware of the threats posed by computer viruses. In order to avoid losing valuable data, businesses spend thousands each year on the latest and greatest anti virus software (usually supplied by one or two security software firms). However, most of us are also aware that installing these security programmes tends to slow our computers down. There is a solution to this problem and it’s free! Microsoft Security Essentials is free to download. It tends not to slow down you computers as it is designed to run very efficiently. Microsoft Security Essentials includes antivirus and antispyware, rootkit protection, and real-time detection courtesy of Microsoft SpyNet, the cloud-based service that compares file behaviour across computers. According to various industry reviews, the software offers good virus detection and is light on system resources. The fact that it is available free of charge makes it irresistible to businesses and we recommend a look. REDUCING STRESS IN THE WORKPLACE As everyone in business knows, work is a source of stress. A certain amount of stress is a good thing. It encourages staff to get to work on time, to deliver projects within deadlines and act in a professional manner. However, beyond a certain level, stress can become counter productive – for example if a business is under staffed and over worked, the staff will be under huge pressure and will suffer the negative effects of too much stress. Fortunately there are many ways to mitigate stress levels in a business. Communicate with your staff CAPITAL ALLOWANCES ON PLANT AND MACHINERY Whilst the current annual investment allowance of £100,000 (applying from 1 April 2010) may not be reached in your business, when this reduces dramatically to £25,000 from 1 April 2012 the position could be a lot different. We will be pleased to advise on timing issues for future capital expenditure plans, and where the £25,000 limit for a 100% tax write-off is likely to be reached we will look at the separate 100% first year allowances regime covering unlimited expenditure on investment in energy-saving plant or machinery and investment in designated plant or machinery to reduce water use and improve water quality CGT ON SALE OF YOUR BUSINESS The dramatic increase in the level of entrepreneurs’ relief (now a £5 million lifetime limit) whereby tax is at 10%, plus the fact that if you do not qualify for the relief you will now pay CGT at 28%, means that is has never been so important to protect your entitlement to the relief on a business sale. Essentially you could sell your business and receive the proceeds in one of several ways:
There may also be a combination offered from the above, but whatever may be on the table it is vital that the sale is structured from your viewpoint to get the best tax treatment as that can vary significantly. Not that tax should be the prime motivation, as you should never let the tax tail wag the commercial dog. There are several ways of ensuring that the complete package on a sale of your business qualifies you for entrepreneurs’ relief and we are ready to advise by reference to your particular circumstances. YET ANOTHER FINANCE ACT! The third Finance Bill of 2010 was published on 30 September and is set to become the Finance (No. 3) Act 2010 – something, which has rarely if ever, happened before. But no need to fret as it only covers issues which for one reason or another did not get into either of the previous two Bills! Perhaps the only point worth bringing to your attention is that, as already known would happen, the legislation allows for a 100% tax write-off on purchasing a business van with zero-emissions and that has been backdated to 1 April 2010. HMRC TOOLKITS It is not just taxpayers that HMRC likes to refer to as “customers”. We as tax agents also come into that category and as a result we do occasionally receive what they perceive as help in meeting our obligations when acting for you. As an example HMRC publish an ever-growing set of toolkits on various tax topics which aim to highlight common errors found by HMRC in a variety of taxpayer circumstances. They are aimed at tax agents but anyone can download them from HMRC’s website. Most of the common errors pointed out in the toolkits are obvious and we do not expect them to cause any problems. Nevertheless we will try and use them to your advantage. Specifically, HMRC state that the toolkits should help us to demonstrate that on behalf of the client we have taken reasonable care in completing a tax return, which may be an extremely useful form of protection. Consequently we will be ready to show that we have used a toolkit where we consider that it will provide comfort to HMRC. The toolkits published or soon to be published cover the following topics:
THE GOVERNMENT’S ATTACK ON TAX EVASION Further measures to combat tax evasion announced by the Treasury are estimated to bring in around £7 billion per annum by 2014/15 in additional tax revenues. That seems over-optimistic even though they plan to spend £900 million on increasing criminal prosecutions fivefold plus a further crackdown on offshore evasion, with the creation of a new dedicated team of investigators. As a separate issue, HMRC are reported as having sent hundreds of letters to high net worth taxpayers who are clients of HSBC's Swiss bank. A former employee of the bank stole client information from the bank and passed it to the French tax authorities, who have passed it to HMRC who now say that the data shows that the taxpayers in question have undeclared sources of income and gains. The only advice we can really give as professional advisers is that any taxpayer with undisclosed liabilities should act promptly to come forward and we will make sure that the tax, interest and penalties are kept to the minimum. It is quite conceivable that the total tax, interest and penalties due as a result of this procedure could exceed the amount in the offshore account! Our role is to present the facts in the best light and negotiate an acceptable settlement. TAX SNIPPETS Penalties for VAT errors If you make a mistake in your VAT records, so your VAT return is wrong, you can correct the mistake on your next VAT return, where the total error is less than £10,000. However, HMRC expect you to explain your mistake in a separate letter. If you don’t do this and HMRC discover your error you are likely to get a penalty of 30% of the underpaid VAT. We can help you get your VAT returns right first time. Penalties for VAT errors http://www.hmrc.gov.uk/vat/managing/problems/penalties.htm#2 How to appeal against a decision on VAT http://www.hmrc.gov.uk/complaints-appeals/indirect-tax-appeal.htm Tax relief for pensions From 6 April 2011 the amount you and your employer can pay into your pension fund will be capped at £50,000 per year. However, if the total contributions to your pension scheme were been less than £50,000 in each of the last three years, you can carry forward the used cap to add to the £50,000 cap for the fourth year. The calculations are a little more complicated if your pension scheme did not start at the beginning of the tax year, ask us to explain. HMRC guidance on new pension scheme cap http://www.hmrc.gov.uk/pensionschemes/annual-allowance/index.htm Are you ready for iXBRL? From 1 April 2011 all tax returns for companies and the accompanying accounts must be submitted online to HMRC using the special iXBRL programming language. You may receive a penalty if you submit a paper corporate tax return, or paper or PDF copies of company accounts to HMRC after that date. HMRC have provided some free software that small companies with simple tax affairs can use to submit their tax return and accounts using the iXBRL standard, but it is quite difficult and time-consuming to use. We can submit your company’s tax return and accounts for you using commercial iXBRL software. iXBRL guide for UK businesses http://www.hmrc.gov.uk/ct/ct-online/file-return/xbrl-guide.pdf Swiss bank accounts You may have been alarmed by reports of HMRC writing to holders of Swiss bank accounts accusing them of fraud. The account details concerned were stolen from a private Swiss bank in 2006, and that data is now in the hands of HMRC. The Tax Inspector is sending out copies of Code of Practice 9 (COP 9), with letters opening investigations into these accounts. If you receive such a letter please ask us for advice on how to respond to HMRC. Code of Practice 9 http://www.hmrc.gov.uk/leaflets/cop9-2005.htm Will the flat rate scheme suit you in January 2011? If you use the flat rate scheme for small businesses you should check out the new flat rates that will apply when the standard rate of VAT increases to 20% on 4 January 2011. From that date you could be worse off than operating outside the flat rate scheme, it depends on the flat rate that applies to your business sector. If you want to stop using the flat rate scheme you need to inform the VAT office in writing. It’s easiest if you leave the scheme from the start of your next VAT quarter. Once you leave the flat rate scheme you can’t rejoin for at least 12 months. New flat rates from 4 January 2011 http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm#5a
Reclaim VAT on entertainingNovember 18, 2010 Since 1988 UK businesses have been prevented from reclaiming VAT on the cost of entertaining overseas customers. That policy has now been reversed, so you can now submit refund claims for VAT paid on the cost of entertaining overseas customers (not suppliers). However, there is a catch; you need to know who the customers were and have all the paperwork. Also claims will only be accepted for VAT periods ending in the last four years. We can help you with these claims. Change to treatment of VAT on entertaining CKLG staff attend Companies House updateNovember 16, 2010 Margaret Docwra from CKLG attended the bi-annual Cambridge area Companies House Focus Group meeting at The Holiday Inn, Impington. Companies House was represented by Ian Smith and Anne Dart Customer Care Managers alongside the Customer Liaison Manager Marie Connors, all are based at Companies House in Cardiff. At this informal meeting Ian Smith and Marie Connors provided updates on the company register, current services and enhancements and future developments. Three of the main points raised were: 1 - As of January 2011, any accounts filed late for a second consecutive time will be subject to a double filing penalty. 2 - iXBRL - this began in October 2010 and is a convenient method for companies and their agents to produce and submit the different sets of company accounts they need to send to HMRC and Companies House from a single set of data. Audit exempt full and small abbreviated accounts can be filed via this method. 3 - Companies House will soon start sending email reminders to companies, for accounts and annual returns instead of paper reminder letters.
Register for VAT on timeNovember 15, 2010 It can be tricky to work out when your business should become registered for VAT. You need to keep a rolling tally of the turnover for the last 12 months and as soon as that total tops £70,000, apply to register for VAT. However, if there is a blip in turnover, that only temporary takes the total over the £70,000 threshold, you can apply for an exception to VAT registration. But you must inform the VAT registration office of your current turnover level and ask for the exception to VAT registration to be granted. We can help you deal with the VAT Office for registration and all other VAT matters. When to register for VAT http://www.hmrc.gov.uk/vat/start/register/when-to-register.htm Will the flat rate scheme suit you in January 2011?November 12, 2010 If you use the flat rate scheme for small businesses you should check-out the new flat rates that will apply when the standard rate of VAT increases to 20% on 4 January 2011. From that date you could be worse off than operating outside the flat rate scheme, it depends on the flat rate that applies to your business sector. If you want to stop using the flat rate scheme you need to inform the VAT office in writing. It’s easiest if you leave the scheme from the start of your next VAT quarter. Once you leave the flat rate scheme you can’t rejoin for at least 12 months. New flat rates from 4 January 2011 Swiss bank accountsNovember 10, 2010 You may have been alarmed by reports of HMRC writing to holders of Swiss bank accounts accusing them of fraud. The account details concerned were stolen from a private Swiss bank in 2006, and that data is now in the hands of HMRC. The Tax Inspector is sending out copies of Code of Practice 9 (COP 9), with letters opening investigations into these accounts. If you receive such a letter please ask us for advice on how to respond to HMRC. Code of Practice 9 CKLG Directors attend 12th Annual 2020 ConferenceNovember 4, 2010
Are you ready for iXBRL?November 4, 2010 From 1 April 2011 all tax returns for companies and the accompanying accounts must be submitted online to HMRC using the special iXBRL programming language. You may receive a penalty if you submit a paper corporate tax return, or paper or PDF copies of company accounts to HMRC after that date. HMRC have provided some free software that small companies with simple tax affairs can use to submit their tax return and accounts using the iXBRL standard, but it is quite difficult and time-consuming to use. We can submit your company’s tax return and accounts for you using commercial iXBRL software. iXBRL guide for UK businesses http://www.hmrc.gov.uk/ct/ct-online/file-return/xbrl-guide.pdf
CKLG Accountants support trainees in professional exams.November 3, 2010
PRESS RELEASE - NOVEMBER 2010 CKLG Accountants are delighted to announce that two of their young trainee accountants Helen Carder and Chloe Saberton have successfully completed their accountancy exams. Helen Carder (left) joined as an AAT apprentice in 2004 and has now gained the ACCA (Association of Chartered Certified Accountants) qualification. Helen has her own portfolio of clients and manages the juniors studying for the AAT qualification. Chloe Saberton (right) joined CKLG straight from Hills Road Sixth Form College in 2007 and has successfully completed her AAT (Association of Accounting Technicians) qualification in June this year. Chloe works in the accounts department putting together unincorporated and small incorporated accounts as well as doing bookkeeping for clients, completing VAT returns and assisting on audits. Janet Cronk CEO of CKLG commented, “We are delighted that both Helen and Chloe have been successful in their exams. At CKLG we are always on the look out for dynamic young people who are keen to enter the profession. We look to support and encourage all our trainees and graduates of whatever age to achieve to the highest level. Tax relief for pensionsNovember 3, 2010 From 6 April 2011 the amount you and your employer can pay into your pension fund will be capped at £50,000 per year. However, if the total contributions to your pension scheme were been less than £50,000 in each of the last three years, you can carry forward the unused cap to add to the £50,000 cap for the fourth year. The calculations are a little more complicated if your pension scheme did not start at the beginning of the tax year, ask us to explain. HMRC guidance on new pension scheme cap http://www.hmrc.gov.uk/pensionschemes/annual-allowance/index.htm
Penalties for VAT errorsNovember 1, 2010 If you make a mistake in your VAT records, so your VAT return is wrong, you can correct the mistake on your next VAT return, where the total error is less than £10,000. However, HMRC expect you to explain your mistake in a separate letter. If you don’t do this and HMRC discover your error you are likely to get a penalty of 30% of the underpaid VAT. We can help you get your VAT returns right first time. Penalties for VAT errors http://www.hmrc.gov.uk/vat/managing/problems/penalties.htm#2 How to appeal against a decision on VAT http://www.hmrc.gov.uk/complaints-appeals/indirect-tax-appeal.htm Paying VAT by chequeOctober 27, 2010 You need to post your VAT return at least three days early if you enclose a cheque with that return, as the payment date for cheques is the day the cheque clears the HMRC bank account rather than the date the cheque arrives at the HMRC office. You can pay any VAT due electronically even if you submit your VAT return by post. Electronic payments, including Bank Giro payments, give you a further seven days to pay the amount due. How to pay VAT VAT refund claimsOctober 25, 2010 Have you incurred VAT on business expenses in other EU countries since 1 January 2009? If your business is VAT registered in the UK you can claim a refund of that overseas VAT. The deadline for claims relating to 2009 has been extended from 30 September 2010 to 31 March 2011. The minimum claim is €50 per country. The refund will be paid by credit transfer into your bank account, which may involve bank charges for translating the refund into £’s sterling. VAT refund scheme for UK businesses http://www.hmrc.gov.uk/vat/managing/international/overseas-traders.htm Claims when non-residentOctober 22, 2010 If you no longer live in the UK, but still have some income arising from the UK, you may be eligible to set your UK personal allowances against that income and secure a tax repayment. You need to complete form R43 for the tax year in which the income arose, and submit it to HMRC within four years of the end of the tax year. 2009/10 form R43 for non-residents Worthless shares?October 20, 2010 If you subscribed for shares in an unquoted company, which subsequently went bust, you may be able to claim tax relief against your income for that loss. HMRC previously only allowed claims for this tax relief where the shareholder subscribed for the shares in his or her own name alone, not through a nominee or in joint names. HMRC have now changed their view on this and will allow valid claims for the loss on shares held in joint names or through a nominee. Ask us to help you with the claim. New HMRC practice on share loss relief http://www.hmrc.gov.uk/briefs/cgt/brief4110.htm
PAYE underpaymentsOctober 18, 2010 If you receive a PAYE reconciliation form (P800) check the figures carefully as mistakes in allowances and income do occur. Where the form shows tax underpaid of less than £300 you won’t have to pay that tax. Higher amounts will generally be collected through your PAYE code for 2011/12, or HMRC will make a separate payment request in 2011. You can ask for a longer time to pay if you need it. Explanation of PAYE under and overpayments http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm HMRC notes to help understand the P800 Paying PAYEOctober 15, 2010 If you pay your PAYE electronically allow at least 3 working days for the payment to reach the HMRC bank account, as HMRC cannot accept payments through the faster payment service (FPS). If you setup a direct debit to pay your PAYE be sure to quote the correct payment reference. The 13-character reference number is case–sensitive, and any mistake may lead to your PAYE payment being rejected or getting completely lost in the HMRC computer. Paying PAYE Employer CD-RomOctober 13, 2010 If you use the Employer CD-rom to run your payroll you need to install the September 2010 update through the HMRC website. To avoid all this hassle ask us to run your payroll for you. Update for Employer’s CD-rom http://www.hmrc.gov.uk/employers/cdrom/
Moving house?October 6, 2010 If you move house, or change your name, don’t forget to tell HMRC about your new contact details. You only have to tell HMRC once by completing the change of details form on their website, and they will update your records for most taxes and benefits they deal with. However, if you leave the UK permanently you need to complete a form P85. Changes to taxpayer name or address http://www.hmrc.gov.uk/individuals/change-of-circs.htm Form P85 http://www.hmrc.gov.uk/cnr/p85.pdf
HMRC threatens to name and shameOctober 4, 2010 When a taxpayer has deliberately evaded tax of at least £25,000, and has been charged a penalty as a result, HMRC can publish that taxpayer’s details. However, they must not do this if the tax relates to a period before 1 April 2010. If the Tax Inspector threatens to publish your details in connection with a tax dispute, please get in touch with us so we can help you deal with the problem. Publishing details of tax defaulters VAT for DIY buildersSeptember 29, 2010 VAT for DIY builders Are you building your own home, or converting a non-residential building (such as a barn) into a home? If you are, you should be aware of the VAT scheme for DIY builders. Using this scheme you can reclaim correctly charged VAT, but you need to submit the claim within three months of finishing the build. Talk to us first to ensure your claim is complete and correct Peter German was Bourn to Run!September 28, 2010
help@cklg Autumn IssueSeptember 28, 2010 Welcome to the early autumn issue of our newsletter which features a number of current topics which may affect you, notably the HMRC’s blunder over PAYE codes. CKLG’s raison d’etre is to guide you through these potential minefields and if you have any concerns on any aspect of your financial life please email us at help@cklg.co.uk or call 01223 810100.
PAYE Coding ErrorsThe revelation that the beleaguered HMRC has erred widely and in great numbers over tax codes has been one of the key features of the summer news. Be assured that, when appointed as your agent, we check your PAYE codes as a matter of course but if you think you have the wrong code applied to your current income we can check this for you. If you have any concerns at all please let us know so we can either put your mind at rest or sort it out with HMRC for you. Are you planning ahead for the VAT change?The increase in the VAT rate to 20% will be implemented on 4 January 2011. When the Chancellor announced the increase back in June, the six months’ advance warning was welcome, especially to small businesses who are likely to feel the impact the most. With three months already gone, now is a good time to take stock and make the most of the opportunity to prepare for the change. Moreover, HMRC is likely to take the view that you have had plenty of advance warning and may show little leniency if errors are made. A recent YouGov survey found that almost a third of small businesses feel that the VAT increase will affect them adversely, and nearly a fifth are planning wage freezes or even cuts to compensate. Businesses will remember the last time a change was made to the VAT rate. It is estimated that apart from the disruption caused by tying up key resources, implementing the change cost small businesses up to £1,500 in bureaucracy alone. Many small businesses have not been able to raise their prices for some time now, but their suppliers have been raising theirs, and the VAT hike is not going to help the situation. Moreover, with some competitors likely to try to absorb the VAT increase to avoid having to pass it onto their customers, the pressure to remain competitive could increase considerably in the New Year. This would be a good time, therefore, for all businesses, and especially for retailers, to undertake a general review of their costs and pricing strategies. Some businesses might be tempted to avoid some of the impact by pre-invoicing at the lower 17.5% rate but care must be taken here not to contravene the anti-forestalling regulations and incur penalties. There are also other potential pitfalls in areas such as recurring invoices and debit and credit notes that could incur penalties. Businesses directly or indirectly involved in importing will need to review import VAT deferment levels, and might seek advice on whether a switch to Simplified Import VAT accounting is appropriate. Businesses on the flat rate scheme should note that revised higher rates will generally be introduced at the same time, which will have an impact on cashflow. All in all it seems a little advance planning and professional advice at this stage could well save time and avoid problems further down the road. If you would like help preparing for the VAT change, do contact us sooner rather than later. Warning of HMRC phone call scamHMRC are warning taxpayers to be vigilant following reports that thieves are making phone calls pretending to be the taxman. Be sure to check the authenticity of any calls relating to your tax affairs. There’s more than one way to finance a business . . .Judging by the size of the profits recently posted by some of the UK’s largest banks, they have weathered the economic downturn rather well. But they still seem reluctant to share their largesse with smaller businesses, for whom bank financing is still relatively hard to come by, and often expensive. As a consequence many smaller businesses are turning to alternative sources of funding, particularly invoice financing. More and more enterprises seeking to free up cash and working capital, or to raise funds for expansion are making use of this option. The irony is, of course, that they can secure such financing only if they are generating healthy invoices, and so the increased use of this type of financing is an indication that the businesses concerned remain viable. Which makes the banks’ reluctance to lend to them all the more perplexing! In any event these developments show there is always more than one way to finance a business – and who knows, perhaps in the future we might look back and think that the banks did small businesses a favour at this time by forcing them to diversify their funding strategies. If you would like advice on raising finance for your business, we would be happy to help. Tax NotesEmployer CD-ROMIf you use the Employer CD-ROM to run your payroll you need to install the September 2010 update through the HMRC website. To avoid all this hassle ask us to run your payroll for you. Update for Employer’s CD-ROM can be found at http://www.hmrc.gov.uk/employers/cdrom/ Paying PAYEIf you pay your PAYE electronically allow at least three working days for the payment to reach the HMRC bank account, as HMRC cannot accept payments through the faster payment service (FPS). If you setup a direct debit to pay your PAYE be sure to quote the correct payment reference. The 13-character reference number is case-sensitive, and any mistake may lead to your PAYE payment being rejected or getting completely lost in the HMRC computer. For details visit http://www.hmrc.gov.uk/payinghmrc/paye.htm For help and advice on any topic covered in this newsletter, or indeed any aspect of your corporate or business life, please call us on 01223 810100 or email help@cklg.co.uk A new business start up or capital gain in 2009/10?September 24, 2010 Notify HMRC by 5 October 2010If you started your own business or made a large gain in the year to 5 April 2010, and you have not received a notice to file a tax return for that year, you must ask HMRC to set you up in the self-assessment system by 5 October 2010. Do this by either registering as self-employed on the HMRC website or complete form SA1. We can help you with these forms or click on the links below. Register online as self-employed http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm Form SA1 to register for an SA tax return (not self-employed) Anyone for Tea?July 15, 2010
The ARH collection boxes soon filled up and we are eagerly waiting to hear how much we raised, thanks to all the bakers and to everyone who supported us! UPDATE - WE RAISED £162.60! CKLG Accountants support Race for Life!July 7, 2010
Well done Hannah, Becky, Margaret, Helen and Chloe! Creating & Preserving Wealth – July 1st Jockey Club NewmarketJuly 1, 2010
The theme of this year’s seminar was Creating & Preserving Wealth and after registration and breakfast on the terrace, delegates listened to presentations from Katie Holmes of CKLG Accountants, Dean Turner, Investment Strategist at Barclays Wealth and Adrian Atkinson of Money Matters Wealth Management. In light of the new governments summer budget this was the perfect opportunity for delegates to update on the latest personal and business issues. If you would like to be added to our mailing list for our forthcoming seminars please contact rebecca.curry@cklg.co.uk
Budget Report – June 2010June 23, 2010 Pain now. Gain later? Less than 50 days on from the general election, the coalition government’s much anticipated Budget provided the usual cocktail of proactive and reactive measures designed primarily to mitigate the much discussed deficit. Whatever its impact on a national scale, how will it affect you? We have prepared a comprehensive review of the Budget which you can reach here. Creating & Preserving Wealth SeminarJune 17, 2010 CKLG Accountants and Money Matters Wealth Management are delighted to announce their annual breakfast seminar to be held on 1st July (8am – 10.15am) at The Jockey Club Rooms Newmarket. Guest speaker Mark Turner from Barclays Wealth will be speaking on “Creating & Preserving Wealth”. Registration will be from 8am, Mark Turner and Consultants from CKLG Accountants and Money Matters will be available for discussions from 9.30am. If you are interested in attending this event please call Rebecca Curry on 01223 810100 or email: rebecca.curry@cklg.co.uk. There is no charge for this event. “Nothing too taxing!”May 18, 2010
20th April, Masonic Hall, Bateman Street Cambridge. A good night was had by all at a recent quiz held to raise funds for CKLG’s chosen charity Arthur Rank House. The CKLG Team “Nothing Too Taxing” of Becky, Malcolm, Janet, Anne, Peter, Hannah and Gemma were pretty proud of their 4th place out of 11 teams and the evening raised funds for the charity in excess of £1000! Peter German helps raise funds for NSPCCApril 29, 2010
CKLG/AP Partnership April SeminarApril 29, 2010
CKLG staff donate Easter eggs to appealApril 19, 2010
CKLG welcome two new AccountantsMarch 29, 2010 Janet Cronk CEO of CKLG Accountants is delighted to announce two new appointments to the team.
Janet Cronk wins championship trophy!March 29, 2010
Janet Cronk, Chairman of CKLG Accountants and member of the West Anglian Orienteering Club wins an East Anglian Orienteering Championship Trophy! On Sunday 14th March Janet took part in the East Anglian Orienteering Championship 2010 at Donylands and Middlewick. She successfully completed the 5.6 km course in a winning time for her age group! Another member of her family also won their age group as well as a trophy for the best performance for a junior. It seems that orienteering skills may well be inherited! Budget Report 2010March 25, 2010 ‘The Budget’ – two words which can inspire a mixture of anticipation, alarm, outrage, relief and, at times, delight! We have distilled the content of the Chancellor’s statement yesterday into a synopsis which you can reach by clicking here |
CKLG Accountants final fund raiser of 2010 for their chosen charity Arthur Rank House raised £104.12! On the Winter Warmer menu - pies, cakes and mulled wine, eagerly consumed by friends, colleagues and staff!
Janet Cronk CEO of CKLG Accountants was delighted to attend the official opening of the new head office of City Care Services at Kingfisher House, Great Shelford. City Care Services is a highly regarded private provider of care services to the elderly who’s aim is to provide the highest quality of care to clients in their own homes – thereby forging closer relationships and allowing a better understanding of individual needs. CCS are committed to providing the highest standard of care to their 400 clients by attracting the best people to join their trusted and highly trained team of over 100 community carers and helpers. Janet is seen pictured chatting to the Chairman of Cambridgeshire District Council Charlie Nightingale who was invited to cut the ribbon to open the new premises. CKLG would like to wish City Care Services every success in their new home!
Two teams from CKLG attended the fourth Handelsbanken Charity Bowl in aid of their chosen charities magpas and Macmillan Cancer Support. Magpas runs the Emergency Medical Team (EMT) made up of doctors and paramedics who volunteer to deliver A&E standard treatment to patients at the scenes of very serious medical emergencies. Macmillan Cancer Support improves the lives of people affected by cancer, providing practical, medical, emotional and financial support.
On 14th and 15th October Janet Cronk, Lisa Burdett and Lawrence Golding attended the premier conference for successful practising accountants and tax professionals run by the 2020 Group. Key topics under discussion were key predictions for the future with speakers discussing the trends, issues and challenges for the accounting profession and offering solutions. 2020 resident consultants also gave an insight into the latest practice management and marketing techniques that are currently being adopted by the most profitable accountancy firms in the UK. All in all a very interesting and worthwhile conference to attend ensuring that CKLG offer best practice to all corporate and private clients.
Wind and rain greeted the runners for the Bourn to Run Fun Run on Sunday 27th September, but Peter was not to be deterred! While he warmed up Janet, Faye and James and Rosie preferred to have coffee and croissants beside the Aga! However while Janet marshalled and Rosie gave out medals Faye and James gallantly waited at the finish line to cheer Peter on. With a time of 47.01 for 10k he came well up the leader board of a few hundred runners! Once again well done Peter, now it is time for someone to challenge you to a race! 
Race for Life organisers have hailed this year’s event as the city’s most successful ever! The CKLG Accountants team of Hannah, Becky, Margaret, Helen and Chloe joined over 8,000 women to run, jog or walk the 5km route through the historic landmarks of Cambridge City centre. It was a beautiful sunny but windy day, Helen and Chloe ran the route and completed it in an amazing 34 minutes! Hannah, Becky and Margaret walked the route in a brisk 50 minutes. The route took in the city centre streets, out and round to the backs through beautiful Kings College where the punters on the river cheered everyone on, it finally wound out through the pretty old streets of Cambridge to finish on Jesus Green.
A beautiful July morning and the perfect location of The Jockey Club Newmarket welcomed almost 50 delegates to the annual summer seminar held by CKLG Accountants and Money Matters Wealth Management.
Peter German from the Personal Tax Team at CKLG completed the Bungay Black Dog Marathon on Sunday 18th April in the respectable time of 4 hours 10 minutes and 32 seconds!
The early start of 7.30am didn’t deter delegates from turning up to a breakfast seminar hosted by CKLG Accountants and the AP Partnership at the Holiday Inn Cambridge on Wednesday 21st April.
Once again the staff of CKLG Accountants have generously donated to the Select Appointments annual Easter Egg Appeal.
