posted by Angus at
12:48
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Labels: Staff
posted by Angus at
20:45
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Labels: VAT
posted by Angus at
12:37
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posted by Angus at
15:52
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In the expectation of the change, we have been working hard over the past 18 months to develop alternatives for small and medium-sized business, and this concluded the very expensive process with us becoming a BACS Approved Bureau just recently.
There are only 20 or so Scottish based bureau, and we are now able to help our clients by making payments direct out of their bank accounts to suppliers and employees. We will shortly be able to provide debit facilities too, allowing suppliers to collect money due to them from customers.
There is no doubt that this is going to be a growth area over the next few years, and we already process over £20m annually in payments for clients across the UK.
For more information contact Angus, or visit our payroll provider website.Labels: Our Practice
posted by Angus at
09:19
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Labels: VAT
posted by Angus at
15:11
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-------
From: HM Revenue and Customs [no-reply@hmrc.gov.uk]
Taxpayer ID: tom-00000222351832UK Tax Type: INCOME TAX Issue: Unreported/Underreported Income (Fraud Application)
Please review your tax statement on HM Revenue and Customs (HMRC) website (click on the link below):
review tax statement for taxpayer id: tom-00000222351832UK
HM Revenue and Customs
Labels: Tax
posted by Angus at
09:43
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Labels: Seafarers
posted by Angus at
21:46
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| NMW Rate | Current rate | New rate |
|---|---|---|
| Main rate for workers aged 22 and over | £5.73 | £5.80 |
| Rate for workers aged 18-21 | £4.77 | £4.83 |
| Rate for workers aged 16-17 and over compulsory school age | £3.53 | £3.57 |
| Accommodation offset rate(Weekly maximum) | £31.22 | £31.57 |
| Accommodation offset rate(Daily) | £4.46 | £4.51 |
posted by Angus at
14:42
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Labels: Our Practice, Tax
posted by Angus at
15:51
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The Budget has seen the re-introduction of first year allowances (FYAs) for purchases of qualifying plant and machinery. Allowances of 40% will be available to companies, partnerships and individuals carrying on qualifying activities in excess of the annual investment allowance (see below) subject to the following:
Unusually, there appears to be no restriction on the amount of the expenditure or the size of business incurring the costs.
The annual investment allowance (AIA), introduced last year, allows businesses (or groups, where related businesses carry on similar activities) to claim a 100% deduction from taxable profits for £50,000 of expenditure on eligible plant and machinery.
Confusingly, the definition of eligible plant and machinery for AIA purposes differs quite significantly from that for qualifying plant and machinery for FYAs.
Labels: Tax
posted by Angus at
22:52
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Labels: Tax
posted by Angus at
12:44
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Labels: VAT
posted by Angus at
12:41
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posted by Angus at
17:56
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From April 2009 there will be a significant change in the structure of National Insurance contributions with a new band introduced.
| Description | NI Rate | This year | Next year |
| Lower earnings limit | No NI payable | First 90 pw | First 95 pw |
| Earnings threshold ("ET") | No NI payable but earnings recorded | Up to 105 pw | Up to 110 pw |
| Upper accruals point | Full NI Liability | n/a | Up to 770 pw |
| Upper earnings limit ("UEL") | Full NI Liability | Up to 770 pw | Up to 844 pw |
| Employees rate between ET and UEL | 11% | 11% | |
| Employees rate above UEL | 1% | 1% | |
| Employers rate above ET | 12.8% | 12.8% |
Obviously it is imperative that your payroll software is updated, but if you don't use a computer program, then why not speak to us about letting us take the strain? Our costs are very cheap, and the peace of mind we offer is absolute, and if we also prepare your accounts then we can offer an even better deal. Contact us today to discuss your requirements.
Labels: National Insurance
posted by Angus at
19:05
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The office will close at 1pm on Tuesday 23rd and re-open on Monday 5th January. We would like to wish all our clients best wishes for Christmas and a happy and prosperous New Year.
Labels: Our Practice
posted by Angus at
10:55
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The change in the Standard Rate of VAT from 17.5% to 15% is temporary - it lasts from 1 December 2008 to 31 December 2009.
But how do you change your computer system to reflect the change in the legislation from next week?
We have a worksheet available to explain the temporary changes you need to implement to correctly record your VAT liabilities.
At the moment, we only cover Sage and Quickbooks, but TAS Books will be added later this week, and other programs may be added later. If you have specific questions, please contact Angus.
Labels: VAT
posted by Angus at
18:55
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The following letter was received from the Inland Revenue this week: Following representations, I want to clarify what we are doing in revising our guidance and the treatment of claims. SED has never been available for people working on 'offshore installations' rather than ships. Broadly, the legislation provides that there are two tests both of which must be met for a vessel to be an 'offshore installation'. A vessel must be involved in the exploration or exploitation of mineral resources and standing or stationary whilst doing so. Construction, construction support, well service and dive support vessels that do not meet either of these tests will continue to be ships for the purposes of SED. HMRC's revised guidance will reflect discussion with stakeholders about the interpretation of the Pride South America decision to ensure that it is implement in a clear and practical manner. HMRC will publish revised guidance in February 2008. HMRC appreciates that some people may wonder whether they must submit their 2007-08 tax returns before we publish our revised guidance. All 2007-08 tax returns must be filed within the relevant deadlines. Anyone who decides that they want to see HMRC's revised guidance before deciding whether they are entitled to claim SED can submit their return without a claim to SED. They can then amend their 2007-08 tax return in the usual way to include a claim to SED. People have 12 months from 31 January after the end of the tax year to correct their tax return. For the 2007-08 return, people have until 31 January 2010 to make an amendment. If someone wishes to consider making a claim to SED for 2007-08 before the guidance is revised they can refer to the legislation on which HMRC's guidance for SED is based. It is publicly available as follows:
Labels: Foreign tax, Seafarers, Tax
posted by Angus at
10:29
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A recent tax case that was heard by the Commissioners earlier this year (known as "Pride of South America") has confirmed that the Inland Revenue are widening the definition of what they will classify as offshore installations for Foreign Earnings Deduction purposes.
Construction, construction support, well service and dive support vessels will now no longer be considered ships for a FED claim.
A Tax Return submitted after 14 January 2008 which includes a claim for FED covering a period serving on these vessels types could be investigated by the Inland Revenue.
We are waiting for further information from the Inland Revenue to allow us to better advise our clients, and an update will appear here as soon as the information is available.
Labels: Foreign tax
posted by Angus at
15:03
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From 1 October 2008 the following NMW rates apply:-
Labels: Staff
posted by Angus at
09:31
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| Annual lower threshold | £5,435 |
| Annual upper threshold | £40,040 |
| Employees liability below lower limit | NIL |
| Employees liability between thresholds | 11% |
| Employees liability above upper threshold | 1% |
| Employers liability above lower threshold | 12.8% |
Before the rules were changed in the 1990’s, directors and other higher paid employees could declare their annual salary in one month, reaching the upper limit and limiting the amount of National Insurance they had to pay. The rules are clearly stated at paragraph 5 in the Inland Revenue booklet CA44.
Using the tables shown above, declaring a salary of £120,000 in one month, rather than £10,000 per month would result in an employees NI liability of £4,606.15 rather than £6,025.80.
The current rules require directors to work on a cumulative basis for their period of directorship. There are slightly different rules if you start or cease to be a director during the year.
Using the above example for Month 1:
| Gross salary | £10,000 |
| Lower threshold | £5,435 |
| NI due on | £4,565 |
| Employees NI due at 11% | £502.15 |
In Month 2 the calculation is slightly different:
| Gross salary to date | £20,000 |
| Lower threshold | £5,435 |
| NI due on | £14,565 |
| Employees NI due at 11% | <£1,602.15 |
| Less: Already suffered | £502.15 |
| Due this month | £1,100.00 |
Which is 11% of the gross salary for the month.
By Month 6 the upper limit is passed:
| Gross salary to date | £60,000 |
| Upper threshold | £40,040 |
| NI due on | £19,960 |
| Employees NI due at 1%* | £199.60 |
| Less: Already suffered* | £99.60 |
| Due this month | £100.0 |
(* Plus £40,040-£5,435 @ 11% = £3,806.55)
In Month 6 this is equivalent to 1% of the gross salary for the month.
Showing the NI liability graphically demonstrates that employers and directors pay the same employees NI, but that directors pay it earlier.
Labels: National Insurance
posted by Angus at
13:45
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This has the effect of removing the special rules regarding the audit of small charities that existed under the Companies Act 1985. For financial years beginning on or after 1 April 2008, small Scottish charitable companies are subject to the external scrutiny requirements set out in the Charities Accounts (Scotland) Regulations 2006.
In practical terms, small charitable companies will be subject to the independent examination/audit thresholds as set out in the 2006 Account Regulations. Only where a charitable company is a large company and over the audit threshold set out in the Companies Act 2006 would they be required to have an audit under that legislation as well as the 2006 Accounts Regulations.
This change is effective for accounting periods starting on or after 1 April 2008.
The table below shows the external scrutiny requirements for Scottish charitable companies under both the Companies Act 1985 and the new regime under the Companies Act 2006.
| External Scrutiny | Companies Act 1985 | Companies Act 2006 |
| Independent examination by a qualified person
| Gross income £90,000 or less and gross assets of not more than £2.8m
| Gross income less than £500,000 and gross assets not more than £2.8m
|
| Accountant's report in accordance with the Companies Act 1985 | Gross income more than £90,000 but not more than £250,000 and gross assets not more than £1.4m | Not applicable
|
| Audit
| Gross income £90,000 or less and gross assets over £2.8m
or
Gross income more than £90,000 but not more than £250,000 and gross assets more than £1.4m
or
Gross income more than £250,000
| Gross income of £500,000 or more
or
Gross assets more than £2.8m
|
Labels: Charities
posted by Angus at
11:26
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New software updates, tax coding notices and reprinted tax tables will be on the way to employers in time to implement the changes in October.
The revised limits are shown below.
| Before | After | |
| Personal Allowances | £5,435 | £6,035 |
| Basic rate tax band | £36,000 | £34,800 |
| Higher rate tax threshold | £41,435 | £40,835 |
Labels: Tax
posted by Angus at
12:41
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Labels: VAT
posted by Angus at
14:47
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Labels: Tax
posted by Angus at
13:16
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Whilst the loss of taper relief is significant for those selling their business, the lifetime limit of £1m should mean that few people in the Western Isles will reach this threashold, and will be unlikely to face the 18% rate.
At present it is unclear if the limit is lifetime or only from 1 April 2008, and if it is the former then there are opportunities for tax planning before that date.
Taxpayers should remember that all gains from all sources will be affected by this limit, and should take advice accordingly.
Labels: Tax
posted by Angus at
12:11
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Returns filed on time will have an inquiry window that expires 12 months after the date on which the Return is filed, rather than 12 months after the latest date for filing. This is to encourage earlier filing.
The rules for late submissions are unchanged. The inquiry window remains open until the next quarter day (31 March, 30 June, 30 September or 31 December) 12 months after the date of submission of the Return.
posted by Angus at
16:32
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For instance, a supply of goods or services to a company in France should include a statement such as, "This an intra-community supply".
Where the supplies are exempt, it should read something like, "This supply is exempt from VAT."
Similar rules also apply for the second-hand margins scheme, the reverse charge and the Tour Operators Margin Scheme.
Labels: VAT
posted by Angus at
12:35
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Said Sue Nicolson, "We have worked closely with some multi-national companies over the past few years developing niche services. As a result of this, we have gained clients on the back of recommendations and the practice is growing rapidly as a result."
The most recent new clients in this particular area were previously advised by a "Big 4" firm, and Nicolson CA expect to need to recruit a number of additional staff as a result of this win.
Notes to editors: Details of the clients and the nature of the services are not being disclosed due to client confidentiality.
Labels: Foreign tax, Our Practice
posted by Angus at
22:36
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In its statement, HMRC said that businesses “must ensure that all reasonable steps are taken to get their VAT Return and any payment to Revenue and Customs on time”.
It continued: “However, VAT Returns and payments that are delayed by postal disputes will be viewed sympathetically.”
On the issue of surcharges for late payments, HMRC said: “There will be no liability to surcharge where the recent postal dispute has been the cause of the delayed payment and you usually pay by cheque.”
HMRC is reminding businesses that VAT returns can be paid electronically using BACS, Direct Credit, CHAPS and Bank Giro. Any businesses wishing to pay this way should contact their banks.
If a return has already been sent through the post along with any payment, businesses are not expected to take a duplicate to their local VAT office, but should wait for the return and payment to be delivered in the normal manner.
Where there is a localised strike or disruption, HMRC said that:“You may, exceptionally, take your VAT Return and payment to your local office. If you do this please ensure that your return and payment are submitted to the local office in the pre-paid envelope which Revenue and Customs has provided with your return. We do not recommend you do this if you wish to lodge a repayment return.”
In the case of repayments, HMRC said that it “will allow affected businesses to fax their repayment returns to VCU”. The fax number is 01702 366839. This facility will be available only until HMRC considers that the need for it has passed. If a business faxes its return, it should not then send in the original.
Businesses experiencing late payments because cheques from customers are delayed in the post “must account for VAT at the normal time”.
Labels: VAT
posted by Angus at
13:09
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Labels: Companies
posted by Angus at
11:39
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Labels: VAT
posted by Angus at
12:07
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| How late are the accounts delivered? | Penalty – private company | Penalty - PLC |
| Not more than one month | £150 | £750 |
| More than one month but less than 3 months | £375 | £1,500 |
| More than 3 months but less than 6 months | £750 | £3,000 |
| More than 6 months | £1,500 | £7,500 |
Labels: Companies
posted by Angus at
12:09
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From 1 October 2007, the statutory minimum annual holiday entitlement will rise from 4 weeks (20 days for those working a 5 day week) to 4.8 weeks (24 days). From 1 April 2009, all workers, including those working part time, will be entitled to 5.6 times their usual working week - capped at a maximum of 28 days. Employees will not have to work for a qualifying period. They will be entitled to the increased entitlement in full as soon as they start work. You will be able to restrict the rate at which they take leave in their first year of employment. You can include time off for bank and public holidays in the entitlement. Part-time workers must receive annual leave equal to 4.8 then 5.6 times their usual working week, regardless of what days of the week they usually work. The changes will not apply to you if by 1 October 2007 you: You must calculate the increases proportionally, depending on when your leave year starts. You can round up partial days to the nearest full day or leave them as such. You will not be allowed to round down a partial day. If both you and an employee agree to the arrangement, you will be allowed to carry over to the following year some or all of the additional holiday. You must include the additional holiday when you work out average weekly working hours.already pay all your full- and part-time employees for a minimum of 5.6 weeks of annual leave (though this figure can include bank and public holidays) do not allow payment in lieu of taking holiday allow the extra 1.6 weeks to be carried over for only one year - if you normally allow holiday to be carried over
posted by Angus at
16:05
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The sale of a fishing boat is zero rated so long as the vessel is: -
(1) Has a gross tonnage of over 15 tons, and
(2) Is neither designed nor adapted for recreational or pleasure purposes
VAT 1994, Sch 8 Group 8 Item 1 and Note 1A; SI 1995/3039
The sale of the licence or quote is standard rated. Labels: VAT
posted by Angus at
10:57
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For Geoff and Diana Jones and their company Arctic Systems, the long-running battle with the taxman over how the couple advantageously split the spoils of the business is over.
But for the government, advisers and businesses in a similar position to the Joneses, the fun has only just begun. The five Law Lords unanimously threw out HM Revenue & Customs’ challenge to the Joneses’ business structure.
Put simply, Mrs Jones owned half of the company, while Mr Jones carried out the main thrust of its IT work. The government said the structure was a ‘settlement’, a term denoting that a tax arrangement had been put in place with the aim of giving a ‘bounty’ to his wife.
If she had not been his wife and at ‘arm’s length’ in her relation to him, the set-up would not have existed and thus could be set aside for tax purposes, HMRC argued.
The upshot of the House of Lords judgment was that, even though it agreed there was a settlement, there was an exemption under the rules for ‘gifts’ between one spouse and another, which this fell into.
The result was widely welcomed by advisers and representatives of the small business community, even if the result related only to husband and wife businesses.
‘The CIoT is delighted that, after such a long battle, the Lords has confirmed that HMRC were wrong to attack husband and wife businesses in this manner,’ said CIoT fellow Anne Redston.
Further criticism of HMRC also followed the Lords outcome. Questions were raised as to why the taxman had not treated the battle as a test case and covered the Joneses’ costs, which were picked up by the Professional Contractors’ Group.
Others suggested that the verdict had been widely anticipated. ‘The outcome raises questions about why HMRC decided to contest the case in the first place and create enormous uncertainty for several years as the legal process was unravelling,’ said Ernst & Young tax partner Patrick Stevens.
‘Even if there was some doubt about the correct interpretation of the law, it had not been challenged by HMRC for many years. It may have been far simpler for HMRC to change the legislation, if that was the desired result.’
But despite advisers warning the government against a ‘knee-jerk reaction’ to the outcome, the Treasury has already announced that it will introduce new tax legislation in the next finance bill to stop ‘unfair’ income-splitting arrangements by some family businesses.
‘It is the government’s view that individuals involved in these arrangements should pay tax on what is, in substance, their own income and that the legislation should clearly provide for this,’ the Treasury said.
Grant Thornton senior tax partner Mike Warburton had thought the government would hold off announcing what would amount to a clampdown on small business. ‘If they removed the exemption it would be done at significant political cost,’ he said. ‘[The government] would be saying there should be a tax on hard-working couples’ businesses.’
But a clampdown, it appears, is on the cards. Geoff Jones believes it would have been sensible for the government to ‘take some time’ over its decision and consult to reach an agreement with all parties.
‘It makes them look like sore losers,’ said Jones. ‘It’s a recipe for future conflict, where do you draw the line? We need to know where the line is.’
It is difficult to know precisely where the Treasury will draw the line. Its description of income-splitting structures could apply to a huge number of common tax planning arrangements.
Redston agrees that it will be difficult to distinguish between ordinary family businesses and those that the government believes abuse the system. The arguments will no doubt continue up to the next finance bill, and beyond.
HMRC’s swift revenge
The government’s reaction to HM Revenue & Customs losing the Arctic Systems case has been swift.
The Treasury said that it would introduce legislation to stop ‘unfair’ income-splitting arrangements by some family businesses.
When couples enter into a business agreement that they would not normally do with someone else, to minimise their tax liability, then it results in an ‘unfair outcome’ that increases the tax burden on other taxpayers, the Treasury said.
‘The government will therefore bring forward proposals for changes to legislation to ensure this is the case. In the meantime, HMRC will apply the law as elucidated by the House of Lords and will be providing guidance in due course.’ Labels: Companies
posted by Angus at
18:39
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In the past, if the honest tax payer made an error in excess of £1m VAT, or an amount which represented 30% or more of the correct tax for the return period, they were liable to a misdeclaration penalty. The taxpayer was automatically exculpated in full if they voluntarily disclosed the error to HMRC or if they had a ‘reasonable excuse’.
The joining of the revenue and VAT arms of HMRC has seen the introduction of a single set of penalties to cover income tax, PAYE, corporation tax, VAT and NI contributions. This was included in the finance bill 2007 and will shortly become law, coming into operation for return periods commencing after 31 March 2008. At the same time, we will see the introduction of the ‘compliance spectrum’, which grades error according to the behaviour of the taxpayer.
Taxpayers will have to convince an HMRC officer that their error is innocent to which no penalty should be charged. This puts a lot of power in the hands of the officer responsible for supervising the taxpayer’s affairs. I will leave you to decide whether this is a good thing. If this fails, taxpayers can no longer achieve automatic exculpation by having made a voluntary disclosure. Also the ‘reasonable excuse’ statutory defence disappears altogether. For professional advisors this means the end of settled case law.
It is expected that not many officers will accept mistakes as innocent errors. Additionally under the new starting point for negligent penalties is 30% of the amount of tax due (an increase from the old misdeclaration penalty of 15%), following which the taxpayer can plead that the penalty should be mitigated down - again not great news for taxpayers.
These changes mean taxpayers who makes a full unprompted disclosure of an error no longer has an automatic nil liability to a misdeclaration penalty. Inevitably there will be litigation on issues such as an officer’s decision on where the taxpayer’s conduct falls under the ‘compliance spectrum’ or the level of mitigation to be allowed following a disclosure in order to re-establish the scope of what is reasonable.
The regime captures VAT registered businesses regardless of the size or the error. While there will be rights of appeal, many will lament the loss of a system where honest errors were only penalised if significant and full disclosure or reasonable excuse defences meant even those penalties could be readily avoided.
posted by Angus at
18:31
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The completion of these forms is quite straight forward, if you gather together all the necessary paperwork, and plan a bit in advance.
Section 1 require you to split the mileage by the relevant dates advised to you to cover the changes in the rebate rate announced in the budget. The eligible and dead Km's should be scheduled based upon the actual mileage on the route(s), so that the total can be reconciled back to the individual bus services.
Section 2 requires the full details of the of the total mileage travelled by all the vehicles during the period, along with the total fuel used. This is not just the service miles, and this tends to be the most common single error. The Department of Transport check the consumption rates and changes of more than 1 l/km tend to result in further enquiries.
Section 3 is the analysis of the service and dead kms by route, and must reconcile to Section 1.
Now sign the declaration and send the completed form to us - along with the supporting computations - for checking, signing and submission to the Department of Transport.
Top tips
Labels: BSOG
posted by Angus at
18:33
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Nicolson, Chartered Accountants, are reminding those who are renovating houses that they may be eligible to have building works charged at 5%, rather than the full 17.5% rate.
You may wish to draw your builders attention to VAT Notice 708 which has the full detail, but the key points are summarised below:
➢ The supply (is charged at the 5% rate), in the course of the renovation or alteration of qualifying residential premises, of qualifying services related to the renovation or alteration.
➢ The supply of building materials (is charged at the 5% rate)
if the materials are supplied by a person who, in the course of the renovation or alteration of qualifying residential premises, is supplying qualifying services related to the renovation or alteration, and
those services include the incorporation of the materials in the premises concerned or their immediate site.
A qualifying building is one that is a single household dwelling that has not been lived in for the past three years.
The building materials which can be supplied by your builder at 5% include most fittings' incorporated' into the building is such a way that its fixing or removal would either require the use of tools, or would result in the need for remedial work to the building, or would result in substantial damage to the good themselves. This can include fitted wardrobes, boilers, storage heaters, flooring (but not carpets), as well as the more usual supplies. You cannot obtain a reduced rate on materials you buy and install yourself, nor on 'white goods' or carpets.
posted by Angus at
17:57
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Nicolson, Chartered Accountants, are leading the way in providing support to businesses needing assistance with the new CIS scheme.
Sue Nicolson said, "We act for many businesses who are either Contractors or Sub-Contractors and we quickly became aware of the difficulties posed by the new CIS scheme. We have researched the situation thoroughly and we have already assisted clients in setting up the proper arrangements to ensure that they comply with the numerous requirements of the Inland Revenue."
"Getting it wrong is not an option - the penalties are potentially horrendous. We are in a position to help all those who will be impacted by this scheme, providing telephone support, on-line verification on behalf of Contractors, and assistance in lodging returns on time to ensure that the risks are minimised."
"Contractors who want to benefit from our expertise can phone us to discuss what we can do for them - and avoid all the hassle."
posted by Angus at
18:00
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Nicolson, Chartered Accountants, are celebrating the success of their website with hits passing the 100,000 per annum mark.
Said Angus Nicolson, "We are delighted to see that our website is considered useful and informative by clients and non-clients alike, and the number of hits demonstrates that."
"We have also managed to optimise the site for search engines, so that we are in the top 20 in Google when you search for 'accountants', appearing before every other Scottish firm. We pride ourselves on understanding the advice we give to clients and we have long been leaders in IT, and our website demonstrates the depth of our understanding."
Labels: Our Practice
posted by Angus at
18:01
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As you may have heard, we will shortly be moving to new premises at 49-50 Bayhead, Stornoway. These premises were formerly the Kitchen Centre, and are being redesigned to our needs. The rapid expansion of the practice has required us to find additional space for our staff, and the new location gives us about 6 times more room. However, we promise not to lose the personal touch with clients.
The official opening will be announced nearer the time, but proposed moving date is the 22nd of September with us open for business from the Tuesday following.
Labels: Our Practice
posted by Angus at
18:01
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The European Union have recently confirmed that employers can refuse to employ smokers without being guilty of discrimination.
Following enquiries by an MEP, the Commission ruled that the case of an Irish employer refuse to accept applications from smokers was not discrimination that was prohibited by the treaty, and consequently was permitted.
Sue Nicolson, HR Partner, said, " I would always advise employers to seek advice before taking any similar stance to ensure they comply with the legislation".
Labels: Staff
posted by Angus at
18:02
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Many businesses will have received an invoice from the "International Business & Trade Database" - this is not worth the paper it is printed on, and we recommend that you throw it in the bin.
The telltale signs of a scam are:
Labels: Our Practice
posted by Angus at
18:02
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We will be away on holiday for the two weeks 15- 30 May 2006.
Whilst we sun ourselves on the beaches of Greece, you can phone the office and find out how to reach us in emergencies. And we do mean real emergencies :-)
Our email is occasionally monitored at holiday@nicolsonCA.co.uk.
Labels: Holiday
posted by Angus at
18:03
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In his recent pre-Budget report, the Chancellor, Gordon Brown, signaled the abolition of the zero-rate band for Corporation Tax. Previously the first £10,000 of profits were effectively tax-free, now they face a tax charge of 19%.
Let's face it, this perk was just too good to be true, and it was only a matter of time before the Revenue realised just how much it was costing them.
But incorporation can still be highly beneficial to sole traders, as the following table shows:
Profits
Limited -
Old rules
Limited -
New rules
Sole trader *
£10,000 NIL £1,900 £1,334 £20,000 £2,375 £3,800 £4,334 £30,000 £4,750 £5,700 £7,334 £40,000 £7,125 £7,600 £10,448 £50,000 £9,500 £9,500 £14,548 £100,000 £19,000 £19,000 £35,048
* Assumes an individual under 60 on basic allowances only, and includes Class 4 NIC, but not Class 2. Based on 2005 rates.
The table clearly demonstrates the potential savings that can arise from incorporation, but you are advised to take specific advice before making any decisions.
posted by Angus at
18:03
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The office will be officially closed between Friday 23rd December and Wednesday 4th January 2006, inclusive.
However, we will be in between those times to deal with mail, payrolls and pressing issues, and you can phone the office and take pot luck on catching us. Probable hours are 11am to 3pm.
The office phones will be diverted to the mobile when we are closed, but we will not guarantee an instant response during the festive period.
Labels: Holiday
posted by Angus at
18:06
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Stornoway Port Authority have announced that Nicolson, Chartered Accountants have been appointed as their auditors with effect from the year ended 31 December 2005.
The Port Authority, which is incorporated by Act of Parliament, is a public sector body with appointed and elected Directors to represent the views of harbour users, and to protect and improve the harbour and surroundings.
The press release issued by the Port Authority is as follows:
Stornoway Port Authority announces the award of a contract for the provision of External Audit work to the firm of Nicolson Chartered Accountants of 34 Church Street, Stornoway.
Three local firms had returned tenders for the work, with the Board deciding, at a recent meeting to award the contract to the lowest compliant tender submitted.
Commencement of the new contract is effective as from the Financial Year ending 31 December 2005.
The press release can be found here.
Labels: Companies
posted by Angus at
18:04
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The rules are complex for some vehicles, so what follows is a general summary of the position.
All vehicles are cars, unless:
They have a payload of over 1 tonne
There is seating in the load area, which does not affect the predominant use of the vehicle as being for the carriage of goods
They are clearly vans e.g. have no rear seats, metal side panels to the rear of the front seats, a load area which is unsuitable for carrying passengers.
The problem clearly arises with "car derived" vehicles, such as crew cab pick-ups. With a payload of less than 1 tonne they are cars and liable to punitive taxation; above that and they are vans, and have a benefit in kind of £500 per annum. All VAT on the purchase of a van can be recovered. No VAT can be recovered on the purchase of a car.
Customs are developing a list of qualifying car-derived vans. Unfortunately, this is not yet available, and the latest guidance is here.
Labels: Tax
posted by Angus at
17:56
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A firm of Stornoway Chartered Accountants has launched the first ever scheme to provide tax investigation insurance to all its clients.
Unveiling the scheme, Angus Nicolson said, "This is an opportunity for clients to obtain very low cost cover against all the fees they might incur in defending a tax, VAT or PAYE investigation up to a maximum of £75,000. We have been looking for such a scheme for a long time, and have already offered it to every client. Today, we are publicising the scheme, and offering new clients the opportunity to cover themselves against one of the most stressful events that can happen to a taxpayer."
Sue Nicolson added, "After a long hard look at the market, we were able to identify a scheme that allows us to offer a flat rate premium to every client, based not on their turnover, but on the type of taxpayer they are. We have been able to offer this - at less than a fifth of the cost of preparing an average Tax Return - because of the insurers view of the quality, consistency and nature of our operation, and consequently the risks for our clients.
The scheme is only open to clients of the firm. All existing clients have been offered the policy at a special reduced rate, and new clients will pay a standard annual charge of under £50 for individuals, directors and partners and under £150 for limited companies and partnerships.
Said Angus Nicolson, "We continue to offer new and innovate approaches to business advice, whilst never losing sight of our clients' core needs."
Note:
Further details of the scheme is available on request. The policy does not cover any penalties or underpaid tax arising from an investigation.
Labels: Our Practice, Tax
posted by Angus at
17:45
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We are away on annual family holiday from Monday 12 September to Monday 27th September, inclusive.
During this period, calls to the office will be directed to an answering machine where further instructions are available. Alternatively, you can email us at holiday@nicolsonCA.co.uk which we will monitor occasionally.
We will be taking the office laptop on holiday with us, in case of emergency, but we will charge any work undertaken at a substantial premium. Download sppeds are very poor, so please only send small documents.
Labels: Holiday, Our Practice
posted by Angus at
17:56
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Western Isles businesses are expected to pay an extra 16p per litre of petrol used by employees as a result of a case won by the European Commission in the European Court of Justice in March 2005. In essence, the decision will no longer allow employers to reclaim VAT on the fuel element of mileage allowances paid to employees.
Labels: Tax
posted by Angus at
17:53
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