August 2011 EZine

Welcome to the August edition of our e-zine! It may be the silly season, but we have managed to include some practical advice for you this month on the Bribery Act and PAYE, as well as some news about what we've been up to - along with a special offer...

Paul Carvell
Stewart, Fletcher & Barrett

Bribery Act - Be Prepared

Do you have a clear and effective anti-bribery policy in place? If not, whether your business is big or small, you'd be best advised to look at this as a matter of urgency, as the new Bribery Act came into force as of 1st July this year!

This legislation represents one of the biggest changes to UK laws regarding business and commerce for decades, and getting it wrong could end up costing you a lot more than you bargained for - as the maximum penalty for bribery will rise from 7 to 10 years imprisonment, and/or an unlimited fine. However, if a company can demonstrate that it has adequate procedures in place for the prevention of bribery, the fact that it is using its best endeavours to comply with the law will offer a good degree of protection.

The Bribery Act replaces existing anti-corruption rules, and introduces a new corporate offence of 'failure to prevent' bribery. This means companies that cannot demonstrate that they have implemented  adequate procedures to prevent corrupt practices could be exposed to unlimited fines as well as other collateral consequences, such as debarment from government business.

This is yet another layer of red tape for beleaguered businesses to negotiate, but once again there is no excuse for not knowing it. Stewart, Fletcher & Barrett is committed to trying to get the message across to government that red tape is ruining businesses. Indeed, senior partner Paul Carvell has raised these concerns with MPs in the House of Commons.

He explains: "What you need to know is that the definition of what constitutes bribery is actually far wider than ever before, and encompasses things that may have previously appeared innocuous. It is vital for businesses to realise that bribery is a lot more than just a legal issue - it demands a holistic approach that includes ensuring you have the right processes, controls and company culture. Unfortunately, this is likely to represent yet another cost to businesses."

If you would like to find out how we can help you minimise that cost, call us on 02476 384171.

To add your voice to the new government initiative aimed at cutting red tape, visit the website: http://www.redtapechallenge.cabinetoffice.gov.uk/home/index/

Hinckley Summer Sizzler

The holidays got off to a sizzling start at our Summer Fun Barbecue in Hinckley last month. Held to introduce the firm to the town's business community, the event featured a charity raffle, business card draw, cocktail-making and barbecue sauce/salsa-making demonstrations, as well as complimentary drinks and barbecue food. The top prize for the raffle was a meal for two kindly donated by Praha, the venue the event was held in, and all money raised went to the Derbyshire, Leicestershire & Rutland Air Ambulance.

We'd like to thank everybody who attended for helping to make the event such a success.

Loni's Sage Tip (August)

Under the Help menu go to Shortcut Keys. A window will appear which shows you what functions the F keys will carry out if pressed, e.g. to delete a line, press F8; F2 will bring up the calculator, etc.

PAYE Tolerance Level Slashed

People who have underpaid due to PAYE errors will soon find themselves being chased up for smaller sums, as H M Revenue & Customs is to slash the current L300 'tolerance' level to L50.

When it was introduced last year, the National Insurance & PAYE System (NPS) led to a huge number of errors for 2008-09 and 2009-10, which have affected an estimated 15 million people. As a consequence, HMRC agreed to write off the debts of taxpayers who owed less than L300. Now, however, this is set to change, as the taxman has announced that this sum will be reduced to L50 for the estimated 1.2 million people who underpaid tax in 2010-11.

An HMRC spokesman said: "We've used a tolerance since PAYE was introduced to achieve a balance between the costs of sending out tax calculations for relatively small amounts of tax with the cost of that work to the taxpayer. The six-fold increase to L300 was always intended as a temporary measure while we reconciled two years at one time. That work is now complete so it's only right that we return the threshold to its normal level."

Because of this, taxpayers are likely to see more and more P800 tax calculations being issued, which could be problematic for employers operating weekly or multi week payrolls who have processed a week 53, 54 or 56, as the Revenue's new computer system does not recognise these additional weeks - and can therefore make no additional allowance for the underpayment of tax.

The announcement is also likely to hit vulnerable groups hard. For example, some pensioners on low incomes, who may have had their payments written off in the previous two years, will find they will have to pay the accrued limit. However, HMRC insists that there are schemes in place to help those who may encounter difficulties in paying - despite its decreasing leniency in such situations.

If you would like more information about how this could affect you, call one of our experts now on 02476 384171.

Entrepreneurs vs. Accountants

As an entrepreneur, you probably have an entirely different mindset to most accountants. You have to consider all aspects of the broader picture, while your accountant is most likely to be concerned with highly specific details. Your business is your baby, but often it can feel like you are just another set of accounts to them. How can they possibly understand where you are coming from when your concerns are so different from theirs?

When you start to work with a particular accountancy firm, you are beginning a relationship that will - hopefully - be mutually beneficial. If it is to work, then there must be sufficient understanding and empathy between the two parties, and trust must be established over time. In order to achieve this, communication is the key. In other words, your accountant should be someone you feel you can talk to.

While many accountants consider the human element of their service offering to be less important, a good one will realise that building a successful relationship with a client requires effective two-way communication. On their part, they will happily take the time to explain anything you don't understand, rather than jealously guarding their specialist knowledge as if it were so much gold dust.

At Stewart, Fletcher & Barrett, we understand that business is about more than just the money - it's about people, and product, and passion too. You and your business have your own unique and specific needs, and we make it our business to understand them. To get the ball rolling, call us for an initial chat on 02476 384171.

Update - Loni In London

Thursday 30th June saw our Loni & Paul (together with Loni’s trainer, Karen from CWT) attend the National Apprentice of the Year Awards. Having already won Regional Higher Apprentice of the Year, Loni just missed out on the national title, but a good night was had by all.

No More Time To Pay?

Business who are struggling to pay the taxman have been dealt a severe blow by the news that there has been a huge increase in the number of 'Time to Pay' (TTP) arrangements being rejected by HM Revenue & Customs.

According to recent figures released by HMRC, 3,390 TTP requests were refused in the first three months of 2011, compared to 2,440 in the same period in 2009 and 2,360 in 2010.

Only 32,900 requests were agreed in the first quarter of this year, compared with 82,000 in 2009 and 57,800 in 2010.

HMRC said that the scheme "continues to be available to help companies address short-term cash flow difficulties that result in an inability to pay their tax in full and on time". It also claimed that the criteria determining whether arrangements were agreed or rejected had not changed in any way.

However, many professionals (including ourselves) see this as yet another sign of HMRC's tough new approach towards individuals and businesses who are already struggling in a harsh economic climate. Even requests with secure guarantees  are being turned down, and deals are being restricted to payments within three months. Those who have not previously had a TTP arrangement in place are far more likely to have a request accepted than companies that have already been subject to one.

If you are worried about any difficulties with tax payments, it is a good idea to have a plan in place. Talk to one of our experts to find out we can help you with this.

Health Screen Discount Offer

Stewart, Fletcher & Barrett, Health Matters and BUPA Wellness have teamed up to give our members an exclusive 25% discount off the standard health screen retail price. This is an unbeatable discount which is only for a limited period.

Click here to download the flyer in PDF format.

 

Stewart, Fletcher & Barrett
www.sfb.uk.com