May 2011 EZine

Welcome to the latest edition of our EZine - and to the new tax year! We hope that you have weathered the storms of 2010/11, and look forward to helping you achieve your goals in 2011/12 and beyond.

Paul Carvell
Stewart, Fletcher and Barrett

The Taxman Cometh!

New rules came into force on April 6th which mean that anyone filing a late tax return will face significantly higher penalties than before. Because of this, it is now more important than ever to make sure that we receive all of the relevant information in time to beat the deadline.

HM Revenue & Customs is increasing the amount levied because the former £100 penalty did not present enough of a deterrent. Under the new regime, filing a tax return late will incur an initial £100 penalty on day one, even if you have no tax to pay or you have already paid all the tax you owe. If your return is filed three months late, you will be charged an automatic daily penalty of £10 per day, up to a maximum of £900. For returns filed six months late, the penalty will be either 5% of the tax due or £300 - whichever is greater. The same penalty will then kick in again at 12 months late and, for those who still haven't filed once the 12-month deadline has passed, another potential fine of 70% of the tax outstanding will apply.

At Stewart, Fletcher & Barrett, we work with you to ensure that your returns are filed electronically (as is now required), accurately and on time.

If you need any help with your tax return, please call us on 02476 384171.

Accountants Raise Funds For Air Ambulance

The new tax year got off to a flying start for the Warwickshire Society of Chartered Accountants, which managed to raise in the region of £2,000 for the Warwickshire & Northamptonshire Air Ambulance (WNAA) at its annual dinner. The charity was chosen by Peter White, partner at Stewart, Fletcher & Barrett and incumbent President of the Society, as this year's beneficiary of the fundraising event.   

Held at Ardencote Manor Hotel on 7th April, the dinner saw Geoff Miller, former England cricketer and National Selector for the England & Wales Cricket Board, bowl the crowd over in his capacity as guest speaker. The money was raised via a raffle and an auction, where the lots included tickets for the Edgbaston Test Match.

WNAA was established in 2003 and exists to provide a Helicopter Emergency Medical Service (HEMS) to the counties of Warwickshire, Northamptonshire and the Milton Keynes area. It doesn't just transport patients to the nearest hospital - the service routinely carries senior doctors and consultants to the scene of incidents in just minutes, providing life-saving treatment and medication at the scene and en-route to hospital.

Peter White explains: "I chose the WNAA because it provides a hugely important, life-saving service and, despite being the busiest air ambulance in the UK, it is entirely reliant on public donations, fundraising activities and sponsorship."

Fundraising Manager Jo Payne confirms: "Each rescue mission we carry out averages a cost of £1,400, and the annual basic running cost of the service is over £1.7 million. As a registered charity we depend upon the generous support of the local community, and events like this help us to continue to save lives."

For more information on WNAA, including how to make a donation, please visit www.wnaa.co.uk

iXBRL - Are You Ready?

Are you still producing accounts in Word or Excel? Is your accounting and tax software iXBRL-compliant? Did that last sentence leave you slightly bewildered? Fear not - SFB is here to help!

As of 1st April this year, HMRC will only accept accounts in a data format known as Inline XBRL (iXBRL). The same is now required of all Company Tax Returns - including the return form, company accounts and tax computations.

This may be something you've already prepared for - in which case, you may as well give yourself a pat on the back and go off to make a cup of tea.

However, there are plenty of people who are either unaware of or unprepared for the new rules. It's certainly not the best timing for small to medium-sized businesses already struggling with the current climate - but the sooner the matter is dealt with, the better.

And, although the transition to iXBRL may be a pain at first, there will be long-term advantages. The system means that complex processes can be carried out quicker and more efficiently, so it should end up saving you time and money.

We can help you produce iXBRL-compliant accounts and tax returns. Just give us a ring on 02476 384171 and we will be delighted to provide you with a quote.

Loni's Sage Tip

Now you can set up and manage businesses on both invoice and cash-based flat-rate VAT schemes.

Out with the old..?

Did you know that with effect from the 1st October 2010 you can no longer compulsorily retire employees at 65?

With the introduction of new legislation the default retirement age of 65 is being scrapped. Only employees who have been notified before 6th April 2011, and are due to retire before 1 October can be compulsorily retired.

Developments in employment legislation over the last few years have tried to encourage employers to enable valuable employees - who would otherwise have been compelled to retire - to work beyond the age of 65. Up until now, employers retained the right to refuse a request to allow employees to work beyond the default retirement age.

The changes in this legislation will have significant implications for businesses of all sizes. Employees can still choose to retire, but employers can no longer use retirement as a fair reason to end somebody's employment. Employers wishing to terminate someone's employment will have to ensure that the reason behind the dismissal is due to conduct, capability, redundancy or some other substantial reason.

Non-compliance can lead to a claim of unfair dismissal, and an Employment Tribunal may award successful claimants up to £65,300.

Here at SFB HR Support, our trained advisors work within the law to further your company's agenda. If you have any questions in relation to the changes in handling retirements or any other general HR queries, please call us on 02476 384171 to find out more.

Fraud - Don't Be A Victim

Local business people should be aware of a scam that is currently doing the rounds. Potential victims are being contacted by fraudsters claiming to be suppliers awaiting payment for goods or services. The fraudsters' MO is very simple - they provide alternative bank account details, along with a request that all future payments are sent to the new account. These accounts do not belong to genuine suppliers. They are instead accessed by fraudsters, and the money is siphoned off.

To avoid this happening to you, you should carry out an independent check with any 'supplier' if you are asked to change the beneficiary bank account details. However, make sure you do NOT use the phone number provided in the request. Instead, you should contact your supplier using details from your own internal records, or from an independent source.

Equally, if you are a supplier and you are due to receive a large payment from a creditor it may be a good idea to contact them to confirm that they have not received any instruction to amend your bank details.

If you DO identify a fraud attempt, you should report the matter to the police immediately.

Carl's A Certified Success

Stewart, Fletcher & Barrett is pleased to announce that team member Carl Malcolm has just achieved his ACCA qualification after two and a half years of study. ACCA is the global body for professional accountants, and Carl has now earned the title of Chartered Certified Accountant.

As the largest independent accountancy practice in the area, SFB has a long-established record of supporting junior team members in the acquisition of professional qualifications.

25 year old Carl, who is based at SFB's Nuneaton office, came to the UK from South Africa at the age of 18 in 2004 and decided to pursue a career in accountancy. He explains: "I developed an interest in business and finance at an early age, mainly due to my family background. When I immigrated to the UK I decided that, rather than enrolling at university, I wanted to start my career in a more practical, hands-on way. I joined Stewart, Fletcher & Barrett as an apprentice in 2005, when I began studying towards my Association of Accounting Technicians accreditation. Once I had completed that, I commenced study for my ACCA qualification at BPP in Birmingham in 2008. Accomplishing this has given me a real sense of personal achievement, and I look forward to being able to provide an even better level of service for our clients."

Senior Partner Paul Carvell commented: "We are all delighted with Carl's success. As with any of our other staff members who are currently working or have worked towards their professional qualifications, we recognise how difficult it is to study whilst holding down a demanding full-time job. It requires dedication and a certain amount of personal sacrifice, and we are extremely pleased that all his hard work has now paid off."

 

 

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