October 2011 EZine

Welcome to the October edition of our e-zine. This month, we bring you information on VAT, pensions and HMRC's business records checks, along with our regular Sage tip and news on the team here at Stewart, Fletcher & Barrett. Halloween may be around the corner, but managing your tax affairs doesn't have to be scary!

Paul Carvell
Stewart, Fletcher & Barrett

Hinckley Partner's Charity Walk

Jon Sargent, partner at Stewart, Fletcher & Barrett, undertook a 10 mile walk through the Yorkshire Dales on Saturday 8th October in aid of Round Table Children's Wish. This is a small, national charity that grants wishes to children with life-threatening illnesses.

Jon explains: "Children's Wish aims to bring a little bit of magic into the lives of these children by using the money from various fundraising endeavours to help create some special moments and memories for them. It's a fantastic organisation, and I'm proud to be able to help in this way."  

Round Table Children's Wish charity was formed in 1990. To date, it has granted in the region of 1400 wishes, and has brought smiles to the faces of some very poorly children. 

Anyone who wishes to sponsor Jon can do so by calling Stewart, Fletcher & Barrett on 01455 633966. You can find out more about Round Table Children's Wish and the work that it does by visiting www.rtcw.org.

VAT - Are You Registered?

People who attempt to avoid VAT rules had until 30 September to register to pay what they owe under a new HMRC campaign. This focuses on individuals and businesses trading above the VAT registration threshold - a turnover of £73,000 - but who have not yet registered. Specific sectors to be targeted by the taxman include construction, business services, hair and beauty, hotels and catering, retail distribution, recreational services, motor vehicle distribution and repair, sanitary and domestic services, agriculture and horticulture, property and road haulage.

Under the terms of the VAT Initiative, those who have not registered to pay VAT could come forward at any point up until 30th September to tell HMRC that they want to take part. If they make a full disclosure, most will face a low penalty rate of 10% on VAT that has been paid late. After this date, however, HMRC will begin investigating those who have failed to come forward, and substantial penalties and even criminal prosecution could follow.

Sasha Wickham, Tax Manager at Stewart, Fletcher & Barrett, advises: "While most people do register for, and pay, the correct amount of VAT, there are still a large number of individuals and businesses who have not yet addressed this issue - and they could soon find themselves falling foul of the law. Those coming forward are invited to also disclose any other tax arrears. Where they have to pay a penalty on undeclared tax other than VAT, this will be lower than the customary penalty of up to 100 per cent charged to those who fall outside the opportunity. However, the Revenue appear to be using scare tactics - forcing people to rush into making decisions. We urge anyone who thinks this may be relevant to them to pick up the phone and give us a call before they act."

Stewart, Fletcher & Barrett Supports 'Breastacular' Event

Stewart, Fletcher & Barrett showed its support for the local breast cancer care unit by sponsoring a table at the 'Breastacular' charity dinner and auction on the 16th September.

The event included a champagne reception, dinner, auction, raffle and live band, and was held at the Ambleside Club in Nuneaton. It was organised by a group of local ladies under the 'Breastacular' name: Angela Hammonds, Paula Inglis, Louisa Bosworth, Gemma Brining, Rachael Stinton, Rachael Clarke, Fiona Brown and Anna Riley.

They describe themselves as: "just a group of Nuneaton Girls who would like to arrange a dinner to support the Breast Cancer Care Unit at George Eliot Hospital." The aim of the event was to raise money towards buying a Sentenial Node Biopsy machine costing £15,000.

Angela herself has just recovered from two years of treatment for breast cancer, and was treated at the unit, as were her mother and her sister. She explains: "This is a way of repaying and supporting the unit and the brilliant service they provide for women in the Warwickshire area."

All 16 tables were sponsored by local businesses, who have also contributed by providing auction and raffle prizes including a stay in a holiday cottage in Cornwall, an Aston Martin for the weekend and a helicopter ride.

Senior Partner Paul Carvell said: "We are really pleased to be able to support Angela and the other Breastacular ladies in this fundraising effort. They have done a sterling job organising this event. We will be keeping a collection tin in reception after the event so that anybody who wasn't able to attend and wishes to make a donation can do so."

Loni's Sage Tip

Do not use nominal code 9999, as it is for use in some internal processes of Sage. Post any transaction that you cannot properly identify to account 9998 instead.

State Pension Age Set To Rise

It has been reported that the government will bring forward an increase in the state pension age to 67 under radical plans designed to prolong the working life of millions of people aged 50 and under. Ministers are already pushing controversial changes through parliament to raise the age at which men and women can claim a pension to 66 by 2020. Now, as the government moves to keep up with ever-increasing life expectancy, the retirement age could rise to 67 as early as 2026 - which would affect 8.1 million people in their 40s who would otherwise have expected to retire at 66.

Pensions Minister Steve Webb has stated that further moves are necessary, and that the coalition government will discard the former administration's timetable, under which the pension age was to be increased to 67 in 2036 and 68 by 2046. He has described the timescales for 67 and 68 as 'too slow', and explained: "If it is 67 in the mid-2030s we will be going backwards in terms of share of your life in retirement. I mean the problem would be worse than 20 years before."

Martin Lindsey, Director of Stewart, Fletcher & Barrett Wealth Management, notes: "It has become clear that more needs to be done to avoid a major pensions crisis. With average life expectancy rising by, on average, two and a half years every decade, it is not surprising that some tough decisions have to be made, and quickly. Obviously this is a worrying issue that affects many millions of people, and any increase to the state pension age needs to be handled in such a way as to ensure that people have enough time to plan for the change."

If you would like some advice or help with pensions, retirement or planning for your future, call SF&B now on 02476 384171.  

Studies Pay Off For Emily

Stewart, Fletcher & Barrett is celebrating its latest success story, as accounts clerk Emily Smith, who has been with the firm for more than six years, has just achieved her ACA qualification. This, following on the heels on her AAT certification, means that she is now a fully-fledged chartered accountant - and all at the age of only 22!

Emily explains: "After a total of six years spent studying, I am incredibly pleased to gain my full professional accreditation - although it has been a long journey, and sometimes it has been difficult juggling my studies with a full-time job." In fact, not only has Emily been juggling her work and her studies, but she also recently married her fiancé Sean - so she has had a lot on her plate! "Things have been a bit hectic over the past couple of months," she admits, "but I've made it through with the support of my family, friends and employer. I'm now looking forward to getting on with the rest of my career - and with married life!"   

Partner Peter White commented: "At Stewart, Fletcher & Barrett, we pride ourselves on our long-established record of supporting junior team members in the acquisition of their professional qualifications. We like to think of this as investing in our future, as well as helping our staff to develop to their fullest potential. Emily really does deserve to celebrate - she is still very young, but has worked extremely hard, both at her studies and in her role here at the practice, and we are all very pleased for her."

Would You Fail A Business Records Check?

HM Revenue & Customs (HMRC) has announced an extension of its business records checks programme - after the pilot scheme found that around 44 per cent of businesses visited had issues with their record-keeping, while around 12 per cent of those visited had seriously inadequate records. Business records checks were piloted earlier this year in eight key areas, and involve checks on the adequacy of small and medium-sized enterprises' business records.

HMRC will employ 120 full-time staff to implement the programme, and plans to complete up to 12,000 business records checks by the end of the current financial year, with 20,000 provisionally planned for 2012/13. Initially, only the most extreme cases of poor record-keeping will incur a penalty - however, in the longer-term, HMRC intends to issue penalties of up to £3,000 for serious inadequacies in record-keeping.

Adam Bexon, partner at Stewart, Fletcher & Barrett, said: "The importance of good record-keeping cannot be overstated. It will help you pay the right amount of tax - no more and no less - thus helping you to avoid interest and penalties. Keeping adequate records will give you a clearer idea of your financial situation, which allows you to make business decisions that will give you the best chance of success."

Research by the Organisation for Economic Cooperation and Development (OECD) indicates that poor business record-keeping generally leads to an underassessment of tax, even where there is an audit-type check into a return for the period covered by such records. On this basis, poor business record-keeping is responsible for a loss of tax in up to two million SME cases annually.

If you are worried about failing a business records check, why not try out our free online business records checker here: http://www.sfb.uk.com/business-record-checker.htm

UK Trade & Investment - Why Export?

Please click here to download our UK Trade & Investment - Why Export? presentation.

 

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