September 2011 EZine

Welcome to our September edition. The schools are back, the leaves are turning and, for most of us, work is beginning to pick up the pace again after the summer break. To reflect this, we have a bumper issue this month, covering important business and tax information as well as news from us. I hope you find it helpful!

Paul Carvell
Stewart, Fletcher & Barrett

Providing Exceptional Solutions

Stewart, Fletcher & Barrett is proud to announce that it has adopted a new strapline to take the firm forward with renewed purpose and vision. After a period of deliberation and consultation, staff have chosen to sum up the company ethos with the slogan 'Providing exceptional solutions.'

Senior partner Paul Carvell explains: "We felt that we had evolved beyond our old strapline, and wanted to encapsulate the spirit of the Stewart, Fletcher & Barrett Group in the 21st Century. So I asked the whole team to think about what it is that we do that makes us special, that sets us apart - and, after all the votes were counted, we found a clear winner.

'Providing exceptional solutions' is exactly what we strive to do for every single one of our clients - we pride ourselves on going the extra mile in order to achieve outstanding results. We aim to exceed expectations by delivering personally tailored, proactive solutions, and by selecting this new strapline we hope to make this ethos clear to everybody who engages with the SF&B brand. It was decided by all of our employees, so we know that they will live and breathe it - it will show that we do what it says on the tin!"

Report Finds Considerable Dissatisfaction With HMRC

A recent report by the Treasury Committee into the administration and effectiveness of Her Majesty's Revenue & Customs has found that there is 'considerable dissatisfaction' among the public and tax professionals alike with the service provided by the Department - to the extent that concerns have been raised that, if the situation continues, it will severely undermine respect for the whole tax system.

The report identified three particular areas of dissatisfaction: access to advice over the telephone; responses to post; and offline alternatives to internet-based filing and guidance. It concluded that 'there is a serious risk that if communicating with HMRC becomes too time-consuming, difficult and expensive, respect for the tax system, and with it voluntary compliance, may be undermined.' The report also dismissed claims by the Department that these problems are primarily the result of reconciling of multiple PAYE tax years at once, as the current state of affairs has 'been building for some years now.'

Stewart, Fletcher & Barrett's senior partner Paul Carvell commented: "While it is clear that HMRC is operating under significant pressures due to government cuts and the implementation of new legislation, at the same time businesses all over the land are struggling to deal with these issues too. There are certain levels of accuracy, efficiency and professionalism that one expects from an official government body, and unfortunately it is apparent that HMRC is letting these standards slip more frequently than in the past - as has been illustrated by the growing number of embarrassing incidents appearing in the press recently.

"As communication problems have emerged as the key factor in this report, now more than ever, anyone who has dealings with HMRC could benefit greatly from using a qualified tax agent who has the breadth of knowledge and experience required to achieve the best results when it comes to communicating with the taxman."

To speak to a tax professional about how Stewart, Fletcher & Barrett could help you in your dealings with HMRC, call us now on 02476 384171.

Help Cut Red Tape

Bogged down by bureaucracy? Floundering in a sea of forms? If you're a business owner, red tape can present a frustrating set of hoops to jump through. However, a new government initiative aims to reduce this burden by opening up a dialogue with business people to discover which regulations are working and which aren't, as well as what should be scrapped, simplified or done differently.

The Red Tape Challenge aims to get rid of some of the 21,000 rules that the government believes are holding back businesses. Every few weeks regulations relating to a specific sector will be published on the website (see address at bottom of article), along with general regulations that relate to all sectors, such as those on equality or health and safety. People are then free to visit the site and pass comment. Their thoughts will be collated by officials and ministers will then have three months to decide which regulations they will scrap. The process will run from April 2011 until April 2013.

Small firms in particular are struggling with the problem of excessive regulation, and a new Chambers of Commerce report found that a significant proportion would employ more staff if this was reduced - which would ease the burden on the economy and help to lift the country out of recession. The survey says that employment legislation, such as pension requirements, dismissal rules and sickness absence rules, deter sole traders from taking on their first employee.

Paul Carvell, senior partner at Stewart, Fletcher & Barrett and incumbent chair of the north branch of Coventry & Warwickshire Chamber of Commerce, comments: "This scheme represents exactly the type of two-way discourse that I have long argued for in talks with MPs and the business community. It is an extremely positive step forward, and I for one welcome it and urge business owners to get involved and make their voices heard."

Help cut pointless rules and regulations by telling the government what YOU want to see changed: http://www.redtapechallenge.cabinetoffice.gov.uk/home/index/

New Faces!

Stewart, Fletcher & Barrett has welcomed three new faces on board over the past few weeks. Paige Howitt, Amy Lloyd and Jordan Doherty are now part of the team at SF&B's Nuneaton office on Manor Court Road, and are looking forward to developing their careers with the flourishing firm.

18 year old Paige is very happy with her new role: "I have always wanted a career and to work in a profession rather than a job. Accountancy allows you to achieve measurable goals - and there is a lot to learn, so to have the support of colleagues, managers and partners is great."

Amy Lloyd, 21, concurs: "Since I joined Stewart, Fletcher & Barrett I've been made to feel really welcome, and I'm looking forward to getting all of my accountancy qualifications under my belt."

Jordan Doherty, 18, says: "I've always liked numbers and accountancy is a good profession to get into. On top of that, everybody here is nice and helpful, so I'm really pleased to be part of the team."

Senior partner Paul Carvell explains: "These appointments have been made in order to help us keep pace with the amount of new business we have been winning recently. Paige, Amy and Jordan all demonstrated excellent potential at interview stage, and we will be supporting them every step of the way along their journey to become fully fledged accountants."

(L-R) Paige Howitt, Jordan Doherty and Amy Lloyd join Stewart, Fletcher & Barrett

Loni's Sage Tip

Do NOT try to delete saved transactions - this is very dangerous and should not be attempted.

Arrests Made As Taxman Gets Tough

Following a recent tax amnesty and subsequent clampdown, five plumbers have been arrested and around 600 are under civil investigation by HM Revenue & Customs (HMRC) for failing to pay the right amount of tax. Some of those involved are alleged to owe up to £150,000, and more raids are due to take place over the coming weeks in the Midlands, Yorkshire, Kent, Cambridgeshire, Tyne & Wear and South Wales. But this is merely the tip of the iceberg. 

Paul Carvell, senior partner at Stewart, Fletcher & Barrett, comments: "These arrests send a clear message that HMRC will take action against people who try to avoid paying the tax they owe.  Indeed, it has been reported that HMRC is considering hundreds of further cases for criminal investigation in the plumbing industry.  Previously, campaigns have targeted doctors, dentists and restaurant owners and staff, and the investigations are set to continue, with other industry sectors to follow. On top of this, HMRC is now planning a similar campaign for people that should be VAT registered and are not. If this applies to you, be warned - the deadline for registration is 30 September 2011."

Further HMRC campaigns targeting private tutors and e-marketplaces will begin during the next year. Those who believe forthcoming campaign activity might apply to them and who want to come forward now and voluntarily disclose unpaid tax are advised to call 0845 601 5041.

Stewart, Fletcher & Barrett can help to minimise your tax bill legitimately, helping you to avoid penalties and fines. We also offer Tax Investigation Insurance, which will cover you for any professional costs arising from an HMRC investigation. Call us on 02476 384171 to find out more about how you can protect yourself.

Audits - Nothing To Be Scared Of!

If your company's turnover exceeds £6.5m, you will be required by law to undergo an accounts audit. This is an official, independent inspection of your business accounts carried out in order to evaluate your financial systems and records, and to ascertain the validity and reliability of the information provided by them. An auditor will assess whether they have been prepared in accordance with Company Law, and whether they provide a true and fair reflection of your financial situation. 

The knowledge that your business is facing an audit can be enough to induce anything from mild apprehension to outright fear - even if you've been straight down the line with your finances. People worry about minor mistakes or genuine errors that may have occurred, and the consequences that may befall them should any miscalculations come to light.

However, if the right firm is appointed, an audit is very rarely as daunting as it may seem at first. As with everything, the more audits a firm does, the better a job it will do for its clients. Rather than being a costly yet ultimately pointless exercise, an audit can actually be turned into a highly worthwhile activity. After all, if your company exceeds the required turnover, an audit is not optional - so it makes sense to get the most value out of it.   

Many accountants perform audits very rarely - if at all - because they lack clients with a high enough turnover. This may be true in your case, especially if you have never had to undergo an audit before. You may simply have outgrown your old accountant, or perhaps it would just make more sense to have your audit conducted separately from your accounts package.

To speak to a member of our team about audits, call now on 02476 384171.

HMRC In Gobsmacking New Blunder

In a development straight out of a Seventies sitcom, H M Revenue & Customs has failed to send out around half a million tax reminders - because it ran out of paper.

The farcical development may amuse many, but it means those people may have forgotten to pay their final demands by the 31st July deadline. In mitigation, though, the taxman has stated that taxpayers who have not received a reminder have 30 days to pay from the date it is finally delivered.

Four times more people than last year owe money on bills that should have been paid in January. They were expected to pay the money owed by July 31, but HMRC did not order enough paper for reminder letters.

An insider has been quoted as saying: "It is a shambles. They have literally run out of paper to send out the reminder letters." Red-faced revenue bosses admitted the gaffe at the end of July, and there has been speculation that staff cuts are to blame.

A spokesman for Revenue and Customs said: "We very much regret any inconvenience. The statements will now be sent out as soon as possible."

Thank goodness for that - if anyone else's business was run like this it wouldn't  last two days...

20 Years Service For Lindsey

It was a day to celebrate on Friday 2nd September as Senior Manager Lindsey Chinn marked 20 years of working for Stewart, Fletcher & Barrett. She was presented with a bouquet of flowers by partners Adam Bexon and Peter White. We hope she'll be with us for at least 20 more!

Peter and Adam present Lindsey with flowers.

Is your business looking towards the future?

If somebody told you that there was a simple way you could cut costs while improving the efficiency of your business and creating greater flexibility for you and your workforce, would you think their head was in the clouds?

In fact, that is exactly where it could be. Cloud computing is more than just a buzz-phrase - it has been heralded as the future of IT, with a recent study revealing that the majority of organisations globally are either already embracing the cloud or plan to over the next five years.

But first of all, let's define what we mean by 'cloud computing'. Put as simply as possible, it is  the supply of computational resources on demand via the internet - meaning that even the smallest firms can enjoy the benefits of big business infrastructure without having the burden of capital investment or having to manage it directly themselves. Cloud providers will usually charge a monthly per-user fee, and you can pick and choose which applications and packages you use.

So what are the benefits of the cloud when compared to traditional, in-house computing?

1. Freedom / flexibility of location
2. Lower initial set-up costs
3. Lower overheads
4. Instant scalability
5. Greater speed and efficiency
6. Guaranteed security

With cloud computing, you can access your own personal desktop from any location with an internet connection. There is no requirement for the same hardware and resources as if you were using physical servers. Because of this, you can avoid the initial infrastructure set-up costs as well as greatly reducing outlay on power and maintenance.

The flexibility it affords is key to the appeal of the cloud. Not only can you work anywhere, you can also scale your provision up or down in an instant. Want to increase the number of desktops, or add a new software package?  No problem - these can be instantly provisioned, and you only pay for the resources you actually use.    

Cloud computing  also helps to reduce long distance travel to meetings, and enables more home-working. This in turn has been shown to make workers happier and more efficient and, along with the fact that it produces less carbon emissions, makes this model of IT provision an eco-friendly and cost-effective option for businesses of all sizes.

For more information on cloud computing, visit www.cloudmetix.net.

 

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