Tax Newsletter 08 Oct 09
You may have submitted a number of loss claims in the past months, but have those claims been correctly processed by HMRC? This week we explain what can go wrong with a loss claim on the HMRC side of the fence. We also have practical advice on how to deal with debts that go bad after the end of the accounting period, and news about a HMRC tool to manage PAYE codes.
After the practical points in this newsletter I have put the Spotlight on one of our tax adviser members and offered another item for the tax fun spot. I've also provided details of our next seminar for accountants. It's ideal if you want to Win more of the work you want by differentiating your practice. After all you'll find it so much easier to secure referrals and new clients if you can do this effectively. Few accountants manage it in practice though.
Remember to upgrade your membership
If this is your first abbreviated copy of our weekly practical tax update written especially for accountants in general practice I hope you'll remember skipping past prompts like this over recent weeks. And if you've been meaning to upgrade for a while now.....
You can secure your entitlement to this newsletter each week as well as to discounts and other membership benefits - depending upon which membership level you choose. Upgrade now to professional membership and ensure you don't lose out. Most people find it simple enough to do online. If you have any problems though just call and ask for Morag who will do what she can to assist.
For now, here are taster's of this week's 3 practical tax points which full members have received together with direct links to further related information:Loss carry-back
Submitting free-standing loss carry back claims is a new experience for many younger accountants, and it appears that processing these claims is novel for some HMRC officers, as mistakes are occurring. By free-standing we mean not included within a tax return. Here is an example of what can go wrong and how you can ensure that you client doesn't lose out, suffer excess interest charges and surcharges.
Sorry - the rest of this item, our practical advice and useful links are only available to professional members.
Bad debts after year end
Some businesses are particularly reliant on one customer; perhaps that customer provides the only outlet for their product in their region. If that customer goes bust it can severely affect all the supplier businesses.
This was the situation when Dairy Farmers of Britain (DFOB) went into administration in June 2009, leaving farmers unpaid for weeks of milk production. Although this is a farming example the principles apply across a range of businesses, so please read on. The principles involving GAAP apply to all companies and unincorporated businesses.
Sorry - the rest of this item, our practical advice and useful links are only available to professional members.
PAYE Desktop Viewer
HMRC have developed this software tool, (known as PDV) to help accountants manage the hundreds of PAYE codes that come flooding across their desk. It is aimed at firms who receive all of their PAYE notices electronically. But....
Sorry - the rest of this item, our practical advice and useful links are only available to professional members.
Spotlight on: Pauline Lonsdale
Pauline is one of our founder members and has a very different background to any of the other members. In addition to being a Fellow of the ICAEW she is also a member of the Society of Trust and Estate Practitioners (STEP) and a member of the Institute of Professional Will writers (IPW). Additionally she is a member of the STEP Probate and Estates Committee.
Having originally trained with one of the biggest firms she moved to a small firm after qualifying as an accountant and has been heavily involved in trusts and estates related work since 1993.
Based in Bromley, Pauline is happy advising clients across London and the South East. You can see her full profile here. It's nicely laid out and explains how she can provide assistance with tax planning, matters related to the administration of estates, HMRC Capital Tax related investigations and disputes between advisers and beneficiaries.
Tax Fun spot
Spare a thought for the pubs and clubs that will remain open beyond midnight on 31 December when the VAT rate reverts to 17.5%.
Will it be necessary to issue two VAT invoices? One charging VAT at 15% for goods and services provided before midnight and another at 17.5% for those provided later into the night after the rate changes? Can you imagine the mayhem - and the unwelcome sight of barmen running around trying to issue valid VAT invoices mid-party?
It seems that the Government wants to avoid spoiling parties in this way as the Financial Secretary to the Treasury announced in May that:
"HMRC will allow a few hours' trading grace in which [pubs and clubs] may continue charging the 15 per cent. rate for a session that goes into the early hours of 1 January."
So expect some parties to continue well into the morning of New Year's day. If you attend one, do sing a vote of thanks to the Government for giving you an excuse to party longer.
And what chance the necessary VAT rate changes will be made correctly later when everyone's suffering from their hangovers? Ok, maybe it won't be so much fun after all.
Items appearing in this 'tax fun' spot are taken from the Accountant-Jokes.com blog - with my permission!
Seminar for professional accountants
Avoid anyone thinking of you as just another accountant - even if you are!
If you have any desire to win more work and secure new clients as a result of advertising, google adwords, networking face to face or online you need to be memorable. That generally means being seen and remembered differently to all of the other accountants out there. Only you can determine who people remember you.
Our new half day seminar on Thursday 22 October: Win more of the work you want by differentiating your practice, will help you do just that.
It's a sad fact of life that many prospective clients, bankers, solicitors and other introducers think that accountants are pretty much all the same. Worse, there's a common misconception that accountants are all "Boring". We know that's not true though don't we?
Part of the challenge is that many accountants do not know how to describe themselves beyond admitting that they are an accountant. Sadly though that makes you interchangeable with all of the other accountants. It reduces the value of your networking and makes it too hard for people who know you to refer you to their friends, family and business contacts.
Amongst the topics covered during the seminar are:
- How you can describe YOUR practice so as to generate more business of the type you want
- Real life examples of accountants' business cards, websites, blogs and profiles
- That you must identify your niche - Yes, you DO have one
- Blogging myths for accountants - How to avoid wasting your time
- What makes you special and different - and how to highlight this
- How easy it is to be memorable - in a good way!
- Why you need to establish a networking strategy to win the work you want
- How you can get better value from your Google Adwords campaign
- What is online 'social' networking and is it something you want to try
- How you can utilise social networks to benefit your practice and your business
- Whether you need a twitter strategy and how you could start to use this communication tool
Full details here of the seminar and of the discounts available for silver-plus, gold and platinum members of the Network. Remember to book early to secure your place.
Remember to upgrade your membership
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