A big thank you to our clients who managed to send us all all the documents requested on our Checklists. It was a bit of a struggle this year, as the Revenue had changed the way that Personal Pension Premiums were reported on the Return. This year we insisted on the production of certificates, as this was the quickest way to confirm the tax treatment. Unfortunately we had to “push” some clients to ensure that this essential item was sent to us. The same applied for Bank Interest Certificates as these showed the figures for Gross, Tax and Net – something that the TRIG form that we send out does not have the space for, and revealed interesting variances to the certificates. The motto is: use the checklists.

Clients are thanked for their input on this. It has been a pleasure to be in a position to help clients so completely and quickly.

After 1 July, our time has been freed to attend to our other matters, such as the preparation of Financial Accounts with Accounting Dates ending April 30, May 31, etc. The early clients have always benefited by economical fees. Those clients who have still to send data in will of course still get the high service that we extend to all clients. They will not, however, benefit from the lower charge-out rate that the “early birds” have experienced.

Budget 2002 – The press have got on the bandwagon of publicising the fact that the self-employed can “convert” themselves into a limited liability company, and that profits up to £15,000 are “tax free”. Not quite. The rate of corporation tax is at Zero up to £10,000, for the next year. What will happen if the rate changes? The tax saving, at the moment, is by taking £10,000 in Dividends, and £4615 in Salary. Neither of which will incur a client writing a cheque out to the Treasury. However, the cost of compliance for a limited company will be greatly increased, although certainly not as much as the tax saved. The hidden extras lie in the fact that the sheer paperwork of a limited company is daunting to anyone not skilled in administration, etc. There are other factors, which we will explain on a more personal front if you contact us.