MARTIN LEVIN & CO

Taxation Practitioners - Accountants & Auditors

Office Hours: 10am to 5pm Mon/Fri

E-Mail MartinLevin@HotMail.co.uk

 6 Gordon Avenue - Highams Park - London E4 9QU

Telephone (Skype): Martin.Levin1066

Mobile 0794-648-1209

Web Site www.MartinLevinABC.co.uk
 

NEWSLETTER FOR WINTER 2012
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Autumn Statement (11.12.12) – further tried to recognise “small” business, and has proposed (although not yet “legal”) that where an unincorporated business (ie not a limited company) has a turnover of up to £77,000, a possible Flat Rate basis of Expenses will be permitted, as from the start of the Tax Year 2013/14.  Although this might seem good news, thus saving on Accountancy Fees, etc, please remember that should finance be required, then the Banks will, almost certainly still expect Financial Accounts.  The necessity for Management Accounts is always the first step in running your own business, as without this, one never quite knows “how am I doing?  Is my price structure right?”  Too many self-employed persons often overlook this fact and think that Financial Accounts are solely for the taxman.  What a mistake to make.

Other proposals were: the usual changes in Personal Allowance; further changes in Pension Reliefs; a ten-fold increase (to £250,000) in the Annual Investment Allowance; a further reduction in the main Corporation Tax Rate (possibly to attract overseas tax-exiles, especially from France with its 75% tax rate), as well as encouraging those multi-nationals to “consider” paying Corporation Tax rather than engage in profit manipulation between lower taxed rated countries; more attacks on anti-abuse rules. All of the latter seem to be in answer to the Media’s Wolf-pack mentality of highlighted those giant companies trading in the United Kingdom, and those higher profile public figures legally avoiding taxes. All of these have been well-aired, and even by myself, as a frequently asked “High street Accountant” on London Broadcasting Corp (LBC). Gift Aid was clobbered in the March 2012 Budget proposals, due principally to the fact that there were huge claims by people setting up charities in Eastern Europe, and being allowed to set-off the donations in the UK against their profits. The Press missed out on this one, but, by attending the numerous tax-lectures, this information came to light. Like so many March 2012 Budget proposals (the Pasty Tax, the Granny Tax), the subsequent passing into law had a rough passage with the teeth being removed clause after clause. The work of the Media/Press should be praised here. Registered Charities have notably suffered from the fall-out, and so like all good Press Related Governments, that we seem to be saddled with, an easier passage of gift aid reclaims has been announced.

Other nastiest imposed by the public sector via Her Majesty’s Revenue & Customs, include the stiffening of penalties for getting it wrong, etc; or even failure to comply.  I always draw the example of a past Speaker of the House of Commons (Sir Bernard Wetherall) who, on leaving office, observed that the Government treats all in business as “being the size of ICI” [at the time, in the 1980s that was probably the biggest business that we had in the UK].  He continued: “95% of businesses in this country employ five or fewer employees”.  His inference was that small business is hit with a big stick, when the out-of-touch law-enforcers, consider that everyone without question, can adapt to frequent changes.  Payroll now has to shoulder that target.  Rest assured, we link up with a (small) but efficient, software house, to ensure that none of our clients are needlessly fined. 

Unfair Penalties? There has been a case of a “do-it-yourself” Pensioner trying to do her own Tax Return herself, and HM Revenue & Customs applying its “new” Penalty régime to a draconian affect.  Even on appeal, she received no sympathy to her case of a “harsh and unjust penalty”.  We have no qualms when a client wants to “do-it-yourself”, but like Financial Accounts, avoiding the minefields that are out there is what we are best at.  We always like to believe that we are “value for money”, and approachable.  By providing free ABC Accounts books to keep simple business records, we have kept so many of you and the taxman, strangers for years.   It is our experience and positive results that our clients pay us for.  In turn we rely on YOUR prompt responses to our requests.  That’s how we have happily got along with you, our clients over these years.  Long may it continue – and thank you.