NEWSLETTER FOR WINTER 2014

“Autumn” Statement (03.12.14) – It is intended to introduce:

*stamp duty changes – designed to lower the amount of tax payable on properties sold for less than £2million.

* Flights for under 12 year olds – tax eliminated

* “free” transfer of Individual Savings Accounts on a spouse’s death

* Business Rates Discount in the High Street for small business

* Employers are to be excluded from National Insurance on paying Apprentices under 25 who are not earning “the top rates of pay”

* Multi-National Companies diverting funds via other structures are to be targeted.  [See Radio Work where I have been consulted a few times by “LBC”]

* Banks “losses” to be disallowed – a sop to the electorate for the oncoming General Election

However the saga that changes in the Tax Band where people are brought into the 40% rate, continues to bring further people in.  No one like to pay tax un-necessarily, that is our view, and we conscientiously strive to achieve this.

Her Majesty’s Revenue & Customs (HMRC) has selectively issued various public announcements to hint that they are “on the warpath”.  The most notable was the publication of the success that they have had with their superior computer program (we were forced to spell it the American way, in the 1980s) called CONNECT.  This has enabled it to target specific areas as to where a potential loss of Revenue to the Exchequer has occurred.  This could take so many forms in either suppressing/diverting income, or unrealistic or inappropriate claims for expenses.  Clients are reminded that not all spending can be classified as tax deductible.

Radio Work

Again, I have had the honour – and pleasure – of being approached by London Broadcasting Corp (LBC), where I am often asked to comment on tax of the day stories, as well as guesting for two one- hour-long questions raised by listeners up and down the country.  My identification is as the “High Street Accountant”, as that reflects what my Practice ultimately serves.  It is by going on so many lectures, etc that the Practice is aware of the frequent changes that affect YOU, our clients.

Support for clients

Again the quality of record keeping in the guise of providing free ABC Accounts books to most clients has enabled swift and economical fees to be contained.  As many of you will be aware, Aileen Northfield has admirably assisted in the first work on a client’s records.  In October 2014, she announced her retirement, and I am sure that we will all miss her input immensely.  That does mean that until a suitable replacement is found – and that won’t be easy any more – the Principal will have to revert to doing the entirety of the work again.  Please do continue to let us have your documentation as early as possible.  Our requests are made twice a year, (Accounting Year, and 5 April). Experience has proved that delays have indicated a downturn in business activities, and therefore poorer quality work that involves accountants spending more time in trying to get the relevant information needed.  As more time results in higher fees, clients can do their best to save themselves from this occurrence.  The majority of our clients have respected us for this.  Long may it continue – and thank you.