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Burgess Hodgson RSS http://www.burgesshodgson.co.uk/ Follow the link to read the entire article Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Burgess Hodgson RSS http://www.burgesshodgson.co.uk/images/logo.jpg http://www.burgesshodgson.co.uk/ HMRC audit reveals scope of tax code errors We have previously reported on the tax code errors that have arisen since the introduction of the new HMRC computer system (click ) - and many of our clients have experienced problems with their tax codes. However an audit of the HMRC accounts has revealed the scale of the problem. Each year, HMRC publishes a report on the organisation’s activities over the previous 12 months – the report is not light reading and comes in at 181 pages this year! However within the report for 2009/ 10 is a section covering the new IT system and the problems that this has caused with Tax Coding notices. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=156 2010-08-31 2010-08-31 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Burgess Hodgson numbers add up in Equitable loss Burgess Hodgson’s investigations into the Equitable Life debacle - and its estimate of the compensation owed to policyholders - have been vindicated by the recent government announcement of compensation payouts. The Canterbury-based firm, working on behalf of the Equitable Members’ Action Group, has played a key role in estimating the aggregate losses suffered by Equitable Life policyholders ever since near-collapse in 2000 of the UK’s oldest insurer. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=155 2010-08-04 2010-08-04 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Small businesses urged to consider Flat Rate VAT With the increase in the standard rate of VAT to 20% announced in the recent Budget, VAT has increasingly been in the spotlight. While the increase in the VAT rate will generally impact on consumers rather than businesses, Burgess Hodgson is advising its clients to take this opportunity to review their VAT affairs. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=154 2010-07-27 2010-07-27 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) BH helps West One to winning ways One of the marks of a good accountant is client retention. Mike Boorman, managing director of West One UK Ltd is a perfect example: he’s been a client of Burgess Hodgson for more than 20 years, the last four of which have been with his current business – and he’s not in any hurry to move! West One specialises in providing high quality domestic interiors to the London office market, maintaining and servicing a wide range of professional service companies’ offices. http://www.burgesshodgson.co.uk/case-study-details.asp?ArticleID=153 2010-07-20 2010-07-20 Case Study Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Lightning Bolt strikes out at London Grand Prix ‘Will he, won’t he?’ was the question surrounding triple Olympic champion Usain Bolt and his likely – or rather unlikely – appearance at the UK’s premier athletics event, the Aviva London Grand Prix. But it wasn’t injury or illness that was threatening the double World Record holder’s participation. Instead, he had announced his decision not to compete because of Britain’s Draconian tax laws, which would mean he’d be giving up a significant proportion of his race earnings. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=152 2010-07-17 2010-07-17 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Charities may be big losers with VAT hike Probably the biggest story from the recent ‘Emergency Budget’ was the surprise increase in the VAT rate from 17.5% to 20% from January next year. While this is bad news for individual consumers it generally will not have much impact on most businesses - apart from the administrative costs of dealing with a VAT rate increase. Most businesses are able to fully reclaim all the VAT they are charged so overall there is no negative impact. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=151 2010-07-09 2010-07-09 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) HMRC ups reviews of second home sales Tax payers are being warned that HM Revenue & Customs is continually reviewing property sales and looking to identify where the sale of second homes or buy to let properties are not being disclosed on an individual’s tax return. Generally the sale of an individual’s main home is not subject to CGT but second homes and buy to let properties often will be. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=150 2010-06-30 2010-06-30 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Hot competition at 7th annual golf day Burgess Hodgson recently hosted its seventh annual golf day at Chestfield Golf Club. With the England team due to play their second game against Algeria that night, tee times were brought forward so that the players could watch what would turn out to be a less-than-lively encounter. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=149 2010-06-29 2010-06-29 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Emergency Budget - Detailed Summary Chancellor George Osborne increased VAT from 17.5% to 20% and cut welfare spending as he moved "decisively" to tackle Britain's record debts. Unveiling his first Budget to MPs, Mr Osborne said "tough but fair" action on debt was "unavoidable". http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=148 2010-06-23 2010-06-23 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Osborne ups VAT in ‘unavoidable’ Budget Chancellor George Osborne said he would not hide tough measures in the Budget notes in what he called “the unavoidable Budget”. Topping the bill in what was the biggest package of tax increases and spending cuts in a generation, was the rise in VAT from 17.5% to 20% from January 4, 2011. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=147 2010-06-22 2010-06-22 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Budget coverage for June 22 The second Budget of 2010 will be next Tuesday, 22 June. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=146 2010-06-15 2010-06-15 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Potential CGT rise to be watered down? We have previously discussed the potential increase to CGT announced by the Conservative/Liberal coalition in our article here. However, since this article was published, there has been some strong resistance to these changes and it looks as though these proposals could be ‘watered down’ before the Budget on 22 June. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=145 2010-06-10 2010-06-10 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Don’t be late with PAYE payments With HMRC’s new penalty scheme for late PAYE payments now in force, Burgess Hodgson is reminding businesses to make sure they pay on time – or risk a surcharge up to 4% of the payment due. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=144 2010-06-07 2010-06-07 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) What now for the Annual Investment Allowance? The new government has proposed to simplify small business taxation and as part of this it is expected that the Annual Investment Allowance (AIA) will be abolished, possibly in exchange for a cut in the headline Corporation Tax rate for small businesses. The AIA was introduced in April 2008 and provided immediate tax relief for investment by small businesses. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=143 2010-06-02 2010-06-02 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) The Sky(line) no limit for BH team This month has seen another superb achievement by the BH team walking the 22-mile Edale Skyline, in the Peak District - finishing five minutes inside the target time of 11 hours. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=142 2010-05-28 2010-05-28 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Would you pay your tax bill by direct debit? HM Revenue and Customs considers direct debit 'budget payment plans' for self-assessment tax http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=141 2010-05-24 2010-05-24 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Helping Hi-Way Services with business growth With more than 25 years experience, Hi-Way Services is one of the largest independent road marking contractors in the UK. http://www.burgesshodgson.co.uk/case-study-details.asp?ArticleID=140 2010-05-18 2010-05-18 Case Study Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Date for 'emergency Budget' unveiled The coalition government will hold its first Budget on Tuesday 22 June, Chancellor George Osborne has revealed. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=139 2010-05-17 2010-05-17 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Time to sell? Senior accountant Tom Saltmer looks at the potential changes to Capital Gains Tax on the horizon http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=138 2010-05-14 2010-05-14 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Equitable Life victims in new compensation deal “A long time coming” was how Equitable Life campaigners described the new compensation announced by the newly-formed coalition government – a deal which will compensate more than a million policyholders who lost pension savings when the insurer nearly collapsed in 2000. The coalition agreement says policyholders will be compensated for their "relative loss", as recommended by the Parliamentary Ombudsman (PO) Ann Abraham in her 2008 report. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=137 2010-05-13 2010-05-13 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) New Government hints at swingeing tax plans With David Cameron now in the prime minister’s hot seat, early indications from the new coalition government are that a number of tax policies could be revealed in an emergency Budget within 50 days.Top of the list of reforms is likely to be a substantial increase in the rate of Capital Gains Tax (CGT) on non-business assets, such as shares and second homes. Currently, CGT on these items is a flat rate of 18%; this is likely to rise close to the 40%. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=136 2010-05-12 2010-05-12 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Burgess Hodgson appoints new partner Burgess Hodgson has promoted Matthew Sutton from associate to partner with effect from 1 April 2010. The father of three and former Canterbury Cathedral chorister has been with the New Dover Road practice since graduating in mathematics from the University of Bath in the summer of 2001. Burgess Hodgson is also pleased to announce the promotion of Martin West from manager to associate. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=135 2010-04-29 2010-04-29 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Dragons, tax breaks and non-doms Even multi-millionaires, it seems, want equality when it comes to paying tax. After the Conservative party donor Lord Ashcroft was forced to reveal that he was ‘non-domiciled’ in the UK for tax purposes (most of his business operates from Belize), two of the stars of the BBC’s Dragons Den are reportedly now feuding over ‘non-dom’ tax status. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=134 2010-04-21 2010-04-21 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Plans to shake-up IR 35 rules welcomed With a general election looming, all of the main parties have been trying to score points with proposals to change the taxation system. There is one particular proposal that should prove welcome news to many – the Conservatives’ plan to review the IR35 rules should they come into power. The IR 35 rules were introduced by Labour in 2000 and were targeted at contractors who trade through an intermediary company. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=133 2010-04-14 2010-04-14 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) HMRC reminder about compliance crackdown HM Revenue & Customs (HMRC) is reminding businesses and individuals about new penalties now in force for anyone who fails to comply with its toughened regime. With legislation now in force (from April 1), HRMC is keen to point out that it now has “standardised powers, deterrents and safeguards across our taxes” – and won’t hesitate to use them against people deliberating flouting the system. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=132 2010-04-08 2010-04-08 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Tax Codes: what to look out for Problems with your tax coding notices could potentially lead to HMRC deducting hundreds of pounds of tax that is not due so it is important to ensure that these notices are correct. Here senior accountant Tom Saltmer identifies some of the common errors important things to look out for with tax codes. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=130 2010-03-30 2010-03-30 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) A practical guide to tax codes: what to look for With HM Revenue and Customs continuing to issue huge numbers of Tax Coding Notices (see our previous article at here) are becoming increasingly confused as to what their tax codes mean and how it could affect them. Here we offer a practical guide as to what tax codes include and what to look out for when you receive a new tax code. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=131 2010-03-30 2010-03-30 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Budget 2010 - detailed summary Chancellor Alistair Darling delivered his last Budget before the General Election yesterday. The raising of the stamp duty threshold to £250,000 has been the headline in the popular press, together with the improvement in the public borrowing forecast from a deficit of £178 billion to £167 billion. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=129 2010-03-25 2010-03-25 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Chancellor delivers pre-Election Budget Chancllor Alistair Darling delivered a highly political Budget : his last before a General Election in six weeks time. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=128 2010-03-24 2010-03-24 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Spring Budget coverage The Spring Budget takes place this Wednesday, March 24. Although the Chancellor will set out his proposals for the coming year, only the most basic will become law before Parliament is dissolved in the run up to the General Election. The incoming Government, of whatever colour, will propose another Budget soon after the Election. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=127 2010-03-22 2010-03-22 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Law for naming tax cheats goes live Taxpayers and companies who deliberately evade taxes will be publically named and shamed when new legislation kicks in on April 1. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=126 2010-03-17 2010-03-17 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Want to save more tax? WANT TO SAVE MORE TAX? (11/03/10) • 17 tax planning tips to consider Having just passed the deadline for filing Tax Returns for the last tax year (2008/09) we are now approaching the new tax year which starts on 6 April 2010.  As most people are aware the Government has announced that the top rate of income tax will increase to 50% for those with incomes greater than £150,000.  Additionally, the tax free personal allowance is gradually removed for those earning over £100,000 and for some people this will create a marginal rate of tax of 60%. In addition to this, the tax relief on pension contributions is to be restricted for the highest earners. We have listed some ideas to consider: 1) Accelerate dividends Pay dividends to high earners before the end of this tax year- the effective tax rate is set to increase from 25% to 36.11% for those with incomes above £150,000. For example if  a dividend of £50,000 is paid, the tax saving could be £5,555, although payment will be brought forward a year.     2) Switch income generating assets between spouses Ensure you use both your own and your spouses personal allowances and basic rate bands. However, be warned - the Government has previously considered legislation in this area and may well look at this practice again. 3) Close interest earning deposit accounts    The closing of interest bearing deposit accounts could crystallise the receipt of interest in an earlier tax year. 4) Accelerate salaries Consider paying a bonus or other alternative means of accelerating remuneration, but consider the commercial justification and legal implications carefully first.      5) Use of bonus and loan schemes A bonus and loan back scheme could be a useful mechanism should the company still require the use of the cash. 6) Benefits-in-kind At times of increasing Income Tax rates, it makes sense to review benefits in kind being provided to yourself and your key employees.  7) Pension contributions A special annual allowance charge has been introduced which caps the level at which higher rate relief is given for high earners and contributors.  Contributions should be reviewed for all earners to ensure maximum relief and for the very high earners alternative schemes may wish to be considered. 8) Gift Aid contributions Gift Aid contributions are an altruistic and tax efficient means of giving to charity. Should you be a large regular contributor you should consider the timing of your contributions to optimise the relief. This may include deferring (or accelerating) the contribution depending on your tax position.  9) Use your full ISA allowances Regardless of tax rates, you should ensure you use full ISA allowances (£7,200 for shares, £3,600 for cash; £10,200 shares, £5,100 cash if born before April 6, 1960).     10) Consider changing accounting date    Unincorporated businesses may wish to consider changing their accounting reference date to utilise any overlap provisions. 11) Accelerate income To the extent possible, accelerate income into the earlier tax year to generate higher profits at lower marginal rates of tax.  The cash flow implications should of course be considered. 12) Defer revenue expenditure Revenue expenditure is relieved in the tax year in which it is accrued so where possible deferral of expenditure should be considered.  13) Time purchasing of assets to optimise Capital Allowance claims Consider careful timing when purchasing assets to optimise the capital allowances claimed. 14) Reward your children Consider rewarding children by paying a salary for work done or consider spreading shares around the family for owner/managed businesses. If you pay them a wage they do have to work!   15) EMI Schemes/other tax efficient Share Option Schemes Consider the use of employer management incentive schemes and other tax efficient share option schemes to remunerate key employees. 16)  Use of EFRBS (Employer Financed Retirement Benefit Scheme) and EBT (Employee Benefit Trust) as an alternative to registered pension schemes For very high earners who are likely to have a restriction of their pension contribution relief, consider the use of alternative schemes to registered pension schemes.   17) Introduction of a corporate partner Partnerships may wish to consider the introduction of a Corporate Partner to utilise Corporation Tax rates as opposed to the higher Income Tax rates. This could be a cost effective way of funding working capital.   However, do be very aware of the substantial risks involved with aggressive tax schemes, particularly those in 16 and (to a lesser extent) in 17 above. Last autumn HMRC published a statement that they consider EFURBS and EBTs to be ineffective when used for tax planning purposes, and that they will investigate clients who use them. We also anticipate a possible re-alignment of Capital Gains Tax rates (currently at 18%) with Income Tax rates. So maybe now is the opportunity to consider some of the following issues:- 1. Domicility and residence. 2. Crystallisation of gains 3. Utilisation of Entrepreneur’s Relief 4. Deferring the use of losses In recent times, volatile seems to be the most appropriate word to describe the current economic situation. We are in an Election year and whichever party is in Government will have to raise funds to meet the current deficit. The economy is still in a fairly fragile state. With a looming General Election, there is much uncertainty about upcoming tax changes and now may be the time to take advantage of current tax rates. Whatever the uncertainties, Burgess Hodgson will continue to provide forward thinking tax advice. • Should you wish to discuss any of these possible planning mechanisms please feel free to give us a call.  • For a downloadable PDF of this Bulletin, click <a href="/userfiles/BH bulletin Spring lo-res.pdf">here</a> http://www.burgesshodgson.co.uk/bulletin-details.asp?ArticleID=125 2010-03-11 2010-03-11 Bulletin Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Tax health plan TAX HEALTH PLAN What is it? The Tax Health Plan is a disclosure opportunity that offers a short window  for any members of the medical profession who believe they have not stated their full income, or have over-claimed expenses, to HMRC to come forward. The THP follows a similar pattern to the 2009 ‘New Disclosure Opportunity’, (NDO), for offshore bank account holders. THP is aimed at doctors and dentists who owe back taxes and want to come forward voluntarily. Who does it affect?     • It is aimed at medical professionals such as doctors and consultants registered with the General Medical Council. HMRC also confirmed that dentists will qualify for the THP.     • Entities such as companies or trusts are also included if they receive income on behalf of the medical profession.     • Participants must make a full disclosure of previously undisclosed income or gains arising from their work for periods up to and including the year ended 5 April 2008.                What does it entail?     • Under the terms of the THP, after paying the tax due on income, gains and any related interest, most individuals who come forward will only face a penalty of 10%.       • Medical professionals can register for the Tax Health Plan amnesty from now until 31 March 2010. They must then pay the past tax, plus interest and penalties, by 30 June.       • Anyone who does not come forward, but who is subsequently investigated and found to have been avoiding tax, may be fined up to 100% of their unpaid tax, with a minimum penalty of at least 30%. How are you affected?     • You may feel this does not affect you as you pay tax on all your income, but errors do occur on tax returns and this is a chance to correct potentially costly mistakes.     • HMRC can use data on payments made by NHS departments and Medical Insurers to check against your tax return.       • If no disclosure is made HMRC will, if they investigate the taxpayer, charge significantly higher penalties of up to 100% of the tax due and in exceptional circumstances criminal investigations may be considered by HMRC.     • You may actually be paying too much tax because you are not claiming all the expenses to which you are entitled, the right allowances, reliefs and so on. Key dates January 10    HMRC announces that it is introducing a Tax Health Plan for the medical profession. January 19    After much press speculation, HMRC announces that dentists are included March 31       Deadline for joining the Tax Health Plan June 30         Deadline for plan members to make full disclosure and pay any unpaid taxes plus interest.  • for more details about Tax Health Plan, contact a member of our tax team on 01227 454627 or email: tax.planning@burgesshodgson.co.uk. To download a PDF version of this article, click <a href="/userfiles/THP(factsheet).pdf">here</a> http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=124 2010-03-11 2010-03-11 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Struggling with tax payments? Don't rely on BPSS Burgess Hodgson is warning companies and individuals who might be struggling to find their tax payments not to rely on the Business Payment Support Service (BPSS). http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=123 2010-03-11 2010-03-11 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Government revamps childcare tax treatment Higher rate tax payers will feel the pinch from the Governmentï¿½s plans to restrict the tax relief on childcare provided by employers to basic rate tax only. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=122 2010-03-04 2010-03-04 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) HMRC ups ante against tax exiles Formula One star Lewis Hamilton, the Barclay brothers, owners of The Telegraph newspaper and retail tycoon Philip Green are among dozens of the country's wealthiest business figures and celebrities who could feel the pressure as part of an HM Revenue & Customs crackdown on Britain's super-rich tax exiles. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=120 2010-02-22 2010-02-22 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Robinsons bucks the trend with help from BH ROBINSONS BUCKS THE TREND WITH HELP FROM BH Practicality and expertise are the watchwords from Robinsons Solicitors to describe the Canterbury-based legal practice’s relationship with its accountants, Burgess Hodgson. Robinsons’ recent merger with Collings & Co is a good example of the two words put into practice, with Burgess Hodgson on hand to advise the Robinsons’ partners every step of the way in a deal which will see the firm boosting its commercial and residential property departments. “Burgess Hodgson is very practical in terms of getting the job done,” says Robinsons partner Tim Clark. <img width="270" height="103" align="right" src="/userfiles/image/banner6(1).jpg" alt="" />It’s an approach that has served Robinsons well over the last seven years. Burgess Hodgson was originally personally recommended on the basis that the soon-to-be Robinsons Solicitors partners needed an accountant to help in negotiating the demerger from the Robinson Allfree practice. While other legal practices have suffered in the current economy as the work around conveyancing and commercial property has dried up, Robinsons has been able to deflect the situation with a focus on personal injury, family and litigation, which now makes up more than 50% of the firm’s work, a fact that means Robinsons is planning to grow in 2010, bucking the recent trend in the legal profession. “We would describe ourselves as a strong general provincial practice that has grown significantly over the last seven years,” says Tim Clark. “We undertake non-contentious work such as conveyancing, probate, commercial and residential property, but over half of our business is litigation – family, personal injury, contested wills and probate, commercial and contract disputes and professional negligence. Around 80% of our work comes from client recommendations or cross-referring from within. We like to provide a one-stop shop for clients so we can offer both contentious and non-contentious work.” Although Burgess Hodgson came highly recommended, the firm has more than proved its metal, through its professionalism, expertise and high level of advice, something that Tim believes singles the New Dover Road firm out from other accountants. “We wanted an accountant who was a business adviser and not just someone who filled in your tax return at the end of the year or filed accounts,” he says. “Burgess Hodgson is always there to bounce ideas off. What we find is that you can set your budget at the start of the year, but things are always subject to change, and it’s useful to have accountants that can provide instant feedback. This means you can plan for things, rather than getting to the end of the year and finding out your turnover hasn’t justified your profit expectations.” Burgess Hodgson carries out quarterly management figures as well as submitting the practice’s Law Society annual accounts, and provides a quarterly report highlighting trends and areas to watch out for or improve. “Burgess Hodgson may highlight things like the age of debtors is increasing, which means we need to be pushing on our debt recovery, or it is able to share best practice because of the breadth of work the firm carries out, enabling us to benchmark ourselves and provide objectives to work towards,” says Tim. Given the growth of Robinsons over the last seven years, its recent merger and bold plans for the future, having an accountant alongside that can provide the help the practice needs is essential. “Nothing is ever static in business,” says Tim. “We have probably had more than most to deal with, including a couple of retiring partners, the sale of our financial services department and the recent merger. We’ve always been very happy with the service Burgess Hodgson provides. They are not a run-of-the-mill accountants: there’s active involvement throughout the course of the year.” “We see Burgess Hodgson very much alongside us as we move forwards, hopefully as we increase the size of the partnership and grow even further,” Tim continues. “Burgess Hodgson can provide advice on the business structure going forward.” With a mixture of practical advice and expertise, it’s a relationship that continues to strengthen. http://www.burgesshodgson.co.uk/case-study-details.asp?ArticleID=121 2010-02-22 2010-02-22 Case Study Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Tax codes puzzle for employees Burgess Hodgson is warning that PAYE employees in Kent could face higher tax bills after an HM Revenue & Customs tax code blunder. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=119 2010-02-16 2010-02-16 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) HMRC warning over bogus emails HMRC is warning individuals to be increasingly vigilant after a new spate of email scams. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=118 2010-02-08 2010-02-08 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Burgess Hodgson is One to Watch Burgess Hodgson has achieved a ï¿½Ones to Watchï¿½ status in the prestigious 2010 Best Companies Accreditation, the ï¿½Michelin starsï¿½ of the business world. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=117 2010-02-01 2010-02-01 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) The tale of two budgets With an election looming in 2010, Ken Jones examines why weï¿½ll see at least two budgets this year http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=116 2010-01-25 2010-01-25 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Clock ticking on January 31 deadline There is now less than a fortnight left before the self-assessment deadline by which almost nine million people ï¿½ including high earners, the self-employed and those with income from more than one source ï¿½ must file a tax return or face an automatic ï¿½100 penalty. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=115 2010-01-18 2010-01-18 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) HMRC hits medical profession in new tax ‘amnesty' Doctors, dentists and other medical professionals are being targeted by HM Revenue & Customs in a new ‘amnesty’ designed to recoup unpaid taxes. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=114 2010-01-12 2010-01-12 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Denly hits the big time For the past two years, Burgess Hodgson has sponsored Kent opening batsmen and England international Joe Denly. It’s proved a winning partnership, with Joe’s selection this year for the full England one-day side and his inclusion in the one-day team in the recent series against South Africa. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=113 2010-01-07 2010-01-07 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) New Discloure Opportunity NEW DISCLOSURE OPPORTUNITY From 1st September 2009, UK residents with offshore assets, including offshore bank accounts and credit cards, will be provided with an incentive to declare any undisclosed liability under a new arrangement announced by HM Revenue & Customs (HMRC) on 28 July. This “New Disclosure Opportunity” (NDO) offers offshore asset holders the possibility of significantly reduced penalties of just 10% together with payment of the taxes and duties underpaid and associated interest. At the same time, HMRC is contacting over 200 banks and financial institutions for details of customers with offshore assets. The NDO will only be available for a limited time period, making it important for individuals to pay close attention to the timetable. There is an initial ‘registration period’ and different deadlines apply depending upon whether the disclosure is made in paper format or is filed electronically. Who should make a disclosure? It may be that people are unsure whether a liability will arise purely because they hold an offshore asset.    There can be situations where no liability arises. However, a number of questions need to be answered before determining the position, such as: • What is my tax domicile status? • Did any of my offshore capital arise from earnings and, if so, where and when did I earn it? • Did any of my offshore capital arise from Capital Gains? • Have I ever brought any of this money into the UK? This list is by no means exhaustive and each individual’s situation will need to be considered carefully on a case-by-case basis. Any taxpayer who is uncertain of their situation should contact their advisor at an early stage to provide clarity for their own circumstances before the end of the respective ‘registration window’. What kind of offshore assets are included? The NDO relates to any offshore asset that might have been purchased with undisclosed income, profits or gains or in which such amounts might have been invested. It will also relate to any taxable income, profits or gains that may arise from the holding of the assets, such as the profits from the letting of a property or interest on an undisclosed bank account. Taxpayers should consider all their offshore assets and investments including, for example: • Bank accounts and credit cards; • Bonds or other financial products; • Land or Property; • Trusts; • Business interests; • Other assets such as yachts, aircrafts and vehicles. What are the deadlines for registration and disclosure? If an individual wishes to make a paper disclosure they must: • Notify their intention to disclose between 1 September 2009 and 20 November 2009 then; • Submit their disclosure no later than 31 January 2010. If an individual wishes to make an electronic disclosure they must: • Notify their intention to disclose between 1 October 2009 and 30 November 2009 then; • Submit their disclosure no later than 12 March 2010. A publicity campaign will support the NDO with the aim that individuals are fully aware of the information they are required to provide, as well as their responsibilities and potential consequences of non-compliance. What happens if a disclosure is made? Where a disclosure ought to be made, the taxpayer must pay any duties outstanding together with interest and a penalty. HMRC have stated that these individuals will only face a penalty of 10% of the taxes and duties that are underpaid provided that they were not covered by the first ‘Disclosure Facility’ in 2007. Any person making a disclosure under the NDO who had already been contacted by HMRC under the first disclosure facility will be subject to a penalty of 20% of the taxes and duties that are underpaid. After the disclosures have been submitted HMRC may carry out a sample of the disclosures and ask selected taxpayers to provide documentation to confirm that their disclosure is correct and complete. Any individual who ought to make a disclosure but fails to do so faces the likelihood of enquiry and the prospect of a penalty of 30% or more, and runs an increased risk of criminal prosecution. What help is available? Given the short time frame in which a disclosure can be made, seeking advice sooner rather than later will be advantageous. Burgess Hodgson will be able to: • review each individuals specific circumstances, and assist in determining whether it is necessary to make a disclosure; • assist with the management of any disclosure where the factors may increase the risk of prosecution; • assist with personal tax returns for the year ended 5 April 2009, reporting any previously undisclosed income to potentially avoid a penalty associated with any liability. Gaining further guidance It’s important for all those individuals holding offshore assets to consider seeking expert advice to ensure that they are fully aware of all factors relating to the NDO. If you want help making an informed decision, contact Burgess Hodgson on 01227 454627 or email ndo@burgesshodgson.co.uk TO DOWNLOAD A PDF OF THIS FACTSHEET, CLICK <a href="/userfiles/NDO(factsheet).pdf">HERE</a> http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=111 2010-01-05 2010-01-05 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Expenses EXPENSES If there’s one story that’s captured the public’s interest this year, it’s the furore surrounding MPs’ expenses. With everything from duck houses to a box of matches, wasps’ nest removal and mortgages on second homes seemingly having been claimed for, MPs are now having to be far more transparent over their claims – and pay back monies that could have been claimed over a significant time period. Most recently it was revealed that those who refuse to repay excessive or incorrect expenses claims could be forced to appear in public before a High Court judge to plead their case. Of course, some of the most press coverage has been over the more bizarre claims (ice cube trays, mugs from the Tate Modern and cherry trees, for example). But it does raise the question: just what can you claim for from your employer, without falling foul of the tax man? HM Revenue and Customs says that any expense that can be validly claimed should be “wholly, exclusively and necessary to carry out your duties”. This is – within reason – open to interpretation, and is not necessarily a set list of items, but rather dependent on the individual’s role. A good example would be a security company who employs dog handlers: while it might be perfectly valid for these officers to claim pet food or vets’ bills for their animals, that doesn’t mean the privilege is extended to anyone with pets! Here is a list of expenses that an employer can pay without generating a tax charge: Travel •     You can’t claim costs of commuting to and from a regular place of business. But you can claim the cost if it is a temporary place of business, such as a work placement. •    You can claim an amount for using your own vehicle for business purposes. This is 40p per mile for the first 10,000 miles and 25p thereafter. •    You can claim train and plane tickets if accrued on business Accommodation •     There are fixed amounts you can claim for overnight stays depending on whether it’s in the UK or overseas (£5 UK, £10 abroad) •     You can also claim for “incidental personal expenses” such as newspapers, telephone calls etc •     Meals: you can claim for the “reasonable” cost of a meal when away on business. This is usually the difference between a meal at home and the price of eating out. Working from home •    It might not sound like much (and it isn’t) but if you work from home can claim the princely sum of £3 a week to cover the cost of electricity, gas and telephone bills (provided you can prove they were for business-related calls) •    If you use a personal mobile to make business calls, you can claim for them but not for the monthly line rental. Again, you’ll need the evidence to prove it. Professional fees •     If you work in an industry sector that requires membership of a trade or professional body, then you can claim the costs of this. Also, if you subscribe to trade magazines that are required reading, then these too are covered. •    There is also what is termed a ‘fixed deduction’ for expenses that are necessary to carry out a particular role. For example, a nurse can claim for stockings and shoes that she needs to buy to complete her uniform. Miscellaneous •     If your company operates a Cycle to Work scheme, your employer is obliged to provide breakfast for you in the workplace  • for more details about expenses, contact the tax team on 01227 454627 or email tax@burgesshodgson.co.uk TO DOWNLOAD A PDF OF THE EXPENSES FACTSHEET, CLICK <a href="/userfiles/Expenses(factsheet).pdf">HERE</a> http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=110 2010-01-05 2010-01-05 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) PAYE late payment penalties PENALTIES FOR LATE PAYMENT OF PAYE FROM 2010–11 From the tax year 2010-11 HM Revenue and Customs will charge penalties if PAYE is paid late. This includes • Tax • National insurance contributions • Construction industry scheme deductions • Student loan deductions Who will the penalties apply to? The new penalties will apply to all employers and contractors that do not pay on time. How much will the penalties be and when will they be charged? The new penalties for the tax year 2010-11 will be issued from April 2011. It is important to remember that this is a penalty and not interest. If the payment is only a day or two late penalties may apply. For late monthly payments the penalty will start at 1% of the late amount and will increase to 4% on a sliding scale depending on how many times you pay late. There will not be a penalty if only one payment is late providing it is not over six months late. The penalty can increase to 5% if the amount is over six months late. What if you do not agree with the penalty? You can appeal against the penalty if you do not agree that it was due or if you have what is called a reasonable excuse, but the accepted circumstances will be limited in this category. What if you are unable to pay? You should contact ourselves or the Revenue as soon as possible, and certainly before the liability is due, to negotiate extra time to pay.  • for more details, contact the payroll team on 01227 454627 or email payroll@burgesshodgson.co.uk TO DOWNLOAD A PDF OF THIS FACTSHEET, CLICK <a href="/userfiles/Payroll(factsheet) copy(1).pdf">HERE</a> http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=112 2010-01-05 2010-01-05 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Detailed guidance on VAT changes DETAILED GUIDANCE ON VAT CHANGES (22/12/09) We've already reported on the implications of the impending return of VAT to 17.5% - full details can be found <a href="http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=100">here</a>. When the rate was reduced in December 2008, HMRC produced a detailed guide to assist businesses and it has provided a revised guide to deal with the change back to 17.5%.  We would recommend that all businesses download the detailed guide available on HMRC's website (click <a href="http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf">here</a>). Many businesses use Sage for their accounting system, and we have prepared a detailed note setting out the procedure for changing the system, which can be downloaded <a href="/userfiles/Sage Standard VAT Accounting Rate Change2010.pdf">here</a>.  To download our notes on how to account for the increase in the standard rate of VAT - VAT Cash Accounting - click <a href="/userfiles/Sage Cash Accounting VAT Rate Change2010.pdf">here</a>. If you would like to discuss any of the details over the forthcoming change to VAT rates, call us on 01227 454627. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=109 2009-12-22 2009-12-22 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) PAYE penalties: are you ready? HMRC is cracking down on businesses who make their PAYE payments late with a series of penalties designed to crack down on repeat offenders. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=108 2009-12-18 2009-12-18 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk) Pre-Budget Report Notes 2009 "Painfully high" was how one pundit described Chancellor Alistair Darling's prediction that borrowing would increase to £178billion, announced in what would could be his last pre-Budget Report. http://www.burgesshodgson.co.uk/news-details.asp?ArticleID=107 2009-12-10 2009-12-10 News Burgess Hodgson Burgess Hodgson (mailto:info@burgesshodgson.co.uk)