Do you want to increase your income? Could you be entitled to tax credits?

Tax credits is not a tax saving but is cash paid into your bank account.  Stewart, Fletcher and Barrett offer a fully comprehensive tax credit service through our tax department.  We can provide you with comprehensive tax credit advice and planning, to ensure you receive your maximum entitlement, as well as managing your award to ensure that you are not overpaid or more importantly underpaid.

If you can answer yes to any of the following questions you could be entitled to tax credits:

• Are your earnings below £58,175 and do you have children?
• Are you considering a large capital equipment purchase?
• Have you recently incorporated or are you thinking about it?
• Are you paying a pension contribution?

For the first year SFB charges £200 +VAT plus 10% of the first year’s tax credits. If you would like to utilise our tax credit service you need to call the tax department on 024 7638 4171 by 16th July 2010 to notify the HRMC that we will be putting in a claim on your behalf.  After this we will then liaise with you to let you know which information is required to be submitted.

SFB’s Viewpoint on the Emergency Budget

Wednesday’s emergency budget highlighted the need for excellent planning to minimise tax and increased flexibility to respond to changes in demand.  In terms of planning SFB Partner, Peter White, recommends the following:

• Identify your capital expenditure plans before the changes come into effect in April 2011 and then SFB can work with you to plan the timings so you minimise the tax you pay

 

• Where do your sales come from?  Identify what proportion of your sales could be impacted by reduction in funding of most Whitehall departments.   It is worth factoring in a reduction of sales and looking at diversifying away from sources of business impacted by the government spending cuts.    This is a good time to consider building your sales and having a targeted approach to generate new business.  If you have never been proactive before in marketing and selling now is a good time to start.  Remember to continue to service your existing clients well whilst you are growing your business.

 

• We expect to see a surge in spending until January when the VAT increase comes into effect and a reduction in spending in the Spring and levels to stabilise over the Summer.   In order to prepare for this and any loss of sales due to the reduction in government contracts have a thorough review of your business model and try to incorporate into it as much flexibility as you can respond quickly to changes in demand without putting your business at risk.  This is a great time to re engineer your business model so you are leaner, smarter and more profitable moving forwards.

 

If you would like any input into how to redesign your business to be highly profitable in this changing environment please give us a call 024 7638 4171.  When we have more information about how the reduction in the NI threshold will work for the first 10 employees, we will share with you how this can benefit your organisation.

Peter’s Presidency

Partner at Stewart, Fletcher and Barrett, Peter White, has been announced as the new president of the Warwickshire branch of the Society of Chartered Accountants.  We will be holding a series of events throughout the year which will posted on this website.