Would You Fail A Business Records Check?

HM Revenue & Customs (HMRC) has announced an extension of its business records checks programme – after the pilot scheme found that around 44 per cent of businesses visited had issues with their record-keeping, while around 12 per cent of those visited had seriously inadequate records. Business records checks were piloted earlier this year in eight key areas, and involve checks on the adequacy of small and medium-sized enterprises’ business records.

HMRC will employ 120 full-time staff to implement the programme, and plans to complete up to 12,000 business records checks by the end of the current financial year, with 20,000 provisionally planned for 2012/13. Initially, only the most extreme cases of poor record-keeping will incur a penalty – however, in the longer-term, HMRC intends to issue penalties of up to £3,000 for serious inadequacies in record-keeping.

Adam Bexon, partner at Stewart Fletcher & Barrett, said: “The importance of good record-keeping cannot be overstated. It will help you pay the right amount of tax – no more and no less – thus helping you to avoid interest and penalties. Keeping adequate records will give you a clearer idea of your financial situation, which allows you to make business decisions that will give you the best chance of success.”

Research by the Organisation for Economic Cooperation and Development (OECD) indicates that poor business record-keeping generally leads to an underassessment of tax, even where there is an audit-type check into a return for the period covered by such records. On this basis, poor business record-keeping is responsible for a loss of tax in up to two million SME cases annually.

If you are worried about failing a business records check, why not try out our free online business records checker here: http://www.sfb.uk.com/business-record-checker.htm

VAT – Are You Registered?

People who attempt to avoid VAT rules have until 30 September to register to pay what they owe under a new HMRC campaign. This focuses on individuals and businesses trading above the VAT registration threshold – a turnover of £73,000 – but who have not yet registered. Specific sectors to be targeted by the taxman include construction, business services, hair and beauty, hotels and catering, retail distribution, recreational services, motor vehicle distribution and repair, sanitary and domestic services, agriculture and horticulture, property and road haulage.

Under the terms of the VAT Initiative, those who have not registered to pay VAT can come forward at any point up until 30th September to tell HMRC that they want to take part. If they make a full disclosure, most will face a low penalty rate of 10% on VAT that has been paid late. After this date, however, HMRC will begin investigating those who have failed to come forward, and substantial penalties and even criminal prosecution could follow.

Sasha Wickham, Tax Manager at Stewart Fletcher & Barrett, advises: “While most people do register for, and pay, the correct amount of VAT, there are still a large number of individuals and businesses who have not yet addressed this issue – and they could soon find themselves falling foul of the law. Those coming forward are invited to also disclose any other tax arrears. Where they have to pay a penalty on undeclared tax other than VAT, this will be lower than the customary penalty of up to 100 per cent charged to those who fall outside the opportunity. However, the Revenue appear to be using scare tactics – forcing people to rush into making decisions. We urge anyone who thinks this may be relevant to them to pick up the phone and give us a call before they act.”

State Pension Age Set To Rise

It has been reported that the government will bring forward an increase in the state pension age to 67 under radical plans designed to prolong the working life of millions of people aged 50 and under. Ministers are already pushing controversial changes through parliament to raise the age at which men and women can claim a pension to 66 by 2020. Now, as the government moves to keep up with ever-increasing life expectancy, the retirement age could rise to 67 as early as 2026 – which would affect 8.1 million people in their 40s who would otherwise have expected to retire at 66.

Pensions Minister Steve Webb has stated that further moves are necessary, and that the coalition government will discard the former administration’s timetable, under which the pension age was to be increased to 67 in 2036 and 68 by 2046. He has described the timescales for 67 and 68 as ‘too slow’, and explained: “If it is 67 in the mid-2030s we will be going backwards in terms of share of your life in retirement. I mean the problem would be worse than 20 years before.”

Martin Lindsey, Director of Stewart Fletcher & Barrett Wealth Management, notes: “It has become clear that more needs to be done to avoid a major pensions crisis. With average life expectancy rising by, on average, two and a half years every decade, it is not surprising that some tough decisions have to be made, and quickly. Obviously this is a worrying issue that affects many millions of people, and any increase to the state pension age needs to be handled in such a way as to ensure that people have enough time to plan for the change.”

 

If you would like some advice or help with pensions, retirement or planning for your future, call SF&B now on 02476 384171.

Stewart Fletcher & Barrett Supports ‘Breastacular’ Event

Stewart Fletcher & Barrett is showing its support for the local breast cancer care unit by sponsoring a table at the ‘Breastacular’ charity dinner and auction on the 16th September.

The event, which promises to be a top night out, will include a champagne reception, dinner, auction, raffle and live band, and will be held at the Ambleside Club inNuneaton. It has been organised by a group of local ladies under the ‘Breastacular’ name: Angela Hammonds, Paula Inglis, Louisa Bosworth, Gemma Brining, Rachael Stinton, Rachael Clarke, Fiona Brown and Anna Riley.

They describe themselves as: “just a group of Nuneaton Girls who would like to arrange a dinner to support the Breast Cancer Care Unit at George Eliot Hospital.” The aim of the event is to raise money towards buying a Sentenial Node Biopsy machine costing £15,000.

Angela herself has just recovered from two years of treatment for breast cancer, and was treated at the unit, as were her mother and her sister. She explains: “This is a way of repaying and supporting the unit and the brilliant service they provide for women in the Warwickshire area.”

 The event looks set to be a roaring success, with all 16 tables sponsored by local businesses, who have also contributed by providing auction and raffle prizes which include a stay in a holiday cottage inCornwall, an Aston Martin for the weekend and a helicopter ride.

Senior Partner Paul Carvell said: “We are really pleased to be able to support Angela and the other Breastacular ladies in this fundraising effort. They have done a sterling job organising this event, and all of us at Stewart Fletcher & Barrett wish them the very best with it. We will also be keeping a collection tin in reception after the event so that anybody who can’t attend and wishes to make a donation can do so.”

20 Years Service For Lindsey

Peter and Adam present Lindsey with a bouquet

It was a day to celebrate on Friday 2nd September as Senior Manager Lindsey Chinn marked 20 years of working for Stewart Fletcher & Barrett. She was presented with a bouquet of flowers by partners Adam Bexon and Peter White. We hope she’ll be with us for at least 20 more!

Providing Exceptional Solutions

Stewart Fletcher & Barrett is proud to announce that it has adopted a new strapline to take the firm forward with renewed purpose and vision. After a period of deliberation and consultation, staff have chosen to sum up the company ethos with the slogan ‘Providing exceptional solutions.’

Senior partner Paul Carvell explains: “We felt that we had evolved beyond our old strapline, and wanted to encapsulate the spirit of the Stewart Fletcher & Barrett Group in the 21st Century. So I asked the whole team to think about what it is that we do that makes us special, that sets us apart – and, after all the votes were counted, we found a clear winner.

“Providing exceptional solutions is exactly what we strive to do for every single one of our clients – we pride ourselves on going the extra mile in order to achieve outstanding results. We aim to exceed expectations by delivering personally tailored, proactive solutions, and by selecting this new strapline we hope to make this ethos clear to everybody who engages with the SF&B brand. It was decided by all of our employees, so we know that they will live and breathe it – it will show that we do what it says on the tin!”

REPORT FINDS ‘CONSIDERABLE DISSATISFACTION’ WITH HMRC

A recent report by the Treasury Committee into the administration and effectiveness of Her Majesty’s Revenue & Customs has found that there is ‘considerable dissatisfaction’ among the public and tax professionals alike with the service provided by the Department – to the extent that concerns have been raised that, if the situation continues, it will severely undermine respect for the whole tax system.

The report identified three particular areas of dissatisfaction: access to advice over the telephone; responses to post; and offline alternatives to internet-based filing and guidance. It concluded that ‘there is a serious risk that if communicating with HMRC becomes too time-consuming, difficult and expensive, respect for the tax system, and with it voluntary compliance, may be undermined.’ The report also dismissed claims by the Department that these problems are primarily the result of reconciling of multiple PAYE tax years at once, as the current state of affairs has ‘been building for some years now.’

Stewart Fletcher & Barrett’s senior partner Paul Carvell commented: “While it is clear that HMRC is operating under significant pressures due to government cuts and the implementation of new legislation, at the same time businesses all over the land are struggling to deal with these issues too. There are certain levels of accuracy, efficiency and professionalism that one expects from an official government body, and unfortunately it is apparent that HMRC is letting these standards slip more frequently than in the past – as has been illustrated by the growing number of embarrassing incidents appearing in the press recently.

“As communication problems have emerged as the key factor in this report, now more than ever, anyone who has dealings with HMRC could benefit greatly from using a qualified tax agent who has the breadth of knowledge and experience required to achieve the best results when it comes to communicating with the taxman.”

To speak to a tax professional about how Stewart Fletcher & Barrett could help you in your dealings with HMRC, call us now on 02476 384171.