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BNI Camberley Presentation April 2013
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BNI Camberley Presentation April 2013

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My 10 minute presentation at BNI Camberley in April 2013 that covers all aspects of Fuller Spurling's work and includes some worked examples of how we can advise clients on the tax implications of …

My 10 minute presentation at BNI Camberley in April 2013 that covers all aspects of Fuller Spurling's work and includes some worked examples of how we can advise clients on the tax implications of their decisions

Published in: Economy & Finance, Business

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  • 1. What sets us apart from other accountants? We focus on our clients and the ways in which they can improve the available income they can draw from their businesses by: Saving tax and especially higher rate tax Saving employer’s national insurance (13.8% of salaries) Saving employees’ national insurance (12% of salaries) Saving national insurance for self employed (9% of profits) Saving VAT (yes there are ways!) Improving cash flow as a result of such savings We do it well and in good time to meet the many deadlines involved, and with a helpful and friendly attitude, not stuffy old accountants! We also help with tax planning work to try to reduce exposure to tax in areas such as Capital Gains Tax on the disposal of a business or 2nd property, or dividend planning to ensure exposure to higher rate tax is avoided if possible.
  • 2. Who can we help? Individuals (who need help with tax returns or capital gains) Sole traders and partnerships Limited companies and LLPs Charities We are statutory auditors so we can carry out the audits of: Larger companies (turnover above £6.8million) and Charities (gross income above £500,000) So all of these are good referrals for us.
  • 3. I’m going to quickly run through Details of routine work that we do A couple of examples of some typical savings we can advise on. Followed of course by the usual doom & gloom !!
  • 4. Routine work Please don’t forget that we can help with annual compliance work for all different types of client whether they are in business or just need help with their Tax Returns which can often be a rather daunting task. We take away the hassle and worry, submit everything electronically on your behalf and correspond with HM Revenue & Customs where necessary. So that can cover………..
  • 5. Routine work Tax returns Employment income (but are you claiming mileage at the correct rate for example) Interest income, pensions income and age related allowances Lettings income less expenses to minimize your lettings profits Capital Gains Tax calculations on sale of the second property or sale of a business. Details of sole trade or partnership profits.
  • 6. Routine work Work for clients in business We help prepare: Accounts for sole traders, partnerships, companies and charities Taxation computations arising from those accounts. Payrolls & CIS returns each month now under RTI, & VAT Returns. We give lots of general business advice – commonly VAT matters, car matters, “can I claim for these particular expenses?” We look at the comparison of sole trader versus Limited company for tax reasons and commercial reasons
  • 7. So a quick couple of examples of some typical savings we can advise on. And of course followed by some doom & gloom !!
  • 8. VAT Flat rate scheme – for small businesses Join scheme when turnover below £150,000 and exit when above £187,500 Charge customers normal 20% VAT Pay over to HMRC a lower percentage based on your “industry rate”, but don’t claim any VAT on expenses. An added bonus: Extra 1% discount if you join the scheme when you first register for VAT Consultants should always consider this scheme as they can make significant savings as you will see from the next slide
  • 9. So the VAT Flat rate scheme gives more profit for your business which means more money for you as the client.
  • 10. Limited companies – comparison of salary versus dividends We see many companies still paying large salaries and bonus salaries They don’t pay dividends, often because they think they are not able to. “I’m not allowed to pay dividends more than once a year” is also often heard RUBBISH! is my reply You can pay as often as you like – so that’s probably monthly then isn’t it? I can change the structure of share capital to have different classes of shares, whether voting shares or non voting shares – it depends on what people want. They can then pay dividends to different people at different times and at different rates…. SIMPLE!!
  • 11. Limited companies – comparison of salary versus dividends Example Current salary 57,200 New salary 7,200 Reduction is therefore 50,000 This is paid out in the form of dividends at 80% = £40,000 (this is to allow for the corporation tax due instead of PAYE). National insurance saved: - employee (mostly 12%, some 2%) 5,250 - employer at 13.8% 6,900 Total saved per employee 12,150 per year Plus – further savings by delayed monthly payments of PAYE at 20%, paid effectively as corporation tax 9 months after the year end (£10,000) So a total cash flow advantage during the year of £22,150
  • 12. And now the section you’ve all been waiting for…..yes it’s Some doom & gloom !!
  • 13. Doom and gloom!!! Fines and penalties to be avoided Let us help you get your affairs in order and make sure you meet the deadlines : Companies House - Fines for companies and LLPs Accounts not delivered within 9 months of year end £150 Accounts not delivered within 1 further month £375 Accounts not delivered within 3 further months £750 Accounts not delivered within 6 further months £1500 Accounts not delivered within 12 further months £3000 If you are late again for the following year end, all the above fines are doubled!! there’s more………..
  • 14. More doom and gloom!!! Fines and penalties to be avoided Let us help you get your affairs in order and make sure you meet the deadlines : HMRC fines for Payrolls and CIS subcontractors tax Monthly PAYE paid after 19th month - up to 4% of the amount due (I am aware of one company that pays around £25,000 PAYE/NI per month and paid it late by about 2 weeks each time and they received a fine of £10,743!!!!) CIS monthly returns not filed by 19th of month, even if “nil” - £100 each month, a further £200 if two months late, a further £300 if 6 months late…… End of year returns not submitted by 19th May each year - £100 per month late. Next year there will be monthly penalties possible for RTI reporting !! there’s more………..
  • 15. Further doom and gloom!!! Fines and penalties to be avoided Let us help you get your affairs in order and make sure you meet the deadlines : HMRC – fines for late Tax Returns Filed one day late even if no tax due £100 After 3 months late then accrue £10 per day up to £900 After 6 months a further penalty as a percentage of total tax liability ??? After 12 months a further penalty as a percentage of total tax liability ??? And If you are 30 days late paying the tax – 5% of tax unpaid Similar further 5% penalties if not paid at 6 months and 12 months…. who says tax doesn’t have to be taxing !!!??????
  • 16. So to sum up: We look at simple ways of saving our clients money We give practical help and guidance when they want it and where they want it We try to ensure they do not miss the many deadlines which give rise to ever more penalties. So.. Please think of anyone or business that you know is not getting this sort of service. Are they moaning about their accountants being late, or not giving advice? They don’t have to put up with it !! Tell them about Fuller Spurling................................and remember....................
  • 17. IT’S EASIER SLEEPING WITH A CHARTERED ACCOUNTANT !!!