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The details below are a summary of how we've helped some of our clients. To read the full case study click on the links below or phone to see how we could help you; +44 1202 657444 Waste Management Company Since Birkett & Co were appointed five years ago, the client has grown year-on-year and its employee base has increased from eight to 14. The company now has accurate financial records which are required for both taxation and VAT purposes.
The book-keeping service provided by Birkett & Co ensures that the company has a monthly picture of its bank, debtor and creditor positions and that the VAT filing obligations are complied with. As paying staff correctly and on time is a top priority for the client, Birkett & Co’s payroll service is fast, efficient and confidential and ensures that tax and other deductions are correct for compliance with HM Revenue & Customs (HMRC). The accountancy services provided by Birkett & Co free up the clients' valuable time allowing them to concentrate on more important areas within the business. Read the full case study Specialist Engineering Company As a result, Birkett & Co conducted a comprehensive health check to assess the financial circumstances of the firm in order to develop a report and recommendations for an action plan which was tax efficient. Based on the financial analysis and recommendations provided by Birkett & Co, the management team took the decision to invest in property and purchase, rather than lease, a larger Head Office unit based in South East Dorset.
Aside from providing financial advice to the client throughout the purchase of the new premises, the Birkett & Co team was also on-hand to assist with the re-set up of the book-keeping program and train staff at the client on the system. Read the full case study Specialist Retail Outlet Following a consultation with the business owner, Birkett & Co set about assisting the owner to decide on an equitable exit from the swimming school division which would allow her to fully concentrate on the busy retail division of the business.
Once a course of action was agreed, Birkett & Co mediated between the business owner and the buyer to ensure a smooth and successful transition of swimming school division. The Birkett & Co team was on-hand to advise the client throughout the whole sale process. Read the full case study
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Tax, money and benefit calculators |
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Tax misconceptions and myths |
Myths about tax are adding to an already confusing tax system, the Institute of Chartered Accountants in England & Wales (ICAEW) has claimed.
As taxpayers prepare tax returns to meet the 30 September deadline, the last opportunity for sending tax returns back to HMRC in order for them to calculate tax on an individual's behalf, the ICAEW published advice to separate fact from fiction.
Anita Monteith, technical manager at the ICAEW tax faculty, said: "It is important that basic myths are unravelled so that people have a correct knowledge of their tax position in the run up to the 30 September deadline."
Among the myths "uncovered" by the institute were:
Money kept overseas is not taxable
For most people living in the UK it is taxable. It doesn't matter if you leave the money in Jersey, for example, and never touch it, you must still pay income tax on any interest. However, if you are not both resident and domiciled in the UK the position may be different and you may need to seek further professional advice. HMRC are looking much more closely at overseas bank accounts.
Children are not taxable
It doesn't matter how old you are, even babies are taxable if they have income. For most children, there won't be any tax to pay since the personal allowance of £4,895 for 2005/06, or £5,035 for 2006/07, allows each person this much income before they start paying tax.
Students are not taxable in their first year at university
Students who earn more than the personal allowance have to pay tax. Employers will usually ask student employees working in the holidays to sign a form P38S so they can pay their wages in gross.
Give money to your children and escape tax on the interest it earns
If a parent gives money to a child then if the interest earned exceeds £100, it is treated as being the parent's income and not the child's. Interestingly though, a grandparent can give away money without the same problem occurring. Watch out for inheritance tax (IHT) though; some gifts will be exempt, but larger amounts may create an IHT problem.
The Inland Revenue always get your tax code right
Certainly not. Even assuming that information you have given is correct it can be easily lost amongst the millions of other PAYE codes. Make sure that any benefits that you get from your employer have been valued correctly (look at the Form P11D given out before 6 July 2006). Check that the suffix (the letter after your numerical code number) is right for your circumstances (look at the leaflet which came with it); the letters BR for someone who only has one job should ring alarm bells since this may mean that you are paying basic rate tax (22%) on all of your income and that you aren't getting any benefit for the personal allowance mentioned above. ICAEW said a number of Chartered Accountants have informed it of clients whose PAYE codes have being incorrectly issued earlier this year.
If you have overpaid tax you can always rely on the Revenue to pay it back
If you have overpaid tax under the PAYE system and have no other income, then it should happen automatically. Often though the position will be more complicated and you will have to ask for the tax back, either by completing a tax return or by completing a repayment form (R40). Investment income is taxed at a different rate to earnings, so it is always worth checking the tax you have paid at the end of the year. Pensioners are particularly liable to be caught out and overpay tax as they may have several sources of small amounts of pensions and interest income.
If you let a room to a lodger income is not taxable
All income from letting is taxable, but to encourage people to let a room in their home, income of up to £4,250 is exempt under the rent-a-room scheme.
State pension is not taxable
The state pension is taxable, but is always paid gross. If you have no income apart from the state pension, then since for a single person it is below the level of the personal allowance, no tax is due. If you do have other income, such as an occupational pension, then you will probably find that your tax code has been adjusted for the state pension - if not, you may not have paid the correct amount of tax.
If you only ever work for cash you don't need to pay tax
HMRC devote significant resources to tracking money in the black economy and even small one-person businesses are interesting to them. It is your responsibility to keep records of your financial affairs and to declare your income. There are penalties for cheating and you may even go to prison. If you have made a mistake then you should seek proper professional advice to minimise the effects of the consequences.
With acknowledgements to Accounting Web 06/09/2006 |
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Email regulations for limited companies |
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An amendment to the Companies Act was slipped in on 1st January 2007 without any great fanfare of publicity which could have serious consequences for any companies which use email for their business communications. It is now compulsory for all limited companies to show their registered office, country where incorporated and company number on all outgoing emails. There is a potential fine of £1,000 for non compliance. Is this a company law enhancement or a stealth tax?! Your comments are welcome. |
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