The 2011 award was presented to Jenni Frost for her contribution to the reputation and prestige of the Association through her promotion of, and commitment to, Farrant Frost’s charitable activity.  She was presented with the award at the AAT AGM in Bristol on 18th May 2012.

“I was really surprised and bemused when I got the phone call to tell me I’d been selected for this award, because I don’t feel that I’ve done anything particularly outstanding; I’ve just done what comes naturally. It’s a pleasure to have built my business to the point where I can give back to the community, and I really enjoy what I do. I’m honoured to have been chosen for this, and very grateful for the support of the AAT and my wonderful members of staff.”

Jenni Frost with immediate Past President Hilary Lindsay

It’s PAYE end of year return time and this year, HMRC are cracking down on lazy and incomplete returns.

“About 80% of P35 errors relate to names, addresses and National Insurance numbers. This year, HMRC is cracking down on improper payroll records. 

According to the 2009/10 returns, UK employers employed:

507 people called “AN Other”

128 people with the surname “Dummy”

572 people whose names comprised only a series of the letter X

75 people called “Casual”

824 people called “Unknown”

40 employees who were apparently more than 200 years old.

HMRC is getting less tolerant of such matters, and is likely to reject such returns and impose penalties. You have been warned.”

[source= AccountingWeb]

This is a timely reminder to make sure you have your employees’ details up to date: Name, home address, date of birth, NI number. And if you use a bureau or accountant to run your payroll, make sure they have this info too!

 Photo credit: Picable

(Photo credit: Wikipedia)

If you’re VAT registered, it can seem like a minefield when you’re trying to find out what you can and can’t reclaim VAT on.

The days of the Internet haven’t helped, as it seems that every man and his dog is an expert if you ask the question in a forum or on social media.

But one of the most wooly areas seems to be that of travel and subsistence – or travel and food if we want to make it easy.

So what Travel & Subsistence is it OK to reclaim against VAT and what isn’t?

Claim Away!

In general terms, you can reclaim VAT on T&S where a director, partner, sole proprietor or employee is away from the office (or usual place of work) for business purposes.

This could include:

• Taxi fares
• Use of a private or hire car
• Rail or air tickets (it has to be mentioned these are usually zero rated, so no VAT to reclaim)
• Meals, including breakfast
• Sandwiches or takeaway food
• Hotels, B&Bs or other accommodation
• Fuel if used only for business purposes

Hold That Claim!

Unfortunately you can’t reclaim VAT if the above items are for business entertainment purposes or for non business use.

You can’t reclaim VAT if you pay a ‘flat rate’ expense either – you have to meet the actual cost of the expense in full or in part.

Explain That Claim

So, let’s say that you go to a conference in another town. You need to stay in a hotel as it’s too far to travel back. You drive as it’s easier than getting a train. On the way you grab a toasted sandwich for lunch.

You go to your conference for the afternoon, and that evening grab dinner in a local restaurant. As the restaurant is quite far from the hotel you get a taxi there and back.

The next day you grab breakfast and head back home. You can claim for:

• the hotel
• the petrol / diesel (depending on your method of calculating motor expenses)
• the toasted sandwich
• the taxi fare
• the restaurant bill
• the breakfast

Remember, this is only if the expenses are incurred doing business somewhere other than your usual place of work and aren’t for business entertainment purposes.

If you’re confused about what you can claim, why not give us a call on 01672 564370 or get in touch to see how we can help?

Receipt Please (Photo credit: Peter π)

Its funny how, when you start your business, you plan to be oh so organised and keep everything perfectly tidy and organised.

Your desk will never have dirty coffee cups on it, your paperwork will always be beautifully filed, and of course your receipts and invoices will be organised just how your accountant needs them.

And then reality hits.

You’re too busy to take those coffee cups away, the paperwork is all filed in a ‘to file’ tray, and every receipt, invoice and possible scrap of paper that could mean something is shoved into a shoebox labelled ‘for the accountant’.

And I’m sure your accountant smiles through gritted teeth when you present him / her with that box.

But it’s not just because of your accountant that you should organise your receipts in a better way, it will save you money too! If you’re paying by the hour for a professional to sort out your accounts, do you really want to be paying that professional to put all of your invoices and receipts into a workable order? When you could either do it yourself or pay your assistant / secretary / children to do it?

Here’s how to organise your receipts so that claims are easy:

1) Feel free to use the shoebox – just be sure to clear it out regularly. Whether you make Monday morning with a cup of coffee or every 2nd Tuesday your day to sort receipts, put it in your diary and stick to it.

Look through the shoebox and categorise everything; Networking receipts, office supplies, telecoms invoices, supplier invoices, petty cash, etc.

2) Buy a folder. One of those with clear pockets is good. Label each pocket with a category and put all your receipts and invoices in there, preferably in date order.

Not so great at filing by hand?

3) Do it online. There are many programs that can do this for a small fee each month, but you can just as easily do it with a scanner and Google Docs (and you can share it with your accountant afterwards). Set up a label within Google docs called ‘Accounts 2012′ and then have sub labels for each category. As you scan a receipt, name it accordingly and place under the correct label (e.g. neworking-event-Jan132012, filed under Networking Costs). It may sound like a bind but once you get the hang of it it’s easy to do in a few minutes each week.

Whichever way you choose to send your invoices and receipts to your accountant, make sure that the system is one that works for the two of you, and that you can stick to and they can easily understand.

How do you organise your receipts and invoices for your accountant? I’d love to hear from you in the comments below!

Most people are unaware that anyone can call themselves an accountant, without any qualifications or experience. It’s not a protected name, unlike doctors or solicitors. We’ve noticed that many members of the public assume that anyone holding themselves out as an accountant is qualified and therefore regulated; this is not the case. You could legally set yourself up as an accountant right now if the mood took you. Yes, you. Yes, really.

What you get from a qualified accountant

The formal accountancy and tax bodies have strict practising rules which mean their members not only have to pass exams but more importantly have to:

• have enough relevant experience
• hold professional indemnity insurance
• undertake continuing professional development (CPD) to keep skills up to date with the ever-changing rules and regulations of accounts and tax.
• Ensure their employees are suitably qualified and/or experienced, and undertake CPD.

What does it mean for me?

The “qualified vs. unqualified” debate is one that rages on throughout the accounting community. It’s worth pointing out that some accountants without letters after their name may have let their professional membership lapse, perhaps due to perceived bureaucracy and red tape.  Alternatively, they may have taken many professional exams, or have extensive experience but, for some reason (such as children or a bereavement), couldn’t follow through to full membership. Many “unqualified” accountants do have insurance and undertake CPD.

However, some unqualified accountants are just that: unqualified, leaving their clients unprotected in the case of any problems.

If you need accounts for the purposes of getting a mortgage, then most lenders will only take accounts prepared by a formally qualified accountant.

We believe that qualifications are a tangible, quantifiable measure of a professional accountant. Farrant Frost’s director Jenni is licenced and regulated by the AAT, one of the UK’s leading non-chartered accountancy bodies, and this guarantees that we are qualified, licenced, insured and regulated for any work an individual or a small to medium sized business may require.

What happens if I have a problem?

In the hopefully non-existent case where you might have cause for complaint, clients of a qualified accountant can be assured of a channel to speak to a regulating body to air their concerns, an avenue unavailable to clients of unregulated or unqualified firms, including some accounting/tax franchises.

If you have a problem with your accountant, you should always refer this to the accountants internal complaints procedure in the first instance. This complaints procedure should be set out in your letter of engagement.

Our verdict

Clients who are represented by an accountant who is a member of a professional body are promised a much higher standard of technical ability, regulation, protection and a route to resolving any problems that might happen. Qualifications are not a guarantee of quality – there are bad qualifeds as well as good unqualifieds – but on the whole it’s probably a safer choice. At the very least, it’s advisable to check with your accountant, or potential accountant, if they are qualified (and who with) and, if not, whether they hold indemnity insurance and undertake CPD.

That’s all (apart from a request that you “like” our page. If you do, of course. And why wouldn’t you?).

All it takes is low income and a sudden, unexpected event; a bereavement, relationship breakdown, illness, redundancy or theft; to throw people into a genuine crisis. Nobody in Wiltshire should go home hungry; Devizes Food Bank provides people with essential food at a time when they need it most.

We would love it if next time you come in, you pop to the Co-op first and buy one of the foods on the list. Drop it in our box in the lobby and we’ll take it over to the charity on our next delivery day.

We are a central Pewsey collection point,at 1 High Street, right opposite the Co-op. Anyone is welcome to donate.

Thank you for your support.

Devizes Food Bank Website

Farrant Frost charitable philosophy

What’s in a box?

We currently have shortages as below in blue.

That’s right – the government is forcing everyone to pay into a pension scheme, whether they like it or not.

From 2012-2016, the government is phasing in pension reform. Every employer will have to operate a company pension scheme if they have empoyees who earn over the personal allowance for tax per year (£7475 for 2011-12). Employees will have to contribute to the pension scheme. Employers will also have to contribute to the scheme. Some small employers may have to consider pay cuts or freeze pay rises for staff in order to afford it. This will impact most people.

There has been some talk about it but, so far, it’s not been widely publicised and many employers and employees aren’t aware of it, or how it might affect them.

Employees:

If you earn over the personal alowance, you will have to make pension contributions via payroll if you don’t already contribute to a company scheme.

You will receive tax relief at source: the pension contribution will be take out of your pre-tax pay. So, if you earn £250 a week and pay £10 into a pension, your tax and NI will be calculated on £240 a week.

Employers:

If you already have a pension scheme then, as long as it meets the prescribed standards (which it probably will), you shouldn’t have to worry.

If you don’t have a pension scheme, the default scheme to enrol in is called NEST. If you don’t shop around and choose your own pension scheme, this is what you will end  up with. The financial advisers we have spoken with have all expressed concerns of how good this offering will be, but it will meet the government’s requirements – which is to help fill in the “pensions black hole.”

The other option is to consider the needs of your business and staff, and talk to a financial advisor about setting up a scheme that is more appropriate for your business and may give better value and returns in the future.

Pension reform: the facts

The government are phasing in the compulsory pension schemes depending on the size of the employer. Pension schemes will have to be offered as follows:

2012: employers with over 30,000 staff

2013: employers with more than 350 staff

2014-2016: everyone else

Employees will be “auto-enrolled” onto these schemes.

The employer’s contribution is a compulsory 3%.

The employee’s contribution is 4%.

If you are an employer paying someone over the personal allowance, this affects you. Speak to us today about what your options are.

Closed: Thurs 22nd December 2011 – 3rd January 2012.

Wednesday 4th January – office reopens.

From all at Farrant Frost, have a wonderful Yuletide and best wishes for the new year

Jenni

If you file online, the deadline is 31st January 2012, but if you want to file on paper, and you still need to do your tax return, time is running out.

Farrant Frost are holding paper tax return clinics at our Pewsey office throughout October. Call us on 01672 564 370 for more information or send us an email.

What is a tax return clinic?

Many people who need to complete a tax return have relatively simple affairs and want to do it themselves without the expense of an accountant. However this can leave questions and sometimes people want reassurance without having to wade through HMRC’s own guidance.

A tax return clinic is an opportunity for you to sit down with an accountant here in Pewsey and ask us any of those tax return questions that you’ve been wondering about. Or maybe you’ve got all your information but are a bit daunted by the paper form. We can help you fill it in. Or, we can just look over what you’ve done and put your mind at rest.

For £30 (including VAT) you can speak to one of our accountants for 20 minutes and ask us your tax return related questions.

Normally, taxpayers in self assessment either have to pay the full fee to an accountant, or do it themselves, with no option in between. We want to bridge that gap for people. We aim to make accounts and tax as simple and painless as possible.

The tax clinic will help with self assessment tax returns that include income from interest, dividends, benefits, pensions, employment, self employment and rental income. Please see below for more details.

What if I’m filing online?

If you plan to file online, you can still take advantage of our tax return clinic to ask us your questions.

Great! When is it?

Tax Return clinics are available throughout October. Our drop-in sessions are Tuesday-Friday at 10am -12.30pm, during the middle two weeks of October: 11-14th and 18-21st. You don’t need to pre-book, just turn up. If these aren’t convenient, you can always book an appointment. If you want an early evening slot, please just ask.

What’s this I hear about fresh coffee and cake?

If you come along to one of our drop-in sessions, we’ll have fair trade fresh coffee on the go, along with tea and biscuits. And mineral water. And possibly fresh fruit juice and/or cake. Lovely.

What do I need to bring?

Please bring with you summaries of all your income sources in the 2010-11 tax year (6th April 2010 – 5th April 2011). These will will typically include:

• Certificates of interest received (and tax deducted) from bank and building societies
• Dividend vouchers for dividends received from shares held
• Forms P60 or P45 from any employments or pensions
• Forms P11D or P9D (expenses and benefits from employment)
• A record of the amount of state pension or taxable state benefits received in the year
• Income and expenditure from rental property you have, including lodgers in your own home
• Income and expenditure from your simple self employment
• Records of pension payments made to private pensions (for higher rate taxpayers)
• Records of any gift aid payments made to charities in the year (for higher rate taxpayers)
• Records of any other income received in the year.

Please note that, amongst other things, Tax Credits and income from ISAs do not need to go on your tax return.

We will advise you how to show your income on the returns. If there are any basic tax-saving measures we spot that are not already included, we will suggest these to you. We can also assist with record keeping, should you wish.

What we will not do at the tax return clinic:

We pride ourselves on accuracy and attention to detail. Some taxation affairs require more in depth attention and we do not feel a 20 minute sit down is enough to provide the level of service and accuracy required for services including but not limited to:

• Capital gains computations
• Busy rental property portfolios
• Preparation of business accounts
• Detailed taxation advice

You will be asked to sign an Engagement Agreement – this is a condensed version of the Letter of Engagement which accountants issue to clients. It outlines our responsibilities and the nature of the tax return clinic engagement. Payment of £30 is to be made by cheque (payable to Farrant Frost) or cash on signing the Engagement Agreement, before your consultation takes place. A VAT receipt will of course be provided.

I’d rather not do my tax return at all, actually…

If you’d rather hand your whole tax return over to us, we’d be happy to help. Just give us a call on 01672 564 370 or send us an email and we’ll look after it all for you.

Image provided by Images_of_Money via Flickr