Nicola Hardy, our practice manager, says…

Well the 31^st of January is nearly upon us and so is the end of another busy Self Assessment Tax Return season at Rotherham Taylor.

Whilst you spare a thought for us Accountants who have been glued to our computers since well before Christmas, take a second to have a look at a couple of new issues that have come up this year.

1. Child Benefit Tax Charge  – Does this apply to you?

Do you or your partner have an individual income of more than £50,000 and are entitled/have received child benefit after 7^th January 2013?

For an income between £50,000 and £60,000, there will be a tax charge of 1 per cent of child benefit paid for every £100 of income between £50,000 and £60,000.

If your individual income is £60,000 or more, the tax charge will be equal to the full amount of child benefit that you or your partner are entitled to receive.

If you are liable to a charge, you may decide to make arrangements to stop receipt of the child benefit.

Alternatively, please let us know if this applies to you and you are in receipt of the benefit,  in order that we can make the appropriate entries on your Tax Return.

1. Uniform Tax Rebate

You may have seen in the press recently, news about whether you are entitled to a uniform tax rebate.

If you

:- wear a uniform or protective clothing at work,

:- have to meet the cost of laundry without assistance from your employer,

:- pay income tax on your earnings,

then you may be eligible for tax relief.

These are just a couple of many enquiries that we receive on a day to day basis. If you have a specific query, based on your individual circumstances and require professional advice, then please get in touch and we will be more than happy to help.

On a final note…. If you haven’t yet returned your signed Tax Return, then please, please, PLEASE be kind, beat the rush and get back to us in plenty of time before the 31^st January.

We are waiting at our computers as we speak, making sure that all the Returns are filed in time and to help you avoid a £100 late filing penalty.

HELP US, TO HELP YOU and send home some very happy (but tired) accountants on Friday afternoon!

Rebecca Bradshaw, our Director, says…

 When I grow up I want to be a chiropodist!

From a very young age we are all trained to have career aspirations. “What do you want to be when you grow up?” is a question often asked to children who are usually more preoccupied with the latest toy or who is their best friend of the week, rather than visualising their 20 or 30 year plan! The earliest childhood ambition I can remember is wanting to be a chiropodist, I am not quite sure why I had a fascination with feet but this was thankfully short lived and I then changed tack and decided I wanted to be an airhostess. I can only imagine that the change was the result of a trip abroad where I decided cabin crew were glamorous people who got to travel the world on a daily basis as well as having shiny shoes and suitcases on wheels! The airhostess dream was doused in cold water after a brief stint at waitressing, where I discovered that multi-tasking whilst carrying plates was not my strong point- I am still traumatised by ruining some poor ladies party outfit by pouring her starter all over her lap! I quickly decided if I couldn’t deliver food safely on land there was no chance of being able to do it high in the sky.

 

At some point after finishing college and whilst studying at university I struck upon the idea of training to be an Accountant. I could lie and say I have never looked back but that wouldn’t be entirely true, there are some days when I could quite happily never see a tax return (every 31^st January) or set of accounts again but on the whole I think it has been the right choice! The day in the life of an Accountant working in a relatively small firm is always different, gone are the days when I can moan about being bored. Over the last 10 years I have met some very interesting characters, been involved with a wide range of client situations, worked with some great people and even managed to swing a trip across the Atlantic. So, my advice to all those young children out there – don’t forget about being an Accountant, it might not always promise glamour and world travel but you can wear shiny shoes whilst wielding your calculator!

 

My top five reasons to be an Accountant (in no particular order);

1)      No two days are the same (unless you are auditing!)

2)      You get to meet a wide range of people

3)      You learn to use a calculator really fast

4)      You get to help people and on a good day make a difference to them and their                       business

5)      Once qualified the opportunities are endless.

Michael Barton, our chief executive, says…

“ALL TAXATION IS THEFT”

 As most people know January is a very busy time in an Accountant’ s office. The personal tax return filing deadline for electronically submitted returns being 31^st January in respect of the tax year ended 5^th April in the year before. At a time like this all Accountant’ s will be reflecting on the basis and nature of the taxation system and asking themselves why it is the way it is. Several hundred years ago under the feudal system taxes were due to the local lord. As the concept of nations developed the local feudal system (which of course still exists on the Island of Sark!) gradually faded away to be replaced by a national system of loyalty, allegiance and taxation. Income tax came up first of all as a temporary measure to finance National War. The principles have remained the same: to raise revenue to spend on the national good. However in more recent years taxes have been introduced which are designed not only to raise revenue but also to change people’s behaviour. Think of climate change levies, air passenger transport duties, raised tobacco taxes.

 Of course the problem with all taxes is that they do in fact change people’s behaviour. The so called “Laffer” inflection curve being the point at which raising taxes REDUCES revenues. When the Thatcher government reduced capital gains tax rates the tax take went up as people did not hold back on making disposals or indulge in heavy duty tax mitigation schemes.

 If Sky Television raise subscriptions rates to the point where people unsubscribe and total revenues reduce they know when they have gone too far. At what point would a government know they’d gone too far? Of course the counterpoint to increasing tax rates is reducing public expenditures and the recent economic crisis has focused our attention on that side of the equation.

 The Americans came up with the TEA party. Taxed Enough Already. I’m quite surprised that we haven’t seen something similar here in the UK. Income Tax, Capital Gains Tax, Corporation Tax, VAT, Stamp Duty, Inheritance Tax, Petroleum Revenue Tax, Climate Change Levies, Vehicle Excise Duties, Council Tax, Air Passenger Transport Duty, Alcohol Taxes, Tobacco Taxes, TV licence fees to name a few – there are many more!

 One theory I heard recently is that the government have become our new feudal masters. Raising tax after tax after tax. At the same time as expecting us all to be grateful for their generosity and wisdom when spending our money. Of course having helped themselves to high wages, benefits and pensions on the way. As individuals we could try to leave the system, lots of Americans are handing back their passports. I wonder when that might start to happen here.

 Anyone for TEA! Or how about a Window Tax!

 Michael Barton

Nick Smith, our senior manager, says…

Business Resolutions for 2014

Businesses are feeling cautiously optimistic about 2014. Confidence levels have been boosted by The Bank of England’s predictions that unemployment will fall, growth will continue and interest rates will remain low. However, despite this renewed confidence, business owners should ensure that their affairs are in order and in some cases go back to basics, to give them the maximum chance of thriving during the year ahead.

 

Here are 10 resolutions that will keep you on track.

1.       Get your paperwork in order

Now is the time to sort out, create or improve your filing system. Retain important paperwork such as bank statements in a safe place as they are a record of your receipts and payments.

2.       Timely invoicing

 Do not delay sending invoices and statements out on time. Ask customers for purchase order numbers and quote that on your invoice. On completion of a job, raise the invoice immediately clearly stating the amount and date payment is due. If a job is delivered over a period of time, consider sending invoices on account to mirror work performed to date.

3.       Credit control

 Late payments have become increasingly problematic over the past few years. Check each customer’s credit history and set sensible credit limits. Always provide written terms and conditions, making sure that that they are agreed to by the customer before you provide any goods and / or services.

4.       Consider funding options

 Is your business funded in a way that will carry you through temporary difficulties whilst allowing you to take advantage of growth opportunities? If not, it may be time to consider alternative methods of funding. For example, invoice financing is one solution that can provide a business with a flexible ongoing supply of working capital.

5.       Review suppliers

 Review the prices your suppliers are charging you. Think what effect a 5% or 10% reduction in costs could have on your profits. It is easy to become familiar with suppliers and forget to push them for bulk or loyalty discounts.

6.       Control your finances

Growth is important, but so is cashflow and profitability. You should have regular and meaningful updates on the business finances to ensure you are on the right track. You should speak to your bank or finance provider in advance of any big decisions. If you are considering raising your cost base through new hirings, purchases or acquisitions you should do so with the knowledge that you can afford to and that a return on investment will be forthcoming.

7.       Update your business plan

 Don’t forget this was once your idea! If things have changed since you made your original plan, ask yourself why. Crucially, were your financial forecasts accurate and are you still budgeting effectively?

8.       Listen to staff more

 The New Year is a fresh start for everyone and this includes your best asset – your staff. Make them feel respected and empowered by including them in the decision making process and formulation of company strategy.

9.       Network more

 Business owners often talk about their intentions to spend more time meeting new people and making contacts. As the economy rises, more deals will become available, talented staff will seek greater roles and opportunities will present themselves. Getting out to networking events and engaging in on line chats are both excellent ways to refresh the mind as well as the contact book.

10.   Take advice

 It is very easy for owner managers to develop tunnel vision and, while self-belief is important, guidance from peers, mentors or your professional advisors can prevent you making mistakes.

 

So there it is. New Year’s resolutions are easily broken but if you stick to these 10, you won’t go too far wrong.

Best wishes to everyone for a productive and profitable 2014.

Lucy Birchall, our trainee accountant, says…

Everyone at Rotherham Taylor would like to wish you a very happy and prosperous New Year.

By taking a look back on the news in 2013 we can see the moments which have defined the year…..

January saw HMV, the chain of high street music stores, go into administration after 90 years of trading.  There was also the discovery of horse meat in certain products sold by a number of UK supermarkets. Even one of the biggest catering groups, providing for hospitals and schools, found horse DNA in their beef burgers!

Pope Benedict shocked the world in February when he became the first pope to resign in over 600 years. Cardinal Jorge Mario Bergoglio from Argentina, was elected as the new Pope; the first from Latin America.

At the beginning of March, Vicky Pryce, ex-wife of former cabinet minister Chris Huhne, was found guilty of perverting the course of justice in connection with taking her husband’s speeding points a decade earlier. The couple were later jailed for the offence.

In April, the Government instigated new benefits caps and under-occupancy penalties, referred to as the “bedroom tax”. The tax is thought to affect more than 600,000 homes nationally.

The death of Baroness Thatcher in April, aged 87, divided the Country whilst some were mourning, others were celebrating which resulted in “Ding Dong the Witch is Dead” reappearing in the charts.

Sir Alex Ferguson, British football’s most successful manager, stepped down after 26 years in May. He had managed 1498 games at Manchester United, with 894 wins, 337 draws and 267 defeats.

Edward Snowden, a 29-year-old a former employee of Booz Allen Hamilton, revealed himself as the source of the NSA leaks. He was taken refuge in Hong Kong in June.

In July, the third in line to the throne, Prince George Alexander was born. The new arrival generated headlines and celebrations all around the world. The British public’s mood was also lifted when Andy Murray defeated Novak Djokovic, becoming the first British man to win Wimbledon since 1936.

Michaella McCollum Connolly and Melissa Reid, from Northern Ireland and Scotland, were arrested at the start of August on suspicion of smuggling cocaine at Lima airport, Peru. Later in the year the pair were convicted and sentenced to six years and eight months each.

September saw Miley Cyrus break the record for the greatest number of You Tube views in 24 hours with her controversial video Wrecking Ball, in which she flirtatiously swung around half naked on an industrial concrete wrecking ball, to the despair of Hannah Montana fans.

The biggest trial into phone hacking, allegedly conducted by the now-defunct News of the World, began in October in London. Rebekah Brooks and Andy Coulson, former editors of the tabloid, were amongst the eight defendants, who were charged with a range of offences including conspiring to access voicemail messages illegally.

In November, BAE Systems announced the cut of 1,775 jobs, resulting in the end of shipbuilding in Portsmouth. Following this depressing news, a few days later around 6,000 people were killed as Typhoon Haiyan, the strongest storm ever recorded at landfall, hits the Philippines. Nearly 2 million people lost their homes, and more than 6 million were displaced.

The iconic figure of South African freedom, Nelson Mandela sadly passed away in December, at the age of 95.  The former South African President and inmate of Robin Island passed away in Johannesburg after a lengthy struggle with illness.

 

Meanwhile the defining moments of 2013 concerning Rotherham Taylor were…

Changes which had to be made to the Payroll department following the introduction of Real Time Information by HMRC. This was one of the biggest changes to the PAYE system since 1944.

We said farewell to Val and Geoff, who are now happily enjoying their retirement.

Myself and Sue were introduced to the team, along with the two offices merging together, welcoming Nicola, Amy and Chloe to the Preston team.

 

We are now looking forward to making much more news in the New Year!