October 14th, 2011 by Derek_Kelly
With the way the current property market is, more and more people are sharing houses or opting to rent instead of buying.
It is quite common that when there are a large number of properties within the same building the residents club together and form residents associations in order to cover the property management costs, typically things such as the maintenance of communal areas and gardens etc.
ClearSky Accounting has been looking at this recently after a number of conversations with residents associations who complained about the additional costs and hassle this can bring. We took a look and found that some resident associations and individuals responsible for managing property services have found that getting a professional accountant can make all the difference, saving you time, hassle and money.
So in response we’ve launched a new service this week to cover just this type of situation.
For example, if your property comprises of up to five apartments, for just £250 plus VAT a year ClearSky Accounting can offer a service that includes:
- Annual statutory accounts to be filed at Companies House and HMRC
- Corporation tax return
- Annual return filing
- Registered office facility and other company secretarial duties
- Access to online portal/spreadsheet bookkeeping system
- All share transfers on sale or purchase of flats.
- Dedicated Personal Accountant
- Banking facility if required from two of the UK’s leading business banking providers
And don’t worry if your property is larger than this, ClearSky Accounting can still help at the following rates:
• 6-10 apartments – £300 + VAT a year
• 10-20 apartments – £350 + VAT a year
• More than 20 apartments – call us for a quote
So in typical ClearSky style we can take the whole process of your hands and make things easier for you.
If you think this service might be of benefit to your residents association then give us a call on 08000 325 326.
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October 7th, 2011 by Derek_Kelly
I’ve noticed this week that a number of small businesses, specifically personal service companies and contractors, have been receiving notifications of fines from HMRC due to the late filing of their P35.
Companies need to file a P35 form every year which is a summary of end of year payroll returns for all employees. A company that has no employees, such as the ones mentioned above need only make a ‘Nil P35’ notice to HMRC ahead of the deadline in May.
Unfortunately the process for filing a Nil P35 notice is a little old school to say the least. Companies have to physically write to HMRC and it would appear that there has been a little lapse in their filing as a number of businesses are now receiving penalty notices informing them of £400 worth of fines when they believed it had all been sorted. It’s an odd situation as businesses that do actually have a P35 to submit can do so online.
It’s also a little strange that HMRC have waited until the fines reach £400 before writing to businesses which they could have done in May when the fine was only £100.
We’ve received almost 200 on these notices from clients and if every single case we can demonstrate that we did file on time. Unfortunately, and for whatever reason, HMRC didn’t capture this data. We are now in the process of working with HMRC to have these fines rescinded.
The good news is that there seems to be a new system on the way from HMRC that will allow companies to make Nil P35 submissions online.
If you are a ClearSky Accounting client and you receive a penalty notice don’t forget to forward this on to us so we can take care if it for you.
A quick reminder
Don’t forget, if you are due to pay PAYE tax then the deadline for it to clear in HMRC’s bank is 22nd October.
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September 30th, 2011 by Derek_Kelly
Not for the first time this year I’ve found myself at odds with the current industry zeitgeist on IR35 as another groundswell forms calling for its abolition.
Last week, following a Freedom of Information request from the PCG, HMRC revealed that the tax yield created from IR35 in 2010/11 was only £219,180. During the same period there were only 23 reviews in which IR35 was considered to be a risk.
This downward trend of tax yield from IR35 has been ongoing for the last 5 years and its dividing opinion.
John Brazier, Managing Director of the PCG, believes that the low yields over the last five years mean that IR35 should be scrapped.
In his blog, Dave Chaplin of Contractor Calculator argued that: “The ever decreasing number of compliance reviews and tax yields over the last five tax years suggest that contractors have become savvy to HMRC’s current IR35 investigation tactics. HMRC intends to review its IR35 enforcement strategy as part of its work with the IR35 Forum, which could lead to specialist compliance teams targeting contractors with greater success.”
I partly agree with Dave in that contractors are now more savvy and it is for this reason that I believe IR35 should be kept and the PCG should be calling for this, not its abolition.
The current state of play, even though the actual IR35 legislation is infamously woolly, is something we are all used to working with now and contractors becoming savvier is a good thing.
If IR35 is replaced then its replacement could do more harm than good and end up costing the contractor community a hell of a lot more in tax.
Better the devil you know in my opinion.
Don’t forget, ClearSky Accounting is now offering IR35 reviews for non-clients as well as our own contractors.
Give us a call on 08000 325 326 for more information or advice.
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September 23rd, 2011 by Admin Team
It’s a theme that seems to come up a couple of times a year at the moment but it’s one that is always worth revisiting – the cost of getting things wrong.
A large number of contractors, freelancers and small businesses have turned to online accountancy software packages in order to keep business costs down. As long as you are experienced and confident that this can be fine but it can also prove to be a false economy.
HMRC recently issued a reminder about the fines and penalties faced by companies for things such as the late return of Self Assessment forms and late payments.
The changes come into effect this year and the costs can really mount up.
The new penalties for late Self Assessment returns are:
- An initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;
- After 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
- After 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; and
- After 12 months, another 5% or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100% of the tax due.
New penalties for paying late are 5% of the tax unpaid at:
- 30 days;
- 6 months; and
- 12 months.
Interest will also be charged on top of these penalties.
The tax return deadlines remain unchanged – 31 October for paper and 31 January for online returns. The deadline for paying any tax due also remains the same at 31 January.
Further information on the new penalties is available from the HMRC website.
So if you are doing it yourself make sure these dates are firmly etched on your brain and seek professional advice if you are worried about anything.
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September 8th, 2011 by Admin Team
It seems that, even after over a decade since its introduction, it’s rare that a week passes by without IR35 hitting the news. It’s also rapidly becoming more of a political football than ever before.
Ahead of their upcoming party conference, the Lib Dems have published a paper called ‘Stimulating Growth in the Digital Economy’ which calls for the suspension of IR35. This is less than six months after the Government rejected this option.
Dave Chaplin of Contractor Calculator published an interesting response to the announcement and I agree in that now is not the time to review or abolish the legislation.
I tend to agree that IR35 should be left as is. If sweeping changes were made to IR35 at this time then there could be mass confusion. Government would be better focusing on providing clear and robust guidance and leave IR35 as is. IR35 is fairly subjective as it stands and if the legislation was clear and could provide a series of specific tests that then produce a balanced answer then taxpayers, advisors and HMRC would save a lot of time, admin and expense.
HMRC has a pretty good record when it comes to the IR35 cases heard in the High Court, cases brought before The Special Commissioners have also predominantly gone in HMRCs favour, not a bad record at all, and a clear sign that in the eyes of Government and the law, IR35 is working.
What this means for contractors is that if they do not take reasonable care to ensure their IR35 status is fully examined and referenced against case law, should they be caught in HMRC’s ever expanding net, the outcome is likely to be a hefty tax bill.
It also means that taking proper advice from a specialist contractor accountant when it comes to IR35 should remain an imperative for any contractor operating as a limited company. ClearSky for example conducts IR35 reviews on behalf of our clients and we have just rolled this service out for non-clients as well.
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August 10th, 2011 by ClearSky Team
ClearSky Accounting, the specialist contractor and small business accountant, is the latest major UK service provider to start the independent Freelancers and Contractors Services Association (FCSA) Code of Conduct Review. Upon successful completion, ClearSky will be a full FCSA member.
The FCSA Code of Conduct review is the only review process governing companies in the contractor and staffing business service provider space that has been developed with support from HMRC. It is also the first review process for service providers that has the support of both REC and APSCo. In addition, the review is conducted by KPMG and HMRC receives copies of the final audit documentation.
The review includes:
- A challenging desk top questionnaire into business practices and performance
- An on-site audit to ratify claims made in the questionnaire
- An review covering aspects such as company directors, company finances, pre-employment checks, employment contracts and processes, expenses processing
Commenting on the process, Derek Kelly, Managing Director of ClearSky Accounting, said: “This is a very exciting time for ClearSky. I believe that the FCSA Code of Conduct represents the highest standards and best practice in our industry and by proactively presenting the results to HMRC it is also the most transparent.
“In the last few months alone we have seen several service providers in our industry go under, leaving thousands of contractors and freelancers out of pocket and facing potential fines from Companies House and this is not acceptable. These individuals and micro-businesses are the bedrock of our economy and they need security and protection. The FCSA membership demonstrates that we are committed to this and can give our clients the peace of mind that comes with that.”
Stuart Davis, Chair of the Freelancer and Contractor Services Association, said: “We’re delighted that ClearSky has opted to make the journey to membership of the FCSA. Our HMRC-recognised Code of Conduct holds companies to the most stringent standards of professionalism and accountability in our industry – so while demonstrating appropriate compliance and becoming a member is not easy, we at FCSA are committed to providing prospective members with all possible support and encouragement.
“FCSA accreditation boosts business, because it proves that a service provider is reliable, responsible and robust. With the flexible workforce growing ever more cautious about the companies they work with, adhering to the sector’s ‘gold standard’ is likely to attract new clients. We hope that in the coming months and years more companies choose to join us, because the Code underlines the credibility and maturity of our young industry.”
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July 12th, 2011 by ClearSky Team
…so we will bring you up to speed free of charge.
.
‘We are all in this together’ is a phrase we’ve heard a lot over the last 12 months, with varying degrees of scepticism it has to be said. Having said that though, I believe there are times when this really does ring true.
It was alarming this week to see the large number of contractors who are suffering as a result of the situation with certain Accountants. With year ends approaching many are finding that their company accounts are behind and as a result they are concerned about Companies House/HMRC fines etc.
When situations like this occur they have the capability to tarnish our industry as a whole so it’s vital that we all rally round those affected and do what we can.
So with that in mind, if you have been affected just sign up to ClearSky Accounting and we will bring accounts up to speed free of charge.
Get in touch with us for more details.
Whether you’d like to find out more, or sign up with ClearSky, get in touch today. We look forward to hearing from you.
If you’d like to talk to us call us on free phone
08000 325 326
.
Alternatively why not Email us a question or Click here to appoint ClearSky now
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April 18th, 2011 by admin
We’ve successfully completed two projects to restore companies and claim back funds from HMRC on behalf of our clients recently. As it’s an interesting process (if a little complex) I thought it was worth talking about here.
The funds involved were not insignificant, over £8K in one case and £28K in the other. And although it’s not a position we would like to see any of our clients in, the point here is that there is a way back for clients who have been let down by their accountant or have made errors with their own financial management and had their limited company shut down by Companies House.
As anyone who runs a limited company will know there are certain obligations and responsibilities that come with it and one of the major ones is ensuring that all annual accounts and annual returns are filed with Companies House on time.
However, if this doesn’t happen Companies House and HMRC embark on a process to shut the company down and any assets owned by the company, including money held in the business bank account and property, are passed to the Crown via the Treasury Solicitor.
This doesn’t have to be the end of the limited company though as a process called administrative restoration is possible, and this is what we have done on behalf of our clients. It’s not a hugely complicated process but there are a few hoops you have to jump through.
First of all an application has to be made to the Treasury Solicitor who will need to confirm in writing that they have no objections to the company being restored. The limited company then has to apply to Companies House for the restoration to the register. Together with this application the limited company will need to submit the late accounts/annual returns and pay any late filing penalties.
The company is now up and running again so then it’s back to the Treasury Solicitor to request that the assets are returned to the Company. The business can then be run again as usual or wound down in the appropriate way.
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