Here at Prime we strive to provide all our clients with the best possible help and advice available. Since the recession hit, it has certainly become more noticeable the number of clients approaching us to talk through how to make their businesses more leaner and, in many cases, looking for advice about non accountancy and taxation matters which we have been happy to help with or point in the right direction for the help they require.

We’ve always promoted the all round business advisory service we’re able to offer and, to strengthen that support available, I’m pleased to announce the recent appointment of Ruth Chapman as a Director. Please see our article below to find out more about Ruth and her role at Prime.

We are also trying Twitter to provide free ad-hoc business advice and comment to our clients and contacts, so please follow us at http://twitter.com/SME_Adviser and let us know if you find it useful.

Also included within this e-news are useful reminders such as the paper tax return filing deadline at the end of next month and looking to the beginning of 2010 when VAT will return to 17.5%, as well as there being changes to cross-border VAT.

We’ve also included the latest information available relating to self employment within the construction sector.

If there is anything included in this issue that you would like to discuss in more detail, please do not hesitate to contact us.

Laurence Moore, Chairman, Prime Group

New addition to the Prime team

We are pleased to announce the appointment of Ruth Chapman to the management team as a Director of Prime.

Ruth brings with her a wealth of experience including managing a large portfolio of clients and delivering a range of business advisory, accounting, audit and tax services, with top international accounting firms PricewaterhouseCoopers LLP and Deloitte & Touche LLP.

As a member of the Chartered Institute of Taxation her specialist taxation qualification and expertise was fully utilised as part of national offices of forensic accountancy experts and Tax Investigations teams.

Whilst building up a client portfolio of her own, Ruth will head up the Business Services team as well as working alongside Alf Pare in Prime’s Forensic Accounting team. In addition, she will support the other Directors in delivering business advisory services to their clients.

Ruth is a Fellow of the Chartered Association of Certified Accountants.

In her spare time, Ruth enjoys swimming and skiing and taking her children to rugby.

Ruth can be contacted by email here or by calling 024 7655 4320.

New Disclosure Opportunity

HMRC have provided more details of the New Disclosure Opportunity (NDO) which is due to take place from 1 September 2009 to 12 March 2010. The NDO is for people with unpaid tax connected to offshore accounts and assets and will give the taxpayers one final opportunity to disclose.

To encourage taxpayers to disclose undeclared offshore income and gains, the penalty level has been set at 10%. HMRC hope that the low penalty will encourage taxpayers to come forward.

Although the NDO period runs until 12 March 2010 initial contact must be made to HMRC by 30 November 2009.

Please contact Ruth Chapman, without delay, if you have any concerns in this area.

Internet links: HMRC news release | Basic information | Dates

Increase in pay for apprentices

From 1 August 2009 the national minimum wage (NMW) for apprentices increased from £80 to £95 per week.

Women working in childcare and hairdressing, typically low paid apprenticeships, are expected to be the main beneficiaries of the increase.

Our July eNews dealt with changes to the main Minimum Wage rates coming in October 2009.

Internet link: TUC learning initiative

‘False self-employment’ in the construction industry

The government has been looking at the best way to address the issue of what they believe is ‘false self-employment’ in the construction industry. They have concluded, for income tax and national insurance purposes, that they will introduce legislation which deems workers within the construction industry to be in receipt of employment income unless one of three simple, clear and easy to apply criteria is met. These criteria take the form of three questions which ask whether the worker provides:

their own equipment (other than customary to the trade)
their own materials
additional workers to complete the job.

The worker will have to satisfy at least one of these criteria to be regarded as self-employed.

The government are consulting on this issue at the moment and we will keep you informed of developments.

If you would like to discuss this further, please do contact us.

HMRC warn of more scam emails

HMRC have updated their guidance on scam emails as they are aware that a large number of individuals are receiving emails offering tax rebates. HMRC have also confirmed that they would not inform taxpayers of a tax rebate via email, or request that they complete an online form to receive a rebate of tax. There is a long list of web addresses being used in the scams.

HMRC are stressing that individuals should not visit the website contained within the email or disclose any personal or payment information.

For more information on this and other scams visit the links below or contact our tax departments.

Internet links: HMRC guidance | Latest example

‘Paper’ tax return deadline looming

For those wishing to complete paper self assessment tax returns, the filing deadline of 31 October 2009 is fast approaching.

The 31 January 2010 deadline remains for online submission of 2008/09 self assessment tax returns.

Those wishing to make a paper return need to start compiling the information they need now. This includes a copy of forms P60 and P11D, self-employment accounts, records of savings and investments, and details of any untaxed income.

If you have any queries regarding your personal tax affairs please do get in touch with Ian Frost in our Solihull office on 0121 711 2468 or Sarah Nickols in our Coventry office on 024 7622 0208.

VAT increase to 17.5%

HMRC have issued guidance for businesses dealing with the increase in the standard rate of VAT from 15% to 17.5%. The change takes effect from 1 January 2010. They hope that by issuing the guidance well in advance of the change that businesses will have sufficient time to prepare.

If you would like guidance or help in this area please do contact us.

Internet link: HMRC guidance on 17.5%

Pension changes ahead

Under provisions contained in the Pensions Act 2008 employee pension enrolment and employer contributions are to be made compulsory.

These provisions, which are due to come into force in 2012, cover the automatic enrolment of qualifying workers into a qualifying workplace pension scheme and a duty on employers to make contributions to such a scheme. To ensure that employers are able to comply with these duties a universal personal account scheme is being created.

If you want more information or advice regarding this please contact Sarah Hartland who will arrange for one of our financial advisors to help you.

Internet links: Pensions Reform | PADA myth buster

Cross-border VAT changes 2010

HMRC have issued important updates in advance of the changes in the place of supply of services rules which take effect from 1 January 2010.

This guidance is part of a package of measures being introduced to simplify and modernise the VAT system for cross-border trading and to counter fraud across the EU. The measures include:

changes to the basic place of supply of services rules
changes to the time of supply rules
European Sales List (ESL) reporting for supplies of cross-border services
a new electronic refund procedure for VAT incurred in other EU Member States.

If you have any queries on these changes please do contact us.

Internet link: HMRC cross border changes

Sage accounts 2010 bug

There were problems encountered by users upgrading to Sage’s latest Line 50 version, which the company moved quickly to patch. If you have upgraded and are not sure whether you are affected, please email Laurence Moore or call 024 7622 0208.

Directors – protect your home address

From the 1 October 2009 a director's home address can be protected from disclosure. You can now register a service address, which could be your registered office address, with Companies House. If you would like take advantage of this new concession please contact Jane Canavan in our Coventry office on 024 7622 0208 or send her an email.

Corporate Bonds

Do you rely on your bank / building society savings to supplement your income? If you do you will have seen your income decline substantially over recent months due to interest rates falling to their lowest in living memory.

The bad news for savers is that things are unlikely to get better for some time to come.

If your standard of living is being adversely affected then you may wish to consider an alternative income producing investment.

Corporate Bonds offer a fixed, regular income. They are issued by large trading companies and other institutions. The income produced from these investments is usually higher than that available from government securities (Gilts) as there is a higher risk – the company involved may default on its interest payments and, in the event of insolvency, may not repay the capital.

However, by investing in a Corporate Bond fund the risk is substantially reduced as your money is invested by professional managers in a wide range of bonds, sometimes running into the hundreds. Therefore, if a company does default, only a small part of the capital is at risk. It is currently possible to obtain yields of between 5% and 6% with comparatively low levels of risk.

Corporate Bonds, like Equities do fluctuate in value and its true to say that values have fallen as a result of the recent downturn in the economy. This has meant a rise in yields resulting in the attractive levels of income currently available.

If, as expected, the economy recovers over the next few years then it is likely that Corporate Bond prices will rise and those individuals who invest now stand to make a capital profit. This cannot be guaranteed, of course, and values can fall as well as rise.

If you are interested in the prospect of an income in excess of that available from Bank and Building Society deposit accounts, combined with the potential for some capital appreciation in the future, then we would be pleased to discuss matters in more detail. There is no charge for an initial meeting so you have nothing to lose.

As ever, no investment should be entered into without full and proper financial advice which takes into account your individual circumstances.

To make an appointment with one of Prime’s Financial Advisers please contact Sarah Hartland or call 024 7622 0208.

Exam Successes

Our congratulations go to Ian Jeffery for passing his final exams to qualify as a Chartered Certified Accountant and Mark Gormley for qualifying as a Chartered Accountant.

In addition to Frances Folliard and Demsey Slater for passing exams towards becoming Chartered Certified Accountants and Tom Whitlock, Tina Jones and Michaela Neil for passing exams towards becoming Accounting Technicians. Well done all!

Disclaimer
This newsletter is published for the information of clients and other recipients of our email newsletters. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this newsletter can be accepted by the firm.

Prime Coventry
29 Warwick Road, Coventry, CV1 2ES
T: 024 7622 0208 E: coventry@primeaccountants.co.uk

Prime Solihull
Marlborough House, Warwick Road, Solihull, West Midlands, B91 3DA
T: 0121 711 2468 E: solihull@primeaccountants.co.uk