Why accepting help is a sign of wisdom, not weakness

It is more common than you think for people to consider that accepting help is a sign of weakness.

Actually, it’s a sign of wisdom!

While it may sound simple enough, accepting help is something that can be extremely challenging for all of us at one time or another.

It can be especially hard for those of us that believe that seeking help undermines our independence and our ability to cope. 

However the truth is that by refusing to accept help, we ignore the fact that we are social beings who need to co-operate with one another in order to ensure that we thrive.

Seeing seeking help from others as a weakness is often a very ingrained pattern of thinking and may therefore be hard to overcome. 

Why accepting help is a sign of wisdom, not weakness:

• Is this affecting you or your business?
• Consider exactly why you think that asking for help is a sign of weakness
• Work through how not wanting to ever seek help is reinforced by unrealistic ideals and wishful thinking
• Look to reality instead of relying on wishful thinking

Whatever your challenges or issues, why not seek support? It may just be what you need to do right now.

Omni Chartered Accountants specialise in offering free, impartial advice to prospective clients and existing ones - If you have a problem and feel we could help, why not request a free of charge call back from our website or enquire online today!

Do I need an accountant?

You might think that a start-up or small business isn’t big enough to warrant an accountant.

But unless you’re an expert in tax and finance – or in short, an accountant yourself – this simply isn’t the case. An accountant provides your business with a great deal of essential support.

If you are just starting a business, your accountant will take the form of another business adviser. They will be able to give advice on your business plan and the tax issues of registering a new business.

Some accountants offer book-keeping services, but if they don’t or if you wish to handle this yourself, you can get help with setting up manual or computerised book-keeping systems. And most importantly, you need an accountant to assist on things like whether it is necessary to register for VAT or PAYE and the procedures involved.

As your business grows

An accountant isn’t just there to help you manage your money. Whether you are starting up or a growing business, they can advise you on the best way to arrange additional finance without putting your business at risk.

Once you have the finance in place there needs to be some control to ensure growth of your business is handled in the right way. Many of your concerns will be financial – adequate working capital, good stock control, invoicing and so on – an experienced accountant’s advice will be invaluable in such matters.

And can you honestly say that you are on top of all the essential business tax issues? Well probably not – but that’s an accountant’s job. Taxation is a large business expense and an accountant can effectively minimise these costs.

Finding a competitive professional chartered accountant

Omni Chartered Accountants, Wolverhampton, offer a highly competitive and professional service to clients across the UK. We pride ourselves in giving advice on a one-to-one basis and we are very happy to provide you with a free initial consultation – you can request a free of charge call back from our website or call 01902 837 408 – alternatively, click here to contact us online and we will come straight back to you!

HMRC issue 10,000 accelerated payment notices

HM Revenue & Customs’ annual report has revealed that about 10,000 accelerated payment notices were issued in 2014/2015 to people involved in tax avoidance schemes.

HMRC can make taxpayers pay disputed tax in advance, under the rules of accelerated payment, instead of waiting for the outcome of a tax tribunal ruling. If the taxpayer wins, the monies are reimbursed with interest.

It was originally expected that around £210m would be collected as a result of the move by March 2015. However, HMRC has actually received £596m; only £28m has been refunded after legal disputes, earning £568m.

Follower notices

HMRC also issued 379 follower notices to tax avoidance users for the first time. Follower notices advise tax avoiders to pay disputed tax after court rulings in similar cases that find in HMRC’s favour. In 2014/2015, HMRC issued follower notices with a total value of more than £170m.

The report also revealed that 89.7% of complaints made to the adjudicator about HMRC were upheld either in full or in part in 2013/2014.

HMRC has been under rising pressure following cuts and also criticism over its handling of letters and telephone calls. In June 2015, it was announced £45m would be invested to improve its customer service.

The latest report revealed £210m in cost efficiencies in 2014, in areas that include reducing workforce, IT and procurement costs. Total sustainable cost savings over the past four years amount to £991m, which has exceeded the target by £25m.

The annual report also revealed HMRC’s tax income rose nearly £12bn to £517.7bn; HMRC has put this down to economic growth and the continued clampdown on tax avoidance and evasion.

Let us know your thoughts on Twitter @OmnitasTax and like us on Facebook to keep up to date with all of the latest tax and accounting news.

Accountancy price challenge

In the meantime, if your business would like to save money why not take ourAccountancy Price Challenge? We offer an excellent and professional service and free advice for sole traders and limited companies.

Self-employment tips – part two

Self-employment tips business start up advice

In part two of our special self-employment feature, we take a look at some more important factors that you should consider.

Get a business bank account

As a sole trader, although your business income will be taxed alongside your personal tax, it is vital to keep your business records and finances separate from your personal affairs.

For this reason, we recommend you open a separate business bank account. Shop around, as you can usually find deals offering you up to 24 months free business banking.

Typically, your new account will be “John Bloggs trading as, or T/A, your Business Name”. Once again, it looks more professional to have your business name on cheques and invoices.

If you’re likely to hold cash for some time, you should also open a business deposit account to get a little interest on your money, even if rates are still at historic lows.

Keep accurate and up-to-date financial records

To be a successful sole trader, you must keep on top of your books.

From the start, you are obliged to keep clear and accurate records of all your business transactions. Not only will this ensure that you keep the tax authorities happy, but you’ll find it so much easier to operate your business if you are organised and your paperwork is constantly updated. Check out online systems like cashflow, sage and Xero.

When the time comes to submit your VAT return (if you’re VAT registered), pass your accounts information to your accountant and complete your annual self-assessment tax return, you’ll be able to get these done quickly and efficiently – giving you more time to work on your new business.

Need advice?

We hope that you enjoyed our Self-employment tips – Part Two and found it useful – don’t forget to check out part one of our special self-employment feature too, if you did.

If you need guidance about becoming self-employed, Omni Chartered Accountants are happy to help – request a free of charge call back from our website today or click here and we will contact you to discuss your situation.

Self-employment tips – part one

One of the main benefits of becoming self-employed is the ease with which you can start up and run your new business.

In part one of our special feature, we take a look at some of the important things that you may wish to consider before taking the plunge.

You can even become a sole trader (another term for self-employed) whilst working as an employee for someone else, so you can test the water and see if you’re suited to working for yourself.

Here are first top tips for when you decide to go self-employed:

How to register as self-employed with HMRC

Once you set up as a sole trader (or work as a partner in a partnership if there’s more than one of you), you will be responsible for paying your own income tax and National Insurance (NICs).

You must register as self-employed with HMRC within three months of starting trading, even if you already pay tax via the self-assessment process each year. You can register online or call HMRC on 0845 915 4515 if you’d prefer to speak to someone.

If you are unsure whether or not you need to register with HMRC, here is some help to establish whether you are employed or self-employed.

Once you start operating as self-employed, you will need to pay your own National Insurance contributions (NICs).

Do you need to register for VAT?

As of April 2015, if your business has an annual turnover of £82,000 or more, you must register for VAT.

At any stage of the business cycle, if you look like you’re going to hit this annual VAT threshold over the coming 12 months, you must also register. The threshold usually rises by a few thousand each year. Make sure you let HMRC know within 30 days, or risk paying a fine.

In many cases, you might decide to register for VAT even if you don’t need to. You may gain more credibility by having a VAT number, and you’ll be able to claim the VAT back on eligible purchases you make.

You might also consider the flat rate VAT scheme, which makes accounting for VAT much simpler. Your accountant will be able to advise you if you’d be better off on the Flat Rate or standard VAT scheme.

Need advice?

If you need advice about becoming self-employed, we are here to help – request a free of charge call back from our website or click here and we will contact you to discuss your situation.

How likely is it that your business will win a HMRC tax appeal?

How likely is it that your business will win a HMRC tax appeal?

Not very, according to accountancy firm Wolters Kluwer.

Apparently, there is actually only around a 25% chance that a business tax appeal will be successful; 75% are unsuccessful, based on Government figures.

HMRC the Revenue received 7,081 appeals in the tax year 2013-2014; 6,626 were settled. Out of the outstanding 455 appeals, only 113 were granted.

VAT expert for Wolter Kluwer UK, Glyn Edwards, said that accountants should warn clients of the difficulties appealing a HMRC decision;

“If you have a client that disagrees with an HMRC decision you need to make them aware of how difficult it is to win a case at tribunal.

“As the statistics show, only a few hundred appeals get to tribunal and those that do are more likely to be won by HMRC than the taxpayer.”

He went on to explain that accountants should always advise clients by helping with thorough research on relevant legislation, helping them with preparation for hearings and making sure that all of HMRC’s documentation is in place well in advance of any hearing.

In addition, it was recommended that clients should consider using HMRC’s alternative dispute resolution service in a bid to negotiate settlement.

Edwards went on to say;

“Clients shouldn’t be spending more time and money than the tax in dispute reserves, as they can’t claim costs even if they win in the first-tier tribunal.

“However, if an accountant feels the client has a strong case then it is certainly worth making an appeal, but only if the client has expert help, as those who represent themselves are more likely to lose.”

Of course, the above should be common sense, but can you be sure that your accountant would help you in this capacity if you found your business in this situation?

At Omni Chartered Accountants, we strongly believe that remaining in contact with our clients and guiding them along their business journey is the key to not getting into tax disputes with HMRC in the first place.

However, our bespoke, one-to-one service means that we are there whenever our clients need us and are proud of our first class service and competitive fee structure.

For more information about Omni Chartered Accountants, call 01902 837 408, or request a free of charge call back from our website www.taxandaccountancysolutions.co.uk – we are always happy to help. 

HMRC cracks down on business tax evaders

Business raids have risen quite dramatically in a bid from the HMRC to crackdown on tax evasion to meet their 1165 prosecution target – in fact, nearly 600 properties have been raided this year so far.

According to research from Pinsent Masons, this figure is nearly treble the amount of raids that have been carried out over the past four years.

Nearly 600 properties were raided this year as HMRC pursues its target of 1,165 tax evasion prosecutions over the course of 2015.

The number of tax evaders who have gone to prison as result of tax evasion has risen by around a third over the last four years, with the average sentence length falling by around 60% over the same period.

These facts suggest that HMRC is now making better use of its powers to prosecute and also pushing for custodial punishment in a wider range of cases, according tax director at Pinsent Masons, Paul Noble.

Noble said;

"An increase in the number of raids conducted and custodial sentences meted out for tax evasion reflect the fact that HMRC is now casting its net wider. It is no longer focusing narrowly on HNWIs and those guilty of the most serious evasion. It is targeting a broad range of taxpayers and refusing to let those suspected of more minor offences slip through the cracks.

"Raids on premises are often an essential means of gathering evidence that is needed in cases dealt with for prosecution. It is labour-intensive work but needed in such investigations. A non-criminal tax enquiry is much more cost effective but does not always send the deterrent message HMRC wish to convey."

If in doubt, check it out! Omni Chartered Accountants are here to help with any tax or accountancy advice that you have – contact us on 01902 837 408 or request a free of charge call back from our website www.taxandacountancysolutions.co.uk.

Tax changes for April 2015 report in brief

At Omni Chartered Accountants, we believe in keeping things simple. 

So, with this in mind, here is our guide to the recent tax changes that came into effect on Wednesday 1 April 2015.

• The Corporation Tax rate was reduced to 20%
• The new Diverted Profits Tax was introduced
• The bank levy was increased from 0.156% to 0.21%
• Air Passenger Duty was restructured - abolishing bands C and D
• Hospice charities, blood bikes, search and rescue, and air ambulance charities are now eligible for VAT refunds
• Business rates changes (England only):
• The business rates multiplier has increased from 48.2p to 49.3p (47.1p to 48.0p for small business multiplier). This includes the 2% inflation cap
• The Small Business Rate Relief scheme has doubled for a further year - providing 100% relief for businesses with a single property with a rateable value of less than £6,000, and tapered relief with a rateable value of £6,000 - £12,000
• The business rates discount for shops, pubs, cafes and restaurants with a rateable value of £50k or below has increased from £1,000 to £1,500
• The cultural test for high-end TV tax relief has been modernised and the minimum UK expenditure requirement for all TV tax reliefs has reduced from 25% to 10%
• A new tax relief on the production of children’s television has been introduced
• The amount of banks’ annual profit that can be offset by carried forward losses has been restricted to 50%
• Two new bands for the Annual Tax on Enveloped Dwellings (ATED) have been introduced
• Capital Gains Tax exemption for wasting assets will only apply if the corporate selling the asset has used it in their own business
• An investment allowance for North Sea oil and gas, replacing the existing offshore field allowances and simplifying the existing regime, has been introduced
• A reduced rate of fuel duty to methanol will apply - the rate is 9.32 pence per litre
• Fuels used to generate good quality electricity by CHP (combined heat and power) plants for onsite purposes are exempt from the Carbon Price Floor
• Climate Change Levy main rates have increased in line with RPI
• The VAT registration threshold has increased from £81,000 to £82,000 and the deregistration threshold from £79,000 to £80,000
• Scottish government’s Land and Buildings Transactions Tax (LBTT) will replace Stamp Duty Land Tax in Scotland
• The associated companies rules have been replaced with simpler rules based on 51% group membership
• The standard and lower rates of landfill tax have been increased in line with RPI

We would love to hear from you if your business has been affected by any of the changes – in either a positive or negative way. Please join in the conversation on our Facebook page, or Tweet us @OmnitasTax!

If you would like no-nonsense, general tax advice then we are also here to help; you can request a free of charge call back from our website or click here to contact us via our website contact form and we will get back to you promptly for an initial chat.

When should we put a share agreement in place?

Usually, it is best to put a shareholders’ agreement in place when you form the company and issue the first shares. In fact, it can be a positive exercise to ensure there is common understanding of shareholders’ expectations of the business.

At that point, the shareholders should, as far as is possible, be of a similar mind about what they expect to offer and get from the company. Indeed if the differences of opinion between you at this stage are too strong to form a shareholders’ agreement, it is likely to ring warning bells about the nature of your future working relationship.

When should we put a share agreement in place?

You may choose to defer discussing a shareholders’ agreement in order to get on with the important task of establishing the business. While you may have every intention of return to it at a later date when there is more time, the appropriate opportunity may not arise and something else always takes priority.

Even if you do pick it up later, by then the shareholders’ expectations and feelings towards the business may have diverged, making it more difficult for them to agree to the terms that should be included in the shareholders’ agreement.

What should I ask to be included in a shareholders’ agreement?

This, as described above, will depend on your level of shareholding and the number of your fellow shareholders.  The key provisions, however, that you should consider including in a shareholders’ agreement are those relating to:

• Issuing and transferring shares – including provisions to prevent unwanted third parties acquiring shares and how a shareholder can sell shares.
• Providing some protection to holders of less than 50% of the shares – including requiring certain decisions to be agreed by all shareholders.
• Running the company – including appointing, removing and paying directors, deciding on the company’s business, making large capital outlays, providing management information to shareholders, banking arrangements and financing the company.
• Paying dividends
• Competition restrictions
• Dispute resolution procedures

We will look at these and other things you might want to include in a shareholders’ agreement in a forthcoming article.

It is possible that the contents of the shareholders’ agreement may overlap with other company documents, particularly the articles of association. The articles will, for example, contain provisions relating to decision making and transfers of shares and in another article we explored what investors should look for in a company’s articles of association.

Consider seeking legal advice if you are not sure which provisions to include in which documents, but overall do ensure that the shareholders’ agreement and articles of association are consistent with one another.

To find out more, feel free to request a free of charge call back from our website or click here and we will contact you by return.

What is the best way to expand your business?

What is the best way to expand your business?

As a UK SME, getting up and running is only half the battle – at some point, when your business becomes a success, you will need to expand your operation and employ more people.

The cost of employee turnover

For this reason it is important to choose what staff roles are important and also the consideration of the extra outgoings of wages and of course, PAYE. 

Company cars may be part of the package and of course, there is the issue of pensions.

It is important to understand the cost of staff turnover; if your company changes employees regularly, this can cost valuable time and money when it comes to replacing them and training new people to carry out the role.

Inevitably, this can lead to downtime and loss of productivity during the time that the training is taking place.

Of course, offering an affordable yet enticing package to new employees will not only attract talent that could prove very valuable for your business but in the long term, it will help employee retention.

Expanding your business

If you are considering expanding your business venture, why not give us a call for a free initial consultation? Omni Chartered Accountants are specialists in helping UK businesses with their expansion plans – click here for more information, call 01902 837408 or request a free of charge call back from our website today. 

Are you addicted to the busy drug?

It appears all of us at times become addicted to the drug 'being busy.' But let's be really clear.

Being busy doesn't necessarily mean...
1. You're being effective.
2. You're clearly a success.
3. You're incredibly important.

However, it could mean:
1. You've poor organisational skills and fail to delegate.
2. You're a people pleaser who cannot say no.
3. You're suffering from fuzzy focus and lack clarity regarding your purpose.

Are you addicted to the busy drug?

So please never ever confuse being busy with being effective. Instead, spend a little more time trying to Stop and Understand what you're aiming to achieve before you Move On to take action.

Do you know anyone who needs help with this addiction? Perhaps forwarding this message would be a start. Unless of course they're too busy to read it...

Omni Chartered Accountants - for sensible and advice when you need it most...
http://www.taxandaccountancysolutions.co.uk/

*courtesy of http://www.thesumoguy.com/