VAT Errors

Posted on 15, May 2012 by admin

What to do if you made a mistake on an earlier VAT Return

What do you do if you discover that you’ve made an error on a VAT Return that you’ve already submitted to HM Revenue & Customs . How do you go about advising them of the error, and how do you adjustments in your return and accounts.

If you’ve made a mistake on a previous VAT Return HMRC might charge interest or even a penalty, so it’s important to act immediately.

Being VAT registered can be quite daunting, but provided you keep accurate records, and are methodical with your bookkeeping, there is no reason why a mistake should occur. However, if it does, you must follow the steps below to rectify the issue.

If you would like further advice, or would like a quote for our bookkeeping and VAT services please contact us at our office on 01424 425113 or email info@knightaccountants.co.uk

Act now if you find an error on a VAT Return you’ve already submitted

It is essential that you keep accurate records, and that your VAT Returns are completed correctly. If you find that you’ve made mistakes in a return that you’ve already submitted, you must correct them using the steps described below.

Step 1: Check the end date of the VAT period when the error was made

Until 31 March 2009 you could not correct errors that arose in VAT accounting periods that ended more than three years ago. The limit of three years was increased incrementally to four years from 1 April 2009. If you need to correct an error that arose in a VAT accounting period that ended more than three years ago, for details of the special rules that apply in the changeover period see the section in this guide on the time limits for correcting errors.

The time limit does not apply to errors in the amount of VAT on the return immediately before or immediately after the return for which the amount was due. These can be corrected at any time.

Step 2: Take care when correcting errors

You must take reasonable care when correcting errors. If you are careless or deliberately inaccurate when you correct an error on your return, or when telling HMRC about a correction, you may be charged a penalty.

Step 3: Find out and record how the error occurred

You should investigate how the error occurred and make a note in your VAT account as described in step 4.

Errors made despite taking reasonable care

For how to correct errors that were made even though you took reasonable care, see the section in this blog on what to do at the end of your accounting period. You don’t need to let HMRC know about these separately when you find them.

Careless errors

In all cases, if you find that you’ve under-declared or over-claimed tax as a result of careless behaviour you should tell HMRC separately if you wish to be considered for a reduction or suspension in any penalty imposed.

Also, please tell HMRC if you’ve corrected that error on your return. It is important that you tell HMRC if you have already corrected the error, or that you will be correcting the error otherwise you may be assessed for tax and interest.

Provided the net value of such errors discovered in a period is below the relevant limit, a careless error can still be adjusted in the VAT Return for the period of discovery and you will not be charged interest.

Deliberate inaccuracies

If you find a deliberate inaccuracy in a previously submitted return, you must tell HMRC immediately. You cannot adjust these errors in a later VAT Return, and so should not include these when calculating your net error at the end of the accounting period. See the section in this guide on how to tell HMRC about errors.

Step 4: Record the error in your records

On discovery of the error you should record and date your discovery of the error in your VAT account, along with full details of the error.

Action you must take at the end of your VAT accounting period

At the end of your VAT accounting period, calculate the net value of all the errors you found during the period that relate to returns you’ve already submitted – that is, add together any additional tax due to HMRC, and subtract any tax you should have claimed back. Don’t include any deliberate errors – you must tell HMRC about these separately. What you do next depends on whether the net value of the errors is greater than the error correction reporting threshold. This is the greater of:

£10,000
1 per cent of the box 6 figure on your VAT Return for the period when you discover the error – subject to an upper limit of £50,000

If the net value of previous return errors is less than this threshold then, if you prefer, you may correct the errors by making an adjustment on your current VAT Return – see the section in this guide on how to adjust your VAT Return.

But if the value of the net VAT errors discovered is above this threshold, you must report them to HMRC separately and in writing – see the section in this guide on how to tell HMRC about errors.

How to adjust your VAT Return

You can correct certain errors whose net value is below the error correction reporting threshold by adjusting your VAT Return.

At the end of the VAT period when you discovered the errors, adjust your own VAT account of output tax due or input tax claimed by the net amount of all errors. Make sure that your VAT account shows the amount of the adjustment you make to your VAT Return.

Then, adjust either box 1 or box 4 on your return, as appropriate. For example, if you discover that you didn’t account for VAT due to HMRC of £100 on a supply that you made in the past, add £100 to your box 1 figure on your return.

If you discovered more than one error, use the net value of all the errors to adjust your return.

How to tell HMRC about an error

You need to tell HMRC’s VAT Error Correction Team, in writing, about certain errors. The simplest way to tell them is to use form VAT 652 ‘Notification of Errors in VAT Returns’, which is for reporting errors on previous returns, but you don’t have to use form VAT 652 – you can simply write in instead.

You must explain each error in detail by reference to your business records, including:

how the error happened
the VAT period when the error was made
whether it was an error on input or output tax
how much VAT was under- or over-declared
how you worked out the error
whether you’re claiming a refund of an overpayment
the total amount of the error

If you’ve underpaid or overclaimed VAT, you may have to pay interest.

Please send your completed form VAT 652 or letter to:

VAT Error Correction Team
HM Revenue & Customs
Queen’s Dock
22 King’s Parade
Liverpool
L74 4AA

Time limits for correcting errors

There are time limits for correcting errors but if the errors are errors in the amount of VAT on the return immediately before or immediately after the return for which the amount was due these time limits do not apply. To correct these errors follow the normal procedures for making adjustments as described in this guide.

You can only correct net errors below the error correction reporting threshold if they were made in returns where the accounting period ended less than four years ago, subject to the following transitional arrangements.

Increase in the time limit to adjust returns and correct errors

The time limit for adjusting returns and correcting errors was increased with effect from 1 April 2009 from three years to four and there were transitional arrangements in place between 1 April 2009 and 31 March 2010. However, by 30 April 2010, the four-year time limit came fully into effect

Increase in the time limit for claiming back input tax?

The time limit for claiming back input tax late was also increased with effect from 1 April 2009 from three years to four and similar transitional arrangements applied between 1 April 2009 and 31 March 2010. And by 30 April 2010, this four-year time limit also came fully into effect.

Claiming refunds

If you believe you’ve paid more VAT than you should have done, you may only make an adjustment using the methods described above.

Where your net error is above the error reporting threshold and results from an over-declaration of output tax – that is, you have overstated the VAT on your supplies due to HMRC – your claim will not be paid if this would result in your ‘unjust enrichment’. Unjust enrichment would happen if, for example, you passed on a mistaken VAT charge to a customer and you did not lose out as a result.

If this is the case you may be able to make arrangements to reimburse any VAT refund to your customer if your customer bore the cost of the mistaken VAT charge. However, If your customer was also registered for VAT and was able to fully deduct your VAT charge as their input tax then they did not bear the cost of the mistake.

If your claim for a repayment is turned down, you can appeal.

Business entertainment

Posted on 8, May 2012 by admin

Business entertainment, business gifts and benefits

Does your business incur entertainment expenditure? Do you know the correct VAT treatment for such expenditure? Generally you cannot reclaim VAT on business entertainment expenses. Business entertainment is any form of free or subsidised entertainment or hospitality to non-employees.

You can reclaim VAT on employee expenses and entertainment expenses if those expenses relate to travel and subsistence or where you entertain only employees.
When you entertain both employees and other business contacts together, you can only reclaim VAT on the proportion of your expenses that are not used for business entertainment and are used for business purposes.

You cannot reclaim VAT on business gifts unless the cost of the gift and any others given to the same recipient doesn’t exceed £50 in the same year.

Business entertainment and VAT

Generally you cannot claim back the VAT on business entertainment expenses. Business entertainment is defined by HM Revenue & Customs (HMRC) as any form of free or subsidised entertainment or hospitality.

It makes no difference whether the person being entertained is an existing customer, a potential customer or any other person who is not an employee. The following are not employees for VAT business entertainment purposes, and so if any of these are present at an entertainment or other event, it is considered to be business entertainment and you cannot claim back the VAT:

pensioners and former employees
job applicants and interviewees
non-employee shareholders

Examples of business entertainment

Business entertainment expenses include:

food and drink
accommodation – eg hotels
theatre and concert tickets
sporting events and facilities
entry to clubs and nightclubs
use of capital assets such as yachts and aircraft
payments made to third party business entertainment organisers
free samples
business gifts
when you provide entertainment or hospitality only for the directors or partners of your business

When you can reclaim VAT on business entertainment

There are two specific exceptions to the general rule that VAT cannot be reclaimed on business entertainment expenses:

Recognised sporting bodies. VAT can be reclaimed if the body provides through necessity free accommodation and meals to amateur sports persons and officials who attend an event.
Airlines. VAT can be reclaimed if an airline provides catering and accommodation for passengers who have been delayed.

Mixed business entertainment expenses and other business expenses

You can only reclaim VAT on the proportion of your expenses that are not used for business entertainment and are used for business purposes. For example, if you entertain employees and customers together, you may be able to reclaim VAT on the proportion of expenses that relate to employee entertainment – see the section in this guide on employee entertainment and expenses.

But you cannot reclaim any VAT at all if the sole purpose of the business entertainment is to entertain a non-employee – for example, if you or your employees act as a host to a non-employee.

Selling goods that have been used for business entertainment

If you sell goods that you bought for business entertainment, you do not have to charge VAT.

If you sell goods that you bought for a mix of business entertainment and other business use, you must charge VAT on the full selling price.

Business gifts

A business gift is a gift of goods that is made in the course or furtherance of your business, and you can normally reclaim VAT on its purchase.

Business gifts cover a wide range of items from brochures, posters and advertising matter to expensive goods of the kind given as ‘executive presents’.

You do not have to account for VAT on business gifts made to the same person where the total cost of all the gifts does not exceed £50 in any 12-month period (and not the figure of £15 given in VAT Notice 700/35). For this purpose, it is acceptable for you to adopt any 12-month period that includes the day on which the gift is made.

Where the total cost of any business gifts made to the same person in any 12-month period exceeds £50 and you have been entitled to reclaim VAT, you will normally have to account for VAT on the total cost value of all the gifts.

Samples

Sometimes you might give away free samples of your products for people to try. Free samples are treated differently for VAT and you don’t have to account for VAT on a free sample you give to another person or business if you meet certain conditions.

Employee entertainment

If you provide entertainment to reward your employees for good work or to maintain and improve staff morale, this is considered to be for business purposes and so you can claim back the VAT. Examples could include staff parties, team building exercises, staff outings and similar events.

However, you cannot claim back the VAT in either of these circumstances:

When non-employees are included in the event (this is business entertainment, not employee entertainment).
When the entertainment is provided only to directors, sole proprietors or partners of the business (where directors or partners attend staff parties together with other employees, you can claim the VAT back).

The following are not employees for VAT purposes. If any of these people are included in an event, then it is considered to be business entertainment – not employee entertainment – and you can’t claim the VAT back:

pensioners and former employees
job applicants and interviewees
non-employee shareholders

Employee expenses

People employed by you, and directors, partners or anyone managing the business may be entitled to claim back VAT on certain expenses such as travel and subsistence incurred for the purpose of the business.

Posted on 2, May 2012 by admin

This is an interesting development from Companies House & HMRC, that should save you and you accountant some time:

Joint Registration for Company Start Up and Tax

An option for customers to incorporate a company and register for Corporation Tax in one process has now been introduced.

This is available at the end of the Companies House Web Incorporation process or through third party incorporation software. The new option has been jointly developed by HM Revenue & Customs (HMRC) and Companies House as part of the government’s aim to make the UK one of the easiest places to start a company.

Providing your company is not a charity or member of a group and you already know the date when the company will start its business activities, the Corporation Tax information required by HMRC can be completed at the end of the Web Incorporation process by answering 6 simple questions on a single screen.

Once your incorporation has been accepted by Companies House, the Corporation Tax information provided will be sent to HMRC who will contact you to confirm your taxpayer reference and any further information if required.

For more information, please contact us 01424 425113

Internet Selling

Posted on 18, April 2012 by admin

Do you do a lot of online selling ie via ebay? Potentially you could be classed as trading, and be liable to pay tax on your income.

What is an e-marketplace?

An e-marketplace is an online market, or online shop, where buyers and sellers trade with each other over the internet. They might buy and sell goods or services, or a combination of both.

A separate company, a ‘third party’, runs most e-marketplace websites. They let you advertise or auction your goods or services on their website, and usually charge you a fee for this service – either for using their site, the amount you sell your goods or services for, or both.

Who can use the e-Markets Disclosure Facility?

If you are trading online, and have not told HMRC about all your income, you probably won’t have paid the right amount of tax. If that’s the case you can use the e-MDF to get your tax affairs up to date. To take advantage of the preferential terms you must tell HMRC you wish to take part by 14 June 2012.

If you take part in this campaign and tell HMRC about any income that you haven’t previously disclosed:

you may only have to pay for a maximum of six tax years.

you can tell HMRC how much penalty you should pay

you may be able to pay what you owe by instalments

It’s basically a ‘fresh start’. You can stop worrying about what might happen when HMRC find out that you’ve not been telling them about all of your income. It’s a chance to start getting things right from now on, whilst knowing exactly how much it’s going to cost to sort out things for earlier years.

How to notify HMRC under the e-Markets Disclosure Facility

To take advantage of this campaign you must:

Notify HMRC of your intention to take part in the campaign by 14 June 2012. This is a simple process and can be done online, by phone or by post. At this stage you only need tell HMRC that you will be making a disclosure.

Once you have done this, you must make your disclosure and pay what you owe by 14 September 2012.

How to work out if you are trading

If you occasionally sell a few personal possessions to raise some cash, you’re not trading, and you won’t usually need to pay any tax. But if you regularly sell goods or services, you’re almost certainly trading.

A lot of people who use e-marketplaces to sell want to know whether they need to pay tax. If you’re selling to make a profit then you’ll need to register for tax with HMRC.

The following questions and YouTube video should help you decide whether you meet HMRC’s rules for trading. You need to look at all eight questions below. If your situation is more like answer A than answer B in any of them, you are probably trading and should notify HMRC of your intention to disclose.

Questions to help you work out if you’re trading or not

Question 1 How, and why, did you get the things you’re selling?

Answer A: you bought them so you could sell them again to try to make a profit.

Answer B: you’re selling personal possessions you don’t want anymore, or things given to you or inherited.

Question 2 How often do you sell things?

Answer A: you make regular sales.

Answer B: you have only ever made one sale and you don’t think you will make any more.

Question 3 How do you sell?

Answer A: by registering as a business seller or as an online shop with an internet auction site.

Answer B: when you have something you want to sell you advertise it, but you don’t sell enough to make it worth setting up as a business user or shop.

Question 4 Do you change or improve the things you’re selling?

Answer A: you mend or change the things you buy (that might include splitting things up into smaller quantities), so you can make more profit on them.

Answer B: you sell things as they are because you just want to sell them quickly.

Question 5 How quickly do you sell things?

Answer A: you sell things that you’ve only just bought and you’re hoping for a profit.

Answer B: you’ve had the things you sell for quite a while.

Question 6 Are you running a business selling similar things?

Answer A: the things you sell are related to your own trade or business.

Answer B: the things you sell are not things you would sell in your own trade or business.

Question 7 How did you pay for the things you’re selling?

Answer A: you had to borrow money to pay for the things you’re selling.

Answer B: you were given them or you paid for them out of your normal living expenses.

Question 8 If you make the things you sell, do you charge more than they cost you to make?

Answer A: you try to sell them at a price that covers your costs and brings in a profit.

Answer B: you sell things that you make as a hobby and you only want to cover your costs.

If you’ve got more questions or are not sure if you’re trading, please contact us and let us help you to get your accounts and tax in order before its too late. At Knight Accountants, we offer a huge range of accountancy and tax services.

Benefits in Kind

Posted on 30, March 2012 by admin

As an employer, do you provide your staff with any benefits in kind? This is a KEY question, that you MUST know the answer to.

Benefits in Kind

Benefits in kind is a very complex area of tax, and care needs to be taken when calculating them.

If you are a director, or an employee earning over £8,500 per annum (including the value of your benefits), you will have to pay tax on any benefits that you get.

Examples of taxable benefits:

Company cars
Loans at a lower than market interest rate
Living accommodation
Private Medical Insurance

Examples of Tax Free Benefits:

Meals provided at a staff canteen
Mobile phone
Childcare
Christmas parties

Effect on the Employee:

The value of your benefit in kind will be deducted from your Personal Tax Allowance for the year. This means that you will lose some of your free tax allowance. Your employer will then provide you with a form P11d, shortly after 5^th July.

Effect on the Employer:

As employer, you should be able to claim the taxable benefit as a business expense. At the end of the tax year, you will have to produce forms P11d for each member of staff who had a benefit in kind. The total of these will then be declared on form P11d(b). Class 1A National Insurance at 13.8% is then payable by 19^th July.

For any assistance please feel free to contact us. Our team are happy to help with a FREE initial consultation.

PAYE year End Tasks

Posted on 27, March 2012 by admin

PAYE end of year tasks

If you need any assistance with you PAYE year end tasks, please contact us now for a FREE initial consultation. Our team are always happy to help.

If you operate PAYE there are a number of key tasks you must complete in the period around the end of the tax year on 5 April.

The key end-of-year requirement for most employers is to file your Employer Annual Return (form P35 and forms P14).

Please note that almost all employers are required to file their annual return online.
In order to file online you first need to register for the PAYE online service from HM Revenue & Customs (HMRC). Completing the registration process can take up to seven days, and there are penalties if you file your annual return late – so don’t leave registering until the last minute.

Deadlines

Deadline	Task
19 April	Outstanding PAYE tax and Class 1 NICs – postal payments must reach your HMRC Accounts Office
22 April	Outstanding PAYE tax and Class 1 NIC – cleared electronic payments reach HMRC bank account. As 22nd April 2012 is a Sunday, the payment will need to clear into the HMRC account by Friday 20th unless you are able to arrange a Faster Payment to clear on or by the 22nd. You should check with your bank in good time to see if you are able to use Faster Payments; what single transaction/daily limits affect the amount payable, and when you need to arrange payment for it to clear by the 22nd.
19 May	File your Employer Annual Return (P35 and P14s) If you are exempt from the requirement to file your Employer Annual return online your paper return must reach HMRC Customer Operations Employer Office by 19 May.
31 May	Give each relevant employee a form P60
6 July	File expenses and benefits annual return (forms P11D, P9D and P11D(b)) if applicable – give a copy to your employees This is the last date for your form P9D and forms P11D, or substitutes. P11D(b) to reach your HMRC office.
19 July	Class 1A NICs – postal payments must reach your HMRC Accounts Office
22 July	Class 1A NICs – cleared electronic payments must reach HMRC bank account

Set up payroll records for the new tax year

The key task when preparing for the new tax year, which begins on 6 April, is to set up new payroll records for your employees.

In most cases, this will be a form P11 or equivalent record (whether paper or electronic), but simpler records are permitted for some employees.

Having your payroll records in an electronic format not only means that calculations are done for you automatically, it also makes completing your Employer Annual Return (P35 and P14s) much simpler now that online filing is a requirement for almost all employers.

Where to get HMRC’s free P11 Calculator

A set of Basic PAYE Tools are now available to download straight to your computer. In addition to the P11 Calculator, the tools include:

an employer database on which you can record your employees’ details
a range of other calculators that work out, for example, statutory payments and student loan deductions
interactive forms such as P11D Expenses and benefits form and working sheets
a Learning Zone – including interactive learning material on how to use the Basic PAYE Tools

Finalise your payroll records for the past tax year

What to do

You must finalise the figures on each employee’s payroll record.

If you’ve had to maintain a form P11 or equivalent record for an employee, then you’ll need the figures it contains in order to complete and file your Employer Annual Return (P35 and P14s).

If you use payroll software or HMRC’s downloadable P11 Calculator, the calculations will be done automatically for you. If you still use paper records, you’ll have to add up each employee’s total earnings, tax, NICs, Statutory Payments etc, for the tax year.

Complete and file your Employer Annual Return

What to do

You must complete and file an Employer Annual Return if you were required to maintain a form P11 or equivalent payroll record for at least one employee during the tax year – whether or not you had to make any deductions of PAYE or NICs from them. If this doesn’t apply to you, see the next section ‘Notify HMRC if you’re not required to complete an Employer Annual Return’.
The Employer Annual Return comprises of:

a form P14 for each employee for whom you were required to maintain a form P11 or equivalent
one form P35 to summarise the end-of-year payroll totals for all of your employees combined

Depending on your circumstances you may also need to complete and file an Employer Supplementary Return (P38A). This is required if both of the following apply:

you’re required to submit an Employer Annual Return
during the tax year you had employees for whom you didn’t have to complete either a form P11 (or equivalent record) or a form P38(S) (which is used when you take on some student employees)

When to do it

Your Employer Annual Return (P35 and P14s) must reach HMRC by 19 May. You may be charged a penalty if your return is received later than this.

The requirement to file online

Almost all employers are required to file their Employer Annual Return online. You may be charged a penalty if you file on paper when required to file online.

Employers who can file on paper

The only employers who can file on paper are:

Employers entitled to operate PAYE using the Simplified Deductions Scheme for personal and domestic employees (using forms P12 and P37) – provided they haven’t previously received a tax-free payment for online filing.
Practicing members of religious societies or orders whose beliefs are incompatible with the use of electronic methods of communication.
Employers who employ someone to provide domestic or personal care or support services at or from the employer’s home subject to a number of conditions – follow the link below for further information.
Limited companies filing a return solely to submit an entry to report ‘CIS deductions suffered’ – since April 2011 these returns can be filed online. They should be submitted as a complete return with no P14s.

Give a form P60 to each relevant employee

What to do

You must provide a form P60, which can be either paper or electronic to each employee who was working for you on the last day of the tax year (5 April) and for whom you were required to maintain a form P11 or equivalent payroll record. The P60 summarises the employee’s total pay and deductions for the year.
When deciding whether to provide forms P60 electronically you may need to agree with the employee that they want to receive their P60s electronically. You will need to:

take into account the employees ability to easily access that information
provide secure facilities to view and print their P60 – if this is not possible the P60 can be issued to an email address that has been agreed with that employee

Preparing forms P60s

If you have used third party payroll software, it will usually automatically prepare the P60s for you in either an electronic or printed format.
Any printed version of an electronically provided P60 must clearly state ‘This is a printed copy of an eP60′.
If you have used HMRC’s P11 Calculator contained within the Basic PAYE Tools or HMRC’s online filing service, they will automatically prepare the P60s for you. You can either print copies of the P60s or you can complete paper versions of the forms.
If you are unable to produce either electronic or printed forms P60 you will need to complete paper versions of the form.
If you would like to use your own design P60s in either electronic or printed format, you must follow the HMRC guidelines provided in the RD1 booklet ‘Specification for employer substitute forms P60′.
If an employee has had more than one period of employment with you during the tax year, only provide the employee with one P60 – the P60 should only be for the period of employment up to and including 5 April.
If an employee asks for another copy, you may issue a duplicate. Duplicate P60s for the tax year 2010-11 onwards, irrespective of whether they are provided on paper or electronically, will no longer need to carry a ‘duplicate’ annotation.
If you need to make an amendment to the details shown on the original P60, you must give your employee details of the amendment. You can give them a letter showing the amendment or a new P60 marked ‘REPLACEMENT’. This replacement P60 can be provided either on paper or electronically.

When to do it

You must give your employees their P60s by 31 May.

Complete and file expenses and benefits forms

What to do

You must complete and file either a form P9D or P11D for any employees to whom you’ve provided expenses and benefits during the tax year.
You must also file a form P11D(b) to declare the overall amount of Class 1A NICs due on any of the expenses and benefits you’ve provided.

When to do it

All of these forms must reach HMRC by 6 July.

Pay any Class 1A NICs due on expenses and benefits

What to do

You must send HMRC any Class 1A NICs that are due on the taxable expenses and benefits you’ve paid or provided.

When to do it

If you’re sending payment by post, it must reach your HMRC Accounts Office by 19 July.
If you’re sending payment by an approved electronic method, your payment must be cleared in HMRC’s bank account by 22 July.
Interest will be charged on amounts not paid by these dates.

Preparing for a Presentation

Posted on 20, March 2012 by admin

Presentation Skills

The purpose of presentations

Presentations are a powerful way to communicate your message to a group. They are an opportunity to gather your audience together to engage in a two-way dialogue. Managers use presentations to:

Persuade the audience to take a particular course of action
Convey something you want the audience to know
Tailor information to meet the needs of a particular audience
Provide a forum for discussion of controversial or challenging ideas
Find out how people are reacting to a situation or an idea
Gain commitment and alignment
Engage people in generating solutions to problems

Different types of presentations
We rule the world by our words.
—Napoleon Bonaparte

There are many different types of presentations that meet specific needs. These are some examples:

Sales: Outlines the benefits, features, and reasons to buy a product or service
Persuasion: Provides the reasons or support to pursue a particular idea or path
Status report: Details the progress of a project, a task force, or product sales
Product demonstration: Shows how something works
Business plan or strategy: Sketches out what an organization plans to do next, or articulates the company’s goals

Sharing detailed information is not a good use of a presentation. Audiences will not remember detail. You can use a presentation to inform an audience about a major change or initiative, but use written forms of communication for the detail. Thus, your purpose drives the type of presentation you choose.

Define your objective

Your objective drives how you develop your presentation. What are the essential questions you should ask yourself? How can you make sure you are headed in the right direction?

Know your audience

Maximize the impact of your presentation by learning more about your audience.

Understand your presentation’s context

You are not presenting in a vacuum. The context of your presentation plays a major role in how it will be received. You need to be aware of the following issues:

Is the situation formal or informal?
When you present, will the audience have just finished eating, drinking, working, or doing something active? Will they be tired or alert? When was the last break?
Who will speak before you? Who comes after you? How might this affect audience reaction?
Are you the first or last speaker of the program? The day? The morning or afternoon?
Are you expected to take questions or leave copies of your presentation?
How much time do you have for the presentation? Can your message be delivered in that time?
Will the physical setting of the presentation require you to adapt your talk?
What control do you have over the physical environment?

Review and refine your ideas
Everything becomes a little different as soon as it is spoken out loud.
-Hermann Hesse

Duration

How long should a presentation be? Often, you have to fit your presentation into a timetable developed by others.

For example, you may be granted 30 minutes to deliver a sales presentation to a buyer. In other instances, you are in control of the timing, and you can determine the optimal length for your presentation.

The power of visuals

Everyone has a preferred learning style, but most people respond better to visuals than to the spoken word alone. Consider the following research findings:

People gain 75% of what they know visually, 13% through hearing, and 12% through smell.
A picture is three times more effective in conveying information than words alone.
Words and pictures together are six times more effective than words alone.

Use visual aids to help your audience:

Maintain attention
Remember facts
Understand ideas, relationships, or physical layouts
Recognize that you are moving on to a new topic

Rehearse until prepared

Rehearsing is the key to delivering a successful presentation.

Overcome your fear of presenting

Even professional speakers get nervous. The key to successful presenting is how you handle the fear. Consider the following tactics to help you overcome your fears:

Rehearse your presentation and know it well.
Get to know audience members individually, by telephone before the presentation, or in person as they come into the room.
Anticipate the questions and objections that are most likely to arise.
Prepare physically and mentally.

Anticipate questions

Some people feel that if there are no questions, the presentation is a success. However, if your listeners are engaged and are working with you, they most likely will have questions for you. Anticipate questions by focusing on your listeners’ concerns and how your presentation might strike them. Rehearse your talk with someone else and ask for his or her questions.

Employee expenses that you can claim back…

Posted on 16, March 2012 by admin

Are you an employee who works with a specific uniform, or needs specific tools? Do you have to pay for these, or their upkeep out of your own money? If YES, then keep reading…

When you can get tax relief for tools and specialist clothing:

As a general rule an employee can’t get tax relief for the cost of clothing they wear to work – but there are some exceptions. For example, if you work in a sector like the building trade or the metal working industry you’ll have to wear protective clothing like:

overalls
gloves
boots
helmets

If you must pay for the cost of repairing, cleaning or replacing this type of specialist clothing yourself and your employer doesn’t reimburse you, then you are entitled to tax relief. However, you cannot claim for the initial cost of buying this clothing.

You are also entitled to tax relief if you have to buy – out of your own money – the tools you need to be able to do your work. For example, if you’re a hairdresser your employer might require you to provide your own scissors. The tax relief also applies to the cost of maintaining and replacing the tools.

What about uniforms

You can get tax relief on the cost of repairing, cleaning or replacing a uniform if:

it’s a recognisable uniform that shows you’ve got a certain sort of job – like a nurse or police uniform
your employer requires you to wear it while you’re working
you’ve got to pay for it yourself

Flat Rate Expenses

If you have to spend money on tools or specialist clothing for your job you may be entitled to either:

tax relief for the actual amounts you spend
a ‘flat rate deduction’

Flat rate deductions are amounts that HM Revenue & Customs (HMRC) has agreed nationally – or sometimes locally if conditions are very different – with trade unions or other bodies. The deductions cover what’s typically spent each year by employees in different trades. For example, someone working in the clothing industry can get a deduction of £60 each year. A cabinet maker can get a deduction for £140 while the deduction for a stone mason is £120. You don’t have to be a member of a trade union to get the deduction. You’ll also benefit from less paperwork – you won’t have to keep a record of all the individual amounts you spend.

If your industry is not listed in the published table f fixed expenses, you can still claim a standard amount of £60 for the laundry costs of uniforms or protective clothing.

Getting tax relief for expenses if you don’t fill in a tax return

If you don’t have to fill in a tax return, you can get tax relief for your allowable expenses by:

letter
phone
filling in form P810 Tax Review
filling in form P87 Tax relief for expenses of employment

By letter

The first time you ask for tax relief for your expenses you’ll have to contact HMRC in writing. If your expenses are over £1,000 they will ask you to fill in form P87 to give more details.

By phone

If you phone HMRC to ask for relief for your expenses they will only be able to give you tax relief if all of the following conditions are met:

your expenses are less than £1,000 (or £2,500 for professional fees and subscriptions)
you’ve claimed them in a previous tax year
HMRC has accepted your earlier claim
you haven’t already been sent a P87 to complete

If you meet the conditions, HMRC will give you tax relief right away and repay any tax you’ve overpaid. Otherwise, you’ll have to fill in form P87 before they can allow your claim.

Time limits for getting tax relief

The time limits for asking for tax relief for your expenses are shown in the table below.

Time limits for getting tax relief if you don’t complete a tax return

Tax year	Tax year ended on	You must claim by:
2005-06	5 April 2006	31 January 2012
2006-07	5 April 2007	31 March 2012
2007-08	5 April 2008	5 April 2012
2008-09	5 April 2009	5 April 2013
2009-10	5 April 2010	5 April 2014
2010-11	5 April 2011	5 April 2015

If you would like anymore advice on this subject, why not contact us and we’ll be happy to help. Our team are always happy to help, especially when it means you are claiming everything you are entitled to.

Deadlines

Posted on 13, March 2012 by admin

Are you aware of all your business deadlines? It could prove to be very costly if you are not on top of these.

If you are a limited company:

your abbreviated accounts must be filed at companies house within 9 months of your year end,
your annual return must be filed annually at a cost of £14 (if filed online),
corporation tax is due 9 months and 1 day after your year end,
corporation tax return must be filed online within 12 months of your year end,
full company accounts must be filed with HMRC within 12 months of the year end.

If you are an employer:

If you have a payroll the Employers Annual Return, form P35 must be filed by 19^th May,
Staff must be issued with their P60’s by 19^th May,
Any P11D’s must be reported to HMRC via form P11D(b) by 5 July,
PAYE must be paid either monthly or quarterly (depending on your agreement with HMRC),
Any Class 1a National Insurance Liability must be paid by 19^th July.

If you are a sole trader:

Accounts should be prepared, and a Self Assessment Tax Return must be filed, if on paper by 31 October, if online by 31 January,
Self Assessment tax should be paid by 31 January (possible 31 July also if you owe more than £1,000),
Class 2 National Insurance should be paid either monthly or quarterly depending on your agreement with HMRC,
You must register as self employed with HMRC (this can be done over the phone) within 3 months.

If you are a director:

You will need to prepare a Self Assessment Tax return annually to 5 April, this will then be due by 31 October (if on paper) and 31 January (if online),
Any tax due will be payable by 31 January (and 31 July if more than £1,000)
If you wish your tax to be collected via your PAYE code, you must submit your return by 31 October.

If you are VAT registered:

You must register for VAT within 30 days after you exceed the VAT registration limit,
VAT returns must be submitted online within 30 days of the end of your quarter,
VAT liability is due within 30 days of the end of your quarter.

On top of these, you must also ensure that your current insurance premiums are up to date and still relevant for your business. Have you got critical illness cover? Who is paying for it? Could you benefit from sitting down with a financial advisor for some FREE initial advice?

Here at Knight Accountants we aim to give you as much help as possible, for a fixed fee. Can your business afford to miss any of these key deadlines as most do come with penalties and interest?

Why not contact us to find out more about us, we will give you a no obligation quotation. Or perhaps one of our previous blogs might be of interest to you?

kellie@knightaccountants.co.uk

@KnightAccount

Accounting records checks

Posted on 9, March 2012 by admin

Would you be ready for HMRC is they wanted to check your records? Does your accountant give you any advice on how your records should be kept?

Here at Knight Accountants we aim to give you the best service possible. If we feel that your records need improving, then we will make suggestions. If your records are in a better state then your accountancy fees are likely to come down. That is what we are about – giving you the best advice to make you the most money from your business. We aim to be ‘standing out from the crowd’

Why not contact us to find out more?

HM Revenue & Customs (HMRC) has announced a fresh approach to its business records checks programme in 2012, following a review.

The review, which included discussions of the pilot programme with trade and professional bodies’ representatives, found clear evidence that it is effective in improving record-keeping practices in smaller businesses. However, it recommended that the checks are more targeted in future, linking to available education and support.

The pilot programme of business records checks (BRCs) began in April last year and involved checks by HMRC on the standard of small and medium-sized enterprises’ statutory business records. Up until 4 January 2012, 2,437 business records checks had been carried out. These found that 28 per cent of those businesses visited had some issue with their record keeping, and an additional 11 per cent had issues serious enough to warrant a follow-up visit.

HMRC will now postpone making any new business records check appointments until the revamped approach outlined in the report is launched early in the 2012/13 financial year. This will allow further consultation with representative bodies on the implementation of the recommendations in the review and on some details of the new approach. In the interim, HMRC will only undertake visits already booked, as well as follow-up visits to businesses that have already been identified as having seriously inadequate statutory records.

HMRC’s Director of Local Compliance, Richard Summersgill, said:

“Four out of ten businesses had an issue with their business records, and of those that required a follow-up visit, we found that some 90 per cent subsequently improved their record-keeping.

“However, after reviewing the pilot programme and listening to the views of businesses and representative bodies, we acknowledge the need for a fresh approach to business records checks.

“The BRC visits provide benefits for the business and HMRC. We want businesses to pay the right amount of tax at the right time, avoiding potential interest and penalties. The checks also give greater assurance to HMRC when the business submits its tax returns.”

From www.hmrc.gov.uk