Paying Tax via HMRC website -Locked out

It is not stated on the HMRC web site but when paying by card via HMRC.gov.co.uk / Pay now- you can only make 2 payments and then the system locks you out for 24 hours. That is even if you are using it to pay different taxes or accounts for clients. It is supposed to prevent fraud, I think this prevents amounts being paid and in turn delays payment if more than three amounts need paying at the same time. The main thing here is to plan the times so that dead lines do not pass and thus incur penalties. A less efficient manner of paying your taxes online is via your own bank or simply call the HMRC but getting an answer sometimes over the phone is very time consuming. Its better to be prepared on how a system works than be faced with a lock down thinking your card has been refused.

Monday, 10th October, 2011 - For Immediate Release

To Martin McNeill - daily gazette

Martin
I have written a news story that may just be of interest to you and of course help those businesses be involved in the future of cloud accounting.
Briefly I started my business in Colchester just over 5 years ago in Colchester. We are like many other small businesses, as we started and still work from home in a dedicated office extension at the back of our house.
I take pride in describing to people that it is possible to grow with just talking. I have two businesses, Barrie Ingram Accounts Ltd - Accounts and accountancy services and Barries Car Services (taxi Colchester) Ltd which provides a good honest local and airport transfer service. Both firms topping nearly £100,000 turnover and growing by 10% plus each year.
In a nut shell I left the department for transport in 2005 when the underground in London was subject to terrorist attack. I bought a taxi and embarked on an advertising campaign. I have never looked back on either fronts.
I blog daily on all 3 of my web sites and find talking about peoples business and passing on hints and tips freely enjoyable. "Talking your language" is my motto and I believe as the book says " how to win friends and influence people" talking can make you grow rich if you talk peoples subject!
I'll call you in a few days to see what else you may need to add to a story. There is loads to talk about I have not seen a recession in my businesses as I offer what people want at the right price.
I could even put a weekly tips on business growing in for you, for example taking on free labour as work experience which make great extended interviewing to make sure you have the right candidates in possible openings or recommendations for other firms which turn into commissions.
There is more where this comes from ... speak soon. See below for the news cover story I have put together.
COLCHESTER Accountants on the Cuting Edge

A leading COLCHESTER based firm of accountants have announced that they are now using revolutionary online accounting aoftware in order to help its clients more easily manage their book-keeping and accounts and keep a better track of their financial position.

Barrie Ingram Accounts Ltd based in COLCHESTER has today announced that they have future-proofed their accounting software packages for their clients by moving to an award winning online accounting software package.

The company will now be using online accounting software company KashFlow which enables accountants and their clients to easily access their own financial records at any time, whenever they have access to the internet.

Online accounting software is considered by many to be the way that the industry is heading because it enables businesses to keep a constant eye on their company’s financial position without having to install costly and bulky software direct onto their computers.

This recent move proves Barrie Ingram Accounts Ltd is a forward thinking and dynamic organisation. The system is easy to use, with continuous functionality development and Barrie Ingram Accounts Ltd’s team of accountants can now talk to clients and update records in real time without having to wait for clients to send in reams of paper-work.

All the records held on the system are stored behind a state of the art encryption system that prevents data from being accessed or passed on without the user’s permission.

The software package will now be used by the company’s entire network of accountants who will, in turn, recommend it to their growing client base.

Speaking about the new contract BARRIE INGRAM, Partner at Barrie Ingram Accounts Ltd, said;

“We wanted to find a product that was easy to use for our clients that haven't had any accountancy training, but still enabled us as their accountants to extract the information we need to provide a quality service. We've found exactly that in KashFlow. The fact that we can access data live over the internet means we can be more pro-active in advising our clients.”

Managing Director of KashFlow, Duane Jackson said,

"Barrie Ingram Accounts Ltd have shown that they're forward-thinking by being early adopters of online software. We're looking forward to working with them the help small business and start ups in COLCHESTER and the surrounding areas."
Jackson continues,

"Our software is going to help Barrie Ingram Accounts Ltd to deliver on their aims of offering a high-level of service to all of their clients."

KashFlow launched its flagship product, an online tool specifically designed to help owner-managers in small businesses manage their accounts, in mid 2005. Since that time it has quickly won a significant share of the valuable accounting software market along with launching a new direct-to-accountant division in late 2006.

In late 2007 KashFlow won a Business Software Satisfaction Award, judged entirely by customer feedback, for the category of web-based accounting, beating the likes of Sage and Netsuite.


www.kashflow.co.uk

- ends -

Editors Notes
For further information or images to support this story, please contact BARRIE INGRAM, Barrie Ingram Accounts Ltd, 0800 135 7238, BARRIE@BARRIEINGRAM.CO.UK.

In 2007 KashFlow won a Sift Media award, judged entirely by customer feedback, for the category of web-based accounting beating the likes of Sage and Netsuite

In June 2008, KashFlow became the first accounting software package to be certified by PayPal for integration with its payment platform. PayPal and KashFlow now work in partnership to provide a seamless, end-to-end, payment processing and accounting system

In October 2008, KashFlow won a Sift Media award in the category of “Small Business Accounting Software” beating of Sage 50, Quickbooks and MYOB.

KashFlow has received two rounds of venture capital funding from it's now Chairman, Lord Young of Graffham, former Secretary of State for Trade & Industry and ex Chairman of Cable and Wireless

KashFlow is simple to operate, with users instinctively knowing where to click to perform almost any accountancy task

KashFlow’s development is unique from any other in that user feedback is the key driver behind every new development and additional functionality

Owner managers are able to effectively manage their accounts with no need for software training or prior knowledge of accountancy

KashFlow has been featured in the likes of the Financial Times, Daily Mail, The Daily Telegraph, The Mail on Sunday and all the leading accounting titles.

COMPLETE MAINTENANCE COVER - HOME INSURANCE

I was sent an offer by Homeserve who are an off shoot from Anglia water for home maintenance insurance cover. The complete service includes just about every thing that could go wrong including outside water mains to roof tiles and dripping taps.
I was also offered that same service or so it seemed from the AA. However listen in. The AA offered the service for £5.99 a month which works out £71.88 a year. The Homeserve was quoted at £289.75. I immediately got on to Homeserve to cancel however they transferred me to customer service and they immediately matched the policy fees of £5.99 a month and pointed out that the spending limit was much higher and that AA only will cover for 3 call outs and that Home serve was unlimited call out. I just saved myself £217.87. This saves my time and money and helps me get on with what I am good at, which is helping my clients with their accounts.

National Minimum Wage (NMW) changes 1 October 2011

Current NMW rates
There are different levels of NMW, depending on your age and whether you are an apprentice. The current rates (from 1 October 2011) are: £6.08, £4.98, £3.68.
The main rate for workers aged 21 and over is £6.08
The 18-20 rate is £4.98
The 16-17 rate is £3.68 - for workers above school leaving age but under 18
The apprentice rate £2.60 - for apprentices under 19 or 19 or over and in the first year of their apprenticeship.
If you are of compulsory school age you are not entitled to the NMW. Some of your other employment rights are also different.

All inclusive Fees

We now have the all inclusive arrangement where £100 a month can cover all fees in your business unless specialised consultancy is required.(Company Review required first)
The Kashflow software is free with assistance and training over the phone.Plus Other assistance over phone and by email relating to tax and accountancy advice, unless specialised whereby this will stated at the time of request( but if I know it I'll just tell it)and One visit a year at your work place, Includes one reference letter rev mtg or rental of property. Includes all Payroll up to 4 employees, set up of PAYE scheme - payslips emailed monthly inc year end. Annual rtns for the Ltd Company, Self assessments for all directors (normally 195.00 ea.), Annual Accounts. Corporation tax returns all filed online. Fixed Fee for two years,then will be reviewed, great for a growing co.

Alternatively, fees for Pay roll are £15.00 per month inc Payslips emailed for two employees. Plus end of year at £50. Set up PAYE with HMRC scheme £40. DD set up for estimated fees /12. About £100 a month.

Our all inclusive just simplify's invoicing there is not much in the price.

Small Wage by directors and shareholders (owners of companies)

It would be ideal to take a wage at the personal allowance level and just below the National Insurance contribution level but at the rate of Nil, to keep you in the system for NI credits.
The national insurance (NI) payable by employees is at 0% up to £ 135.00 weekly wage.
I suggest Directors pay them selves a wage of £580.00 monthly which works out at 6959 which is lower than the P/A £7479 11/12 year.
So you pay no tax and cost nil to the employer and pay nil to the NI and are part of the NI system gaining unemployment,maternity/paternity, sick and top up on the pension payments on retirement.
the remaining draw of funds will be by dividend as director and shareholder, only if there is profit in the company, up to the £35,000 where the rate of Income tax is set at 40% and fraction is added to the self assessment tax calculation for the year to 05/04/2012

Temporary Tax Codes - employed

The understanding of all of the new uses for code 0T from April 2011 is as follows:

If a new employee does not provide a form P45 and does not complete form P46 before the first payday

Using HMRC’s Online Services or payroll systems that have online filing facilities, the employer must enter either A, B or C when indicating which P46 Box is checked – it cannot be left blank. Currently, where online services are used for filing, code BR is allocated automatically if Box C is checked. From April 2011, if Box C is checked, the code 0T (non-cumulative w1/m1) if no P46 has been completed before the first payday or the new employee has not ticked any box, or code BR (cumulative) if the new employee has another job or receives a state or occupational pension.
The normal temp. code should be 747L (W1/M1)for year 06/04/2011 onwards.
In a nutshell the W1 / M1 means you are paid as if you are on week 1 or month 1 so no account of tax paid so far in the current tax year is made.
Most paye systems are filed online immediately so the tax code should catch up within a few weeks.
The best advise if you do not want temporary tax codes is to settle in the job so the code settles.

Mileage rates for expenses (AMAP)

The amount you can be paid for business mileage without reporting to HMRC is at the rate of 45p for the first 10,000 miles and 25p from then after.(re 2011/2012 tax year)
There are special rules for business miles classification and if you exceed these rates then National Insurance contribution (NIC) may be payable.
Essentially business mileage is that which is for travelling from one client to another or to and from a temporary business place of work. Not from home to a permanent place of work.

Retaining records for Tax - as legal obligation

The general rule of thumb is 6 years to retain documents for business. There are exceptions:
If an enquiry is launched then the HMRC can demand any evidence to discount a fraudulent claim to tax.
You can keep any documentation in an alternative form such as electronic media via scan.This is as long as you can convert into a legible printable format.
There are some documents that cannot be stored in an alternative manner such as Bank Interest certificates, Dividend vouchers and CIS certificates(vouchers).

NATIONAL INSURANCE(NI) FOR LOW EARNERS

The amount of NI to be paid for low earners in employed position as of 06/04/2011 is dependent on the amount you earn.
Up to £101 weekly, there is no NI due and therefore at this level which is lower than the Lower earnings limit (LEL) of £102, meaning no credit to NI contribution scheme. Included and above the LEL and below the the secondary threshold (ST) £136 (102-135)the NI paid by employees is at a 0% rate and considered included as credit to the NI contribution scheme.
This is useful when setting a minimum or low wage for work that only requres a small amount of hours. Its best to arrange at least a payment of ablove £102 to be part of the NI scheme for contributions and still no tax to pay, if this is your only job and not costing the employer any employer NI.

Minimum Wage (National Minimum Wage = NMW)

There are different levels of NMW, depending on your age and whether you are an apprentice. The current rates are:
£5.93 - the main rate for workers aged 21 and over
£4.92 - the 18-20 rate
£3.64 - the 16-17 rate for workers above school leaving age but under 18
£2.50 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
The age at which you become entitled to the main rate was reduced from 22 to 21 on 1 October 2010. The apprentice rate was introduced on the same date.
If you are of compulsory school age you are not entitled to the NMW. Some of your other employment rights are also different.

LCD VS LED TVs

I have decided to get a larger screen to do the accounts on, for the office pc.
I set out looking online but then decided I should look in the local stores. You know all the common ones, PC world Comet and Hughes, Bennett's and Staples and believe it or not Sainsburys. As this would give less aggravation when returning the item if a fault occurred.
I had set a size for the screen to be at least 22" but not no larger than 24" otherwise it would look to big sitting on the desk.
Any way I found one from Pc world best price 23.6" no TV freeview or DVD player combi. Dont need the tv or DVD player combi anyway as the PC will provide all tv playback and live etc. when connected to internet in the office.
Any way the best value was £129.99 AOC monitor LCD.
That brings me to " whats the difference between LCD and LED.
I found after searching the net a great little video which explained all. See this its good knowledge. Basically, the led is better as it back lights the LCD giving a bright white and deeper black, ie a sharper picture. Not much use in the office but great knowledge.see http://www.youtube.com/watch?v=U0cBsVaCmcQ&feature=player_embedded (type in the www. bit)

Injury claim referral fees to be banned

It is proposed a ban of referral fees in personal injury claims is to be imposed, in an attempt to curb the "compensation culture".

It is claimed that the rise in insurance is partly to blame with the current system in which personal injury details are sold on by insurance companies to lawyers.
The Association of British Insurers said the ban must be "watertight".
Justice minister Jonathan Djanogly said "honest motorists were seeing their premiums hiked as insurers covered the costs of ever more compensation claims".

"Many of the claims are spurious and only happen because the current system allows too many people to profit from minor accidents and incidents"

America faces 'genuine threat 9/11'

The US warn that a specific and credible threat is possible during the 10th anniversary of the attack 9/11.

Paralympic Day in Trafalgar Square today

In LONDON Trafalgar Square, the venue today (thursday) for a the day of sporting. Demonstrating to celebrate next year of Paralympic Games.

News 8 Sept 2011 -

The out of work could lose their council tax benefit
Around four million people currently get their council tax paid in full on grounds of low income and savings.
Benefit experts say saving 10% off the costs of the £5bn scheme could see some lose their entitlement completely.

Call Diverts

The Telephone Number Company (TTNC).
We use this company for our telephone divert for the Taxi and Accounts business via the two 0800 numbers we have. My telephones are diverted mostly to the 0800 numbers and then on the platform provided with TTNC calls can be re diverted to as many mobile or land line numbers as I required.
Useful for storing telephone numbers to which we use for text advertising.
This facility effectively gives your more lines. Whilst on a call another will be redirected to another allocated line for another allocated divert to pick up on. So if you have five or six on the divert, all phones will ring even if one is on a call and the customer is only calling one telephone number.
The added facilities such follow me, priority call and many other options allows a business to take charge with a few clicks.
I like TTNC so I suggest if you need extra flexibility with your calls click below on the button provided
Barrie

20% VAT Increase

Now we have the VAT Increase to 20% on standard rate VAT.
The standard rate of VAT increased from 17.5 % to 20 % on 4 January 2011.
Any sales of standard-rated goods or services that you make on or after 4 January 2011 you must charge VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011. That is to get the VAT out of the inclusive gross figure multiply your gross inclusive figure by 1/6 (1 over 6). The older fraction was 7/47 for the 17.5% vat rate.
The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.

A note for those who are part of the vat schemes available will need to be aware that this effects the following schemes:
Flat Rate Schemes (FRS)although you multiply the gross sales figures by the FRS rate for the business to get the vat payable, but it is useful to find out what the vat amount is included if you make inclusive sales. Simply multiply the sales figure by 1/6 to get the vat figure included.
Margin Schemes -where you apply the fraction to the the difference between the gross sales and the purchase price of the second hand item (margin), to get the vat amount payable.The margin scheme has many restrictions but is useful for businesses that cannot reclaim the vat on their second hand purchases for resale, but, nevertheless have to be VAT registered. Beware of the fact that the standard approach has to be used alongside the margin approach if vat is reclaimable ie vat included on a purchase(separately stated on the purchase invoice). Simply refraining from claimimg the vat back is not an excuse to include in the margin scheme.
Still enough on this happy VAT accounting and take care on the tax points - more about that later.