Tax planning for most tends to happen just before 5 April each year, if at all. Here at Broomfield & Alexander we are encouraging everyone to get ahead of the game and start thinking about it now. After all, nobody wants to pay more tax than necessary, so why not kick off 2014 by getting into some good financial habits?
Ideally, tax planning should be a year round process and shouldn’t be left until the last few days of the tax year. Opportunities can be lost, or tax savings reduced, if action is delayed.
To assist you with your tax planning, we’ve devised a tax planning checklist. Take a few moments to consider the following questions and contact us now to discuss the planning opportunities arising from any ‘No’ responses.
Do you ever ask yourself simple questions and find them the hardest to answer? Children do this all the time – Why is the sky blue? Why is water wet? – and often the answers to the simplest questions provoke the deepest meaning.
So as those in business and entrepreneurs, do you ask yourselves the following simple questions:
- Why do I work the way that I do?
- What’s in it for me?
Answering them may just be the secret to maximising your value as shareholders and developing your exit strategy.
The relationships between bankers and solicitors have over the last 5 years been severely strained.
Banks which had always pushed money at solictors after 2008 decided firms were a poor risk and withdrew support causing a lot of difficulties.
They have rediscovered their previous warm feelings about solicitors but not on the criteria they relied upon before.
The banks are much more aware of the danger signs in a practice and they are closely linking their behaviour and expectations to the SRA.
Before you start processing the new tax year…
The start of this week kicked off the new tax year, so we’ve got a checklist for you of all the things you need to make sure you’ve done before you start processing the new year using your Sage Payroll software.
- Process and update your final pay period for 2013/2014 and send your final FPS and, if applicable, EPS.
- Check that you’ve installed your new tax year update so you’ve got the correct legislation to process.
Go to Help > About, and your version should be v20.01, v19.04, v18.05, v17.08 or v16.11. If it’s not, open Help > Check For Updates.
The financial year to 31 March 2014 has been a busy year for the specialist grants team at Broomfield & Alexander.
During the year we have assisted with approximately 30 grant applications and to date have been successful in securing grant offers of the order of £4.5 million with a further £3 million of applications currently in the process of being appraised.
There has been a lot written in recent years about the Alternative Business Structure (ABS) for law firms, but maybe now is the time to reconsider not just who is involved in the ownership of a firm, but the nature of the entity itself.
ABS was intended to expand the market from which solicitors practices could raise finance, by enabling non-lawyers to become partners. However, more recently it is being suggested that firms need to consider how best to attract talent from within the industry into ownership to survive.
Investing money in non-deposit based investment solutions is engaging more and more people as wealth grows. However, there remains a huge gulf in difference between the various solutions that are marketed to individual investors, from the banks, through to the likes of fund supermarket providers, to Independent Financial Advisers.
Much of the talk recently has been around conversion to “clean” shares or in some cases “super clean”. This does not mean that there is any such thing as a “dirty” share class, but while these terms have entered financial vocabulary, it is clear that many do not understand the relevance of the term.
Historically, many investment wrappers were created with the cost of the wrapper provider being paid from a rebate that was paid directly from the funds in which the investor put their money.
Most motor dealers will have already benefitted from significant VAT refunds related to demonstrator vehicles in the period 1973-1996 with the added benefit of an interest payment that in most cases equalled or exceeded the VAT repaid.
In the recent High Court case of Littlewoods Plc & Others v HM Revenue & Customs, Mr Justice Henderson has ruled that dealers are entitled to the payment of interest on a compounded basis rather than on a simple basis as already paid by HMRC. Mr Justice Henderson agreed with Littlewoods that the payment of simple interest did not provide an adequate remedy for the loss the dealer suffered by the overpayments of VAT.
This judgement means that dealers will benefit from the expected billions that will need to be repaid by the Exchequer.
GPs should note that since the article on Lifetime Allowance, the Government has issued its responses to the consultation on Individual Protection 2014 (IP14).
Its preference previously was that IP14 would not on any account be available to a member with Enhanced Protection (EP).
But in a very welcome about turn it has relented to industry pressure and agrees that IP14 can be held simultaneously to EP.
EP will trump IP14, but, should EP be lost for whatever reason (new arrangement, personal pension contribution, relevant benefit accrual), IP14 may provide a valuable safety net.
This article first appeared in the Spring 2014 issue of AISMA Doctor Newsline, the newsletter of the Association of Independent Specialist Medical Accountants.