The legislation was announced during the Christmas holidays and came into effect on 1 January, taking many companies (and LLPs) completely by surprise! As a limited company ourselves, we have spent much of January ensuring that we comply with the new requirements. Additionally, as a number of subscribers to our totalSOLUTION website service are also affected by the changes, we have been swift to act and ensure that their websites include the correct information. We have also produced a client letter so that you can keep your clients informed of how they may be affected. See below for more information about the legislation.
As we mentioned in last month's issue, following the success of our Mensa puzzles, we will be kicking off 2007 with a
new sporting theme for our regular teasers. With a different sport every month, you're bound to be able to answer at
least one question over the course of the year! Just in case, as usual, the answers can be found at the end of every
issue.
Nicola Hurley
Director
nicola.hurley@mercia-group.co.uk
CIS Contractor's Return Software - Now Available
Our new software will help your clients comply with the new CIS scheme. Approved by HMRC, it takes you through the process of preparing and reporting monthly returns. We have produced two versions - a Single Contractor Version and an Unlimited Use Version which can provide a new income stream for your practice. The key features of this software include:
- You can prepare monthly returns for your contractor clients with immediate online acceptance - no delay or risk of being lost in the post
- The software generates a document for the contractor to complete with monthly details and return to you
- It makes verification possible both online and by telephone from HMRC
- You can store a history of completed monthly returns, easily accessible for reference
- You can produce statements for subcontractors which can be printed on the contractor's stationery
- It provides help with subcontractor tax certificate applications
Budget 2007
Our complete Budget service offers you everything you need to communicate the changes which will be announced in this year's Budget to your clients, including summaries, tax cards and mouse mats.
For full details of how you can keep your clients up to date and also market your practice click here and to view a brochure featuring our latest Budget products click here. Alternatively, to discuss your requirements with a member of our Marketing Support team or to place your order by phone please call 0116 258 1242.
Monthly Marketing Tip
In this issue we are highlighting the importance of encouraging clients to provide you with feedback. Click here to read more about reaping the rewards of taking your client’s views into account.
Audit and Accountancy Issues
New corporate disclosures
As mentioned above, the government has passed legislation introducing new requirements to include certain company and limited liability partnership particulars on all websites and business letters and order forms whether they appear in electronic or any other format. The legislation became effective on 1 January 2007. You can see some of the results at the end of this email!
For more information you can access SI 2006/3429 The Companies (Registrar, Languages and Trading Disclosures) Regulations 2006 here.
We have produced a standard letter to help you to alert clients to the new requirements.
‘Near-final’ Practice Notes
Just before Christmas the APB issued three ‘near - final’ Practice Notes (PNs):
- PN 19: Near-final guidance - The audit of banks and building societies in the United Kingdom (Revised)
- PN 20: Near-final guidance - The audit of insurers in the United Kingdom (Revised)
- PN 24: Near-final guidance - The audit of friendly societies in the United Kingdom (Revised)
Click here if you would like to see copies of the PNs.
Tax Issues
Are you resident in the UK or not?
Establishing that you are not resident in the UK for tax purposes can lead to substantial tax savings. In the modern world it has become a lot easier to travel and, over recent years, the costs of flights have dropped considerably. This means that more people have become interested in the concept of becoming non-UK resident for tax purposes.
Strangely, tax law doesn't say much about what the term non-resident actually means. HMRC's interpretation and guidance is set out in their booklet IR20 which, in some situations, has provided a pragmatic approach when looking at the issue of residence. The language of the booklet includes words like ‘normally’, which illustrates that HMRC will not always be bound by IR20.
A recent case has highlighted this issue. To read our summary of the case, please click here. We also produced a short summary for inclusion in our spring client newsletter. For details about our newsletter service click here.
HMRC have posted an article on their website commenting on the decision.
Tax Inspectors to receive bonuses
The Times has reported that Tax Inspectors are to be incentivised to collect more money by being given bonuses linked to yield. This raises the spectre that settlements may be pursued just to raise money, as opposed to actual errors being identified.
To read the full article, click here.
VAT developments
If you would like to read about recent VAT developments, please click here for this month’s VAT news round-up.
If you would like help with VAT problems or HMRC enquiries, look no further. Mercia has teamed up with IVC, VAT and investigation specialists, to offer preferential rates to Mercia clients for these specialist services. Please click here for more information.
And finally…
The Tax Team at Mercia hope you had a Merry Christmas and wish you a Happy New Year. However, Accountancy Age has reported that 84 people had nothing better to do on Christmas Day than file their tax returns online! It's a strange old world!
Office Gossip and Idle Chat!
Mercia babies on the way!
We are delighted to announce that Jan Farmery, our database co-ordinator, has given birth to a baby boy. Lewis arrived on 2 January and weighed 8lb 9oz - a little brother for Eva. Congratulations to Jan and her husband, Andy!
There is clearly something in the water here because, after a steady stream of baby news from a number of departments we can share with you that other staff who are expecting Mercia babies include Marie Hunt, marketing support supervisor, who will give birth next month, lecturer David Gallagher's wife, Sarah, who is expecting a baby in the spring, lecturer Helen James, who will give birth in the June and graphic designer Matt Green's wife, Ann, who is expecting a baby later in the summer.
The answer to this month's sports trivia question is 1993.
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Nigel Cass
Mercia Group Ltd
Best House, Grange Business Park, Enderby Road, Whetstone, Leicester LE8 6EP.
Tel: 0116 2581200 Fax: 0116 2581250.
Email: nigel.cass@mercia-group.co.uk Website: www.mercia-group.co.uk
Mercia Group Limited is a company registered in England and Wales with company number 1464141.
Registered Office: Paulton House, 8 Shepherdess Walk, London N1 7LB
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