Hornbeam Highlights is an information newssheet for
clients and associates of Hornbeam Accountancy Services Ltd
Taxation.
The senior staff at Hornbeam spend
much of their working lives looking for legal ways for our clients to minimise
the tax that they pay. However, we
recognise that it is also a major part of our role to ensure that our clients
are secure in the knowledge that they do pay the correct amount of tax that is
due. In fact as professionals, we have a
duty to report any money acquired illegally {i.e. by defrauding the tax
authorities} to NCIS – the National Criminal Intelligence Service. There is no minimum amount and we understand
that the service has been flooded by reports from banks and accountants,
amongst others.
We have handled two unusual cases over the winter
period. One person was recommended to
come and see us when the Revenue sent a simple letter enquiring about a
property disposal. He had never put in a
tax return and after we explained about
possible 100% penalties for undeclared tax.
possible criminal sanctions for deliberate fraud
he provided details of two large capital gains and
undeclared rents running back more than 6 years. Although the amount already paid including
interest is substantial, the threat of penalties is unresolved and we will
argue strongly that because of co-operation and prompt payment only a
relatively notional penalty should apply.
The second person was recommended to come and see us
by a ‘Friend’ who had been ‘doing’ the accounts. It became apparent to me at our first meeting
that output VAT had been omitted in error for 4 quarters. We were appointed and immediately filled out
a five figure ‘voluntary disclosure’ form, again my greatest concern was that
the Customs & Excise would open an enquiry before the voluntary disclosure
was in, allowing them to charge a
possible 100% penalties for undeclared tax.
criminal sanctions for deliberate fraud.
Once you know about underpaid VAT and do not correct
it, it becomes fraud.
How the Customs computers failed to pick up 4
quarters of VAT refunds for a Hardware Store I will never know!
The point of these stories is this. Penalties for illegal tax evasion are very
heavy. These guys by coming to Hornbeam
have largely avoided the worst of the penalties and in at least one case have
agreed to make payment over a period of time.
We will always try to help people who want to get back on the straight –
and – narrow, and indeed are pleased to do so.
Business
Management
Training
Our experience is that investment in Management
training repays business owners many times over. We are putting on a series of
Business Management seminars this year.
Our seminars are specifically designed for Managers of small
businesses. Frankly we don’t think that
you can afford to miss them!
Each seminar will run between 3.50 pm and 6pm and
will be followed by a buffet supper.
The seminar is priced at £25 plus VAT and an order
form is attached.
We are so confident of the content that we will
refund the price in full of anyone does not think that the seminar has shown
them how to add value to their business.
The seminars will be held at Hornbeam House unless we
advise otherwise.
Seminar Topics are: -
How to Sell for More 18th May 2005
How to Get Paid Quicker 15th June 2005
How to work Smarter 14th September
2005
Planning for Success 12th October 2005
Successfully Expanding Your Business by
Acquisition 9th November 2005.
Payroll
Payroll gets more complicated every year. This year we have invested heavily in
electronic filing. Our payroll clients
will all get a £250 refund from the government for this year and next which we
have agreed to split with them. For many
people operating small manual payrolls this would pay our charges for 18
months! There will never be a better
time to appoint Hornbeam as your payroll agents.
We acquired a very substantial payroll during 2004.
We have managed to reduce the time taken by more than 50% and thus made
substantial saving for our clients.
Whether you are a client or not, if we can provide
further help or advice concerning any of the matters covered here, please do
not hesitate to telephone us on (01603) 720424