Having registered your payoll you will get a pack in the post from HMRC which will include a CD ‘Basic PAYE Tools’ this CD has everything you need to run your own payroll for free, as an alternative you can download ‘Basic PAYE Tools’
IR35 came into existance in 1999, it was created to prevent workers previously employed from creating a limited company and then benefiting from lower taxes and national insurance through the use of dividends and expenses.
HMRC believed that it would generate £220 million a year in National Insurance Contributions and £80 million in Income Tax, but it has actually only generated around £1.5 million a year and HMRC have brought a number of cases before the courts, the latest being MBF Design Services Ltd v Revenue and Customs (2011) and ECR Conculting Ltd v Revenue and Customs, the taxpayer was successful in both cases.
I was reading an article in Accounting Practice about the MBF Design case and HMRC assisted a Foreign Airbus UK employee to prepare his statement but apparently because the employee struggled to read the statement or be examined on it the tribunal were unconvinced.
I have always found QDOS to be an invaluable source of help in the field of IR35 and you can download free guides and contracts using this link
I recently registered to use the HMRC Corporation Tax online services and my activation codes arrived today, so far I am impressed.
Obviously you need to know how to correctly do your Tax Computations first, nothing can remove the complicated tax calculations for Capital Allowances, Loans to Participators, Small Company Relief etc, you need skill for that part. But from reading the manual it seems that you can enter your accounts, computations and complete the CT600 and file it without needing to spend a fortune on specialist software to produce the iXBRL tagging now required.
Let’s see if I am still impressed when I try to enter the information.
Lack of cashflow is the main reason for business failure.
Bartercard can help because they can provide an interest fee credit facility to buy goods and services from their members, Bartercard have 4000 UK business members including solicitors and debt collectors (which can help collect your cash)
Contact me for more details firstname.lastname@example.org
Bartercard give a 100% guarantee of sales included as standard in their membership, what do they do to get those sales?
Did you know Bartercard promote your products and services in 17 ways?
Yes thats right, 17 ways and here they are:
1. Members Directory
2. On line Directory
3, E Auction
4. Account Managers (TCOs)
5. E Mail Campaigns
6. Mail shots
7. Fax Campaigns
8. Networking events
9. Trade Shows
10. International Hot Deals
11. Value Added Services
12. Moving Inventory
13. Last Minute Deals
14. The Barter Bulletin Magazine
15. Member Referrals
16. Offers to Supply
17. E Market Place
Thats why Bartercard confidentially guarantee that they will generate sales from their members for you, if you want to know more or want to link in my e mail is email@example.com
To join bartercard there is a “once only initial investment” so how can we quantify our return on investment?
Every business has had to make an investment in their business to get it started, for example a hairdresser would need to fit out her shop with fixtures, fittings and equipment, so in accounting terms how can we evaluate the investment that we make when we join bartercard?
1. Pay Back Period – how many years does it take to get back our initial investment in profits – for normal investments anything less than 3 years is considered good – because Bartercard specialise in selling spare capacity and as such only product replacement costs are relevant, its likely that the profit on each sale will be around 70% profit (as used in our hairdresser/accountant trading story) – as Bartercard guarantee to get more than the joining fee in sales in the first year, the payback period is likely to be less than 2 years – so thats an excellent return on investment
2. Average Rate of Return (ARR) – this method of appraisal takes the average of the profits made over say a 3 year period (or the life of an asset) and shows the result as a % of the initial investment I estimate a 70% ARR, obviously this will vary from business to business, but I am sure you will quickly be able to work out the return for your business
3. Net Present Value/Discounted Cash Flow – this method of appraisal takes into account the time value of returns, its often considered the best and most precise way to assess returns, to calculate the Net Present Value you create a cash flow table year 0, shows the investment as a cost, then the net profits are shown in the subsequent years and a factor is applied to remove the effect of inflation, the higher the NPV the better the investment
4. Internal Rate of Return – this is also described as the effectie interest rate, to calculate this we increase the Discount Rate in the DCF (3 above) until the NPV equals zero and that produces the return rate
If you need help doing this analysis for your business drop me an e mail