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From 1 April 2012, all VAT-registered businesses must send their VAT returns online and pay their VAT electronically. Currently, only newly-registered businesses, and those with turnovers of more than £100,000, have to file and pay their VAT online.

The new rules will cover VAT returns filed for accounting periods beginning on or after 1 April 2012.

To file your VAT return online, you’ll need to register for HMRC’s VAT Online Service – visit www.online.hmrc.gov.uk and click “Register” under the “New user” section. Then follow the instructions.

Affected businesses will also need to set up their preferred electronic payment method. .

For more information visit www.hmrc.gov.uk/payinghmrc/vat.htm or contact us on- 01902 737768 or 01952 601085 or email enquires@gilbertco.net

Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

The Partners are delighted to announce the appointment of two new members of staff- Kelly Parrish & Katie Mann. Brian Gilbert, Senior Partner, comments- “in view of the continued growth in our client base across Shropshire, Staffordshire & West Midlands it is paramount that we have the staffing structure in place to enforce and maintain our business ethos of delivering excellent client service by a knowledgeable, supportive, personable and local team”

Kelly joined us in July 2011 and is responsible for dealing with client book keeping services and accounts production for SME’s. She has qualified as an Accounting Technician (AAT) and is presently studying towards her ACCA accreditation. Kelly has previously worked in a West Midlands based practice that specialised in client services for the retail sector.

Katie, who lives in Shropshire, joined the firm as a trainee in September 2011 after completing her A Levels. She is quickly gaining experience in various areas of client service and administration and also studying towards her AAT qualification.

National Minimum Wage (NMW)- a reminder

There are different levels of NMW, depending on the age of your employees and whether they are an apprentice. The current hourly rates from 1st October 2011 are:

• the main rate for workers aged 21 and over = £6.08
• the 18-20 rate = £4.98
• the 16-17 rate for workers above school leaving age but under 18 = £3.68
• the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship = £2.60

If your employee is of compulsory school age they are not entitled to the NMW. Some of their other employment rights are also different.

For more information and advice please contact us on- 01902 737768 or 01952 601085 or email enquires@gilbertco.net

Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

TTP arrangements are already becoming harder to secure from HMRC and the Revenue has effectively declared war on clearly insolvent businesses seeking TTPs but which continue to incur losses without any realistic prospect of recovery.

We have seen HMRC tighten up on TTP procedures considerably. The argument goes that if a company cannot pay its current debt, it will most certainly struggle to pay this debt going forward plus the arrears to HMRC. Arguably the first step should be to agree longer and more realistic repayment terms, certainly in light of the fact that it appears the economic recovery is taking longer than expected.

The natural consequence of this is that HMRC, which has not held preferred creditor status since the Enterprise Act 2003, could potentially take security against tax arrears just as other lenders do. While security may well have been offered to support a TTP proposal and declined by HMRC in the past, it is reasonable to conclude that this is now not a question of if, but when HMRC makes such a move!

The rationale for this is that TTP still does not and can never guarantee the survival of a distressed business on its own, as potentially deep-seated changes may be required to turn such a business around, however, in the event of an insolvency then the prospects of a meaningful recovery to HMRC is enhanced.”

It is worth saying again for effect but business owners need to be aware that the introduction of deferred tax payments does not guarantee a business can survive, as proactive change is often required to ensure all tax liabilities – both arrears and ongoing – can be paid irrespective of the extended time scale that may be granted.
For more information and advice please contact us on- 01902 737768 or email  enquires@gilbertco.net

Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

If you have any concerns about this please do give us a call.

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Last weekend Gilbert & Co were delighted to be the main sponsor for the Great Wryley Annual Football Tournament- 170 teams took part and over 5000 people attended the event across the two days.

Please click on the following link for more info http://www.wyrleyjuniors.net/another-successful-tournament/

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Graham has delivered a presentation entitled “tax penalties & interest- how to avoid” to a group of local Cannock businesses at the Company Networking Breakfast meeting on Thursday 16^th June. For more information please refer to our factsheets at http://www.gilbertco.net/factsheets.php or contact Graham on 07403 384155. For details on Company Networking please visit their web site at www.companynetworkingltd.co.uk

Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

Supporting local businesses across the West Midlands, Staffordshire and Shropshire is at the heart of our client services strategy and having a base now in Telford, and also in Essington, continues the drive towards this goal.

We understand that the present economic climate will provide challenges as well as opportunities for business and we are only too happy to assist and support our clients via our Business Consultancy Service, helping businesses to grow and prosper.

Please contact us on Wolverhampton 01902 737768 or Telford 01952 601085 for a free and without obligation consultation and to learn more about our full range of services.

• Employers will, for the first time, be required to automatically enrol eligible employees into a pension scheme.
• Employers will, for the first time, be required to pay pension contributions for any employees who join and stay in the pension scheme.
• The Pensions Regulator will police and enforce these new laws.
• Even if you have an existing workplace pension scheme, you may have to make changes so that it complies with the new laws.
• Employers can either use their own pension scheme to comply with these new laws or rely on a Government built scheme – the National Employment Savings Trust (NEST) scheme.

Timetable:

The employer duties will be staged in over 4 years from 2012. Any employer with less than 50 employees will have their staging date set depending on the last two digits of their PAYE reference number.

The costs:

The amount of contributions that must be paid in order for a scheme to be treated as a Qualifying Workplace Pension Scheme is being phased in as follows:

The contributions will be based on a percentage of band earnings – (qualifying earnings). These amounts will be increased in line with earnings to 2012 and beyond. * The minimum difference includes tax relief available on employee contributions.

Employers can avoid much of the administration burden associated with automatic enrolment by setting up a Quality Qualifying Workplace Pension Scheme with the proviso that the total minimum contribution is 11% of qualifying earnings, then automatic enrolment dates can be postponed up to 90 days allowing a ‘sweep up’ of eligible employees all at once at the employer’s convenience.

Eligible employees

All employees will have to be auto-enrolled unless they are:

• already in a qualifying workplace pension scheme,
• under the age of 22,
• over the State Pension Age, or
• earn less than £7,475 a year (in 2006/2007 terms).

Employees can only ‘opt-out’ once they have been auto-enrolled. Non-eligible employees must be given the option of opting in to pension saving.

Responsibilities

Auto-enrolment is the responsibility of the employer, not the Government or the pensions industry. The Pensions Regulator will oversee employer compliance and has the power to fine employers for non-compliance.

The Penalties

• Stage 1 – Warning → Compliance/unpaid contribution notice
• Stage 2 – ‘Wake up call’ → Fixed penalty – £400
• Stage 3 – Persistent offenders → Escalating penalty

National Employment Savings Trust (NEST)

Employers who do not have, or who will not set up, their own QWPS will have the option of using NEST. This scheme is designed to be low cost and is specifically aimed at low to medium earners. There will be certain conditions applying to NEST:

• there will be a general ban on transfers in or out,
• there will be an upper contribution limit (currently £3,600 each year),
• limited retirement options and
• limited investment options
• IHT Liability
• 0.3% annual management charge + 1.8% contribution charge
• Run by trustee corporation

How we can help

This guide has been prepared by Independent Financial Services (Professional Connections) Limited (“IFS”).

Please visit: www.ifsproconnect.co.uk and http://aboutyourmoney.wordpress.com/ for more information about us

IFS can:

• Help you review your existing workplace pension scheme to make sure it will comply with, or exceed, the new requirements, or
• If you haven’t got a pension scheme yet, we can help you put one in place.
• And we can help with arrangements such as salary exchange that can save you money and offset the impact that these new laws will have on your business.

These changes are only just over 24 months away – don’t leave it too late to consult on your options and what’s best for you and your employees.

The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. The information provided is based on our current understanding of the Pensions Acts 2007 and 2008.

Independent Financial Services (Professional Connections) Ltd is associated with Independent Financial Services (UK) Ltd., which is an Appointed Representative of the Falcon Group Plc, which is authorised and regulated by the Financial Services Authority.