Students Being Stung Worst On Emergency Tax

Figures have revealed that thousands of students who are working summer jobs are getting stung by emergency tax.
Full-time students are not subject to taxation as long as they are only working over summer and earning less that £6,475 per annum. But to do be eligible for this they must complete a P38 form, which is available from employers or HMRC.
If the form is not filled in then students could end up on emergency tax code 647L, causing additional amounts of money to be subtracted from their wage.
Kelly Sizer of the Low Income Tax Group said:”
Students who work in either holidays or term-time will probably pay too much tax. If this applies to you, make sure you claim a repayment.”
If your business employs students and you need assistance with PAYE tax or just help with payroll in general services, as well as other accounting and tax advice it is always cheaper in the long term to use professional accountants. If you also need general business advice then services such as BusinessServiceFinder may be able to help you.
Just request the service you require via an online quote form and they will search experts nationwide and locally to find the best one for you, saving you time and money

Dell Pays $100m Settlement.

Dells top brass have been held to account and have agreed to pay penalties.  The firm is paying around $100m and senior figures have agreed to pay addition sums for their alleged roles in the affair. 
The companies chairmen and other senior figure were charged by the SEC so their role in disclosure violations. What accounting and audit principles was this Global business following? What king of accounting advice were they given? Included in the charges were CEO and Chairmen Michael Dell, CFO James Schneider and CEO Kevin Rollins. 

The men and the company fell into alleged disrepute after the firm had failed to disclose important information to investors.  The company had received payment  from Intel to not use processing  units from Intel's main rival.  The payments were cut and it is alleged that the company did not disclose the reason for the decrease in profitability. 
The payment  to Intel helped Dell meet its targets but didn’t help the company in its management and operations. 
Robert Khuzami, Director of the SEC’c division of enforcement said: 

“Michael Dell and other senior Dell executives fell short of that standard repeatedly over the years, and today they are held accountable.    Accuracy and completeness are the touchstones of public company disclosure under the federal securities laws”

As well as the companies fines were a range of settlements for the top level executives of the company.  Michael Dell agreed to pay a $4m penalty, James Schnider agreed to pay a $3m penalty and Kevin Rollins agreed to a $4m settlement.   In addition, Nicholas Dunning  the formal regional vice precedent and former assistant controller Leslie Jackson have agreed to settle charges of improper accounting.    Included in the settlement offers were suspension agreements.  Non of those agreeing to the settlement can appear or practice before the SEC as an accountant for at least three years.  In the case of Schneider, he may apply to reinstated after 5 years and Dunning and Jackson may reapply after 3 years. 

Source:  Accountant Now

Tax Advice. No difference between Accountants and Lawyers

No distinction between advice accountants give on tax compared to solicitors. 

The ICEAEW argued before the court of appeals bench that there is no difference in the grounds of training the two professions had, 

Venue: Case is being contested at the Court of Appeal

 

The ICAEW appeared in front of the Court of Appeal in a case involving the insurer the Prudential.  It had previously lost its argument with the HM Revenue & Customs that tax advice received from its advisers should be confidential under the same rules as solicitors. 

Representing the UCAEW, Charles Flint QC told the court “you can’t distinguish between the two… They are performing the same function, in the context.”

“advice on Tax is advice on law.  What qualification gives accountants room to advise on law?  It’s the study of taxation.  The institute has the overriding interest of acting in the public interest.” 

Flint argued that there was no distinction between the quality of advice between members of the two professions.  Particularly in terms of the training between chartered accountants and lawyers.

Later today the court will hear the opposing view from the Law Society.  They assert that the privilege should be restrained to legal professionals only. 

(Source: Accountancy age)

U2 Bass Player Sues Accountant

 

U2s bass Guitarist, Adam Clayton is suing his accountants over an issue regarding misappropriation. 

The Musician claims that his accountants negligently mis-informed him that there was only 13,585 Euros missing form his account when in fact the sum was closer to 4.8m Euros 

Adam Clayton is missing a few notes!

The Bassist claims an employee Carol Hawkins took 15,000 of fund in 2008 because of a “great stress from marriage break-up” His accountants assured him that the taken was around 13,000 Euros.  He then claims to have further instructed his accountants to bar  miss Hawkins from access to his accounts. 

In addition is it alleged that there was also 415,961 Euros acquired between October 2008 and November 2009 through card transactions. 

“Mr Clayton, of Danesmoate Demesne, Kellystown Road, Rathfarnham, Dublin, is now suing Bank of Ireland Private Banking Ltd (BOIPB) and Gaby Smyth, Jill Percival and Pat Cleary, practising as Gaby Smith & Co, chartered accountants, Merrion Road, Ballsbridge, Dublin 4.”

For further details; The Independent

Some Wages Too High!

By Lloyd Cole-Nolan

Organisations are being repeatedly told to rein in higher wage earners. 

Increasing animosity is growing as high wage earners continue to appear as out of touch.  With news of a head teacher this morning who earns £200,000 a year to bankers getting bonuses in the midst of the crisis.  No one seems immune. 

Prime Minister David Cameron was keen to stress that “we are all in this together”.  Upon arriving into office Mr Cameron took a wage £52,000 below that of the previous occupant Gordon Brown.   In addition, the current Prime Minister ordered the entire Cabinet to take a 5% pay cut. 

 

Cameron himself took a 25% Pay cut when he came to office compared to Brown. 

In an age of austerity it seems that everyone including the poor must take a cut.   Most civil servants wages have been frozen over the next few years and other public sector workers are taking the strain.   However, it appears that some higher wage earners are still not picking up their bit of slack in the rope and continue to receive wages that stagger most.  What seems to cause particular offence, are those in positions who are paid out of the publics pocket or seen as contributing to the crisis.  Here is a couple of examples just from today:

Head Teacher

A Head Teacher was criticised this morning for earning “more than the prime minister”.  Mr Elm who runs a 400 strong Primary school in London took nearly £200,000 in salaries and bonuses last year.  Although his annually salary is close to £83,000 and the rest is made up by over time and back payments. 

The Union GMB expressed outrage at the amount.  Ted Purcell, a GMB public services officer said “It is outrageous that a Head Teacher should get paid more than the Prime Minister”.

An OFSTED report described Mr Elms leadership as “outstanding”

Bankers

Bankers received criticism after it still appears the sector is handing out large bonuses, still.   Financial Secretary Mark Hoban said the banks need to show restrain and that they operate in a fair and stable way in the allocation of bonuses. 

Steps were taken by the European Parliament and a deal was made that banker will receive no more than 30% of their bonus in cash.  The remaining amount is retained and repaid based on long-term performance.    Bankers bonuses caused outrage during the economic downturn. 

Auditors Criticized for lack of Scepticism.

Auditors have been criticized for using a “worrying lack of scepticism” by regulatory body.

The Financial Services Authority has slammed the Auditing industry for using what it described as “ worrying lack of Scepticism.” 

A report released by the FSA raised the concern.    It said “Auditors have become yes men who don’t adequately question management bias”

The FSA and the Financial Reporting council released the discussion paper and after concerns raised during the financial crisis. 

The FSA also called for more powers  to enforce its mandate, including the ability to impose fines and censure or disqualify audit firms.   The FSA also wants to increase its contact with auditors.  From once to three times a year

Accountancy Age Article

Payroll systems

 

The  HMRC have given advice on choosing a payroll system.  Here is a brief overview.

Looking after your payroll system is imperative.  The consequences of not can be disastrous you and your employees.  It involves paying employees correctly, making deductions including tax and national insurance, and keeping evidence of this. 

You can handle your payroll yourself, or you can outsource it.  If you choose to manage it yourself, then an electronic payroll system will make things much easier.   It will reduce errors, save time and make end-of-year payroll tasks much easier to complete.   This is especially true considering that the majority of employers are required to submit their payroll report online.

There are different payroll systems that you can use.  You should check out the different types before making a choice.   We found this review which offers a little information on the different ones available:  Review

 

Remember to consult a professional or the Inland revenue before making any decisions.  This article is meant for guidance only and is not advice. 

 

 

 

 

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York: an accountants view

York is a walled city located on the  river Ouse ‘int’ County of Yorkshire  It is one of the six most recommended places to visit in the country.  It is Twinned with Dijon of France and Munster in Germany.  It has a total population of just under 140.000 people

The York economy is based on service industry, which accounts for around 88% of employment.  Tourism counts for around 10% of employment and unemployment stands at around 4%.

Although it is only a small city, it contains a large number of small to medium sized accountants, however non of the big four have a direct presence. 

HMRC in role as bank has reduced the number of UK business insolvencies.

 

Insolvencies of private limited and public companies have fallen recently as shown by latest information on business insolvencies has been released. HMRC became a lender of last resort and this has had a positive impact on business failures.

However the jury is ‘still out’ so to speak in the UK accounting industry presumably because the view by the professionals is that it is merely postponing the inevitable (failure) at a cost and risk to the taxpayer, with similar messages echoed by the latest news from the Department of Business Innovation and Skills.

Private limited and public company insolvencies for Q1 2010 were 4,082 a massive 17.8% drop on the same period last. Professional accountants and business advisers believe that HMRC could create further problems, delaying or even losing tax debts.

The idea that corporate insolvencies numbers may have been affected by the the uncertainty produced by a hung parliament in the UK has little founding, but there may be some substance in the facts that because several big players in UK business and retail banking remain in public ownership, political imperatives may influence HM Revenue and Customs to delay in collecting any tax debts. Under Gordon brown and the Labour administration the proportion of HMRC's business debt increased £27.7bn in 2008/2009 (an net increase of approximately £3bn. The Accounting industry is only too well aware of HMRC’s bad debt provision, now running at over £11bn.

Most professional accounting firms and business adviser predict a steady rise in insolvencies throughout 2010 in the wake of HMRC tighten its belt, and better administration brought in by the change of Government.

UK Parliamentary Election 2010– a positive outcome?

Gilt markets allegedly opened at 1am, sterling plunged against the dollar, lost slightly against the euro. Which only goes to show how little the rest of world, and the US in particular, knows about the UK.

Debt however is a serious issue, and this fact will not be hidden from the Global financial markets.

Nearly £1 trillion sterling of public sector debt (uk national statistics online), and that rises to nearly £1.4 when public sector pensions obligations are factored in.

In 2009/10 fiscal year the debt was £160 billion. Was this well spent? What reduction of debt has Gordon Brown as Chancellor, and then as PM, achieved? Little or none, though he was quoted as saying “I have the debt under control”. Brown is fundamentally a good man, and a credible financial manager, but we must judge the Labour party’s on its record on debt. Did you know that the UK had exceeded the EUs ruling on current account national deficit – a 60% ratio to GNP (Maastricht Treaty's Excessive Deficit Procedure) – current levels for the UK are over 68%. Did Brown, or others, mention this in the run up to the election.

UK Accountants engaged in the political system seem to do well, according to Mario Christodoulou, Accountancy Age 07 May 2010 Winners included:

Karen Bradley for Staffordshire Moorlands

Jeremy Lefroy for Stafford

Alok Sharma for Reading West

David Mowat for Warrington

Vince Cable for Twickenham (who beat ICAEW-qualified Tory Deborah Thomas)

Peter Bone for Wellingborough

Nick Gibb for Bognor Regis and Littlehampton

Justine Greening for Putney

Mark Harper for Forest of Dean

Would an accountant do well as PM? Considering we are in the greatest economic crisis for 60 years, it may well be a good appointment. Your candidates are listed above.

Uk Chartered Accountants introduction

Welcome to the UK Accountants blog with a focus on UK Chartered Accountants, their services, the benefits, the downsides (if any) of using their services, and any associated matters such as the obvious ones like costs and fees, but also value for money and additional advice and assistance provided by them.

If you are an accountant, is your current business professional insurance cover as good as you can get? What is the best Accountant Professional Indemnity Policy in the UK? What essential cover is missing from your current policy that might cost you dearly, just when you need protection and cast-iron guarantees.

Finding a good accountant isn't alwasy as easy as it sounds. Where can you go to find a list of top uk chartered accountants, and where can one get a reliable recommendation? Are all directories online, and are there any other alternatives to mere uk online accountancy firm directories, such as accounting services finder.

If you need an Accountant Now what can you do? A Google search?