Warning to online traders

Bevan & Buckland Accountants logoWARNING TO ONLINE TRADERS TO GET THEIR TAXES IN ORDER

Lee Bradley, Tax Director at Swansea accountancy firm Bevan & Buckland, said a significant number of the firm’s clients now sell through online marketplaces.

“We have seen a large increase in new businesses selling online via platforms such as eBay and Amazon” he said.

“The VAT/tax rules can get quite complicated especially when you start to sell to the EU or further afield (for example, in the USA). We have been dealing with a lot of queries from online clients and have become very knowledgeable in this area.”

The new powers are not aimed at penalising occasional online sellers, but set out to make sure online business traders pay their taxes. However, HMRC has not stated at what point a casual seller becomes a trader liable to pay tax. It has been reported that 14,000 online traders have received tax demands – some, according to The Telegraph, with profits of just £100.

Others have made a substantial profit online. One of the most high profile convictions so far was online trader John Woolfenden, who was jailed for two years late last year. He sold DVDs, CDs and games through sites including eBay, with nearly £1.4 million passing through his online bank accounts over a six-year period.

When completing your own accounts, it is worth remembering that any earnings exceeding the annual personal allowance of £10,600 are taxable, as long as they are regarded as profit from a business.

Above all, it is important to speak to an accountant and make sure you are well informed. “As with any law, not knowing is not a defence,” said Lee.

Please get in touch if you would like to discuss any aspect of tax and online trading.

If this applies to you please contact Bevan & Buckland, or Lee directly using the details below, as soon as possible.

Lee Bradley
Tax Director
01792 410119

email: lee@bevanbuckland.co.uk

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Bevan & Buckland Accountants Cardiff Tel: 02920 459960

Further new recruitment in our Swansea office

BEVAN & BUCKLAND ANNOUNCES FURTHER RECRUITMENT

Swansea-based accountancy firm Bevan & Buckland has recruited two graduates to boost their audit and business services departments.

Stefan Rogers and Nick Johal, both 25, have joined the respected accountants from local firms after graduating from Swansea University and Hertfordshire University respectively.

“Both Stefan and Nick come to us with top class degrees and have already gained useful experience in local firms,” said Bevan & Buckland partner Harri Lloyd-Davies.

“I am sure they will soon become very valued members of staff and we recruited them because of their desire to provide great customer service.

“The double appointment shows how the firm is growing, and specifically our business services and audit departments, as the UK economy continues to improve.”

Stefan, who received a first-class honours degree in accounting and finance from Swansea, said: “I was so delighted when I was taken on by Bevan & Buckland especially as they are such a respected firm across South Wales.”

Nick, who gained a 2:1 in his degree, added: “Having grown up in Swansea I couldn’t have asked to have worked for a more established accountancy firm that Bevan & Buckland.”

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Pension Scams:

 a lifetime’s savings lost in a moment

24 July 2014

 

The Pensions Regulator has launched a new campaign to warn people of the dangers of being enticed into

· trying to access their pension pot as a lump sum or loan before age 55, or

· moving their retirement savings into unregulated high-risk or bogus investments.

Arrests have been made, and websites have been closed down, but it is clear that more needs to be done to discourage often vulnerable people from following some very dangerous advice.

The Regulator’s press release mentions that “the Victims of pension scams have warned of the devastating impact of losing thousands of pounds in retirement savings”. It notes that “the known amount of funds paid into pension scams now stands at £495m in total. However, it is suspected that this amount is likely to be substantially higher and not all activity is reported.”

As part of the new awareness drive, The Pensions Regulator has refreshed its ‘Scorpion’ campaign material to reinforce the message to consumers not to be ‘stung’ by cold calls, text message spam or website offers claiming to be able to help them cash in their pension. The regulator is urging pension trustees and providers to include the leaflet in the next annual statement sent to members, and anyone who requests a transfer in the meantime.

Pensions minister Steve Webb has warned: “Although quick-fix pension release schemes may seem tempting, particularly when times are tough, people should make sure they understand all the implications before they sign on the dotted line. A joint industry and Government operation is working to stamp out these unethical, exploitative, poor value offers – but I would urge anyone who is approached to think carefully, consider seeking advice and, if in doubt, steer clear.”

The new campaign is being led by the Department for Work and Pensions, The Pensions Regulator, The Pensions Advisory Service, Money Advice Service, Financial Conduct Authority, Serious Fraud Office, HMRC, Action Fraud, National Crime Agency and City of London Police.

Visit www.pension-scams.co.uk for more information.

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Bevan & Buckland Accountants Cardiff Tel: 02920 459960

 Bevan & Buckland Accountants Newton Abbot Tel: 01626 361484

HMRC u turn on NIC for pharmacies

Bevan & Buckland AccountantsHMRC U TURN ON £2,000 NIC ALLOWANCE FOR PHARMACIESSara, Bevan & Buckland

It has recently been announced that HMRC have reversed their decision to exclude independent pharmacies from the new £2,000 Employer Allowance writes Sara Dennis, Pharmacy
Specialist at Bevan & Buckland. She goes on to explain that originally independent pharmacies were excluded from claiming this allowance because they carried out more than half of their work for the NHS and were therefore deemed a public sector business.

Numerous Pharmaceutical organisations have been campaigning for this and they have now been successful.

Sara concludes that this is great result for independent pharmacies as the £2,000 saving can help with cash flow and be reinvested in the business.

Bevan & Buckland have both experience and expertise in dealing with all types of accounting and taxation matters effecting independent pharmacies, please do not hesitate to contact Sara on the following:-

Telephone number – 01792 410100

Email address – sara.dennis@bevanbuckland.co.uk.

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Bevan & Buckland Accountants Cardiff Tel: 02920 459960

 Bevan & Buckland Accountants Newton Abbot Tel: 01626 361484

Strategic Report and Directors’ Report

Bevan & Buckland Accountants logoWho does it apply to?

The Companies Act 2006 has been changed, accounts for medium and large companies ending on or after 30 September 2013 with require a strategic report to be included within the directors’ report in your statutory financial statements.

What companies are required to prepare a strategic report?

The directors of a company must prepare a strategic report if:

  1. The company is either a medium or large company i.e. you exceed 2 of the following:
    •  turnover exceeds £6.5m
    • gross assets exceeds £3.25m
    • more than 50 employees
  2. The company is a parent company, and you prepare group accounts.
    • The strategic report must be a group strategic report relating to the undertakings included in the consolidation.
    • The group strategic report may give greater emphasis to the matters that are significant to the undertakings included in the consolidation, taken as a whole.

What happens if we do not prepare a strategic report?

If the directors do not prepare a strategic report, an offence is committed by every person who:

  1. Was a director of the company immediately before the end of the period for filing accounts and reports for the financial year in question, and
  2. Failed to take all reasonable steps for securing compliance with that requirement.

A person guilty of an offence under this section is liable:

  1. On conviction on indictment, to a fine;
  2. On summary conviction, to a fine not exceeding the statutory maximum.

What needs to be included within the strategic report?

The purpose of the strategic report is to inform members of the company and help them assess how the directors have performed their duty under section 172 (duty to promote the success of the company).

  1. Whilst there is no set format, structure or layout for the report, it must contain:
    • a fair review of the company’s business, and
    • a description of the principal risks and uncertainties facing the company
  2. The review required is a comprehensive analysis covering:
    • the development and performance of the company’s business during the financial year, and
    • the position of the company’s business at the end of that year, consistent with the size and complexity of the business.
  3. The review must, for an understanding of the development, performance or position of the company’s business, include:
    • analysis using financial key performance indicators, and
    • where appropriate, analysis using other key performance indicators, including information relating to environmental matters and employee matters. “key performance indicators” means factors by reference to which the development, performance or position of the company’s business can be measured effectively.
  4. If a company qualifies as medium-sized the review only needs to include financial key performance indicators.
  5. The strategic report may also contain any other matters required under section 416(4) to be disclosed in the directors’ report if the directors consider they are of strategic importance to the company.
  6. The report must, where appropriate, include references to, and explanations for amounts included in the company’s annual accounts.
  7. The report does not require information about impending developments or matters in the course of negotiation if the disclosure would, in the opinion of the directors, be seriously prejudicial to the interests of the company.

If you require any more information regarding this please contact either Alison Vickers or Harri Lloyd Davies on 01792 410100 who will be able to assist you further.

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Bevan & Buckland Accountants Carmarthen Tel: 01267 233115

Bevan & Buckland Accountants St David’s Tel: 01437 720352

Bevan & Buckland Accountants Cardiff Tel: 02920 459960

 Bevan & Buckland Accountants Newton Abbot Tel: 01626 361484

 

Xero Online Accounting Software

Bevan & Buckland AccountantsAny Time,       Anywhere,       Any Device

Xero Accounting software

 

 

The beauty of Xero is that you can run your business and access your accounts from work, home or on the go via a mobile device.

Any Device
Xero’s online accounting software is cloud based so it can be used on any device whether it be Microsoft Windows, Apple Mac, Linux or a mobile phone / tablet.

Collaboration

The single ledger in Xero accounts allows instant access for you to collaborate with your colleagues, business advisors and accountant in real time.
So when it comes to your Year End both you and your accountant already know that your figures are correct.

Feature Rich

The Cash Flow dashboard interface allows you to see your business cash flow at a glance, bank balances, bills to pay, customers who haven’t paid, wages etc.

Invoice via email – fully customisable layouts and the ability to take instant payment via PayPal or credit card from within your invoice.

Customers can view the invoice online and you can see if they’ve read it or not. No more excuses saying that they never received a bill.

Connect Xero to your bank account and automatically reconcile transactions or make batch payments.

Schedule payments to be sent out in advance via email or to repeat the same payment on a monthly basis.

The Purchase dashboard highlights all the bills that need to be paid most urgently.

Schedule and prioritise payments, setup batch payments and easily send remittance advice to your supplier.

Batch payments are once again automatically reconciled.

A full Audit Trail to see who has done what and when should there be any mistakes.

Customised reports featuring real time information, click on the quick links to drill into the original transactions.

Invite your accountant to collaborate and setup customised management reports.

Xero is even available on your mobile phone – check bank balances, credit cards, send invoices on the spot and add expenses to your expense account by photographing your receipts as you go.

What’s more Xero Accounts integrates with thousands of other products – PayPal, Ebay, Amazon, WorkflowMax, Microsoft Drynamics, Sugar CRM, Salesforce to name a few.

With pricing starting as low as £5.00 per month why not give us a call to find out more?

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

Pension lump sum seized by trustee in bankruptcy

Bevan & Buckland logoPENSION LUMP SUM SEIZED BY TRUSTEE IN BANKRUPTCY

A recent Court case highlighted that your pension fund may not be protected from your creditors after all, writes Bevan & Buckland debt advice specialist, Alun Evans.

In April 2012 the High Court held that where a bankrupt has a personal pension and is at least 55 Years of age (and so entitled to take the benefits), the Court may make an income payments order requiring him to take both the lump sum and the annual income and to pass this on to his Trustee in Bankruptcy for the benefit of his creditors. (Raithatha v Williamson (2012) EWHC 909 Ch).

In this particular case Mr Williamson had a pension policy valued at £1m.  He was nearly 60 years of age and because he was still in work he had not drawn down his pension funds.

The judgement is a surprise as most Trustees in Bankruptcy had assumed that the law was well established under Section 11 Welfare Reform and Pensions Act 1999 which states that a pension cannot be seized if you become insolvent.

However, in this case the Judge referred to Section 310 Insolvency Act 1986.  This section specifically defines income as including any payment under a pension scheme’.

This case is expected to be appealed.

Advice for individuals with financial difficulties

It is suggested that if a person has a significant pension fund it may be beneficial to delay petitioning for bankruptcy until the appeal has been heard and certainty is obtained.  At the moment any individual who is a subject of the bankruptcy order (post April 2012) risks losing their personal pension fund.

Alun

Alun Evans is the partner at Bevan & Buckland’s Haverfordwest office specialising mainly in accounts, tax, debt and insolvency.  Alun is happy to meet for advice in any of our offices – Cardiff, Carmarthen, Haverfordwest, Pembroke, St Davids and Swansea.

Alun is a chartered accountant and licensed insolvency practitioner and a member of the ICAEW Tax Faculty.

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

 

Proposed VAT Cost Sharing Exemption

Bevan & Buckland AccountantsBEVAN & BUCKLAND ARE PLEASED TO WELCOME A FIRST BLOG POST BY
Centurion VAT Specialists Ltd

Centurion VAT Specialists

Proposed VAT Cost Sharing Exemption – Consultation on Draft Proposal Released
It seems a long time in coming since it was announced in the Autumn Statement 2011,  but Centurion now have sight of the Draft Proposals for the introduction of this new VAT exemption for qualifying recharges, between a shared service centre and its members, to benefit from a VAT exemption treatment rather than a taxable VAT treatment. Comments about “my horse could have had a foal in same time” from me are being ignored by the rest of the Centurion team!

The draft proposals are open for consultation until the 18th May and Centurion are happy to consolidate any comments from interested parties on the plans for implementation of this VAT exemption or if you’d like to discuss the proposals as the details of its working are becoming clearer (or less opaque!).

What is clear is that the intention is that exemption will only to apply to recharges for services from a shared services consortium that meets the criteria set out in the proposals. We are pleased to report that as a result of feedback from the consultation process there has been a widening of the definitions being applied which should allow more bodies particularly in the charity sector to benefit should a shared service consortium approach look like a valuable tool to have in the cost management tool kit.

The key issues to look at include:

  • HMRC’s definition of an “independent group of persons” for the Cost Sharing Group (CSG)
  • All CSG members must carry on exempt or non business activities
  • HMRC’s definition of “ directly necessary” supplies to members that qualify for the VAT exemption treatment
  • Direct re imbursement of costs condition to be applied by the CSG to its members
  • Distortion of competition condition that the CSG could be open to from commercial operators

It’s clear that these arrangements will not be the “silver bullet” that sectors such as charities, housing associations, universities across Wales might have initially hoped that it would be, but there is still enough of flexibility in the proposals to make this a serious option to consider where critical mass can be achieved to deliver volume savings: Areas such as maintenance services across the housing association sector perhaps? – and the cost sharing group doesn’t have to restrict itself to groups of entities from the same sector; local authorities could join with charities or with housing associations for a commonly incurred service cost as well.

The proposals can equally apply to the business sector, of course, but those businesses would have to have significant levels of exempt business activity to meet the qualifying conditions but in other European States businesses in the health and insurance markets do take advantage of the relief that the legislation brings to the burden of VAT on their costs so perhaps businesses in the property, exempt training sector, welfare, betting and gaming sectors should at least be aware of the potential this change could yield.

Any responses to this draft proposal will need to be back in with Policy Division in HMRC by the 18th May.

Centurion will be including the topic for our VAT Forum for FD’S in the Welsh Housing Association Sector, to be held on 15 May 2012 at ESIS Nantgarw, and at our Annual Forums for Welsh Universities and Further Education Colleges held in June.

If you’ve not had sight of the Draft Proposal from HMRC as it currently stands please call Liz Maher on 01633 415390, or send your comments to liz.maher@centurionvat.com for inclusion in our response to the proposal by the 17th May 2012.

Personal Twitter: @Vatbat            Company Twitter:@centuriononvat

(C) Centurion VAT Specialists Ltd 2012

Centurion VAT Specialists