by James Mason
7 October 2011
It’s Autumn 2011… and here’s what we should be thinking about
I absolutely love this time of year when the air gets colder, the days shorter and there is the hint of Christmas about things. But it is no time to waste. It is the time of year when all the jobs we meant to do in the summer need to be done and there are business things afoot. Autumn and spring; great times to take stock and take action. Here is this year’s autumn-list of what’s hot and what’s not.
This is hot
2011 Tax Return
By now most sole-traders will have sent their 2010-11 business records and tax information to their accountant. If not, do it now. Your accountant doesn’t really want to spend all of Christmas in the office; as funny as the ‘candles and ledgers’ scene from A Christmas Carol may be. Also, the sooner received the sooner you know what you owe, or better still the size of any potential tax rebate. All the more important if you are thinking of changing your accountant.
Business Performance Review
There’s never a wrong time for a BPR but autumn and spring are the ‘best of times’. You’re back from holiday, confidently tanned, great memories still fresh, the bubble bursts, the credit card is maxed out and you’re facing the cost of winter. Review your business. Look at what cash you are going to need, what sales you need to develop and what debts you can collect.
The 2012 Olympics
It is likely that some of you will be thinking about what the tax position is if you give or receive tickets. As a rule, if your company provides you with tickets to the Olympics next year then it’s a taxable benefit; plain and simple. However if you receive tickets from a business contact and you comply with the legislation around ‘gifts-from-third-parties’ then you may not have to pay any tax or your company any National Insurance. Check with your accountant to be sure.
This is not
PAYE Tax Codes
HMRC will be issuing SA252 forms this autumn to taxpayers who they think may have an incorrect tax code to improve on last year’s PAYE Code debacle. Forms are designed to identify current year rather than prior year information and it’s best to ignore the issue that we are over six months through the year already, and adjustments are likely to take a further three! Don’t forget that you can notify the taxman at any time if you think your code is wrong; just give them a call.
VAT on Benefits
In January 2012 the VAT rules on Benefits-in-kind are changing. Previously the salary-sacrifice by an employee for a benefit from the company was not considered to be a supply. From January that changes, but the good news is that you can recover the VAT paid on the cost of providing the benefits. Not all benefits are affected. VAT exempt benefits, e.g. pension contributions, remain unaffected. Your accountant will have a list of what’s in and what’s out.
And finally
Let’s not let the best of times become the worst of times. A BPR is a good idea at any time of the year and in my view the best advice is to always keep an eye on and an ear open to anything going on around us. It is often the follow up on a half-caught idea or a casually mentioned topic of conversation that reaps the best rewards. Happy autumn, I’m off to find some conkers.