Archive for September, 2013

Thinking of selling all or part of your business?

Thursday, September 26th, 2013

If you have spent your working life building your business, when you reach the point at which you are considering a sale, planning is critical.

VAT, corporation tax, income tax, stamp duty land tax, and capital gains tax are all standing in the wings waiting for you sign on the dotted line; so they can take a share of your hard-earned, sale proceeds.

Key areas that you will need to seek professional advice are:

• Do you need to strip surplus cash from your business prior to sale? What is the most tax effective way to do this?

• Are you selling all, or only part of your business? Do you need to consider demerging?

• If you are selling shares in your company will the sale benefit from Entrepreneurs’ Relief?

• Do you want to keep property owned by the business?

• If you have a group of companies would the group benefit from a formal reorganisation prior to sale?

• What impact will the sale have on any employee share options?

You may also need to consider that a potential buyer will be taking a close look at due diligence issues, particularly PAYE, VAT and corporation tax contingent risks.

In order to maximise the amount of post-tax sale proceeds you receive planning is absolutely key. We recommend that this be done before you instruct the selling agents and lawyers.
 

Seminar Invitation: RESEARCH AND DEVELOPMENT(R&D) TAX CREDITS

Tuesday, September 24th, 2013

Venue: LOUGH NEAGH DISCOVERY CENTRE, OXFORD ISLAND, LURGAN.
When: Thursday 24 OCTOBER 2013 at 9.00am

In conjunction with Jumpstart, the UK’s leading R&D tax relief specialists, McCleary & Company are delighted to announce a seminar that will explode the
myths surrounding R&D tax relief.

Are you leaving money on the table?
Since the introduction of the R&D tax credit scheme in 2000, only 2% of British companies are actually claiming, equating to £9 Billion of tax relief left unclaimed annually. In Northern Ireland in 2011, only 190 SMEs claimed £6 Million in R&D tax credits, an average of £31,500 per claim.
Even loss making companies can claim a tax refund!
Eligible companies can deduct up to 225% of qualifying expenditure when calculating their profit for tax purposes. The precise size of the tax credit will depend on the size of the company, its tax rate and the scale of the eligible activities.

Let the experts help.
Recognising eligible R&D is difficult, so we are partnering with the UK’s leading R&D tax credit specialist, Jumpstart UK Ltd. Jumpstart provides a unique blend of technological and business expertise to guide companies through the complexities of HMRC R&D tax submissions.

Jumpstart’s analysts come from many scientific backgrounds enabling them to identify eligible activity often hidden in the daily routines of your, or your clients’ work, and then translate detailed technical information into meaningful reports that are relevant to HMRC’s R&D guidelines.

Want to find out more? Please come and join us, this could turn out to be the most profitable 2 hours you’ve ever spent! We’ll even provide a bacon roll for breakfast!

 

To register for this free seminar simply email vanessa@mcclearyaccountants.com  We look forward to welcoming you on the day!

Research & Developments Tax Credits Seminar

Tuesday, September 24th, 2013

We are pleased to announce that our next seminar is planned for Thursday 24 October at the Lough Neagh Discovery Centre, Oxford Island Lurgan.  Registration is from 9.00am for a 9.30am start. The presentation itself will take approximately one hour, with half an hour set aside for networking and questions at the end.

To register simply email vanessa@mcclearyaccountants.com .

R&D Tax credits are a valuable but much underused relief, only a fraction of the anticipated claims have been made, so many businesses are losing out.  If your business involves manufacturing of any description, there is a real chance that you may have eligible expenditure without knowing it!  Relief can be claimed for up to three years, so you may be due a refund of Corporation Tax from HMRC!

If you are interested in finding out more then click on this linkhttp://mccleary.wpengine.com/index.php/seminar-invitation-research-and-developmentrd-tax-credits/ or email vanessa@mcclearyaccountants.com .

Forty Three Guests Attend Successful IHT Seminar

Tuesday, September 24th, 2013

Forty Three guests attended our successful seminar, ‘Protecting Your Wealth For The Next Generation’ at the Lough Neagh Discovery Centre on 17 September.  They heard our speakers John Neill, John McCleary and Jason Holmes discuss all aspects of Will Planning, Inheritance Tax and Care Home Planning.

 The feedback was excellent and we’d like to thank our three speakers for giving up their valuable time to improve our education.

 If you were unable to attend our event but would like to discuss how these issues impact on you, then please contact us for a free initial consultation.

 

 

Research & Developments Tax Credits Seminar

Tuesday, September 24th, 2013

We are pleased to announce that our next seminar is planned for Thursday 24 October at the Lough Neagh Discovery Centre, Oxford Island Lurgan.  Registration is from 9.00am for a 9.30am start. The presentation itself will take approximately one hour, with half an hour set aside for networking and questions at the end.

To register simply email vanessa@mcclearyaccountants.com .

R&D Tax credits are a valuable but much underused relief, only a fraction of the anticipated claims have been made, so many businesses are losing out.  If your business involves manufacturing of any description, there is a real chance that you may have eligible expenditure without knowing it!  Relief can be claimed for up to three years, so you may be due a refund of Corporation Tax from HMRC!

If you are interested in finding out more then click on this linkhttp://mccleary.wpengine.com/index.php/seminar-invitation-research-and-developmentrd-tax-credits/ or email vanessa@mcclearyaccountants.com .

Payroll giving award for HMRC

Tuesday, September 24th, 2013

Payments that your employees make through a Payroll Giving Scheme are deducted from their pay before tax is deducted. This means that employees are given tax relief on their donation immediately – and at their highest rate of tax.

It's easy to set up a Payroll Giving Scheme for your business. There's little in the way of cost and administration, and you'll probably be able to adapt your existing payroll system to operate the scheme.

Figures recently published show that HMRC is the top Government department for payroll giving – almost 10,000 of its staff donate through their salary. In July, HMRC published figures for the UK that confirmed payroll giving had risen £4m since 2012 to £124m.

Charities benefit from this type of donation as tax relief at the donor’s highest rate is applied when the donation is made. Giving by direct debit and ticking the Gift Aid box effectively pegs tax benefits to the charity at basic rate only.
 

Craigavon Business Forum – New Members Welcome

Monday, September 23rd, 2013

The 2013/14 season of the Craigavon Business Forum kicks off this Friday (CIDO Innovation Centre, Charlestown Road, Carn) at 7.45am.

The forum is now into its 3rd season and has proved a very popular group for owner managed in the Craigavon area.  The group aims to provide education and support for local business owners and meets on the last Friday of every month for a short talk and breakfast.  This month our speaker is Caroline Bell from People First, who will outline Government funded training opportunities available to business.

New members are very welcome at no initial cost.  If you attend and decide to become a member, then there is an annual fee of £100 per organisation to cover catering and running costs, however, the first event is free and there is absolutely  commitment.

I would like to attend simply email vanessa@mcclearyaccountants.com and she will make sure we have a bacon roll for you! We look forward to seeing many old faces and new members on the day.

Zero-hour contracts more widespread than thought

Friday, September 20th, 2013

The number of workers on contracts with no guarantee of hours or pay – known as ‘zero-hour’ contracts – is far more widespread than originally thought, figures from the Chartered Institute of Personnel and Development (CIPD) have revealed.

It shows that there could be up to a million UK workers on such contracts– four times more than official Government estimates. The new figures suggest that such contracts are used to employ three to four per cent of the UK’s entire workforce. One-fifth of the 1,000 employers surveyed had employed at least one person on a zero-hours contract.

The CIPD survey found:

  • employees in the voluntary (24 per cent) and public sectors (24 per cent) are more likely to use zero hours contracts than private sector employers (17 per cent)
  • the hotel, catering and leisure, education and healthcare sectors are most likely to employ zero-hours workers
  • organisations with 250 or more employees are more likely to use zero-hours contracts than smaller firms
  • zero-hour contract workers work an average of 19.5 hours per week.

The use of zero-hour contracts has risen sharply in recent years, particularly in the retail and hospitality industries, as they can be a cost-effective way of meeting short-term staffing needs, typically allowing firms to employ staff – often in low-paid jobs – who are ‘on-call’. However, some employment groups believe the contracts are being abused; with no fixed hours or pay some workers may work more than 50 hours a week one week, and none the next.

As with any type of flexible working arrangement, zero-hour contracts may be an appropriate solution for a range of situations but they require careful consideration and management.

We can help your business develop a flexible working policy.

What is a salary sacrifice?

Thursday, September 19th, 2013

A salary sacrifice is a voluntary reduction in your salary in exchange for tax-free benefits. These benefits can include:

• Child care vouchers
• Cycle to work schemes
• Bus passes for commuters
• Canteen tokens
• Staff car parking and vouchers


The Government have also launched a consultation into the promotion of payroll giving. The aim is promote the system that allows monthly charitable donations to be taken from your salary before tax and National Insurance are deducted.


Ironically, the higher your income, and therefore your marginal tax rate, the less you will have to contribute to achieve the same result. For example:


1. If you pay income tax at 20%, and want to contribute £20 a month to a charity you would have approximately £16 stopped from your salary.
2. If you pay income tax at 40% and want to contribute £20 a month to a charity you would have approximately £12 stopped from your salary.
3. If you pay income tax at 45% and want to contribute £20 a month to a charity you would have approximately £11 stopped from your salary.
You could also use a salary sacrifice arrangement to reduce your taxable income if it seems likely that it will break through a significant tax threshold. For example:
• If your income is about to exceed £100,000 you will lose your personal tax allowance at the rate of £1 for every £2 your income exceeds £100,000.
• If your salary, or that of your partner, is about to exceed £50,000 you may lose entitlement to some or all of Child Benefit you may receive.
• You could also use salary sacrifice to keep your income below an increase in a tax band rate: from 20% to 40% or 40% to 45%.


It is important to crunch the numbers before you approach your employer so that you can quantify the benefits.
 

Landfill tax clarification

Tuesday, September 17th, 2013

HMRC have published draft guidance on landfill tax. Materials that can be classified as naturally occurring, and therefore taxable at the lower rate of £2.50, include:

“Group 1 of the 2011 Order allows the following waste materials to be lower rated: naturally occurring rock, clay, sand, gravel, sandstone, limestone, crushed stone china clay, construction stone, stone from the demolition of buildings or structures, slate, sub-soil, silt, and dredgings. Generally, these materials are formed by a natural process and are therefore naturally occurring.”

HMRC also states:

“Mechanical processing such as crushing or sorting does not in itself affect the 'naturally occurring' status. Therefore waste containing only naturally occurring group 1 materials that have been crushed or sorted are still 'naturally occurring'. However, chemical or thermal processing does affect the 'naturally occurring' status (but minerals that have been processed or prepared may qualify for the lower rate under Group 3 of the 2011 Order).”
 

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