A progressive, South West based accountancy practice

LATEST POST

Wrongly applied penalty removed

Following an appeal submitted on 26th November last year to HMRC to remove a penalty that was wrongly applied, Becca finally had confirmation today that the penalty has been lifted and the monies returned to our client account.  Took a while but we got there in the end!

Tax bills reduced

Danny has recently saved one of our newer clients some tax by reducing the amount of tax due at 40% by proactively enquiring about their pension payments and utilising the increased basic rate band available because of this.There was also a further saving for an element of interest on a loan that was not considered by their previous accountant.

Overall, the tax saving was around £1500!

Corporation Tax refund

Steve has managed to secure a tax refund for a company client. Investigating the motor expenses in the draft accounts, Steve discovered that three new vans had been acquired during the year and a deduction for the full cost was made using capital allowances rules. This created a loss which was “carried back” against last year’s profits.

The result is one happy client; no tax to pay and a refund of over £2,000 to help them through this COVID-ravaged period.

Steve Carey writes:

“With rumours of corporation tax increasing from 19% to 25%, it has never been more important to see tax as one of your biggest business costs, and to manage it in the same way.

Our Diagnostax service will spot every relevant opportunity for you and can set a five year tax mitigation strategy in place. Clients have saved literally £10,000s from the ideas we’ve identified.

Contact us as soon as you can if you’d like a review.”

Becca

“A client’s old accountant signed them up as a limited company, but they didn’t find out until 5 1/2 months later when they moved to Numbers and started trading. When their year end came and went, family issues and COVID meant that they weren’t able to come up with their year-end records in time for the deadline.

I have come up with a workaround so that they don’t receive any penalties from HMRC or Companies House”

Danny

“In the very short time that I have been working at Numbers, I have managed to generate corporation tax refunds for two clients. I was able to generate tax refunds that equated to £489.63 for one client & £2,243.33 for another client.”

Please feel free to give us a call and come in for a chat if you’d like to know how we can help you! We won’t charge you for the initial meeting.

We need to act now to avoid Tier 2 restrictions

The rate of COVID-19 cases has now exceeded 130 cases per 100,000 and the numbers are still increasing. The city is on the cusp of a Tier 2 level which means tougher restrictions – no more than one household or support bubble meeting indoors, and only six outdoors. We can expect to enter Tier 2 within a matter of days if this trend continues. However, if we act now, we may be able to make a difference, so we hope alerting the city early enough will prevent us hitting Tier 2.

Most businesses are doing everything possible and feedback from the Health and Safety Executive shows good levels of compliance from our businesses. So far Plymouth has avoided tighter restrictions, but more than ever it is absolutely essential that we are all complying fully, being COVID aware and helping to stay out of Tier 2, protecting your business, your employees and the economy.

  • Safe premises means social distancing, sticking to the rule of six where applicable, coverings on and sanitiser available, with good ventilation and clear information about how to comply
  • Compliance is not optional – we need customers to follow our lead and keep safe
  • If staff can work from home, they should; make it easy for them to do so
  • Employees told to self isolate need and deserve your support – refer them to the help available if needs be: 

More information and support on compliance is available here

The government has recently given us further enforcement powers and while we only want to use them as a last resort, we will do so in order to protect our city. Action has already been taken against one licensed venue through a fixed penalty notice. Fines in excess of £10,000 can be levied so we hope we don’t have to take more action, as this is about stopping COVID-19, not penalising businesses.

Tier 2 will see all of our businesses affected by the limitations on households mixing indoors. I cannot stress how imperative it is everyone across the city understands the seriousness of COVID-19 and the consequences for our community. We must work together in order to protect our health, our NHS, our families, friends and our economy.

Much has been said about the impact of the restrictions – the actions we have been taking ARE working, as we can see from the level of R, but more needs to be done. The R rate before we had any restrictions was 2.5 to 3; it dropped below 1 during the spring, and remained low in the summer. It is currently at 1.3 and we need to get it back down.

Help and Support

How can we help you?

We understand that everyone will have different needs or concerns and it is important for the Public Health Team to be able to address those, equipping everyone with the support they need in order to keep Plymouth safe.

Part of our current insight work is looking how we can better help people across the city; if there is anything that we can provide which will benefit the business community, please share these with us: COVID19@plymouth.gov.uk. You can also contact us with any queries you have too.

Tap in to our tax expertise!

Steve met with an employed client who was under pressure to give away part of his bonus to help out his employer. This represented a change in his contractual terms, so Steve was able to utilise a couple of tax exemptions to eliminate tax and NIC on the full bonus. 

The client received his full bonus and the employer saves over £80,000 by implementing Steve’s ideas.

Needless to say, both are delighted.

Rachael’s hard work pays off

Many of you will know that Rachael, our Practice Manager, has been studying part time with The Open University for the last five years to gain a degree. She received her classification email recently and is ‘over the moon’ with the result, giving her a 2.1 in Business Management with leadership. We have benefitted over these past years from her input, as Numbers grew in size, but more importantly in expertise.

Sadly, because of the pandemic, she can’t have a graduation ceremony this year – hopefully we can post some pictures of a 2021 ceremony.

We are chuffed to bits for her – well done Rachael!